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Transcript of Nao Repport, Atw, 2005
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REPORT BY THE COMPTROLLER AND AUDITOR GENERAL | HC 455 Session 2005-2006 | 13 October 2005
department for work and pensions
Gaining and retaining a job: the Department orWork and Pensions support or disabled people
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LONDON: The Stationery Oce
11.25
Ordered by theHouse o Commons
to be printed on 10 October 2005
department for work and pensions
Gaining and retaining a job: the Department orWork and Pensions support or disabled people
REPORT BY THE COMPTROLLER AND AUDITOR GENERAL | HC 455 Session 2005-2006 | 13 October 2005
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This report has been prepared underSection 6 o the National Audit Act 1983or presentation to the House o Commonsin accordance with Section 9 o the Act.
John BournComptroller and Auditor GeneralNational Audit Ofce
18 September 2005
The National Audit Ocestudy team consisted o:
Simone-Davis, Chris Jamieson,Rebecca Sidell Dawson, Vicky Lewisand Shabana Ahmed, under thedirection o Jeremy Lonsdale
This report can be ound on the National
Audit Oce web site at www.nao.org.uk
For urther inormation about theNational Audit Ofce please contact:
National Audit OcePress Oce157-197 Buckingham Palace RoadVictoriaLondonSW1W 9SP
Tel: 020 7798 7400
Email: [email protected]
National Audit Oce 2005
contents
eXeCUtiVe sUmmarY 1
part 1
The Departments employment 14
programmes or disabled people
The Departments specialist employment 16
programmes address a wide range o needs
The Government has committed itsel to 22
increasing the employment rate o disabled
people and the Department is on course to meet
its Public Service Agreement target
Scope o this examination 25
part 2
Finding and retaining work 26
Building a persons sel condence is an essential 27
part o the process o moving into employment
Relevant training is important in bringing people 28
closer to the job market, but individual
development plans are not always in place
The programmes need to be careully matched 29
to the varied needs o clients
The New Deal or Disabled People provides an 30
eective service or those needing less intensive
support to return to work
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Providers could ocus more on obtaining high 31
quality employment that enables disabled people
to reach their potential
Most o the programmes ocus on nding a job; 31
job retention is oten a secondary activity
The Departments or Work and Pensions and 33
Health are developing schemes or job retention
and rehabilitation
part 3
The quality and accessibility o support 34
Disability Employment Advisers are vital to the 35
eective delivery o the Departments
employment programmes
Training or Disability Employment Advisers 36
is currently ad hoc, but is under review
Quality inspections o providers by Jobcentre Plus 36
are not carried out according to schedule
Inspections or Workstep show poor perormance 37
by some providers, which is now being tackled
Marketing o programmes can raise awareness 37
among individuals and employers
Provision is not consistent across the country 38
which can lead to inequalities or participants
Some disabled people can have problems 40
accessing services
Other organisations und employment related 40
services or disabled people
part 4
The cost eectiveness o programmes 42
and schemes
The Department has evaluated New Deal or 43
Disabled People but needs to improve its
evaluation o other programmes
The Department holds limited inormation about 44
Workstep clients and providers
Rates o progression into work vary substantially 45
between Workstep providers
Most Remploy businesses are not currently 46
sustainable in economic terms
Analysis o money fows shows a net benet to the 48
individual and indicate net benets to the economy
and to the Exchequer over the longer term
appendiCes
1 Methodology 52
2 Regional variations 55
Photographs courtesy o Department or Work and Pensions, Remploy Interwork Papworth Trust and Shaw Trust
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executive summary
eXeCUtiVe sUmmarY
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE 1
1 There are 9.8 million disabled people in Great Britain1
around one in six o the population. In 2004, o the
6.7 million disabled people o working age, 50 per cent
were in employment compared to 75 per cent o the
working age population as a whole. The Government has
committed itsel to increasing the employment rate o
disabled people and to reducing the dierence between
their employment rate and the overall rate by 2006 and
urther by 2008.
2 This report provides an overview o the specialist
employment programmes and schemes to help disabledpeople ind and retain work and shows how they have
evolved (Part 1). It also examines whether these are
eective at getting disabled people into work and helping
them sustain and retain employment (Part 2); whether
they are accessible and o suitable quality (Part 3); and,
considers whether the employment programmes and
schemes are cost eective (Part 4).
Disabled people ace a range obarriers to inding and retaining work3 Being in work can have many positive consequences
or disabled people such as developing conidence and
new skills, earning money, improving health, meeting
people and generally being more integrated into society.
Many disabled people ace barriers to inding and
retaining employment including negative employer
attitudes. Employers oten have concerns about the costs
associated with employing a disabled person which theyoten perceive to be higher than they actually are and
the need to make adaptations to premises, even though
there is support available with such costs. Addressing
employers' concerns will be essential i the Government
is to achieve its aims in this area.
4 Lack o awareness o the programmes and schemes
available to help ind work is a barrier or many disabled
people. A persons disability or health condition can also
present an obstacle to retaining work, especially i the
condition luctuates, as it is not always possible to ind
work that can adapt to this situation. In addition, disabledpeople experience the same barriers to work as others,
such as lack o qualiications and scarcity o jobs in their
local labour market, although these can be accentuated
i the disability or medical condition restricts access to
certain jobs.
1 The latest Department or Work and Pensions estimate, based on data rom the Family Resources Survey, using the Disability Discrimination Act (DDA)deinition o disability to deine a disabled person.
(Being in work) made me backto the person I was beore my
disability its antastic ordisabled people to get back intothe real world.
Female, aged 33, with a physicaldisability, on Workstep (Remploy)
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE2
The Department oers a range osupport or disabled people
5 The Department or Work and Pensions (theDepartment) unds a broad portolio o programmes and
schemes to help disabled people ind and retain work
(Figure 1).2 These are managed by Jobcentre Plus an
executive agency o the Department and contracted out
to approximately 500 providers3 in the public, private
and voluntary sectors. Disability Employment Advisers
are crucial in guiding disabled people to the appropriate
support, which includes Work Preparation, Workstep
and the New Deal or Disabled People, or schemes such
as Access to Work and the Job Introduction Scheme.
Jobcentre Plus also manages the Disability Symbol.
6 Work Preparation and Workstep have evolved over
the past 60 years in response to changing expectations
about the place in society o disabled people. The New
Deal or Disabled People was introduced in 2001. All
now ocus on helping disabled people to enter and
progress within the labour market where possible.
This is a departure rom previous programmes such as
the Supported Employment Programme (replaced by
Workstep in 2001) which oered very ew development
opportunities. This new ethos is also relected in the
Departments Pathways to Work pilots, part o the
Governments wider reorms o incapacity beneits,currently looking at ways o helping recipients into work.
7 Jobcentre Plus manages the programmes at a
regional level to enable it to respond to varied needs
across the country. There are also many government
departments, agencies and voluntary sector organisations
involved in employment-related support to disabled
people, including the Department o Health,
Department or Education and Skills and the Adult
Learning Inspectorate.
8 The number o people receiving incapacity beneitshas risen steadily since the mid-1970s but has recently
stabilised. The number nearly quadrupled rom 700,000
in 1979 to 2.5 million in 1997, and related beneit
expenditure grew correspondingly. The growth in the
caseload slowed signiicantly rom around this time so
that there are currently more than 2.6 million working
age people4 receiving incapacity beneits5 at a cost o
12 billion. This is part o an overall sum o 20 billion
paid on all disability-related beneits, including those not
o working age, and those not associated with out o work
beneits. While some o this additional expenditure is
matched by a reduction in the number o people receiving
other working age beneits and allowances, there remain
strong inancial and social incentives to ensure there are
opportunities or disabled people to work i they can.
Assessing the value or money oprovision is diicult, but the long-term beneits appear to outweigh thecosts o provision or many people9 The programmes and schemes summarised in
Figure 1 deliver important opportunities to disabled
people but such support has a substantial cost. Estimating
the value or money o the programmes and schemesis hard because progress against some o the objectives
cannot be easily measured, or example, the ongoing
emphasis on reducing social exclusion, or the impact
on individual health.
10 Assessing the success o provision is made harder
because data or some programmes and schemes is either
incomplete or unreliable. Not all Jobcentre Plus regions
know how much they have spent on some schemes,
nor the exact number o participants, and departmental
internal audit reports suggest that value or money may
be compromised through marked variations in price orinexplicably high levels o use. For example, costs or
support workers provided through Access to Work range
rom 6 to 46 per hour, and payments can be or up to
90 hours o support per week (where support is provided
or working hours only).
11 An estimate o the average unit costs o providing the
various programmes and schemes is at Figure 1. A simple
comparison o these costs does not give an accurate
picture o comparative value or money, partially because
o the poor inormation held about some programmes but
also because o the dierent nature o the programmesand the clients they serve. This ranges rom those closest
to being ready to work, in the case o the New Deal or
Disabled People, to those urther away rom the labour
market, in the case o Work Preparation and Workstep.
The dierence in costs also relects the dierent nature,
scale or intensity o assistance provided. There is also
variation between programmes in the emphasis placed
on sustaining employment over the longer term.
2 Disabled people also participate in mainstream provision such as Work Based Learning and New Deal or Young People.
3 A range o organisations that oer disabled people services unded by the Department or Work and Pensions under one or more o the specialistprogrammes including assessment, preparing or work, inding work and in-work support.
4 Pathways to Work: Helping People into Employment. The Governments response and action plan. June 2003. CM 5830. (This report reers to 2.7 millionpeople o working age receiving an incapacity beneit. The Department conirms the actual igure is 2.63 million).
5 Incapacity beneits reer to Incapacity Beneit, Income Support on grounds o incapacity, and Severe Disablement Allowance.
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE 3
12 There are considerable dierences in the actual unit
price paid to individual providers o Work Preparation and
New Deal or Disabled People. These vary widely because
they are negotiated during the tendering o contracts.
Workstep is more clearly deined and most providers have
a contract or a pre-determined number o clients. They
receive set payments or key stages rom registration o
new clients to progression into unsupported employment.
Remploy Ltd the largest provider o Workstep is unded
dierently and receives a block grant.
1 The Departments specialist employment programmes and schemes or disabled people
dc
Helps people with health conditions or adisability prepare to return to work by buildingtheir conidence, identiying suitable types owork or them, oering work experience andproviding support. Oten used as a steppingstone into Workstep.
Provides tailored support to ind and retainwork or disabled people with complex barriersto inding and keeping work. Oers ongoingsupport to enable permanent employment in theopen job market.
Oers access to a network o job brokers who
provide support and advice to help disabledpeople and people with health conditions indwork. Oten or disabled people who needminimal levels o support to ind work.
Provides inancial assistance towards the extracosts o employing someone with a disability,such as contributing towards the cost ospecialist IT equipment, work adaptations to theworkplace, some travel costs and the cost ohaving a support worker.
Supports disabled people looking or workor about to start a job and provides an initialweekly grant or employers to cover any
additional costs.
Used by employers who want to demonstratetheir commitment to good practice aroundemploying and retaining disabled people.The symbol is displayed on job advertisements.
pg
C2
()10.0
189.2
37.5
55.8
0.9
Source: National Audit Office analysis of information from the Department for Work and Pensions
avg U
C3
()1,400
8,200
1,100
1,600
500
NOTES
1 Figures are or 2003-04, rounded to the nearest 100. Number participating or Work Preparation and Job Introduction Scheme reers to those whohave been on the programme or scheme during 2003-04. Figures given or Workstep and New Deal or Disabled People reer to the number o currentparticipants as at 31 March 2004. Access to Work igure reers to the number o new and existing beneiciaries during 2003-04. Figure given or theDisability Symbol reer to number o employers.
2 Figures are or 2003-04 and exclude administration costs. It should be noted that the igure given or New Deal or Disabled People includesapproximately 9 million or in-house job broker costs. Overall igure or expenditure on Workstep (189.2 million) relects Modernisation unding paymentsmade o approximately 7 million. Programme costs or the Disability Symbol are not available.
3 Unit costs are based on participant numbers only, as provided in the table above, except or New Deal or Disabled People. The unit cost or New Dealor Disabled People is based on the number o new registrations (34,500) in 2003-04. Please note that the unit cost or an Access to Work beneiciary doesnot relect the wide variation in the level o support a beneiciary may receive, which ranges rom one o support or a piece o equipment to continuoussupport in employing a support worker.
n
wkp
wk (clugrly)
n dl dblpl
acc wk
Jbiucsch
dblysybl
nub
pcg1
7,400
23,000
57,800
34,800
2,000
5,000
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE4
13 The ull administrative costs o contracting with over
500 service providers are not known, but the Department
estimates that the New Deal or Disabled People alone
has administrative costs in the region o 6 million
per annum. In light o the Governments drive towards
increased eiciency, a careul appraisal o the way in
which tendering, contracting, ongoing administration and
quality inspection are carried out is essential. We have
highlighted a number o areas where the Department can
reduce costs, increase eiciency and deliver higher quality
services and better value or money (Figure 2).
14 Remploy Ltd is unded by a block grant rom the
Government. It is the largest provider o Workstep and has
an average unit cost in the actory businesses o 18,000.
Given the decline o manuacturing across the UK it is
unsurprising that older actories in particular ind it diicult
to compete eectively. Many Remploy businesses are not
really sustainable in purely economic terms, although they
oer a very supportive environment to their employees.
Remploy Interwork, which places people primarily in
outside employment with suitable support, appears to
oer a more cost eective service at around 3,400 per
person and accounts or three quarters o all progressions
to unsupported employment.6 Although we accept that this
model is not suitable or all Workstep participants, there
remains substantial advantage in expanding this area o
provision urther, both in terms o reduced costs and the
number o individuals who can be helped.
15 Calculations o the net beneit o the programmes are
very complex and limitations in data, and the diiculty o
estimating what would have happened to participants in
the absence o the programmes, can make it impossible
to quantiy all impacts o a programme. However, we
worked with the Department to develop an estimate o
the programmes net beneits. From this, we estimate that
a disabled person who moves rom beneits into work
will be somewhere between 18 per cent and 60 per cent
better o inancially. This depends upon their individual
circumstances such as whether they have dependants and
the number o hours they work. A disabled person moving
into work is usually eligible to receive a range o support
such as working tax credits and child tax credits making
them better o in work. A single disabled person with no
dependants who takes up a typical job7 as a result o one
o these programmes could see their annual income rise
rom approximately 7,000 on beneits to around
11,000 in work.
16 Each person who participates in a programme or
scheme costs the Exchequer money rom the cost o
delivering and administering the programme. When
moving into a job they save the Exchequer money through
reduced beneits and generate money through payment
o taxes and national insurance. Their work also makes
a contribution to the wealth o their employers and the
country as a whole. For example, or the New Deal or
Disabled People the estimated net beneit to the economy
is in the region o 400 per job entry in the irst year. The
longer a person remains in work the more the economy
beneits. We have not been able to estimate additional
costs and beneits such as improved social inclusion,
alterations in health and use o NHS resources and travel
costs but these are all additional actors in understanding
the total impact o the Departments programmes
and schemes.
What is working well with delivery o the
programmes and schemes17 The Department reports that it is on course to
meet its target or increasing the employment rate o
disabled people.8 In its 2004 Autumn Perormance Report,
the reported rate rose rom 48.9 per cent to 50.1 per cent,
and the gap between the rate or disabled people and
the overall rate ell rom 25.6 per cent to 24.6 per cent.
A urther one million employers were brought within the
scope o the Disability Discrimination Act during the year.
6 These costs reer to direct costs to the Department or Work and Pensions. There is unding available rom other sources.7 An individual working 38 hours per week, 5.44 per hour. Ashworth et al (2003) New Deal for Disabled People National Extension: First Wave of the
First Cohort of the Survey of Registrants. No.180 Department or Work and Pensions.8 People with a Disability Discrimination Act deined disability and/or a work-limiting disability as deined on the Labour Force Survey.
2 Actions aimed at driving down costs andincreasing eiciency
n Reduce the administrative burden associated withmanaging too many small value contracts with providerswho do not perorm well.
n Adopt a more modular approach to all o the disability andemployment-related provision by only providing the elementso support that are relevant to the individual client, althoughthe Department will need to manage the risk that such anapproach could incur increased administrative costs.
n Use the power o the bulk customer to develop supplierrameworks or goods and services and reduceunwarranted price variations.
n Review the nature o provision by Remploy to reduce theemphasis on the less cost eective actory based businessesand concentrate more on the commercially viablebusinesses and Remploy Interwork.
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE 5
18 The Department is well inormed about the
barriers to employment experienced by disabled
people. The Department has commissioned extensive
research and literature reviews looking at the barriers
disabled people ace. In each Jobcentre Plus oice we
visited we met experienced Disability Employment
Advisers who had a detailed understanding o the barriers
clients aced. A sound understanding o the problems is
essential as there is no such thing as a typical client.
19 There is a wide range o support and options
available across the programmes and schemes. The
programmes oer support or a broad spectrum o needs
rom clients who need a high degree o assistance with
building sel conidence and learning key skills (available
rom Work Preparation) through to those who need
minimal support to ind work (via New Deal or Disabled
People). There is some overlap between the programmes,
as shown in Figure 3 overlea, which can cause some
conusion or clients and providers alike. However, under
its 2004 proposals in Building on the New Deal, the
Department wants to move towards oering a lexible
menu o provision across the programmes, oering a more
tailored approach to clients.
20 jobcentre Plus has committed and experienced
sta to advise disabled people about the programmes
that best suit their needs. Advisers in local Jobcentre
Plus oices play a crucial role in assessing the level o
assistance a disabled person needs and are responsible
or guiding them to the most suitable support. Depending
upon the signiicance o the barriers to work aced and
level o help needed to ind a job, either an Incapacity
Beneit Personal Adviser or Disability Employment Adviser
is available. Incapacity Beneit Personal Advisers work
with Incapacity Beneit clients to help them progress
into employment. They can also reer people who may
have signiicant barriers to work, and require more long-
term personalised support, to a Disability Employment
Adviser. We ound that Disability Employment Advisers
endeavoured to carve out suitable packages o support
or clients rom the programmes available. Many had
strong ties with local employers, as well as voluntary and
community sector organisations.
21 Many o the clients participating in the programmes
are positive about their impact. The clients interviewed
or this report on the whole were positive about their
experience o the programmes in which they were involved
either Work Preparation, Workstep or New Deal or
Disabled People. In 2003-04, these programmes helped
around 24,000 people into mainstream employment and
provided supported employment or 27,000 people.
I would deinitely recommendthe programme to others. Youregain conidence and eelyou are contributing somethingto society.
Male, aged 22,with mobility problems,
New Deal or Disabled People
Its the irst time in my lie thatI am ocussed and now havegoalsIts all down to the helpand enthusiasm o the sta.
Male, aged 34, with mobilityproblems, on Work Preparation
It (Workstep) was a light at the endo the tunnel, a way orward, a wayto get back to ull-time employmentin spite o my sight problems.
Male, aged 51,
visually impaired,on Workstep
(Work) has give me sel-conidence, pride in mysel(I) can hold my head upnot becalled a scrounger.
Male, aged 50, with asthma,on Workstep (Remploy)
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE6
22 Providers had many positive things to say about
current provision. We consulted widely with interested
parties rom the Department, provider groups and the
voluntary and community sector who inormed us o what,
in their experience, are the particularly eective elements
o current support and what areas need improvement
(Figure 4). Good points included the client ocused nature
o Workstep, the lexibility o programme delivery or the
New Deal or Disabled People and the opportunities orwork experience provided by Work Preparation.
Where more progress is needed
23 The programmes only support a small number o
people who could potentially beneit. In 2003-04, there
were more than 2.6 million people o working age on
incapacity beneits. In comparison, around 125,000 were
involved in one or more o the Departments programmes.
Whilst not everyone in receipt o incapacity beneits will
be able to work, many with the right support would like
and be able to. Reasons or low levels o participation
could include lack o awareness o the support available,
ear o approaching the Jobcentre Plus in case beneits
are reduced and lack o conidence to take up the help
available. There are also budgetary constraints that limit
the number o places and support available.
24 The number o progressions rom Worstep into
unsupported employment is low. Some 1,900 people
progress into unsupported employment each year - anaverage rate o eight per cent. We ound that in the three
years since April 2001, a third o Workstep providers with
clients in supported placements did not progress a single
person into employment, and that 25 Workstep providers
had registered no new clients since April 2001. There is
also insuicient attention paid to client development.
Our review o recent Adult Learning Inspectorate
inspection reports ound only 22 per cent o Workstep
providers had satisactory individual development plans in
place or their clients.
Disability Symbol
In mainstream employment
3 A guide to the overlap o the key programmes and schemes
Source: National Audit Office analysis
Not job ready Job ready
Work Preparation
Job Introduction Scheme
New Deal or Disabled People
Programme Scheme
NOTES
n jb y have signiicant, perhaps multiple, barriers to overcome beore being ready to move into work. Individual needs support to developconidence and general skills, which may include basic literacy and numeracy.
Jb y ready to move into employment, but may need help and assistance with interview techniques and skill development.
su ly provides the opportunities to develop skills in a work environment and to ind out about dierent types o jobs. Support is there to
ensure the employer and employee receive assistance and is ongoing as long as it is needed.su ly the terms and conditions o employment should be the same as or people without disabilities including pay at thegoing rate, equal employee beneits, sae working conditions and opportunities or career development and promotion.
Supported employment
Workstep
Access to Work
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE
25 The Department needs better management
inormation or Wor Preparation and Worstep in
order to evaluate their eectiveness. At present there
is very limited data about clients, making it diicult to
establish whether the programmes are meeting the needs
o dierent groups. The Department also holds little
inormation about the type o support providers oer
and thereore struggles to manage their perormance.
The management inormation available or New Deal or
Disabled People is much stronger and the programme has
been the subject o ongoing evaluation. The Department
has undertaken some analysis o New Deal or Disabled
People but the analysis or the other programmes is at a
very early stage.
26 Many Remploy actory businesses are currently
not providing value or money. In 2003-04, Remploy
received 115 million, o which 95 million was spent
on business activity. Many o its businesses are in the
traditional manuacturing industries which are generally
in decline. They struggle to be competitive, which means
unding per head in some businesses (average 18,000)
is disproportionate to the average salary (11,000). To
maintain productivity, some actories may be reluctant
to lose their most eicient employees, which contradicts
the objectives o Workstep, the programme under which
they are unded. In 1998, Remploy established its own
recruitment services - Remploy Interwork which has
proved to be much more successul at progressing disabled
people into unsupported employment. It accounts or
73 per cent o all progressions rom Workstep.
27 jobcentre Plus has quality monitoring
arrangements in place but limited resources mean
inspections o providers are not always undertaen
to plan. Small teams at Jobcentre Plus regional level
monitor the quality o Work Preparation and Workstep
provision. However, due to limited time and resources,
providers are not visited as regularly as they should
be. Teams also reported having little power to require
providers to meet their contractual obligations or improve
the quality o provision because contracts are rarely
withdrawn. Shortages o programme providers in some
areas can also limit this option. Since 2002, the Adult
Learning Inspectorate has inspected Workstep providers,
which has added more weight to the process o quality
assuring provision, but latest igures suggest 53 per cent o
providers are classiied unsatisactory.9
28 The programmes ocus mainly on inding wor due
to limited resources and diiculties targeting disabled
people already in wor. Not enough is currently done
to help disabled people stay in employment, although
there are pilots looing at retention activities. Few o
the programmes and schemes with the exception o
Access to Work are geared towards helping disabled
people retain work.10 The New Deal or Disabled People
is designed to provide active support to participants who
ind work and can help them retain work or at least the
irst six months. Workstep can also be used to help with
retention, but we ound little evidence o this happening.
Disability Employment Advisers and Incapacity Beneit
Advisers both stressed the importance o supporting
disabled people worried about being able to maintain
their jobs, but said they receive little recognition, i any,
in the Jobcentre Plus perormance regime or this work,
which can be time consuming. The Departments or Work
and Pensions and Health have launched pilots, such as
the Job Retention and Rehabilitation pilot in 2003, to look
at the eectiveness o dierent types o support at helping
sick and disabled people remain in work.
29 jobcentre Plus has a national employer
engagement strategy, but not all jobcentre Plus areas are
active in developing contact with employers. We ound
patchy evidence o its eective implementation at the
rontline. Relations between Jobcentre Plus, programme
providers and employers are vital to successully
supporting disabled people into employment. Approaches
varied considerably in the Jobcentre Plus oices we
visited, with some very actively involved in engaging with
employers by running special events to draw them in but
others having limited contact.
30 Disability Employment Advisers have a crucial role
to play, yet their training is ad hoc. There are between
500 and 700 Disability Employment Advisers, although
Jobcentre Plus does not know exactly how many or
how they are being used due to regional autonomy and
rationalisation. There is currently no integrated training
strategy or Disability Employment Advisers although
the Department inorms us that a new, more structured
learning and development routeway will be introduced
in autumn 2005. We ound some Advisers experienced
delays in accessing the training that it is available and had
to take on caseloads o clients with limited preparation or
the role. However, Jobcentre Plus only recruits internally
to the post and newly appointed Disability Employment
Advisers usually have an experienced Disability
Employment Adviser on hand as a mentor.
9 53 per cent reers to the period June 2002 to May 2005. The Adult Learning Inspectorate have carried out over 100 inspections. 98 inspection reports werepublished by the end o May 2005.
10 Retention reers to keeping someone in pre-existing work, whereas sustainment reers to keeping someone in a job ound during a programme.
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE
4 Feedback rom stakeholders about what does and does not work with the programmes
wh wk wh d n wk
Cl fcu: Workstep is client centred and oersindividual, ongoing support.
pg dlvy: Workstep is lexible andallows or various modes o delivery.
sug ly: Workstep gives employersthe opportunity to take on candidates that theydo not eel 100 per cent sure about. It assistsemployers and employees i problems occur.
fg k: Workstep provides the sometimesessential irst introduction o the individual intothe working environment. It gives the person thechance to develop into the job without meeting100 per cent o the person speciication.
dvlg skll: Workstep provides skills or lie.
Lck a: There is a lack o awareness oWorkstep availability among the client group andalso Jobcentre Plus sta.
fug hlgy: The design o Workstep islawed as it will only progress so many people per
year which makes continuous unding diicult.
mg cl : Workstep is a last resortbut does not address the needs o those who areurther away rom the job market.
pv a: The Adult LearningInspectoratehas no understanding o the concepto Workstep.
exc v: The Jobcentre Plusrequirements or Workstep are not consistentand so the programme does not provide workas well as it should.
Lck lxbly: Workstep cannot accommodatepeople with luctuating health problems.
workste
Cl fcu: Access to Work is client led, providesspeciic, individual support and has the lexibilityto tailor itsel to an individuals needs.
rvg b: Access to Work recognises theneed or specialist input and assessments. It canprovide aids and adaptations where there are barriersto work and also help with the cost o travelling to work.
su: Access to Work can provide a range o
specialist support. The support is lexible and isavailable rom start to inish instead o only13 weeks. Training and support is available orboth the employer and the employee.
rcu r: Access to Work iseective in helping disabled workers enter into,and retain, employment.
J-u ch: Access to Work interactswell with other programmes.
Lck a: There is not enough awarenesso Access to Work among both employers andpotential clients. Marketing is restricted due to thelimited unding available.
dly: There are delays where the client does notget the equipment needed in time.
Lck ccy: The administration o Access
to Work is very dierent as areas have their ownbudgets. There is also a lack o consistency indecision making, determining eligibility andday-to-day administration.
dlvy: Employers may need to contribute20 per cent towards the cost o specialist equipment.It can also be diicult to get the support approvedor a long period o time. The move towards usingcall centres or Access to Work means the keyrelationship between the adviser and client is lost.
elgbly: Access to Work support is only availableor people in work. Other clients would need tocome o beneits irst beore receiving this support.
accesstowo
rk
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executive summary
GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE
wh wk wh d n wk
pg dlvy: An innovative, lexibleprogramme which engages with employers andis not time constrained nor subject to JobcentrePlus demands.
fcu pg: New Deal or DisabledPeople ocuses on conidence building and jobsearching skills. Clients beneit rom being inmixed groups. Job Brokers can be good and ocuson people.
Cl Gu: New Deal or DisabledPeople is successul or people with physical, mildto moderate disabilities.
sh- ch: New Deal or DisabledPeople allows a quick ix.
sh- u: New Deal or DisabledPeople does not provide support beyond 6 months.It is not thereore appropriate or people withlearning disabilities and mental health issues whomay require longer term support.
Chy ckg: New Deal or DisabledPeople is output related and thereore encouragesproviders to ocus on the more job-ready andneglect the diicult clients. New Deal or DisabledPeople helps some people who would have got intowork anyway.
Lck cly: The New Deal or DisabledPeople programme lacks clarity.
fug: New Deal or Disabled People isnot economic. There are issues aroundcontracting arrangements and disparity inthe unding received.
nedelfordisblepeole
wk xc: Work Preparation provides ataste o work without the commitment. Placementshave led to some permanent jobs. They also
enable clients to orm job goals as well as beingaware o their uture workplace support needs.
J-u ch: Work Preparation eedswell into Workstep and other programmes. It issuccessul as a pre-entry programme.
Cl fcu: Work Preparation can be tailoredto meet the needs o the speciic disability andprovides support rom start to inish.
eggg h ly: Work Preparationenables both the employer and the employee torecognise a clients abilities.
Lck c h acc wk: Clients onWork Preparation cannot receive help rom Accessto Work.
i U: Work Preparation is used a loteven though it is not always the right programme.Dierent people require dierent modules.
Lck Ch: There is limitedunderstanding o the Work Preparation programme.
tg: Small providers ind it more diicult tomeet Jobcentre Plus targets o minimum hoursworked per person. Further, the client may needa more gradual introduction to work.
workprertio
notes
Colours have been used or each type o programme to denote the strength o eeling among the various workshop groups on WhatWorks or What Does Not Work.
A darker shade signiies an issue that was raised more oten while a lighter shade relates to a topic that was less importantto stakeholders.
This eedback relects the views o the workshop participants on the day. It may thereore contain contradictory statements and does not
necessarily relect the views o the National Audit Oice.
Source: National Audit Office analysis of workshops with key stakeholders
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31 The Departments broad portolio o specialist
employment programmes and schemes or disabled
people is designed to support a wide range o needs
within the resources which the Department is able to
devote to these activities. It supports only a small number
o people who could potentially beneit. Too little is
understood about the eectiveness o much o the
provision. Success in helping disabled people obtain
work can have enormous impact or individuals
and, given the costs o incapacity beneits some
12 billion in 2003-04 could save substantial amounts
o public money in the long term. On the basis o our
work, we consider the Department and programme
providers should work together to implement the
ollowing recommendations:
a The Department should rationalise the
programmes to provide a more lexible modular
approach. Some o the Departments current
programmes have evolved over the past 60 years
and could beneit rom rationalisation, which would
make them easier to explain to potential clients. For
example, it is not clear that there is a need or the
three dierent programmes each managed and
costed dierently. In its report Building on the New
Dealthe Department proposed to move towards a
lexible, modular approach based on client needs
and our work suggests there is strong support or this
approach or this client group.
b The Department should improve substantially
its data collection and veriication systems to
allow it to monitor services and assess whether
they are meeting the broad range o needs o
disabled people. The Departments knowledge and
understanding o what providers deliver is poor,
largely because management inormation, especially
or Work Preparation and Workstep, is o insuicient
quality and some is held only at the regional level.
Improving the inormation held would help the
Department better track the needs o this disparate
client group as well as identiy i the support needed
is reaching them and whether there are any gaps
in provision. The Department should ensure that
existing channels such as provider orums are
ully used or sharing and disseminating good
practice across Jobcentre Plus oices and between
programme providers.
c The Department should achieve enhanced
eiciency through better contracting. The
Department can improve the quality and price o the
services it purchases through proper benchmarking,open competition and appropriate use o its power
as a bulk purchaser. The Department should,
wherever possible, reduce unwarranted variations
in price and minimise its own contracting and
administration burden while securing higher quality
products or reasonable prices.
reCommendations
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GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE 11
d The Department should consider placing greater
emphasis on longer term sustainability o
employment or Worstep and the New Deal or
Disabled People. This might include revising the
payment and outcome measures and oering better
incentives or providers who deliver quality provision
and progress clients eectively. Some clients need
higher levels o support and this could be actored
into payment mechanisms or Workstep - possibly
creating an expectation that levels o support and
the payment or them will tail o over time. We also
recommend that the Department should review the
duration o contracting arrangements to allow or
more certainty or higher perorming providers and
termination o those perorming poorly.
e jobcentre Plus should loo at how to better
resource its quality management arrangements
or all o the programmes in order to drive up
the standards o provision. Jobcentre Plus quality
and perormance management teams now adopt
a risk-based approach to monitoring providers o
both Work Preparation and Workstep, but limitedresources mean some are not visited as regularly
as expected. Other than inspections o Workstep
providers by the Adult Learning Inspectorate, little
is currently done to encourage healthy competition
and raise standards amongst providers because
Jobcentre Plus set their standard as contract
compliance, which ails to promote and drive up
provider perormance. A more open discussion
o quality indicators, including publication o
progression igures expressed as a percentage o the
contract value, may help to drive up perormance.
Such an approach may also encourage the spread ogood practice.
jobcentre Plus should provide greater support and
training or Disability Employment Advisers. The
role o the Disability Employment Adviser is crucial
to the success o the programmes. They play a key
role in assessing the clients needs and subsequently
routing them to the programme that best meets
their requirements. However, training or Disability
Employment Advisers is currently undertaken on an
ad hoc basis and is not always available at the right
time. Jobcentre Plus recognises the current approach
to training creates a problem or consistency and
will be introducing a new learning programme or
Disability Employment Advisers in autumn 2005.
g The Department should ocus more resources on
helping people stay in wor and build upon the
indings rom current pilots. There is insuicient
support available except Access to Work to
help to retain in work those disabled people who
are concerned about losing their jobs due to
their disability. Workstep is designed to help with
retention, but we ound little evidence o this
happening. The job description or DisabilityEmployment Advisers has recently been revised to
include responsibility or helping clients remain in
employment by working together with the client and
employer. I it decided to apply its resource in this
way, by providing more support to help disabled
people remain in work, the Department could
reduce uture demand on the existing programmes
and keep down the expenditure on disability
beneits. More support or disabled people already
in work could also oset the perceived extra costs
under the Disability Discrimination Act o employing
a person with disabilities and make employers morelikely to employ more disabled people.
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h The Department should develop a better
understanding o the needs o disabled people and
analyse urther how the programmes and schemes
address these needs. Whilst the Department has
commissioned extensive evaluation o the New
Deal or Disabled People, it should continue to
evaluate the eectiveness o the other programmes
and schemes at meeting the needs o disabled
people and preparing them or long term sustained
employment. This should cover the costs and
beneits o the programmes to help quantiy
their impacts.
i The Department should review the costs o
support under the Access to Wor scheme and also
examine whether such high levels o public sector
use is appropriate. It should consider developing a
ramework arrangement or approved list o suppliers
so as to make use o its large user buying power and
reduce the huge variation in costs or similar services
and resources. We also support the Prime Ministers
Strategy Unit recommendation that the Department
evaluate the impact o restricting or removing accessto the Access to Work scheme by central government
departments given its widespread use by the
public sector.
j The Department should re-engineer the proile o
Remploy businesses to improve overall value or
money and should ensure support is in place rom
Remploy Interwor or jobcentre Plus to help those
individuals aected ind alternative employment
i necessary. Many o the Remploy businesses are
not currently sustainable and are unlikely to be
so in the uture. The average cost per person in a
Remploy business is disproportionate to the average
salary and there is little scope or improvement in
the traditional manuacturing businesses. There have
been ew progressions rom Remploy businesses
into unsupported employment, which is not in
keeping with the current aims and objectives o
the Departments programmes to progress all those
people or whom it is appropriate.
k The Department, in consultation with programme
providers, needs to develop a clearer strategy
or engaging with employers at a local level.
Engaging eectively with employers is important
to the success o the programmes and schemes
and more generally to ensuring disabled peopleare well integrated into the workplace. Although
we ound dierent approaches, such as active
marketing o individual clients to speciic employers
and broader awareness-raising o employers legal
responsibilities, constraints on time and resources
mean not all Jobcentre Plus oices are able to work
with employers as much as they would like.
reCommendations ContinUed
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GAINING AND RETAINING A jOB: THE DEPARTMENT fOR WORk AND PENSIONS SUPPORT fOR DISABLED PEOPLE 13
l The Departments programmes are not the
only source o support or disabled people
wanting to ind wor. The Department should
wor with local authorities and voluntary and
community organisations to gather inormation
about the range o support available. Due to
lack o co-ordination there are risks that services
are duplicated and gaps occur in provision. We
support the Strategy Units recommendation that a
comprehensive on-line directory o services should
be developed covering provision rom all sectors,
not just Jobcentre Plus.
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part one
The Departments employment programmes ordisabled people
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1.1 There are 9.8 million disabled people in Great
Britain11 equivalent to one in six o the population. The
Disability Discrimination Act 1995 deines disability as a
mental or physical condition which has a substantial and
long-term adverse aect on the employees ability to carry
out normal day-to-day activities. There are ive broad
categories o impairment: visual, hearing, mobility, mental
health and learning, but not all disabilities it neatly
into these categories and some people have multiple
disabilities. In 2004, o the 6.7 million disabled people o
working age 50 per cent were in jobs. This compares to
75 per cent o the overall working age population.
1.2 The barriers that prevent disabled people rom
either entering the labour market or staying in work are
well documented and wide ranging (Figure 5). The range
relects the act that disabled people are a particularly
disparate group, a act that needs careul consideration
when designing programmes to tackle these barriers.
5 Disabled people experience a range o barriers to employment
Source: National Audit Office analysis of published research and views from key stakeholders
ely u cc some employers worry,or example, about the amount o time a disabled person mayneed to take o work, their ability to undertake the work and theexpense o providing adjustments to the working environment.
Lck g u there are lowlevels o awareness amongst disabled people and employersabout the range o support available to help disabled people bothin obtaining and retaining work.
Lck ly bly lcy an employers lacko awareness o their responsibilities under the DisabilityDiscrimination Act 1995 can be a signiicant barrier at all stagesrom recruitment through to promotion and retention.
th b y some disabled people all into a beneitstrap whereby they are better o on beneits than in work or wouldonly be better o by a relatively small amount i in work. Theymay also be worried about losing the security o income rombeneits by taking a step into employment.
nu h hlh c some disabled people may indit diicult to ind work that is suiciently lexible to it around thenature o their disability, especially i they have good days andbad days. Others may ind that working causes more discomort.
Lcl lbu k c disabled people are subjectto the same barriers as other people and there may not be jobsavailable in the area in which they live.
Lck qulc xc disabled people tend notto beneit as much as the general population rom government-unded training and education, although lack o qualiications orexperience is a barrier to employment whether disabled or not.
Lck ju k clients and employers lackawareness o the support available to make adjustments.
p lk especially in rural areas.
11 The latest Department or Work and Pensions estimate, based on data rom the Family Resources Survey, using the Disability Discrimination Act (DDA)deinition o disability to deine a disabled person.
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1.3 Employers misconceptions about the diiculties
o employing disabled people can be a major barrier.
Departmental research has ound that 33 per cent
o employers elt taking on a disabled person was a
major risk.12 Research also shows very low awareness
amongst employers o schemes to help towards the costs
o workplace adaptations and purchase o specialist
equipment.13 However, other reasons or clients not
joining the programmes include the nature o their
disability, as well as the distance and cost involved.
1.4 Government provision to help overcome these
barriers has developed over time and takes a number o
orms. This report ocuses upon the Departments well
established employment programmes (Work Preparation
and Workstep) and schemes (Job Introduction Scheme,
Access to Work and the Disability Symbol) or disabled
people, as well as the New Deal or Disabled People,
set up in 2001. It also covers supported employment
and work placements oered by Remploy Ltd a
non-departmental public body set up as a company
in 1945. It reers briely to more recent developments
with the Pathways to Work pilots, notably the Condition
Management Programmes. These pilots, introduced in
2003 as part o consideration o the reorm o incapacity
beneits, are not a central ocus o the report since they
are still being trialled by the Department. We also do not
cover residential training courses or disabled people as
they are not solely employment-ocussed.
The Departments specialistemployment programmes address awide range o needs1.5 In 2003-04, beneit payments or people with
disabilities or health related problems exceeded 12 billion.
There are three times as many people claiming incapacity
beneits as there are unemployed people on Jobseekers
Allowance. Over 2.6 million people claim IncapacityBeneit, Income Support on the grounds o incapacity,
or Severe Disablement Allowance, and some 700,000
people move onto these beneits each year.14 People on
incapacity beneits tend to stay on them longer than other
client groups even though 80 to 90 per cent expect to go
back to work in due course.15 Once a person has been
on incapacity beneits or 12 months, the Department has
ound the average claim lasts eight years.
1.6 Being in work can have many positive eects or
people with disabilities just as it does or those without.
There is limited research on this, but recent work16
suggests beneits include: providing a main source o
income as well as status; giving structure to the day
and opportunities to develop new skills; and giving a
chance to meet new people and develop social skills and
riendships. Our in-depth interviews with a small number
o people conirmed these indings.
1.7 The Department unds a portolio o voluntary
programmes and schemes or disabled people. They are
managed by Jobcentre Plus an agency o the Department
which contracts with providers to deliver one or more
o them. Two o these programmes Workstep and
Work Preparation and provision by Remploy Ltd have
developed since the 1940s when supported employment
and assistance was set up or injured servicemen
and women. The New Deal or Disabled People wasintroduced in 2001. Figure 6 summarises developments
and Figure 7 overleaprovides an overview o each
programme and scheme.
12 Roberts et al (2004) Disability in the Workplace. Research or Department or Work and Pensions.13 Disability Employment Coalition (2004)Access to Work for disabled people. RNIB, London.14 Pathways to Work: Helping People into Employment. The Governments response and action plan. June 2003. Cm 5830. Page 4.15 Department or Work and Pensions Research Report 156: Short term effects of Compulsory Participation in ONE; and Woodward, Kazimirski, Shaw & Pires
(2003) New Deal for Disabled People Evaluation Eligible Population Survey Wave 1 Interim Report. Department or Work and Pensions report W170.16 Jenkins (2002) Value of Employment to People with learning disabilities; in British Journal of Nursing, Vol 11. No 1. pages 38-45.
(I) eel more conident, evenmeeting a lot o people at atime is easier, made new riendsand think more positive Theprogramme has got me out o thehouse. I am not as depressed andworried any more and I eel thatwith this I may get a job at theend o it that suits my needs.
Female, aged 23,
with thyroid problems, on Workstep
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Figure 6 overlea
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6 Development o programmes and support or disabled people
Source: National Audit Office analysis
1945 rly Lactories set up ater waror disabled servicemen
oh kyvl
rly
wk p
wk
n dl dbl pl
acc wk
Jb iuc
sch
dbly sybl
1944 dbl p(ely) acprimarypiece o legislation untilDisability DiscriminationAct in 1995. A network osheltered workshops and
actories were introducedand a quota system toensure two per cent othe workorce o all non-governmental organisationswith 20 or more employees.
1944 iulrhbl U (IRUs)oered intensive trainingbeore return to work
1942 su elypg introduced
1977 -Jb iucsch introduced
1982 rv ac dblpl (radp) establishedthe principle o givingpriority to disabled peoplethroughout the Manpower
Services Commissionsemployment programmes.
1973 IRUs renamedely rhblC under Employmentand Training Act
1945 1955 1980 1985
1984 scl a ely chintroduced to provide equipment on apermanent loan basis and ree o charge
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1998 RemployInterworkintroduced
2000 Remploybusinessrestructured
2001 learningcentres set upin actories
1997 New LabourGovernmentlaunchedits NewDeal strategy
1990 dblysybl launched
1991 plc aCullg t(paCts) introducedand givenresponsibility
or procuringand managingprogrammesand managedthe DisabilityResettlementOicers (DRO).
1995 dblydc
ac
1999 dblysvc treplacedPACTS andDROs becameDisabilityEmployment
Advisers (DEA).
1999 tx C
acintroducesDisabledPersons TaxCredit, but
merged intoWorking TaxCreditin 2002.
2002Jbcplu launchedto replaceEmploymentService
and BeneitAgencyunctionsrelating toemployment-relatedbeneits. DEAsdevolved todistrict level.
2002 Pathwaysto WorkG ppublished
and pilotslaunchedin 2003.
1998 Disability Symbolreviewed in light oDisability Discrimination Act
1994 acc wkreplaced Special Aids toEmployment scheme and otherschemes such as travel to work
2002 regionalbusiness centresestablishedor Access To Work
1998 series opilots orNew Dealor DisabledPeople
2001 jobbroker servicesintroduced
2001 SEPmodernised andrenamedwk
2001 VocationalRehabilitationbecamewkp
2005
2004 1 October- new provisionscame into orce underDDA on increasedprotection or disabledpeople in employment
and in access togoods and services.Small businesses andpreviously excludedoccupations such aspolice oicers, werebrought within thescope o DDA. Thisextended coverageto an additional onemillion employers,and seven millionmore jobs, including600,000 in which
disabled peoplealready work.
1990 1995 2000
1991 Vclrhblpg introducedollowing major reviewo services in 1990
1993 DisabilitySymbol revised
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7 Details o the specialist employment programmes and schemes or disabled people
pg
ch
wkp
wk
(clugrly)
n dl dblpl
wh h h
cu cc ?
Helps to identiy the mostsuitable type o work byproviding experience in a workenvironment and by developingnew or existing skills.
Join the programme via referralfrom a Disability EmploymentAdviser at Jobcentre Plus.
Provides tailored support to
ind, secure and retain jobs ordisabled people who have morecomplex barriers to inding andkeeping work. Also providessupport and opportunity orpeople to progress to openemployment where appropriate.
Join the programme via referralfrom a Disability EmploymentAdviser at Jobcentre Plus orself refer.
Delivered by job brokers whotry to match skills and abilities tothe needs o employers, identiytraining needs, work with localtraining providers to deliverthe programme, help with jobapplications and support duringthe irst six months in work.
Job brokers also try to adviseon the barriers that might makeit diicult to work, such asmobility or lack o conidence,and try to help with these.
Join the programme primarilyvia a job broker. May alsobe referred via an IncapacityBenefit Personal Adviser or aDisability Employment Adviserat Jobcentre Plus.
wh ?
People with health conditions ora disability who want to returnto work and people already inwork but at risk o losing theirjob due to disability.To be eligible a person mustbe in receipt o a key disabilitybeneit such as IncapacityBeneit or DisabilityLiving Allowance.
To be eligible a person must
be in receipt o IncapacityBeneit, or recently moved romIncapacity Beneit to JobseekersAllowance; be in receipt o
Jobseekers Allowance, IncomeSupport or National Insurancecredits; be a ormer supportedemployee who has progressedbut needs to return to theprogramme; or be currently inwork but at risk o losing it dueto disability. A person must alsobe able to work or 16 hoursper week or more.
To be eligible a person mustbe in receipt o a key disabilitybeneit, such as: IncapacityBeneit, Severe DisablementAllowance, Income Supportincluding a disability premium,National Insurance creditsbecause o incapacity, orDisability Living Allowance(but only i not in receipt o
Jobseekers Allowance and notin paid work or 16 or morehours a week).
H y
c2
?
7,400
23,000(8,800)
57,800
Source: National Audit Office analysis of information from Department for Work and Pensions
H y jb
uc3?
1,300
1,900(1,400)
20,400
H uch
c1
?
10m
189.2m(115m)
37.5m
NOTES
1 Figures are or 2003-04 programme costs and exclude administration costs. Figure given or New Deal or Disabled People includes approximately 9 million orin house job broker costs. Overall igure or expenditure on Workstep (189.2 million) relects Modernisation unding payments made o approximately 7 million.
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pg
ch
Jbiucsch(Jis)
acc wk
totaL
wh h h
cu cc ?
Helps disabled people whoare looking or work, or areabout to start a job and havea disability that may aect thekind o work they can do. The
Job Introduction Scheme is a jobtrial acility, which oers boththe employer and the disabledjobseeker an opportunity toind out i the job and theperson match.A weekly grant o 75 is
paid to the employer or theirst 6 weeks o employment.In exceptional circumstances,and ater agreement with theDisability Employment Adviser,this may be extended to13 weeks. The user will bepaid the normal rate or the job.Access to the scheme is via theDisability Employment Adviser.
Provides practical adviceand support to help disabledpeople enter or stay in paid
employment. It is aimed atovercoming work-relatedobstacles resulting romdisability through a systemo grants towards the cost oproviding support. It can helpwith varying types o support,such as: altering existingwork equipment, adaptationto employers premises,payment or travel to work,payments or a support workeror providing a communicatorat a job interview. Access toWork is open to those who areemployed (as a job retentionmeasure), as well as peoplemoving out o unemployment.Access to the scheme is viatelephone to an Access toWork Business Centre whichadministers the scheme.
wh ?
To be eligible a person must beabout to start a job and havegenuine concerns about theirability to manage in it because otheir disability. The job can be ullor part time, although expectedto last or at least 6 monthsand must not be speciicallycreated to take advantage o JobIntroduction Scheme.
JIS cannot be used or jobswith government agencies or
departments, in Workstep, oror a New Deal job or which aNew Deal grant is being paid.
Available to unemployed,employed and sel-employedpeople and can apply to any
job, ull-time or part-time,permanent or temporary. It isavailable or voluntary work.The applicant must either:
n be disabled (and thedisability likely to last or12 months or longer);
n be in need o supportat a job interview withan employer;
n have a job to start; orbe in a job, whether as
an employed or sel-employed person; or
n be in need o supportto progress in, or takeup work, on a moreequal basis with non-disabled colleagues.
H y
c2
?
2,000
34,800
125,000
H y jb
uc3
?
n/a
n/a
23,600
H uch
c1
?
0.9m
55.8m
293.4
2 Figures are or 2003-04, rounded to the nearest 100. Number participating or Work Preparation and Job Introduction Scheme reers to the number o partici-pants who have been on the programme or scheme during 2003-04. Figure given or Workstep reers to the number o current participants as at the31 March 2004. Figure given or New Deal or Disabled People includes people joining the programme since 2001 and reers to the number o participants as atthe 31 March 2004. Access to Work igure reers to the number o new and existing beneiciaries during 2003-04.
3 Figures reer to the number o job entries or in the case o Workstep, progressions to open employment, during 2003-04. Figures are rounded to the nearest 100.There are no job outcome fgures or the Job Introduction Scheme.
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1.8 The eligibility criteria and services oered or Work
Preparation, Workstep and New Deal or Disabled People
have some similarities and rely to some extent on the
subjective judgement o need by Disability Employment
Advisers and providers (Figure 8). This can cause
conusion amongst potential clients as well as providers.
Work Preparation by building conidence and giving
opportunities to try dierent types o work is oten used
as a stepping stone into Workstep. However, not all clients
automatically make this step and some, especially those
with longer and more recent work histories, may be ready
or Workstep immediately.
1.9 The relationship between New Deal or Disabled
People, Work Preparation and Workstep is not so
clear and is not easily explained as there is no single
straightorward route. Disability Employment Advisers and
Incapacity Beneit Personal Advisers we spoke to consider
New Deal or Disabled People to be or disabled people
ready to ind work who require less intensive support.
However, in some areas we ound job brokers, who
deliver the New Deal, also oered support to people with
complex needs which relects the initial intention o the
programme that job brokers take on anyone who wishes
to register.
1.10 Remploy Ltd is the countrys largest provider
o Workstep and receives block grant unding o
115 million17 rom the Department. It also contracts with
the Department to provide New Deal or Disabled People
and Work Preparation. Remploy was set up in 1945 to
provide actory-based employment or disabled servicemen
and now has 83 actories in various industries, as well
as non-actory businesses. In 1998, it established its own
recruitment arm Remploy Interwork also unded by the
block grant, providing tailored services or disabled people.
17 2003-04 igure.
8 Key support and activities oered by Work Preparation, Workstep and New Deal or Disabled People
Source: National Audit Office analysis
wk p wk n dl dbl pl
Conidence-building 4 4 4
Key job skills including job search 4 4 4
Writing CV 4 4 4
Interview techniques 4 4 4
Help with job applications 4 4
Work experience/placement 4 4
Training and development 4 4
In-work sustainment support 4 4
Retention support or those in work 4
I think it (Work Preparation) is verygood but maybe not speciically or
someone like me. I think its moretailored to someone who has neverworked or a school leaver who has notbeen prepared or applying or a job.
Male, aged 53, with spina biida,on Work Preparation
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1.11 Some participants in our workshops and other
stakeholders we interviewed argued that having a number
o distinct programmes can be conusing and means that
people can be unairly categorised. It can also lead to lack
o continuity, with clients stopping and starting dierent
programmes, with the risk o losing momentum i there
are gaps. The Departments 2004 report Building on the
New Deal18, which sets out the Governments strategy or
developing the welare to work programmes, responded
to such criticism with proposals or a lexible menu o
provision. The report stressed that clients should not be
slotted into existing provision i this was not appropriate
and advocated an approach tailored to the client.
1.12 In addition to the programmes, the Department
unds three schemes. These are:
n Access to Wor which helps to cover the cost o
special equipment or adaptations needed to the
workplace in order or a person with a disability to
carry out their job. It is available or those about to
start a job, as well as those in work and can cover
the costs o a support worker as well as some travel
to work costs.
n The job Introduction Scheme provides a grant
or employers who decide to employ a disabled
person but are concerned about their ability to do
the job. The grant is paid or the irst six weeks o
employment and the job is expected to last at least
six months.
n The Disability Symbol is used by employers
who want to demonstrate their commitment to
good practice around employing and retaining
disabled people.
1.13 Although not the subject o this report, the
Departments Pathways to Work pilots, launched in three
Jobcentre Plus districts in 2003 and a urther our in
2004, are trialling new ways o helping Incapacity Beneit
recipients overcome barriers to returning to work. TheCondition Management Programme is part o Pathways to
Work and is designed to help participants understand and
better manage their medical condition or disability. It also
plays an important role in helping them to build up their
sel conidence in order to move into work.
1.14 There are a number o ways into the programmes
and schemes, and clients are assisted by sta in Jobcentre
Plus (Figure 9). Personal Advisers are the key contact
points in local Jobcentre Plus oices or disabled people
wanting help to return to work or keep their jobs. There
are two types speciically or disabled people the
Incapacity Beneit Personal Adviser and the Disability
Employment Adviser.
1.15 Incapacity Beneit Personal Advisers work with
Incapacity Beneit recipients to help them progress into
employment. They can also reer clients who require more
long term personalised support to a Disability Employment
Adviser. Disability Employment Advisers support people
with a disability or health condition regardless o whether
they claim a Jobcentre Plus beneit. They can reer clients
to a wider range o programmes than the Incapacity
Beneit Personal Adviser. Both can make use o the
Adviser Discretion Fund to make payments or clothes,
transportation or anything else that will help their client
move into work. The value o this is now 100, although
additional unds o up to 300 can be applied or.
1.16 Disability Employment Advisers can reer clients
to a Jobcentre Plus Work Psychologist i they are unsure
o the clients abilities due to their disability or health
condition. The Work Psychologist can carry out a range
o tests to better diagnose and understand a persons skills
and abilities and also identiy the type o work they may be
capable o doing. Together the Work Psychologist and client
then develop an action plan, including access to a relevant
programme, and the Work Psychologist in most cases reers
the client back to the Disability Employment Adviser.
1.17 The complex array o programmes and schemes
the Department oers to disabled people who want to
work has evolved over sixty years in response to changing
societal expectations. While each individual element
addresses a recognised need, the suite o services taken
as a whole is neither coherent or resource eicient. Many
o the organisations we spoke to elt there was a need
or rationalisation in order to make provision easier or
potential clients to understand.
18 Department or Work and Pensions (2004) Building on New Deal: Local solutions meeting individual needs.
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The Government has committeditsel to increasing the employmentrate o disabled people and theDepartment is on course to meetits Public Service Agreement target1.18 The Government is committed to helping disabled
people into work. The Department or Work and Pensions
has Public Service Agreement targets which aim to:
In the three years to 2006, increase the employment
rate o people with disabilities, taing account o theeconomic cycle, and signiicantly reduce the dierence
between their employment rate and the overall rate.
Wor to improve the rights o disabled people and to
remove barriers to their participation in society.
1.19 In its 2004 Autumn Perormance Report, theDepartment reported that it was on course to meet
this target. In the year to spring 2004, the employment
rate or disabled people o working age rose rom
48.9 per cent to 50.1 per cent; and, the employment gap
ell rom 25.6 per cent to 24.6 per cent over the same
period. The Department also considers it is on course to
improve the rights o disabled people and remove barriers
they ace to employment. Changes introduced rom
October 2004 under the Disability and Discrimination
Act 1995 (see Figure 10) bring a urther 1 million small
employers (7 million more jobs) within the scope o the
Act. However, research and eedback rom stakeholderssuggests that recognition o responsibilities under this Act
is low.19
9 How clients are reerred to the programmes
Source: National Audit Office analysis
IncapacityBeneit recipients
Person not in receipto Incapacity
Beneit, but with amedical conditionor disability that
creates asigniicant barrier
to employment
iccy Bpl av
dblyely av
New Deal orDisabled People
Work Psychologist
Work Preparation
Workstep
Mainstream provision, such asWork Based Learning or Business Links
sl l
I signiicantbarrierto work
I no signiicantbarrier to work
NOTE
This is the integrated Jobcentre Plus, non-Pathways model. In non-integrated ofces there will be no Incapacity Beneft Personal Adviser intervention at thestart o the claim.
19 Roberts et al (2004) Disability in the Workplace. Research or Department or Work and Pensions.
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1.20 The Government aims to help those who are able to
work to ind and gain a job. It attempts to achieve this in
part by reocusing the tax and beneit system to encourage
and promote movement towards and into employment.
However, take-up o the current programmes is low
and only supports a small number o those who could
potentially beneit. O over 2.6 million people o working
age on incapacity beneits in 2003-04, only 125,000 were
involved with one or more o the employment-ocussed
specialist programmes unded by Jobcentre Plus, although
a signiicant additional number may previously have
participated but been unsuccessul. Some are not able to
work and probably never will. For example, Incapacity
Beneit recipients who, because o the severity or nature
o their disability, do not undergo the Personal Capability
Assessment to demonstrate their continued incapacity20,
may still be eligible or Workstep. In addition, Jobcentre
Plus is not the only source o support or disabled people
who want to ind work. There is also support available rom
the voluntary and community sector which may also help
to explain low take-up o the Departments programmes.
1.21 There are a number o possible reasons or the
low participation rate. From the individuals perspective
these include low awareness o what is available, ear o
approaching Jobcentre Plus in case beneits are reduced,
and lack o conidence. In addition, the Department
has resource constraints that limit the number o places
and support available. The Departments programme
expenditure has seen some increase in recent years
(Figure 11), but except or New Deal or Disabled People,
levels o participation have in general remained airly
steady (Figure 12).
20 Approximately 24 per cent o people on an incapacity beneit or less than two years are either exempt rom the Personal Capability Assessment and/orare in receipt o higher rate Disability Living Allowance care or higher rate Disability Living Allowance mobility (Pathways to Work: Helping People intoEmployment. November 2002. Cm 5690).
10 The implications o the Disability DiscriminationAct 1995
This Act deines disability as a mental or physical conditionwhich has a substantial and long-term adverse aect on theemployees ability to carry out normal day-to-day activities.
Long-term means that the condition must last, or be likely to last,or more than 12 months.
The persons ability to carry out normal day-to-day activities canbe adversely aected in one or more o the ollowing ways:
n mobility
n manual dexterity
n physical co-ordination
n ability to lit or otherwise move everyday objects
n speech, hearing or eyesight
n memory or ability to concentrate, learn or understand
n understanding the risk o physical danger
Under this Act it is unlawul to discriminate against a disabledperson in employment and or an employer to ail to provideany necessary reasonable adjustments or disabled employeesand applicants.
The latest regulations, the Disability Discrimination Act 1995(Amendment) Regulations came into orce on 1 October 2004.They aim to make the law more inclusive and introducedcertain key amendments to the Act, including the removal o
the small business exemption or employers with ewer than15 employees and the extension o protection to certaincategories o employment.
Source: adapted from Chartered Institute of Personnel andDevelopment website
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m
Source: National Audit Office analysis of Jobcentre Plus and former Employment Service annual reports
NOTE
Expenditure is at 2003-04 prices, adjusted using the GDP deflator.Job Introduction Scheme expenditure is not separately analysed in the annual report. It is approximately 1 million per annum.
140
120
100
80
60
40
20
02000-01 2003-042001-02 2002-03
Remploy
Workstep (non Remploy)
Access to Work
New Deal for Disabled People
Work Preparation
Programme and scheme expenditure, 2000-01 to 2003-0411
000s
Source: National Audit Office analysis of Department for Work and Pensions data
NOTE
Figures for New Deal for Disabled People reflect current participation at 31 March, except for 2001-02 where this reflects the number of registrations in year.2002-03 Workstep (non Remploy) figure is an estimate based on 2001-02 and 2003-04 participant numbers.
70
60
50
40
30
20
10
02003-042001-02 2002-03
RemployWorkstep (non Remploy)
Access to Work
New Deal for Disabled People
Work Preparation
Job Introduction Scheme
Programme and scheme participant numbers, 2001-02 to 2003-0412
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1.22 Other Government departments and agencies
are directly or indirectly involved in the delivery o the
Departments programmes and schemes or disabled people
(Figure 13) as well as oering their own services which
are o particular beneit to the disabled population. For
example, the Department or Education and Skills Skills for
Life Strategy, provides ree literacy and numeracy courses
or which we ound a high demand in Remploy actories,
and the Department or Trade and Industry provides
business support via Business Linkor anyone, including
disabled people, interested in becoming sel-employed.
Scope o this examination1.23 Against this background, we examined whether
the Department or Work and Pensions employmentprogrammes and schemes or disabled people are eective
at getting disabled people into work and helping them
sustain and retain employment; as well as whether the
programmes and schemes are cost eective.
1.24 Our methodology is set out in Appendix 1. In
summary our work included:
n workshops with key stakeholders and practitioners;
n analysis o statistics and existing evaluations ogovernment programmes;
n visits to eight Jobcentre Plus oices and programme
providers in England;
n visits to three Remploy actories and two Managed
Services sites or CCTV;
n analysis o costs and outcomes data or Workstep
undertaken on our behal by Reckon a consultancy
irm specialising in regulation and com