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This report examines recent activation policies in the United Kingdom aimed at moving people back into work. It offers insight into how countries can improve the effectiveness of their employment services and also control spending on benefits. The United Kingdom's policies have helped limit the rise in unemployment during the crisis. It has been at the forefront of reform efforts by OECD countries to transform and modernise policies designed to help the unemployed find work, through major new programmes such as Universal Credit and the Work Programme. Although time is needed for these to gain momentum as well as for a full evaluation of their impact to be carried out, the report identifies a number of areas where consideration should be given to additional measures or adjustments to existing ones.
Contents:
+ Acronyms and abbreviations
+ Executive summary
+ Assessment and recommendations
+ Chapter 1. The background to active labour market policies in the United Kingdom
-Introduction
-Economic development
-Demography, immigration and education
-Labour market trends
--Employment
--Unemployment and population not in the labour force
--Labour market situation of specific groups
-The role of social and labour market policies
--Employment protection legislation
--Minimum wage
--Benefit system
-Key actors in labour market policy
--Department for Work and Pensions
--Public Employment Service
--Her Majesty’s Revenue and Customs
--Other ministries and government agencies
-Patterns of labour market spending
--References
--Database references
+ Chapter 2. Unemployment and related benefits
-Introduction other income-replacement benefits and secondary benefits
-Overview: Unemployment benefits, other income-replacement benefits and secondary benefits
-The Jobseekers’ Allowance
-Other inactive income-replacement benefits
--Carer’s Allowance
--Incapacity benefits (income-replacement)
--Income support for lone parents and other groups
-The secondary non-pensioner benefits
--Housing benefits
--Secondary disability benefits
--Personal tax credits
-The Universal Credit
--Background
--Implementation issues and the handling of unstable earnings and labour market histories
--Difficulties in implementing the principle of ‘making work pay’
--International experiences with growth in partial unemployment benefit caseloads
--Real Time Information (RTI) on employee earnings
-Key points
--References
--Database references
+ Chapter 3. The role of the UK Public Employment Service in job brokerage and activation strategies
-Introduction
-The job-brokerage function
--Overview on services offered by JCP
--Employer outreach services
--Quantitative analysis of job-broking activities
-Scheduled interventions in the unemployment spell
--Different conditionality intervention regimes
--Registration of benefit applications
--Profiling and segmentation
--Job-search requirements and monitoring
--Counselling interviews
--JCP performance measures
-Referrals to active labour market programmes
--Placement-related programmes
--Work Experience Programmes
--Start-up incentives
-Referrals to training programmes
--Unemployment benefits and training
--Principal actors in training programmes for the unemployed in England
--Skills screening
--Mandatory or voluntary participation?
--Types of funded training
--Payment terms
-Extending the mutual obligation agenda to lone parents
--Starting to activate lone parents
--Introducing work-search conditionality for lone parents
--Lone parents with younger children
-Key points
--References
--Database references
+ Chapter 4. Quasi-market arrangements in the UK Work Programme
-Introduction
-Quasi-market structures in UK labour market programmes
--Quasi-market structures prior to the Work Programme
--Market structures in the Work Programme
--Assessment of the Work Programme market structure
-Managing Work Programme performance
--Payment model
--Performance Management
--Market share shift
--Work Programme funding levels and government savings
-Limited service prescription in a ‘black box’ delivery model
--Office and staff structure
--Service delivery
--A black box or a grey box?
--Additional requirements for providers?
-Work Programme placement performance
--Variation between payment groups
--Variation within payment groups
--Geographical variation
-Incentive implications of the Work Programme payment model
--Is creaming an issue for the Work Programme?
--… and parking?
--Improving provider incentives
-Key points
--References
--Database references
-Annex 4.A1. The Employment Zones, Pathways to Work and Flexible New Deal programmes
-Annex 4.A2. Cost and benefits of the Work Programme
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