White Paper on Universal Credit - Work and Pensions Committee Contents


Written evidence submitted by Turning Point

1.0 Introduction

1.1 Turning Point welcomes the opportunity to respond to the Work and Pensions Committee consultation on the "Universal Credit: Welfare that Works" white paper. We are specifically supportive of the committee's focus on addressing the areas within the White Paper which require further development; this is a concern as we must be cautious that the unintended consequences of welfare reform do not cause further harm to the wellbeing of the long-term unemployed. The consultation specifically asks for the areas which respondents feel have not been given adequate attention within the White Paper. Turning Point believes there is room for further details of the support that can be established to not only help people find employment but also offer a timely intervention to prevent people from exiting employment through long-term sickness absence.

1.2 Turning Point is a leading health and social care organisation. We focus on the individual in everything we do and specialise in providing services for people with complex needs, including those affected by substance misuse, mental health problems and those with a learning disability.

1.3 Turning Point provide employment programmes and personalised, work-focused support for people with substance misuse issues, mental health needs, people with a learning disability as well as people with offending histories.

SUMMARY OF KEY RECOMMENDATIONS

1. In times of high unemployment it is easy to forget that there are two-tiers of the unemployed, those who are close to the labour market and those who are not. The causes of long-term unemployment must be fully understood before it is tackled, the Work Programme will be fundamental in this but the White Paper should have a greater focus on how sanctions can be matched with adequate support.

2. The importance of resilient and robust mental health to both gaining and retaining employment cannot be forgotten. Effective support to tackle long-term unemployment while also supporting people who may be close to exiting employment has to take into account the holistic needs of the individual.

2.0 In times of high unemployment it is easy to forget that there are two-tiers of the unemployed, those who are close to the labour market and those who are not. the causes of long-term unemployment must be fully understood before it is tackled, the Work Programme will be fundamental in this but the White Paper should have a greater focus on how sanctions can be matched with adequate support

2.1 There are two principles behind the Universal Credit; it intends to reduce the complexity of the system while also addressing the high-number of people who are long-term unemployed. Recent statistics suggest that 2.5 million people in the UK are unemployed and this high level is reflective of the difficult labour market the unemployed are competing in, as well as the challenge faced by services to support the long-term unemployed progress towards the labour market.

2.2 Turning Point believes the dual approach behind the Universal Credit is necessary both for the savings it will make for the state and also to help people realise their potential. Nevertheless, it is important that any reform of the welfare system is undertaken in parallel with understanding the key contributory factors which can lead to long-term unemployment. It is only when these factors are addressed that any progress can be made in challenging welfare dependency. In a time of high-unemployment, it is possible that two-tiers of the unemployed will be created, those who are fairly well skilled and remain close to the job market; and those who have never been close to employment and will be marginalised even further by the increased competition for jobs. The Work Programme will be fundamental in addressing these concerns; nevertheless, the White Paper should have a greater focus on the support that will be offered to address the holistic needs of the long-term unemployed.

3. The importance of resilient and robust mental health to both gaining and retaining employment cannot be forgotten. Effective support to tackle long-term unemployment while also supporting people who may be close to exiting employment has to take into account the holistic needs of the individual

3.1 Just as those who are migrated away from ESA require support, so do those who are close to exiting from employment through long-term absence. This suggests that a two-pronged approach rooted in early intervention is needed, one which supports the long-term unemployed get the support needed to progress them towards the labour market, as well as a parallel approach which will support those in employment who are experiencing difficulties which may eventually lead them to exiting the labour market.

3.2 Addressing mental health conditions is crucial to this approach, mental ill health costs £105 billion a year in England, with £30-40 billion of this loss attributed to lost productivity and NHS costs. Mental health is also recognised as the most common reason for claiming health-related benefits with 86% remaining on benefits for more than three months (compared to 76% for other claimants).[181]

3.3 Therefore, it is important that support offered to the long-term unemployed addresses the mental health needs of the individual. Nevertheless, the reasons behind unemployment are complex and each individual will have their own explanation for why they are long-term unemployed. Sustaining employment is dependent, amongst other things, on having stable housing, freedom from substance misuse and mental health difficulties, a positive social network, as well as the right mix of skills required by the employer. Support for the unemployed needs to be flexible enough to respond to these demands.

3.4 Turning Point believes our Rightsteps Employment model offers a service which can address the needs of both the long-term unemployed as well as those who are close to exiting employment through long-term sickness absence.

3.5 Rightsteps Employment

Rightsteps is Turning Point's Improving Access to Psychological Therapies (IAPT) model, which provides assessment and holistic support for common mental health difficulties. Rightsteps Employment uses the Rightsteps model and is intended to provide a flexible response to address the challenges which are preventing individuals from either finding employment or leave them at risk of exiting employment.

We believe that Rightsteps Employment offers a personalised service that fully supports the individual in their search for employment. The model is also able to respond to the very different needs of people with low-level mental health requirements who are perhaps becoming regular absentees at work and need a small amount of support to enable them to address these problems.

Within Rightsteps Employment model, support is given to the individual to address their mental health condition, learning disability or substance misuse issues while also promoting interventions which improve their employability. These interventions can range from low-intensity advice on the basics of looking for a job to more intensive support, such as counselling in how to manage stress and problem-solving. An initial telephone assessment highlights any personal difficulties an individual is facing and helps to speed-up the referral process. The service also highlights any sources of outside support available and, as such, can respond to the needs of both the long-term unemployed and those who are closer to gaining employment.

The key to Rightsteps Employment is that it offers a support service which is easily accessible; this means that people would be able to get support as soon as it is needed.

3.6 Rightsteps Employment can help support people both into employment and also support them to remain in employment. In addition to the human benefits of this, there are positive effects for the state by reducing benefits while also increasing tax revenue. Similarly, when Rightsteps Employment is applied to those who are at risk of losing employment through unaddressed personal challenges, it can also help to support people become more engaged in their employment and therefore more productive.

4.0 Cost-Benefit of Rightsteps

4.1 These benefits can be seen in the cost-benefit work Turning Point has recently had completed on the Rightsteps model by the London School of Economics' Personal Social Services Research Unit. Findings suggest the model has the potential to respond to the increasing demand for employment-related support.

Analysis found that a cost-benefit ration of £3.35 was gained by the Government for every £1 invested. This included reduced benefit payments, increase tax revenue and reduced costs to the NHS.

From Society's perspective a cost-benefit ratio of £3.43 was gained for every £1 spent. This incorporates savings through increased employment and productivity while in employment.

The analysis also found improvements in the mental health of Rightsteps patients during the course of the treatment. On average, depression scores improved by 11.6%, anxiety scores by 11.4%, phobia scores by 8%.

4.2 It is clear that Rightsteps as a model can be applied to address common mental health conditions. We believe that the flexibility of the model can be used to identify and navigate around the complex needs of those who are unemployed or at risk of becoming unemployed.

5.0 Conclusion

5.1 In response to this consultation, Turning Point would again emphasise the need for support to address the high-levels of people dependent on benefits. Nevertheless, it is important that sanctions are not the only method used. This will have unintended consequences by ensuring that people further disengage from any avenues of support while also strengthening the grip of poverty on workless households. The effects of this would be felt for years to come. What is needed is an approach which identifies and addresses the contributory factors to long-term unemployment while also seeking to prevent people from exiting employment through long-term absence. The Work Programme will be crucial in building a foundation of support for the unemployed and must also provide easily accessible and personalised support which understands that each long-term unemployed person will have their own challenges which obstructs employment.

December 2010



181   Centre for Mental Health, 2010 and Department of Health and Department of Work and Pensions, Working our way to better mental health: a framework for action, 2009. Back


 
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