21st Century Welfare A consultation response from Skill. October 2010 About Skill Skill: National Bureau for Students with Disabilities is a national charity that promotes opportunities to empower young people and adults with any kind of disability to realise their potential in further, continuing and higher education, training and employment throughout the UK. Skill works by providing information and advice to individuals, promoting good practice and influencing policy in partnership with disabled people, service providers and policy makers. Skill is a registered charity and a company limited by guarantee. Introduction Skill welcomes the opportunity to contribute to the debate on creating a welfare system that supports people to move into work while still supporting those in greatest need. Correctly identified in the Foreword is the fact that ‘educational failure’ is one of the root causes of poverty. Disabled people face many barriers in education, an injustice which leads to limited social mobility. Government support is therefore needed through funds such as Additional Learning Support for those in Further Education and Disabled Student’s Allowances for those in Higher Education. Without this support which directly leads to education attainment, disabled people’s employment prospects will be poor and the benefit bill will grow. In addition support for disabled people in the workplace must be maintained. Skill welcomes commitment to reform the Access to Work (AtW) fund to allow disabled people to ‘apply for jobs with funding already secured for any adaptations and equipment they will need.’1 Skill recognise the real value of the AtW, which provides valuable support for disabled people in work. In addition AtW alleviates concerns that employers may have about any additional costs for things such as assistive software or BSL interpreters. We have chosen to respond to the questions as laid out in the consultation document. Our responses will be focused on those relevant to disabled students and those looking to progress into work. Skill Policy Team 1 P30. The Coalition: our programme for government. May 2010 1 1. What steps should the Government consider to reduce the cost of the welfare system and reduce welfare dependency and poverty? Skill understands that Government strategy is focused on reducing the current financial deficit. Savings can be made by giving disabled people the opportunity to participate in education fully so that their employment opportunities are increased. Upfront costs in this support will lead to overall reductions in spending in the future. The link between education, qualifications and work is well evidenced. This is true for all people but for disabled people the correlation is significantly starker. The graph below demonstrates this. Employed rates in relation to qualifications2 Employed by % 100 90 80 70 60 50 40 30 20 10 0 Disabled Not disabled No Other qualification qualifications Level 2 Level 3 Higher First degree education or higher (non degree) Highest Qualification obtained The graph shows that disabled people with no qualification have very poor prospects of employment (23%) while non disabled people without a qualification have considerably higher employment rates (over 60%). The gap significantly narrows the higher the education attainment. Costs to the welfare system will be significantly reduced if disabled people have sufficient access to and support in compulsory and post compulsory education. This may be in the form of fee waivers as currently exisits in Further Education for some students on benefits. In addition it is crucial that support is maintained for those in education. This includes Additional Learning Support in Further Education and Disabled Students’ Allowances in Higher Education both of which allow disabled students to access education through 2 Data is taken from Labour Force statistics 2007 2 the provision of equipment such as assistive software or human assistants in the classroom. Recommendation: Ensure that disabled people have the necessary funds in order to access compulsory and post compulsory education. 2. Which aspects of the current benefits and Tax Credits system in particular lead to the widely held view that work does not pay for benefit recipients? N/A 3. To what extent is the complexity of the system deterring some people from moving into work? Skill recognises that the system is complicated and can sometimes act as a deterrent for disabled people to move into work. Many disabled people contact Skill with questions over benefit entitlement and in particular the impact of study and training on the benefits they may have. Recommendation: The benefit system should allow for and encourage disabled people to enter education and training without prejudicing their benefit support. For some people, dealing with multiple agencies can be stressful and support may be needed in order to assist people navigating their way through the system. Others have reported how information provided by Local Authorities, Jobcentre Plus and other agencies is inaccessible. Changes to the benefit system will mean new guidance. It is absolutely vital that this is easy to understand and accessible for disabled people. Information must be available in alternative formats and telephone support and face to face contact an option for those who wish it. Indeed the Equality Act 2010 clarifies that it is almost also reasonable to provide information in an accessible format. This might be through having a website which supports assistive software for someone with a visual impairment or information available in easy read for someone with a learning disability. Recommendation: Clear guidance and support is needed in understanding the system. This may involve training for job centre staff as well local agencies delivering advice. Recommendation: Information on benefits must be available in accessible and alternative formats for disabled people. 3 4. To what extent is structural reform needed to deliver customer service improvements, drive down administration costs and cut the levels of error, overpayments and fraud? As stressed above we receive enquiries from disabled people thinking about education, training or employment who are uncertain about the impact that this would have on their benefits. Customer services must be able to provide the individual with a clear breakdown of the financial implications for undertaking education, training and looking for work whether it be part or full time. Recommendation: Customer services must provide individuals with a breakdown of the impact that undertaking education, training and employment would have on their benefits so that they may make informed decisions. 5. Has the Government identified the right set of principles to use to guide reform? Skill recognises the value in the seven principles set out in the consultation to guide reform. However the relationship to education, training and volunteering is missing. Skill proposes an additional principle: Ensure that the system supports people to participate in education, training and volunteering. While not all disabled students claim benefits, financial support is vital for many who are often economically disadvantaged in comparison to their non disabled peers. In particular families with disabled members are significantly more likely to be in poverty than families without a disabled member.3 Disabled students can access study related support in order to access learning. Students may benefit from Additional Learning Support in College while others may draw down Disabled Students’ Allowances at University. These cover costs associated with accessing learning, such as information in alternative formats, a support worker to assist during class or assistive software. However this does not cover costs outside of learning that may be associated with having a disability. This is where benefits such as Employment Support Allowance can offer vital financial support. In addition disabled students are less likely to have additional incomes from part time or short term work opportunities which many non disabled students have. While many University and College students supplement their income with summer work and part time positions during term this is often not an option for disabled students. 3 Office for Disability Issues: Households Below Average Income 2008/09 4 This is due to a number of reasons including: Barriers to employment for disabled people in general The difficulties in finding an employer offering short term or part time work who is also willing to make reasonable adjustments. The fact that a lot of this type of work done by students is cash in hand or through agencies where either Access to Work funding doesn’t apply or where there are significant complexities in drawing it down. For some disabled students, completing a course in Further or Higher Education may be considerably more tiring or time consuming than a non disabled student. For example for a student with limited mobility and high personal care needs may find that a significant amount of their time when not in class is spent managing a personal assistant, arranging transport and so on. It may be impossible to take on a part time or summer job in order to supplement income. The principles must also reflect the importance of volunteering which for many is a vital route into employment or makes up an important aspect of their life where skills are gained. Volunteering as a route into employment has been highlighted as crucial with regards learning new skills, increasing confidence and developing or maintaining work habits4. The systems therefore must support those people who wish to volunteer whether full time for a period of time or as part of other activities such as part time work, training and education. Through our helpline and volunteering projects we are aware that disabled people are sometimes concerned that undertaking volunteering may lead to a loss in benefits. Some concerns exist that volunteering might lead to arbitrary decisions by officials over ‘fitness to work.’ Volunteering is different to work and individuals should be supported to volunteer if it might lead to employability skills, improves their independent living skills and so on. Recommendation: Include an additional principle to ensure that the system supports people to participate in education, training and volunteering 6. Would an approach along the lines of the models set out in chapter 3 improve work incentives and hence help the Government to reduce costs and tackle welfare dependency and poverty? Skill is not expertly placed to comment on the individual models proposed. However from our helpline work and work with disabled people we know that any model must recognise that disabled people often require a very individualised package. 4 Corden, A. and Sainsbury, R, 2005, Volunteering for Employment Skills: A qualitative research study Social Policy Research Unit, University of York, York. Gaskin K (2004) Volunteering and availability for work: an evaluation of the change to Jobseeker’s Allowance regulations - A report to the Department for Work and Pensions. 5 It is therefore crucial to end the emphasis that the system places on full time work. For some disabled people full time employment may be the goal while for others a more realistic goal might be part time employment sometimes for just a few hours a week combined with volunteering, training and opportunities to develop living independently. Recommendation: Create a system which reflects individual’s aspirations and is not focused solely on full time work. 7. Do you think we should increase the obligations on benefit claimants who can work to take the steps necessary to seek and enter work? The Office for National Statistics estimates that there are 1.3 million disabled people in the UK who are available for and want to work.5 They are however prevented from working by a wide range of factors. These range from a lack of skills and confidence to prejudice in selection, discrimination from employers and inflexibilities within the system bias against part time work. A study carried out by Leonard Cheshire found that more than half (52%) of respondents believe that they have been discriminated against in the workplace.6 The same survey found that 30% of people said they had been refused adjustments by their employer.7 Incentivising individuals to take up work is one branch of the solution. However work must be done with employers both on making reasonable adjustments within the workplace as well as their duties under the Disability Discrimination Act and the soon to be implemented Equality Act 2010 (from October 2010). Furthermore it is crucial in this current economic climate that employers understand that the cost of reasonable adjustments is often low. Indeed the reasonable adjustments are often around flexibilities in ways of working and start and finishing times. Where there are additional costs these can be met through Access to Work. Recommendation: Work with employers to ensure they understand their duties and have the tools and knowledge to support disabled people in the workplace and make fair recruitment decisions. 5 Office for National Statistics Labour Force Survey, Jan - March 2009 Disability Review 2009, Leonard Cheshire Disability November 2009 7 P20 disability Review 2008, Leonard Cheshire Disability (2008) 6 6 8. Do you think that we should have a system of conditionality which aims to maximise the amount of work a person does, consistent with their personal circumstances? Skill doesn’t disagree with the principle that some jobseeker should undertake work preparation or work related activity as a condition of receiving benefits. The key point is that such activity is as stated; ‘consistent with their personal circumstances.’ Thus currently most Jobseeker’s Allowance (JSA) claimants are required to look for fulltime work. For some disabled people this does not reflect the type of job they wish to have. For many disabled people part time work is preferable. Full time work for some may prove too gruelling while wish to combine work with study and or training. Recommendation: Ensure that work preparation and work related activity reflects the type of work that disabled people are seeking. In addition reasonable adjustments must be built into work preparation and work related activity in order for disabled people to participate. Recommendation: Ensure that reasonable adjustments are taken into consideration with regards work preparation and work related activity. Furthermore the phrase ‘work related activity’ should be broadened to include volunteering as it often builds vital employability skills. Recommendation: Broaden the phrase ‘work related activity’ to include volunteering. 9. If you agree that there should be greater localism what local flexibility would be required to deliver this? If the benefit design and delivery is devolved from the centre it will be crucial to ensure that quality pervades throughout the system. Disabled people in many cases require a highly individualised service. This might include examining very closely the impact that taking up work, training and employment might have on their benefits. It may also involve producing information in accessible or alternative formats or meeting face to face. Any staff working locally will therefore need the training and skills to do this. Recommendation: If benefit design and delivery is devolved ensure that local staff have the skills needed to offer a personalised quality service for disabled people. 7 10. The Government is committed to delivering more affordable homes. How could reform best be implemented to ensure providers can continue to deliver the new homes we need and maintain the existing affordable homes? N/A 11. What would be the best way to organise delivery of a reformed system to achieve improvements in outcomes, customer service and efficiency? Skill supports the principle that the delivery system must be ‘simpler, fairer and less costly’. The paper highlights the vision that ‘Within a household, one person would make the claim and receive the payment.’8 Limiting applications to one per household will be detrimental to the aspirations and life chances of many disabled people who will see benefit entitlements swallowed up in the family budget. Recommendation: Payments should be made to individuals and not per household to ensure all that all receive the benefits they are entitled to. Skill strongly advocates the principles behind the ‘Right to Control’ pilots taking place in eight local authorities across the country. The sites known as ‘Trailblazers’ allow for disabled people to bring together social care funding and some DWP funding streams such as Access to Work in one place which can be taken as a direct payment. It allows the individual to buy support more effectively while giving them more control over their lives.9 Ultimately the Right to Control will lead to more people being able to make the effective transition into the work place and thus drawing down less in benefits. In order to do so education funding streams should be added to the pilots so that disabled people can access additional suitable education and training. Recommendation: The Government should look at how the principles of the Right to Control can be built upon to empower disabled people. Recommendation: Look at how education and training funding streams can be built into the Right to Control pilots. 12. Is there anything else you would like to tell us about the proposals in this document? Our points have all been made throughout the document. Skill Policy Team October 2010 8 P33 of 21st Century Welfare, DWP July 2010 More information on the Right to Control ‘Trailblazer’ Pilots can be found on the Office for Disabilities website: http://www.officefordisability.gov.uk 9 8