Database of labour market practices
This database gathers practices in the field of employment submitted by European countries for the purposes of mutual learning. These practices have proven to be successful in the country concerned, according to its national administration. The European Commission does not have a position on the policies or measures mentioned in the database.
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Original Title: | The Work Programme |
Country: | United Kingdom |
Responsible body: | Department for Work and Pensions (DWP) |
Name(s) of other organisations involved (partners / sub-contractors): | The welfare-to-work market consists of a range of organisations providing various services through the Government’s series of programmes to encourage and support the unemployed in finding jobs. Organisations come from public, private and third sectors. Jobcentre Plus (UK unemployment office) retains its responsibilities for benefit delivery, for the overall customer experience and for supporting people in finding work in the early stages of their benefit claim. |
Start Year of implementation: | 2011 |
End Year of implementation: | 2017 |
EU policy relevance: | The Work Programme is a payment-by-results welfare-to-work programme central to the Government’s programme of welfare reform. The scheme contributes to meeting the policy priorities set by the Europe 2020 strategy, particularly the EU’s aim to foster inclusive growth. |
National labour market context: | Flexibility and dynamism are central to how the UK labour market works: relatively low levels of labour market regulation and taxation mean that firms have incentives to create new jobs alongside new business opportunities, and can offer flexible working arrangements. Above average employment rates, in OECD and EU terms, are coupled with lower than average unemployment. Youth unemployment isa particular concern, the proportion of individuals living in workless households was one of the highest in the EU when the Work Programme was introduced.
Labour Force Survey (Feb-Apr 2015) |
Policy area: | Active labour market policies, Labour market participation |
Specific policy or labour market problem being addressed: | The Work Programme is a payment-by-results welfare-to-work programme central to the Government’s programme of welfare reform. The aim is to address the key deficiencies of previous active labour market measures. |
Aims and objectives of the policy or measure: | The overall aim of the current programme is to move participants into sustained employment which is defined as 6 months for most claimants or 3 months for the hardest to help. In the framework of the programme, 6 months represents the point at which a participant becomes more likely to retain employment. A 3 month time period provides a more achievable outcome for those harder to help. Providers are also paid additional sustainment payments for each 4 week period that the participant stays in work. A maximum number of sustainment payments are made dependent on the payment group, with more payments being available for those considered harder to help. Providers are expected to achieve a sustained job outcome rate which is calculated using the estimated non-intervention rate plus a stretch target. The programme was designed to tackle high unemployment following the 2008 recession focussing on the long term unemployed in order to combat entrenched worklessness. |
Main activities / actions underpinning the policy or measure: | The Work Programme uses a prime-provider approach; where a single provider, the ‘prime’, in turn commissions and manages a supply chain of sub-contracted providers to deliver the contract. The prime can also deliver support itself. Providers are expected to deliver an individually-tailored service for each participant, regardless of their benefit category. The nature of that service and how it varies between participants and between participant groups is not specified by the DWP. This is known as a ‘black box’ approach. Payment-by-results is an outcome-based approach with an emphasis on sustained outcomes. Providers are paid different rates for outcomes achieved by different target groups (outcomes for harder-to-help groups are paid at higher rates than those for groups closer to the labour market). When tendering for the Work Programme, prime providers indicated the level and nature of the support that they would offer each participant group. These minimum service standards were specified in their contracts and their delivery is monitored by the DWP. Any revisions to the standards are made publicly available through the DWP website. Jobcentre Plus work coaches also explain the minimum service standards to participants upon referral to the programme. The rationale is that both the DWP and participants will be able to hold the providers to these standards. The Work Programme combines the ‘black box’ approach with payment-by-results. Contracted providers are paid for getting people into work and are free to design their own support provision, with minimal intervention from the Department. There is on-going performance competition. This means that better performing providers are rewarded with an increased volume of future referrals, where there is a clear differential in performance. The contracts are larger and longer than under previous programmes. Work Programme contracts include nearly 6 years of referrals. The greater market stability this offers aims to facilitate the development of provider capacity and expertise, as well as encourage investment to support service delivery innovation. Participation is mandatory or voluntary depending on the benefit received. Failure to participate without good cause can result in a benefit sanction. Claimants on Jobseekers Allowance (who must be available for and actively seeking work) and Employment and Support Allowance (who have a health condition or disability, and who are currently subject to lower conditionality) are referred onto the programme. |
Geographical scope of policy or measure: | Regional |
Target groups: | Other |
Outputs and outcomes of the policy or measure: | Outputs: From June 2011 to the end of June 2015 the total number of referrals and attachments to the Work Programme are 1.76 million and 1.72 million respectively. Of these, 1.7 million have been on the Work Programme long enough to achieve a job outcome (usually 6 months or three months for the hardest to help). 26.9% of these have achieved a job outcome. Furthermore, according to industry figures for the same period, around 731,000 people have started a job but have not been in work long enough to be captured by the statistics. In total, 459,370 people have been in work long enough to generate a job outcome payment. Of the most recent participants to spend 12 months on the programme:
Statistics are published quarterly (see appropriate box for links) |
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