15 March 2005 - Johnson announces summer green paper to reform Incapacity Benefit as radical “pathways” pilots get 10,000 off IB in a year
The Government will publish its radical plans to scrap Incapacity Benefit (IB) and replace it with a system focused on helping people into work this summer, Alan Johnson announced today.
His comments came as it was announced over 10,000 people on IB have been helped back to work since last year by the radical Pathways to Work programme.
If Pathways was rolled out nationally, then well over 100,000 people would have got back to work based on this early success rate.
Speaking at the New Beginnings Symposium, Mr Johnson said:
"Our Pathways approach works. Where introduced, fewer people are still on incapacity benefits a year later. That means more people realising their aspirations and getting the opportunity to swap a sick note for a pay slip. On the back of this, we can go even further.
“In the summer we will set out in detail in a Green Paper how we will radically change the benefit system so it reflects all that we have learnt about the needs of those on IB. Together – working with employers, GPs, special interest groups and claimants themselves – we can replace the sicknote culture with one of hope and opportunity.
“Incapacity Benefit is out of date – our radical plans will sweep aside a system that branded people incapable and help claimants focus on what they can do, not what they can’t."
Calling on interested groups Mr Johnson emphasised the need to start developing a consensus. He laid out four key areas for consideration:
- Fairness – what should be the content of the “return to work activities” that we recognise as beneficial in helping people with health conditions to get back to work.
- Security – how to minimise the risks people face when they want to move into work and ensure people have every incentive possible to try out work.
- Inclusion – how to ensure that the Disability Sickness Allowance doesn’t mean someone is written off or has no interest in working but recognises the severity of their condition.
- Results for all – what key features does the system need to ensure that it works effectively for people with mental health conditions.
To inform the Green Paper, interested parties are asked to write with comments to the address below.
The Green Paper in the summer will kick start a formal consultation on how the new benefit system will operate, the role of Personal Advisers and what people will be required to do in the future to access the higher rates of benefit. It will also explore what safeguards and appeals processes should be in the system.
Notes for editors
- The Government’s radical approach to tackling IB was set out in the 5 Year Strategy launched in February 2005. The document can be accessed at: http://www.dwp.gov.uk/publications/dwp/2005/5_yr_strat/index.asp
- The 5 Year Strategy set out plans to replace Incapacity Benefit with two new benefits – Rehabilitation Support Allowance and Disability and Sickness Allowance and scrap the incremental increase in rates that was seen to be a disincentive to leaving the benefit.
- The new performance figures on Pathways to Work have been published in a statement to the House today and placed in the House Library. The latest DWP quarterly statistics on all benefits including IB will be published on Wednesday 16th March 2005.
- Pathways pilots offer an innovative mixture of jobs advice and rehabilitation support for people with health conditions and disabilities and currently covers 7 areas: Rhondda, Cynon & Taf; Renfrewshire; and Derbyshire (set up in October 2003) and Essex, Somerset, East Lancashire and Gateshead & S. Tyneside (set up in April 2004).
- In December 2004 the Chancellor announced the expansion of the pilots to a third of the country: Phase 1. October 2005: Cumbria; Glasgow; Lancashire West; Tees Valley. Phase 2. April 2006: Barnsley, Rotherham and Doncaster; Sunderland; County Durham; Lanarkshire and East Dunbartonshire; Liverpool and the Wirral; Manchester and Salford; Swansea and West Wales. Phase 3. October 2006: Eastern Valleys; Greater Mersey; Staffordshire.
- The Pathways to Work pilots include:
- Support from a highly skilled personal adviser support and contact every month in the first 8 months of the claim when people can be most readily helped back to work
- Groundbreaking NHS rehabilitation support so that they can learn to manage and cope with their health condition (e.g. back pain, angina, mental illness) so they can get back to work
- Strong local partnerships with the New Deal for Disabled People - voluntary and private sector employment advisers
- £40 a week return to work credit once they get a job so that it always pays to get back to work
- Work with local GPs and employers to ensure people on IB are not discouraged from working again
- Address:
Incapacity Benefit Reform Team
Room 220
Adelphi
1-11 John Adam Street
London
WC2N 6HT - The total number of people on Incapacity Benefit is 2.7 million. There have been consecutive falls in the last 2 quarters with the number down by 9,000 over the last year. New DWP National Statistics will be published tomorrow.
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