Press Story

The Work Programme is failing those who need the most help to find work, according to a new report published today by the think tank IPPR North.

The report says the Work Programme is generally working for mainstream jobseekers, but is not working for people with health conditions. The report shows that over a quarter of a million people with health conditions have joined the Work Programme, but only 1 in 20 of them have found work, compared to 1 in 5 mainstream jobhunters. Only 1 in 25 people with a mental and behavioural disorder have gone on to find work, despite this being the most common health condition for people on the programme.

The new report is the latest in a series from IPPR's flagship 'Condition of Britain' project on social policy. The final report from the Condition of Britain project will be published on Thursday 19 June.

The report says that 75% of participants with health conditions feel that they have not been offered support related to their condition or disability. It says that providers regard specialist personal provision as too expensive and instead offer general employability support, such as CV classes and supervised jobsearches. The report also says that despite providers being paid more for finding work for more difficult claimants, 60% of provider staff feel that the differential prices do not accurately reflect the challenges of finding different groups work. The report says that this has resulted in those who are hardest to help being 'parked' as providers focus on finding jobs for mainstream jobhunters.

The report also shows that Work Programme results differ substantially between different parts of the country and that it is failing local areas with the highest levels of unemployment. The report says that 30% of mainstream jobseekers on the programme in London go on to find work, compared to just 12% in Dundee and Pendle. The report argues that the Work Programme's payment-by-results system means that over time funding ends up going to places which need it least. The report also argues that the programme needs to be more closely aligned to each area's local economy.

The report recommends that the Work Programme is split so that those who are hardest to help receive different support to mainstream jobseekers. It argues that local government is best placed coordinate services and agencies and should be given full charge of service provision for those hardest to reach. It recommends introducing earn-back deals which would allow local government to claim back the savings made from getting more people into work.

Bill Davies, research fellow at IPPR, said:

"Turning two employment schemes into one has not achieved what the government wants: streamlined but equal services for an array of jobseekers. The Work Programme is delivering markedly different outcomes for the different groups. The programme is failing the more difficult to help claimants, such as those with health conditions, who are seen as unprofitable and are not a priority for the programme providers.

"The 'Work first' philosophy does not work for everyone and the Work Programme is in dire need of reform. By segmenting the system into different programmes for mainstream jobseekers and people with serious barriers to work, this would pair the hardest to help participants with distinct providers with the time and expertise to devote to them."

Notes to Editors

IPPR North's new report – Alright for some? Fixing the Work Programme, locally – is available from: http://www.ippr.org/publications/alright-for-some-fixing-the-work-programme-locally

The final report from the Condition of Britain project will be published on Thursday 19 June at a launch event with Ed Miliband: http://www.ippr.org/events/condition-of-britain-final-report-launch

There are 9 different categories (payment groups) of participants on the Work Programme, determined by virtue of previous benefit receipt and other characteristics of those joining the programme. They are:

Payment Group 1: JSA 18-24

Payment Group 2: JSA 25 and over

Payment Group 3: JSA Early Entrants

Payment Group 4: JSA Ex-Incapacity Benefits

Payment Group 5: ESA Volunteers

Payment Group 6: New ESA Claimants

Payment Group 7: ESA Ex-Incapacity Benefit

Payment Group 8: Incapacity Benefit / Income Support Volunteers

Payment Group 9: JSA Prison Leavers

Contacts:

Ellie Geddes, 07766 904 332, e.geddes@ippr.org

Richard Darlington, 07525 481 602, r.darlington@ippr.org