Sanctions and Support: What s the right balance?
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1 Sanctions and Support: What s the right balance? Tony Wilson, Policy Director Centre for Economic and Social Inclusion
2 The unemployed should be required, as a condition of continued benefit, to attend a work or training centre, such attendance being designed as a means of preventing habituation to idleness and as a means of improving capacity for earnings. Beveridge Report, 1942 And sanction for refusing suitable job pre-date this: back to 1911 unemployment insurance
3 What do we mean by conditionality and support? 1. Benefit condtions: Jobsearch conditionality for unemployed (be available for, look for and accept work) Preparation for work for those able (attend meetings, undertake activity) 2. Underpinned by support: Public Employment Service Personal advisers Wider support health, skills, travel and childcare 3. With sanctions for non-compliance
4 Why have conditions? Economic/ fiscal higher participation in work Political underpins public confidence Social brings those furthest from work closer But clear risks: Ignorance of requirements, consequences Hardship for those sanctioned Wrong choices poor quality jobs, inappropriate training
5 Dramatic extension of conditions and support in last two decades 1996 Jobseeker s Allowance 1999 New Deals 2001 Jobcentre Plus 2001 Lone Parent Work Focused Interviews 2003 Pathways to Work 2008 Work Capability Assessment 2008 Lone Parent Obligations 2009 Flexible New Deal 2011 Work Programme 2011 Skills conditionality (tweaked in Scotland) 2012 New sanctions regime
6 Has it worked (1)? Strong evidence on jobseeking conditionality Intro of JSA increased off-flows by 8-9 ppts IAP for over-50s boosted employment by 25% Positive impacts from Lone Parent reforms Strong ev. on New Deals/ conditional support Source: Gregg Review, 2008
7 OECD, 2014
8 Sanctions evidence is decidely mixed: [Sanctions] strongly reduce benefit use and raise exits from benefits, but have generally unfavourable effects on longer-term outcomes (earnings over time, child welfare, job quality) and spill-over effects (i.e. crime rates). Griggs and Evans (2010) Has it worked (2)? But... Very little/ no evidence that WFIs or Pathways led to significant impacts for those on IB/ ESA JSA regime generally better at moving people off benefit than moving people into work Skills conditionality appears to be failing
9 The sanctions regime Source: Oakley Review, 2014
10 Sanctions rates have risen dramatically
11 This is not a good thing More sanctions = more failure Oakley review into sanctions communications suggests: Potentially greater impacts on vulnerable groups struggling to navigate system Claimants often don t understand: Specifics of system Why sanctions applied What recourse they have, what is expected What hardship support is available
12 Which means... Whilst there are now double the number of foodbanks open this year compared to this time last year, numbers given emergency food have increased threefold The Trussell Trust, October 2013 Providers who participated in the study were in agreement that welfare reform, benefit delays, benefit sanctions and falling incomes have been the main factors driving the recent trend observed of increased demand for food aid Sosenko, P. et al (2013) Overview of Food Aid Provision in Scotland, Scottish Government Social Research
13 So what do we do about it? Need to address all three areas: 1. Conditions attached to benefit receipt 2. The support that comes with that 3. The sanctions system Where are the problems now? Focusing specifically on (2) and (3)...
14 Do we have the support right? What is the expectation and reality for jobseekers especially longer-term claimants? What is the offer for those further from work? Is JCP a public employment service, or a compliance/ monitoring agency? Can it be both?
15 Can we ever have a fair sanctions regime? The Gregg/ Oakley principles: 1. Increases compliance with labour market requirements 2. Is clear and easy to understand 3. Is fair, timely, and consistent 4. Is proportionate and does not create excessive hardship 5. Has accessible and understandable recourse to appeal/ redress
16 Over to you!
17 Sanctions and Support: What s the right balance? Tony Wilson, Policy Director Centre for Economic and Social Inclusion
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