DEPARTMENT FOR WORK
AND PENSIONS News Release (Reference DRC-120) issued by COI News
Distribution Service. 2 December 2008
The Government
should extend conditionality so that virtually no one can claim
benefits without taking active steps to address barriers to work,
according to an independent review published today.
The review, undertaken by Professor Paul Gregg from Bristol
University, was commissioned by Secretary of State for Work and
Pensions James Purnell to look at how more people can be helped
off benefits and into work.
Professor Gregg's report, 'Realising Potential',
looks at the requirements currently placed on the unemployed and
calls for a new attitude to parents with young children and those
on incapacity benefit who could work in the future.
The review builds on the strengths of the current system,
recognising conditionality as an effective way of improving
employment rates and reducing child poverty. The review
recommends that from now on nearly everyone on benefits should be
required to take steps towards finding employment; with claimants
treated as individuals, and empowered to design their own route
back to work.
Professor Gregg argues that conditionality regimes around the
world have helped increase employment, and that the UK's
regime for jobseekers is one of the best. To make it more
effective, he recommends making sanctions quicker, clearer and
more effective with a simple and understandable system of fixed
penalties for most occasions with a targeted, escalating series of
sanctions for repeat offenders who refuse to play by the rules.
James Purnell said:
"This review starts an important debate about the next wave
of reform. These issues matter now more than ever - when jobs are
harder to find, we need to invest in those people who will one day
be back in work so they don't lose touch with the labour market.
"In July, I commissioned Paul Gregg to look at the next
stages of reform based around personalising what we ask of people
in return for benefits. I have felt for a long time that, whilst
we have a good system of rights and responsibilities on those who
are actively seeking work, we need next to address those who could
move back into employment quickly with the right encouragement and
support, such as lone parents of younger children and people on
Incapacity Benefits.
"Paul's vision for realising potential is an important
milestone in this debate. At the core of these reforms are clear
obligations on what we expect in return for benefits and how we
ensure the modern welfare state applies fair rules for all.
"We will examine this Review over the coming weeks but
it's clear to me that the next wave of reform must ensure
that no one is left behind. I will respond to this Review later
this month when I publish the Welfare Reform White Paper."
The Review recommends that a long-time vision for personalised
conditionality and support is required for three broad groups of
benefit claimants:
- A 'Work-Ready' group - these will be customers who
are claiming Jobseekers Allowance and are assessed as being
immediately 'job ready' and should therefore be able to
make a prompt return to work.
- A 'Progression to Work' group - for people where an
immediate return to work is not appropriate - but would be
possible in time. And
- A 'No Conditionality' group - where no conditionality
whatsoever will be applied - because it is not appropriate as they
either have a particular severe health condition or disability, or
they are a carer or a lone parent with their youngest child under
the age of one.
Paul Gregg said:
"To compete in the modern economy, countries must realise
the potential of each and every citizen. That is why, in an
economic downturn, it is more important than ever that the
Government puts in place a welfare framework that provides
support, encouragement and a push to do the right thing.
"These recommendations are wide-ranging and challenging for
the Government and I know some proposals will be controversial.
"However, at their heart is a core principle that I am
confident the Government will take forward: to treat benefit
claimants as individuals and empower them to design their own
route back to work."
Notes to Editors:
1) James Purnell commissioned Paul Gregg's review in July to
examine the effectiveness of conditionality within the welfare
state to apply rules fairly across the system.
2) Paul Gregg is a Professor of Economics at Bristol University,
a leading welfare expert and a member of the London Child Poverty Commission.
3) The Review is published at http://www.dwp.gsi.gov.uk
DWP Press Office 0203 267 5144
Website http://www.dwp.gov.uk