EXISTING CLAIMANTS
258. Since the Pathways to Work pilots first began,
they have been targeted at new incapacity benefits claimants.
In February 2005, Pathways was formally extended to existing claimants
who had been on benefit for up to three years and from April 2006,
the extension included those who have been claiming for up to
eight years. In one pilot area (Somerset) Pathways was extended
to all existing claimants. Prior to this, existing claimants could
volunteer to take part in Pathways. In the early stages of the
pilots, around one in ten participants were existing claimants.[319]
259. For the initial extension covering the first
phase of the pilot areas, a live benefits data scan to identify
existing eligible claimants found a total of 22,650 people. By
the end of July 2005, 7,840 first WFIs had taken place with a
further 3,750 second WFIs and 2,050 third WFIs. 2,860 claimants
were recorded as failing to attend. By the end of July 2005, nearly
half of the 22,650 identified by the data scan had been booked
in for their first WFI, suggesting that the pilots appeared to
be on target to call in all eligible existing claimants by March
2006, although there is not yet any data suggesting that this
has been completed. As a result of the WFIs attended by the end
of July 2005, there were 420 NDDP registrations, 800 referrals
to the CMP, 380 referrals to other programmes and 210 recorded
job entries.[320]
260. Evidence received during the inquiry supported
the extension of Pathways to existing incapacity benefits claimants
but presented voluntary participation in Pathways by existing
claimants as evidence that compulsion to participate was not necessary.[321]
261. A recent report from the Pathways evaluation
found that IBPAs had mixed views on the reduced number of mandatory
WFIs for existing claimants. Some felt that having fewer WFIs
was a positive decision, while others thought it unfair and that
the number of compulsory WFIs should be the same for new and existing
claimants. Many IBPAs also thought that there should be more discretion
given to IBPAs to tailor provision to the claimants' needs and
levels of motivation. [322]
262. In evidence to the Committee, the Secretary
of State was asked for the rationale behind existing claimants
attending three rather than six WFIs. He explained that the Department
recognised that these claimants were very different to new claimants
and were likely to have had minimal contact with Jobcentre Plus
since their claim began. Consequently, a proactive approach with
more frequent interviews would not be appropriate.[323]
The Secretary of State also confirmed that those clients who wanted
more support than could be offered in three WFIs from their IBPA
would be able to access it.[324]
Findings from the evaluation of the Pathways extension suggested
that existing claimants needed more support than new claimants
and did tend to make slower progress. Although there were some
job entries, progress tended to be on 'soft' outcomes such as
increased confidence, changes in attitude and motivation and punctuality
at interviews.[325]
263. The situation of existing claimants will be
explored in more detail in the following chapter regarding the
national roll-out of Pathways to Work. Before moving onto looking
at the proposed roll-out, the next section briefly addresses the
cost-effectiveness of the current Pathways pilots.
Are the Pathways pilots cost-effective?
264. The Pathways pilots covering one third of the
country cost £150m per annum. (Chapter 8 analyses the costs
of the current pilots and future roll-out of Pathways in more
detail). In a parliamentary answer, the Minister for Work stated
that "the average funding per person on the Pathways programme,
for each person entitled to access it, is around £400, excluding
the Return to Work credit."[326]
This figure represents the total cost of the Pathways programme,
excluding the Return to Work credit, divided by the total number
of programme starts.[327]Additional
information provided in recent parliamentary answers provides
further detail on some of the individual elements of the Pathways
pilots. For example, the average cost per participant in the NDDP
element of the Pathways pilots is £1,600 and for the Condition
Management Programme it is £1,500.[328]
265. When the Secretary of State was asked whether
he thought the 8 percentage point improvement in claimants moving
off incapacity benefits was enough to justify the resources used
by Pathways, he responded:
"yes, absolutely. The break-even point would
have been about four percentage points. We have doubled that.
[
] So it is definitely a cost-effective intervention
from the taxpayers' point of view, and we are right now to proceed
with a national roll-out."[329]
266. Following the evidence session, the Department
provided the Committee with further detail on savings achieved
by Pathways and the 'break-even point'. It commented that savings
were driven by the additional numbers moving off the incapacity
benefits caseload plus:
"the savings per person helped off IB by
Pathways, from benefit savings and additional NI and tax revenue
if they go into work. For example, the IB-only benefit savings
from one person off the benefit over a year would be around £3,500
on average."[330]
267. On the break-even point the Department stated:
"However, savings don't materialise straight
away because of lagged effects. For example we have to pay the
costs upfront of WFIs and support services, but the benefits might
only be seen after, say, 6 months when people leave benefit to
start a job as a result of the Pathways intervention.
The breakeven point is therefore determined by
the extent to which long run savings exceed long run costs, and
by the time it takes for the intervention to have an impact (before
the impact, everything is a cost and savings are zero)."
268. We will continue to monitor the cost-effectiveness
of the Pathways to Work programme.
221 See, for example, Q 33; Vol 2: Ev 13; Ev 19; Ev
23; Ev 65; Ev 81; Ev 112; and Vol 3: Ev 48; Ev 75; Ev 182 Back
222
Q 33; Ev 183, vol 3 Back
223
The consortium is led by the Policy Studies Institute and includes
the National Centre for Social Research, the Social Policy Research
Unit, the Institute for Fiscal Studies, Mathematica and David
Greenberg of the University of Maryland. Back
224
Corden et al (2005) Incapacity Benefit Reforms Pilots - Findings
from a longitudinal panel of clients, DWP Research Report No 259,
Leeds: CDS; Knight et al (2005) Incapacity Benefit Reforms - the
Personal Adviser role and practices: Stage Two, DWP Research Report
278, Leeds: CDS; Barnes H & Hudson M, (2006) Pathways to Work
- extension to some existing customers: early findings from qualitative
research, DWP Research Report No 323; Corden, A & Nice, K
(2006) Incapacity Benefit Reforms Pilot: Findings from the second
cohort in a longitudinal panel of clients, DWP Research Report
No 345, Leeds: CDS; and Barnes, H & Hudson, M (2006) Pathways
to Work: Qualitative Research on the Condition Management Programme,
DWP Research Report No 346, Leeds: CDS Back
225
See, for example, Ev 219, vol 2; and DWP, Cm 6730, Jan 2006, p
28 Back
226
HC Deb, 24 January 2006, col1307W Back
227
Blyth, B, Pathways to Work Pilots performance and analysis, DWP
Working Paper No 26, Jan 2006, p8 Back
228
Ev 254, vol 2 Back
229
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots
performance and analysis, DWP Working Paper No 26, January 2006,
p1 Back
230
HC Deb, 30 January 2006, col 253W Back
231
Figures were calculated from those provided in HC Deb, 20 March
2006, col 130W Back
232
Vol 2: Ev 96; Ev 113; Ev 120 Back
233
Corden et al (2005) Incapacity Benefit Reforms Pilots - Findings
from a longitudinal panel of clients, DWP Research Report No 259,
Leeds: CDS, p 2 Back
234
Corden, A & Nice, K (2006) Incapacity Benefit Reforms Pilot:
Findings from the second cohort in a longitudinal panel of clients,
DWP Research Report No 345, Leeds: CDS, p 34 Back
235
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
Leeds: CDS, p 41 Back
236
See, for example, Vol 2: Ev 27; Ev 88; Ev 86; Ev 184; and Vol
3: Ev 115; Ev 204; Back
237
Ev 61, vol 3 Back
238
Ev 205, vol 3 Back
239
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 23-25 Back
240
Q 317 Back
241
Ev 254, vol 2 Back
242
Ev 164, vol 3 Back
243
Ev 115, vol 3; and Ev 117, vol 3 Back
244
See, for example, Ev 71, vol 3; Ev 185, vol 3 Back
245
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 26 Back
246
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 3 & 24 Back
247
Barnes & Hudson, (2006) Pathways to Work - extension to some
existing customers: early findings from qualitative research,
DWP Research Report No 323, Feb 2006 Back
248
Q 320 Back
249
Vol 2: Ev 47; Ev 57; Ev 134; Ev 144; Q 167 Back
250
Ev 47, vol 2 Back
251
Qq 77-78 Back
252
Vol 2: Ev 201; Ev 115; Vol 3, Ev 65; Ev 187 Back
253
Ev 197, vol 3 Back
254
Ev 183, vol 3 Back
255
Vol 3: Ev 184; Ev 197; Ev 206 Back
256
Vol 2; Ev 22 Back
257
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278 Back
258
Q 327 Back
259
Ev 27, Vol 2 Back
260
Q 224 Back
261
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots,
DWP Working Paper No 26, January 2006, p 11-13 Back
262
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 55 Back
263
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots,
DWP Working Paper No 26, January 2006, p 13 Back
264
See, for example, Vol 3: Ev 29; Ev 207-208; Ev 220 and Q 175 Back
265
See, for example, Vol 2: Ev 13; Vol 3: Ev 86; Ev 110, Q 45 Back
266
Ev 48, vol 2; Ev 114, vol 2; Ev 207, vol 3 Back
267
Ev 160, vol 2; Ev 176, vol 2; Ev 207, vol 3 Back
268
Standard letter sent to claimants, obtained from the Department
for Work and Pensions Back
269
Q 223 Back
270
Ev 207, vol 3 Back
271
Ev 77, vol 2 Back
272
Ev 175, vol 2 Back
273
Q 175 Back
274
Q 309 Back
275
See, for example, Ev 114, vol 2; Ev 43, vol 3; Ev 164, vol 3 Back
276
Ev 207, vol 3 Back
277
Ev 129, vol 3 Back
278
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 55-56 Back
279
Ev 164, vol 3 Back
280
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 57-61 Back
281
Q 319 Back
282
Ev 200, vol 3; Ev 59, vol 3 Back
283
Ev 161, vol 2 Back
284
Ev 163, vol 2 Back
285
HC Deb 8 March 2006, col 1549W Back
286
Corden, Nice and Sainsbury (2005) Incapacity Benefit Reforms Pilot:
Findings from a longitudinal panel of clients, DWP Report 259,
p 43 Back
287
Q 138 (Ms Reith) Back
288
Q181 Back
289
Ev 68, vol 3 Back
290
Corden, A & Nice, K (2006) Incapacity Benefit Reforms Pilot:
Findings from the second cohort in a longitudinal panel of clients,
DWP Research Report No 345, Leeds: CDS, p 48 Back
291
Knight et al (2005) Incapacity Benefit Reforms - the Personal
Adviser role and practices: Stage Two, DWP Research Report 278,
p 57-61, p 69-70 Back
292
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots,
DWP Working Paper No 26, Jan 2006, p 14 Back
293
Vol 2: Ev 166; Ev 177; Ev 197 Back
294
Ev 206, vol 2 Back
295
Q 39 Back
296
Ev 26, vol 2 Back
297
HC Deb, 7 February 2006, col 745 Back
298
Professor Layard's address to the Sainsbury's Centre for Mental
Health, 12 September 2005 Back
299
Q 283 Back
300
Q 284 Back
301
Ev 221, vol 3 Back
302
HC Deb, 19 April 2006, col 220W Back
303
Q 167 Back
304
Ev 143 and 146, vol 2; Q 167 Back
305
Ev 141, vol 2; Q174 Back
306
Q 48 Back
307
Ev 108, vol 3 Back
308
Q 78 Back
309
Vol 2: Ev 116; Ev 120; Vol 3: Ev 182; Ev 207; Q 168 [Ms Reith],
231 Back
310
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots,
DWP Working Paper No 26, Jan 2006, p 16 Back
311
Vol 2: Ev 120; Ev 177; Vol 3: Ev 1; Ev 41; Ev 112; Ev 208 Back
312
Ev 120, Vol 2 Back
313
Vol 2: Ev 177; Vol 3: Ev 112; Ev 208 Back
314
Ev 177, vol 2 Back
315
Ev 40, Vol 3 Back
316
Ev 112, vol 3 Back
317
Q 285 Back
318
Corden, A & Nice, K (2006) Incapacity Benefit Reforms Pilot:
Findings from the second cohort in a longitudinal panel of clients,
DWP Research Report No 345, Leeds: CDS, p 52-53 Back
319
'Start of new regime for long-term IB claimants, DWP press notice
,7 February 2005 Back
320
Blyth, B, Incapacity Benefit Reforms - Pathways to Work Pilots,
DWP Working Paper No 26, Jan 2006, p 19 Back
321
Ev 113, vol 2; Ev 198 and 200, vol 3 Back
322
Barnes, H & Hudson, M (2006) Pathways to Work - extension
to some existing customers, DWP Research Report No 323, Leeds:
CDS, p 25-33 Back
323
Q 311 Back
324
Q 315 Back
325
Barnes, H & Hudson, M (2006) Pathways to Work - extension
to some existing customers, DWP Research Report No 323, Leeds:
CDS, p 31-32 Back
326
HC Deb, 7 February 2006, col 1170W Back
327
HC Deb 18 April 2006, col 429W Back
328
HC Deb 18 April 2006, col 427-8W Back
329
Q 286 Back
330
Ev 253, vol 2 Back