The size and scale of the programme is small when benchmarked against economic inactivity and is likely to have a limited impact.
The size and scale of the programme is small when benchmarked against economic inactivity and is likely to have a limited impact. Reducing economic inactivity has been high on the Government’s policy agenda, but there needs to be greater clarity about who is classified as economically inactive and what support they should receive. Welfare reform through the migration of claimants onto the Universal Credit No Work Requirements(UCNWR) is a primary driver. There are over 7.2 million claimants in receipt of Universal Credit; UCNWR represents 40% of the UC caseload and has accelerated over the last five years showing no signs of slowing down.
This trend is not new. During the 1990s there was a migration of claimants from unemployment benefit to Incapacity Benefit who received very limited job support, resulting in longer term inactivity for most claimants (50% in receipt of Incapacity Benefit for 5+ years) This issue presents local Commissioners with key policy challenges, including stemming the flow of residents who are assigned to the UCNWR group. This will require:
- Refreshing existing employability and health strategies to reflect new policy objectives at national and local level
- Developing targeted support that demonstrates impact and value for money (cohort groups and payment mechanisms). Opportunity to pilot an invest to save model
- Defining what CtW residents should be in scope and tailoring support that reflects their needs
- Conducting market testing to determine provider interest, capacity and capability, and inform any future route to market
- Investment in local health services such as Talking Therapies and Musculoskeletal interventions to support acute health conditions
- Strategies for identifying residents who don’t engage with Jobcentre Plus or wider public services
- Developing integrated and coordinated programmes that are embedded within local public service networks
- Reviewing value for money through outsourcing or in-house delivery to identify the best delivery approach
“Reducing economic inactivity has been high on the Government’s policy agenda, but there needs to be greater clarity about who is classified as economically inactive and what support they should receive.”
This trend is not new. During the 1990s there was a migration of claimants from unemployment benefit to Incapacity Benefit who received very limited job support, resulting in longer term inactivity for most claimants (50% in receipt of Incapacity Benefit for 5+ years) This issue presents local Commissioners with key policy challenges, including stemming the flow of residents who are assigned to the UCNWR group.
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