Employment and Support Allowance (ESA) needs greater consultation

George Osborne is calling upon the voluntary sector and private providers to support the Work Programme in providing intensive help for those looking for work but according to Sally Burton, Chief Executive, Shaw Trust, far greater consultation is urgently needed:

“A reduction in the length of time that a client can receive contributory Employment and Support Allowance (ESA) appears to be a simple means of reducing the welfare bill.

However, getting people with barriers to employment – through disadvantage or disability – is complex and a one year cap could severely hamper their progress to work.

We know from Pathways to Work that many of our clients take longer than 12 months to secure employment. For example, of all the mandatory clients we have placed into work during the past 6 months, approximately 20 per cent have been supported for over 12 months before moving into work – and of those, a third have taken about 18 months. Most noticeably, 63 per cent of the clients on Incapacity Benefit included within these figures have taken more than 12 months.

Looking ahead under the Work Programme proposals, the government estimates that approximately 58 per cent of the 1.5m incapacity benefit claimants will be moved on to ESA Work Related Activity Group. This means that not only are a significant number of people going to need support but that large numbers on the ESA group will need longer than 12 months to secure employment.

This represents a significant number of people who face being rushed through the Work Programme to secure a job, only to potentially leave that job because they can’t cope or it is not suitable. Whilst the government has yet to confirm whether sanctions will be imposed, the implication is that if ESA clients have not secured a job, they face a reduction in income which could place homes and family members at risk.

In addition, a reduction in job retention has a massive impact on the viability of the Work Programme and in turn, the ability of the third sector to support the government in getting people back to work.

We urgently need further consultation around the cap on ESA. The majority of our clients want to work but they need practical support to do so. As the largest third sector provider of employment services, Shaw Trust is well placed to support the Work Programme but our experience also means we know what will work – and what won’t – and a fixed one year cap is likely to have an adverse impact on our clients.”

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