In work better off
By Caroline Flint, Minister of State for Employment and Welfare Reform
If you ask why reforms to the welfare state are needed, there is one overwhelming answer – because children in this country deserve more.
Lifting families out of poverty is one of the key incentives for our reforms and why we are taking radical steps to help more people into work.
With this country enjoying one of the most economically stable periods in its history, it is only fair that everyone has the chance to share in that prosperity.
During the summer the Government launched a consultation document – In Work, Better Off: next steps to full employment – setting out how we can build on today’s record employment levels and work towards our goal of full employment.
We want to put more focus on the individual, offering flexible support that better meets each individual’s needs. In return, we think it’s only right to expect people who are not working, particularly those on benefits, to take more responsibility for themselves.
It’s a huge challenge, but by focusing on those furthest from the labour market we will see thousands more people enjoying the benefits of work.
Part of this challenge is getting more lone parents into the workplace. This is vital if we are to achieve our aim of eradicating child poverty.
At the moment, lone parents whose youngest child is 16 move from income support to Jobseeker’s Allowance, incapacity benefit, or into work.
From October 2008, we propose that lone parents whose youngest child is aged 12 or over will no longer be eligible for income support solely on the grounds of being a lone parent. We propose to reduce this age to seven from October 2010.
Instead, lone parents will be eligible for Jobseeker’s Allowance, or another appropriate benefit, giving them the opportunity to take advantage of the help, support and advice available to find work, with an expectation on them to look for work.
This support will include improved access to childcare and help in identifying the jobs best suited to their skills.
To help ease the transition from benefits into work, we are also rolling out a £40-a-week In Work Credit payment to lone parents across the country. The credit will be £60 for those living in London.
But our reforms are not just about finding jobs for people – we want to make sure people stay in work and progress in their careers.
The new local employment partnerships announced by Gordon Brown earlier this year will help to do this.
These partnerships will see local companies working more closely with Jobcentre Plus to ensure those who have been on benefit for a long time get the help and support they need.
As part of these partnerships, we will guarantee lone parents a job interview if they are looking and ready to find work. We will also invite them to take part in group sessions with employers and Jobcentre Plus to help them develop the skills they need to find work.
Lone parents will be allowed to take part in work trials for up to six weeks during which time they will continue to claim their benefit and, where training is required, an allowance of at least £400 will be paid to the employer.
To support these partnerships, we are asking major companies to offer 250,000 job opportunities to long-term benefit claimants who are ready for the workplace.
Some 64 companies are already committed to this jobs pledge and we are talking to a further 150 firms and organisations also interested in signing up.
These partnerships are based on a simple ‘deal’ in which the Government gets people ready for work in return for employers giving them a fair shot at getting a job, whether that be through interviews, work trials or mentoring.
To ensure people stay in work, firms have also agreed to give new recruits the chance to develop and progress within their company.
An important factor in getting people job-ready is our plan to build on the success of the New Deal to provide more tailored support, more help to learn new skills and faster access to help for those with a history of benefit dependency.
We also want to make better use of specialist providers in the public, private and voluntary sectors.
While many of these organisations already play a role in delivering employment programmes, we need to build on their knowledge and expertise to better understand the needs of disadvantaged individuals and communities.
Alongside this, we are also pushing ahead with our Cities Strategy, which offers local communities the opportunity for new funding and flexibility in return for getting more people into work.
We are continuing the roll out of our successful Pathways to Work programme to cover the whole of the country by April 2008. To support those with disabilities or long-term health condition further, we are also introducing the new Employment and Support Allowance.
These measures are all part of our commitment to reducing the number of people claiming incapacity benefits by one million over the next 10 years.
We want to provide a financial safety net for those who cannot work, but equally, we want to give those who can the chance to envisage a future beyond benefit.
Having set about demolishing unemployment – one million fewer people are claiming benefits now than 10 years ago – we now want to build on this remarkable achievement to show that work is the best benefit of all.
- If you want to comment on the Government’s proposals you can view “In Work, Better Off: next steps to full employment” at www.dwp.gov.uk/welfarereform/in-work-better-off/. The consultation ends October 31.