House of Commons - Public Accounts

Select Committee on Public Accounts Sixth Report

1 The need to rationalise the range of schemes and programmes

1. In 2005, 50% of disabled people[4] of working age were in employment, compared to 75% of the working age population as a whole.[5] Whilst not all people with disabilities are able to work, many can do so with varying degrees of assistance. As well as earning money, being in work can have many positive benefits, such as developing confidence, meeting people and generally being more integrated into society.[6] These effects are just as important for people with disabilities as for those without. Disabled people often face a range of barriers to finding and retaining a job however, and may need additional support to overcome a lack of confidence and self-belief from having been out of work.

2. The number of people on incapacity benefits has risen over many years to a current level of almost 2.7 million. The Department reported that recently the first fall in 30 years in the total on incapacity benefits had occurred as the numbers coming off benefit had exceeded the number joining. It is reasonably confident that proposed reforms to incapacity benefit will help more people move into work, although there would be other factors which might increase the level in the future, for example, the rise in the state pension age for women.[7]

3. More than 1 million of the 2.7 million people on incapacity benefits say they want to work[8] but the Department's specialist employment programmes support only a small number who could potentially benefit (Figure 2).[9] The Department offers a number of complex and partly overlapping programmes to help disabled people find and retain work. The assistance includes help finding appropriate jobs, developing new or existing skills, support and advice for those in work and grants to employers. Together, the schemes and programmes cost the Department around £300 million a year. The Department pays out more than £12 billion a year in benefits for people with disabilities or health related problems.[10]

4. Disabled people can gain access to the Department's specialist support in different ways, which adds to the potential for confusion. Some of the programmes are only available through the intervention of a Disability Employment Advisor based in a Jobcentre Plus office, while others operate a self-referral system. For example, the New Deal operates a self-referral system, Access to Work is through direct application, and other programmes are usually available through the intervention of a Disability Employment Adviser. Explaining precisely what is available to individuals in their particular circumstances can be difficult, and the reasoning behind the differences in activities is quite confusing. Although the Department has a distinct rationale for each scheme and is clear on the differences between them, the logic is less readily apparent to the potential user.[11] The Department is looking to simplify its provision. It is currently undertaking a review of all programmes, but was unwilling to anticipate the findings or commit to introducing a single gateway to its services.[12] The review is due to report by the end of 2006.[13]

Figure 2: The Department's core programmes covered in this Report

Programme Description Programme cost and
numbers participating
(2003-04)[14]
Programme cost and
numbers participating
(2004-05)[15]

Remploy Largest provider of Workstep, providing supported employment in 83 factories across the UK. Also includes Remploy Interwork, Remploy's recruitment arm.
£115m
8,800

£116m
9,400

Workstep
(excluding Remploy)
Provides tailored support for disabled people with more complex barriers. Aim is to progress people from a supported environment to open employment.
£74.2m
14,200

£68.7m
14,200

New Deal for Disabled People Offers access to a network of job brokers who
provide support and advice to help disabled
people and people with health conditions find
work. Often for disabled people who need
minimal levels of support to find work.

£37.5m
57,800

£64.8m
97,800

Access to Work Provides financial assistance towards the extra
costs of employing someone with a disability,
such as contributing towards the cost of
specialist IT equipment, work adaptations to the
workplace, some travel costs and the cost of
having a support worker.

£55.8m
34,800

£59.6m
32,000

Work Preparation Helps people with health conditions or a disability prepare to return to work by building their confidence, offering work experience and providing support. Ofter used as a stepping stone into Workstep.
£10m
7,400

£12.8m
8,100

Job Introduction scheme Supports disabled people looking for work or about to start a job and provides an initial weekly grant for employers to cover any additional costs.
£0.9m
2,000

£1m
2,300

Total expenditure
Total numbers participating
£293.4m
125,000
£322.9m
163,800

5. Although the number of people using these core programmes is low, and some providers are operating at less than their contracted capacity,[16] the Department reported that it has no problem spending appropriately the money allocated for the programmes. Recent efforts to raise awareness of the programmes include greater use of the internet, including via the guidance for disabled people on www.direct.gov, and working with partner organisations to provide information and guidance on the services available.[17]

6. When Workstep replaced the Supported Employment Programme in 2001, the minimum hours a person was required to work increased from 8 to 16 hours a week. This rule prevents people building their hours up slowly and means those who could potentially benefit from the programme but who are unable immediately to work this many hours a week cannot participate in the programme. The Department is aware of the issue but said it was a deliberate part of the design to reflect a stronger emphasis on progress into full-time unsupported employment.[18]

7. Most disabled people are not born disabled but become so during their working life. Access to Work is nevertheless the only programme that offers support to disabled people in retaining their existing job. The Comptroller and Auditor General's Report noted that the personal adviser performance framework gives almost no recognition to personal advisers for helping disabled people retain work. The Department considered its new performance regime—introduced in April 2006—would resolve this problem by removing some of the perverse incentives which had discouraged advisers from focusing on harder-to-help customers.[19]

8. The Department accepts that it has a role in helping disabled people retain jobs but stressed that its primary task is to help disabled people tackle the barriers they face in finding employment. It has been working in partnership with employers to help with retention but considered there was a limit to how much it could do. The prime objective of the Disability Discrimination Act is to require employers to act. In particular, they should not discriminate against disabled people and should make reasonable adjustments to enable them to perform their duties.[20] Nevertheless, preventing a person losing a job because of their disability merits further attention as potentially more efficient than providing assistance and support once they are out of work.

9. In October 2003, the Department launched Pathways to Work, a pilot programme trailing new ways of helping Incapacity Benefit recipients overcome barriers to returning to work.[21] The Department said the programme had made good progress, with data showing increased movement off benefits in areas where the pilots were running.[22] In particular, it considers a series of "work focused interviews" as the best way of pointing people towards available services. The Department is also seeking to raise awareness that most people will be better off financially in work than on benefits or could combine work and benefits, and had evidence that this exercise was working.[23] The Department anticipates that Pathways to Work will be extended to a third of the country by the end of 2006.[24] This programme will form a major component of disability related assistance for the future, but as there is already confusion from the existing array of programmes, it is important that Pathways to Work, as yet another initiative, does not lead to additional uncertainty around the rights, obligations and opportunities for disabled people.[25]