Around 300,000 people escape long-term unemployment thanks to the Work Programme
19 Jun 2014 04:06 PM
About 300,000 long-term unemployed people have
found lasting work using the Work Programme – an increase of 44,000
people in jobs in the last 3 months.
The
Work Programme was launched in June 2011 and overhauled how the very hardest to
help claimants are supported off benefits and into work through flexible and
tailored support where providers are paid by results.
Today’s (19 June 2014) figures come off the back
of statistics published earlier this month showing record levels of employment
and long-term unemployment falling by 108,000 over the past year – the
largest annual fall in 16 years.
Minister for Employment Esther McVey
said:
Long-term unemployment has dropped and the Work
Programme is playing its part by making sure around 300,000 jobseekers have got
a regular wage, the right skills and opportunities for today’s jobs
market.
The
vast majority of unemployed people find a job quickly, but we know the minority
of claimants who are in danger of becoming long-term unemployed need extra
help. As part of the government’s long-term economic plan, we introduced
the Work Programme to transform how this is done, and we won’t hesitate
to keep driving up performance to get the best deal for claimants and
taxpayers.
The
figures published today show Work Programme performance is continually
improving since being launched in June 2011, and continues to do
so.
Up
to the end of March 2014, 296,000 people have so far found lasting work –
up from 132,000 a year earlier. There are a further 26,000 people who we have
identified who have spent at least 6 months in work (or 3 for the hardest to
help), but where the provider has not claimed a job outcome.
The
vast majority of those who find sustained employment are remaining in work
beyond the 6 month point (or 3 for the very hardest to help). Over 274,000
participants have gone on to work past this point.
Performance has been continually improving, with all
contracts meeting the Minimum Performance levels in the third year of the
programme. Of the most recent group who joined the scheme in March 2012 and
have been on the scheme long enough to be counted in these statistics, nearly
28% have been placed in a sustained job. This is up from 22% for those who
joined at the beginning of the programme. Young people have proportionately
secured the most number of sustainable jobs out of any group, with 71,640
having done so since the programme began.
Work Programme providers get paid the majority of their
money when someone has stayed in work for 6 months, or 3 months for some of the
hardest to help, which means that many more people will have started work but
not reached the 6 month point yet. Industry figures show over 550,000 people
had started a job thanks to the Work Programme.
Previous schemes didn’t do enough for disabled
people, which is why the Work Programme focuses on giving some of the hardest
to help people 2 years of support, and offers providers higher prices for
working with these claimants. We know that this group requires a great deal of
support, and that many will have been out of work for a number of years –
decades even.
Work Programme providers have improved significantly,
but we have always been clear that we want to continue to drive up performance,
which is why a range of new performance measures are being established to
ensure as many people as possible are helped into work, and to give the best
value to the taxpayer.
Case studies:
The
Care Quality Commission’s Newcastle office has taken on 7 young people
from the Work Programme thanks to Ingeus.
Stephen Leck from Chapel House is one of them. He
said:
I
had been unemployed for 9 months and spent most of my time applying for every
vacancy I came across. I was determined, but I was going wrong somewhere. With
no routine and little success, the days were getting longer and longer.”
Ingeus worked with him on things like enhancing his CV, getting noticed in job
interviews and looking for the kind of jobs that interested him. “I was
both surprised and delighted when they said they wanted me”, he
said.
Care Quality Commission’s Joanne Thompson
said:
The
Work Programme is really helping young people in this city get their first foot
on the ladder of real careers.
Amberbanks Care Home for the elderly in Blackpool has
taken on 7 recruits from the Work Programme, one of whom was Netty Bryan. After
spending 28 years out of work and suffering two breakdowns, Netty was resigned
to spending the rest of her life getting by on benefits. A4e supported her with
advice on how to write a CV and covering letter, confidence building and
interview techniques, which paid off when Netty was given a job. Netty
said:
It
was my first job interview in 20 years. I never in a million years expected to
get it and when I did I was walking on air. I still am. I love working, I love
my job, I love the older people I work with. I feel like I’ve found my
vocation. I’m nearly 50 but it’s never too late.
More information
The
Work Programme was launched in June 2011 and is aimed at those at risk of
long-term unemployment. Providers are paid according to results to get people
into work, with extra incentives to support the hardest to
help.
Providers have flexibility to innovate and to design
support that addresses the needs of the individual and the local labour market,
rather than having to follow one size fits all processes. They get a small
amount of money up front but most payment comes after someone has been in work
for up to 6 months, and extra payments for each month
afterwards.
Once referred, claimants remain on the Work Programme
for 2 years. Even after a participant has started a job their provider will
offer them in-work support for the balance of their time on the
programme.
Outcome payments are usually made after someone has been
in work for 6 months, or 3 months in the case of the very hardest to
help.
By
the end of March 2014, 1.44 million people had been referred to the Work
Programme and been on it long enough to count in today’s employment
performance figures.
Read the Work Programme official
statistics
Section 4.1.1.3 of the technical annex to the statistics
release provides information on the analysis conducted relating to
individuals who have spent sufficient time in work but where a Job Outcome
payment has not been paid.
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