BRIEFING: Substance use and Welfare to Work: Sophie Johnson, Lifeline Project
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- Background: An overview of welfare reform and substance use
- Questions and challenges: A summary of related issues
- Technologies: Key processes, services and resources underpinning welfare reform
- Publications: Summaries and links to reports, policy and research documents
- The merger of Employment Service and Benefits Agency to create Jobcentre Plus
- Specialist provision including New Deal programmes (targeted at long term unemployed, over 50s, under 25s, disabled people, single parents) and Progress2work (for people affected by substance use).
- Development of financial incentives to address in-work poverty (tax credits, supported childcare, minimum wage)
After 11 years of welfare reform, it is seen as time to review and develop welfare to work provision. Motivators to change include:
- Child poverty
- Aging population
- Reduction of health inequalities associated with unemployment
- Money-saving
Change can now only be effected by the movement into the labour market of those who face ‘stubborn barriers’ to employment:
- Long term (over twelve months) unemployed
- People with disabilities and health problems
- Residents of workless communities
- Single parents
- People from ethnic minorities
- People with no or low qualifications
- People affected by substance use
Current strategy focuses on addressing these barriers via service procurement and delivery reforms and the development of ‘rights and responsibilities’ based social policy.
Over the same period there has been significant investment in drug treatment. The sector has been through a comprehensive improvement process:
- Increased access to treatment: more places; reduced waiting time
- Establishment of frameworks for professional competence, quality, national data reporting, commissioning and local area treatment planning.
However, significant challenges and debates remain regards the role, objectives, cost and success of drug treatment, and the effective, long term social and vocational integration of people who use substances.
Within this context, the 2008 drug strategy and recent Department for Work and Pensions’ papers make specific proposals regards substance use and welfare to work. People who use drugs and alcohol will be affected through:
- Whole systems change impacting on all benefit claimants
- Changes targeted at broad groups, such as lone parents, people with disabilities and those without qualifications
- Drug-specific proposals, including drug treatment as a condition of benefit receipt
Questions and challenges
People affected by substance use can face multiple challenges to making and maintaining lifestyle change and may have limited personal, social and vocational capital. Support must be delivered in a context that includes criminal justice, health inequalities, worklessness and skills, family relationships and housing. Services are developed on the basis of mutual trust and the understanding that sustainable change is a real but long term proposition.
It is possible to develop positive and effective services that successfully support people affected by drug or alcohol use to access work and training but recent policy developments raise a number of questions and challenges:
Welfare reform: culture change
Over the past ten years users of public services have been encouraged to see themselves as citizens and customers, with the right to choice and an entitlement to the support that’s right for them.
Recent DWP green papers propose the privatisation of the welfare state via a prime contractor model with an inbuilt bias towards large corporations who can accommodate up-front investment and long term financial rewards and who can sub-contract with multiple providers.
The government proposes a shift towards a rights and responsibilities based welfare state where the individual must take personal responsibility for their own employability, or face financial and social consequences. This will impact most on those groups seen as ‘undeserving’ and on those who face multiple, complex challenges to establishing stable lives; it will draw up the ladder from the very poor and those furthest from the world of work.
Strategy, commissioning and delivery
Substance use is a cross cutting issue. Strategy and service delivery addresses substance use as a crime reduction concern, as a chronic health condition, as a locality, family and community issue and as a factor in worklessness and economic improvement.
All approaches aim for the recovery and/or social integration of people affected by substance use and the most effective drug services support service users in addressing the broad range of issues, needs and goals. However, conflict between the routes of approach exists and will be experienced at a local level by individuals and by service providers. For example, recent DWP green papers make assumptions that compliance with drug treatment is in itself an indicator of employability.
Enabling people with drug problems to access and sustain employment often requires a long term approach with opportunities for rehearsal and extended, specialist support. This period of support and stabilisation will not be provided for by funding employment outcomes; some individuals will take years not months to move into work.
Role of the third sector
Government strategy places devolution to individuals, providers and localities at the heart of welfare reform. The third sector will face challenges in maintaining this approach in the light of prime contracting and outcome-related payments.
Employment is crucial and many voluntary sector organisations want to deliver and support access to employment. However, commissioning and contracting arrangements and the negotiation between multiple strategies, monitoring pathways and targets can be unmanageable.
The third sector has a remit to campaign on behalf of disadvantaged and under-represented. If, after consultation, the proposed welfare reforms are rolled out we will have a responsibility to support our service users in understanding and navigating the new welfare to work agenda. The most vulnerable service users are those most likely to struggle to comply with requirements and those least likely to achieve the outcomes that will fund services; they are the most likely to fall between the gaps and to need support from voluntary and community organisations.
Information sharing
Current DWP systems for recording information such as substance use are robust and transparent taking into account individuals’ choice and control over the information held, human rights and the sensitivity of such information. Developing joint work across sectors will require new information-sharing debates and protocols, including consideration of when and how service users are involved and informed.
Discrimination
Discrimination when accessing services and seeking employment is an additional and specific barrier to the labour market for people with a history of drug use. This barrier should be acknowledged and addressed through work with Jobcentre Plus staff, training providers and employers.
Sanctions
Many of the DWP proposed changes rely on the use of benefit sanctions (deductions or suspensions) to enforce compliance. DWP research has demonstrated that sanctions have little impact on priority groups such as offenders and lone parents. However, sanctions can impact on other groups, such as the children of claimants or the wider community if claimants turn to illegitimate sources of income.
The economy
Over the last twelve months the world economy has moved on; credit, homes and jobs are less available. If unemployment rises the least employable will find it increasingly difficult to find work in full time, long term jobs that pay sufficient wages to avoid in-work poverty. The majority of drug service users accessing employability support are seeking work in construction or jobs which are either in the service industries, or reliant on them (warehousing, retail, driving). These sectors will be the hardest hit by any economic downturn.
Supporting delivery and progression
Access to the right employment opportunities is one of the most important drivers of change for people affected by substance use. The following would support the delivery of employment outcomes for people with a history of drug use:
- Commissioning frameworks and definitions of best value which accommodate a range of providers to ensure that locality-based, specialist and community organisations are not excluded.
- Commissioning frameworks which include support for innovative, risk-taking provision which can engage hard-to-reach groups and work across themes.
- Exploration of and recognition of outcomes relating to distance travelled and personal achievement, alongside concrete outcomes such as full time work.
- Accommodation of long term support for the most vulnerable and distant from the labour market.
Technologies
A range of existing and proposed legislation, services, processes and resources will be used to drive welfare reform:
Strategy and commissioning
- Restructure of JCP/DWP commissioning to prime contractor, outcome-based model with providers expected to invest in provision in order to achieve outcome-based payments. Commissioning of private, public and third sector providers
- Inter-departmental work, for example between DWP and LSC on pre- and in-work training; between DIUS and DWP on employment and skills; between DWP and DH on substance use.
- Use of Local Area Agreements, Local Strategic Partnerships and Public Service Agreements for employment and skills to set priorities and monitor performance.
- Locality-based programmes (Fair Cities, Deprived Areas Fund, City Strategy)
- Restructure of adult skills provision via Skills Pledge, Skills Accounts, Train to Gain and an Education and Skills Bill (to be published in 2008) to legislate for free adult literacy, numeracy and Level 2 qualifications
- Restructure of adult careers services with Adult Advancement and Careers Service (combining LearnDirect and Nextstep) to be piloted with roll out in 2010
Employer related
- Local Employment Partnerships (LEPs) to create job opportunities ring-fenced for disadvantaged applicants.
- Establishment of new UK Commission for Employment and Skills.
- Involvement of employers in skills-agenda (Sector Skills Councils, National Skills Academies, Skills Pledge, Train to Gain, Union Learning Representatives)
- Fit for Work service pilot to offer work-related health support to people in early stages of sickness absence.
- Review of sick note system and piloting of joint work between DWP, employers and GPs.
- Apprenticeships
Direct service user impact
- Pathways to Work to offer work-focused support for Incapacity Benefit (IB) claimants
- New Deal, including introduction of new Flexible New Deal
- Employment and Support Allowance (ESA) to replace Incapacity Benefit from October 2008
- ESA claimants to be split into two groups: Work Related Activity Group and Support Group. Those in the WRA Group will be required to engage with work-focused support; those in the Support Group may access this on a voluntary basis
- All IB claimants to be reassessed using the new Work Capability Assessment
- Introduction of child age limits for single parents receiving Income Support (to twelve in 2008 and seven in 2010)
- Proposed restructure of Jobseekers Allowance (JSA) with increased focus on ‘rights and responsibilities’, including mandatory full time unpaid work after two years unemployment and increased benefit sanctions
- Legislation proposed to require claimants to address barriers to employability regards training (including literacy and numeracy) and substance use
- Legislation proposed to require daily signing for benefits for long-term claimants
- Proposals to share information between DH and DWP regards drug treatment compliance with benefit sanctions for non-attendance
Publications
1. Independent reports
Prosperity for all in the global economy – world class skills (Leitch Report)
Lord Leitch, DfES, December 2006
http://www.hm-treasury.gov.uk/media/6/4/leitch_finalreport051206.pdf
Sets out improvements that need to be made to skills levels for England to compete in global economy. Contrasts the 25% with a degree with the 33% who do not have the equivalent of school leaving qualifications (Level 2) and outlines the economic and social impact of low skills. Main recommendations are:
- Increase adult skills with tough targets in Literacy, Numeracy, Level 2 and Level 3
- Focus adult skills in vocational/employer-led programmes that meet labour-market priorities
- Increase the value of skills with universal adult careers advice
Delivering on Child Poverty: what would it take? (Harker Report)
Lisa Harker, DWP, November 2006
http://www.dwp.gov.uk/publications/dwp/2006/harker/harker-full.pdf
Government has not met child poverty reduction targets set for 04/05 and is not on track with targets for 2010. Harker is clear that wider social change, for example in wage and wealth inequality are key but makes recommendations for improvement including:
- Increasing personalisation of Welfare to Work provision to meet needs of all parents and their families
- New focus on long-term employment with prospects to reduce in-work poverty
- Supporting the in-work poor
Reducing dependency, increasing opportunity: options for the future of welfare to work (Freud Report)
David Freud, DWP, March 2007
http://www.dwp.gov.uk/publications/dwp/2007/welfarereview.pdf
Recommends that government targets resources on helping the most disadvantaged, drawing on expertise of private and voluntary sector. Key elements:
- Outcome-based outsourcing and sub-contracting of specialised, personalised support
- Rights and responsibilities
- Targeting priority groups: low skills, multiple disadvantage (includes addiction), benefit dependency
2. Policy and strategy documents
No one written off: reforming welfare to reward responsibility
Public Consultation, DWP, July 2008
http://www.dwp.gov.uk/welfarereform/noonewrittenoff/
Sets out government strategy for reaching 80% employment rate for public consultation. Extends the rights and responsibilities agenda with an ‘obligation to work’ and details the processes that will be used to promote and enforce this. Central policy statement is of a move from a passive to an active welfare state:
- Stepped approach to rights and responsibilities with those who have been unemployed for longest receiving additional support alongside increasing requirements and sanctions.
- Legislation proposed to require claimants to address barriers to employability regards training (including literacy and numeracy) and substance use.
- Focus on reducing sickness and disability-related claimant count through work-focused interventions and support for those becoming unwell or disabled to enable them to maintain work.
Drugs: Protecting families and communities
Home Office, February 2008
http://drugs.homeoffice.gov.uk/publication-search/drug-strategy
2008-2018 drug strategy.
Working for a Healthier Tomorrow
Work, Health, Wellbeing, March 2008
http://www.workingforhealth.gov.uk/Carol-Blacks-Review/
Dame Carol Black’s review of the health of the working age population. Offers health base lines and identifies areas for reform: prevention of illness and health promotion; early interventions; support for those out of work due to ill health. Key areas are:
- Employers to identify and support employees with health issues
- Move from sick notes to ‘fit notes’ to identify what work individuals can do
- Proposed universal Fit for Work occupational health service
- Workforce development for occupational health practitioners
Ready to Work, Skilled for Work: Unlocking Britain’s Talent
DWP and DUIS, January 2008
http://www.dius.gov.uk/publications/ready_to_work.pdf
Joint paper from DWP and DUIS setting out the sector, skills, employment and locality programmes and support available to employers.
Ready for work: full employment in our generation
DWP, December 2007
http://www.dwp.gov.uk/welfarereform/readyforwork/readyforwork.pdf
Following consultation on the In Work, Better Off Green Paper sets out plans against two elements: ‘stronger rights and responsibilities’ and ‘personalised and responsive approach’. Policy areas are:
- Improvements to in-work credits
- Lone parents
- Flexible New Deal
- Disabled people and people with health conditions
- Partnership working
- Integrated employment and skills
Opportunity, Employment and Progression: making skills work
DWP and DIUS, November 2007
http://www.dius.gov.uk/publications/7381-TSO-Skills.pdf
Sets out how DWP and DIUS will work together to deliver skills support, with Jobcentre Plus as key meeting point.
In Work, Better Off: next steps to full employment
(Green Paper), DWP, July 2007
http://www.dwp.gov.uk/welfarereform/in-work-better-off/in-work-better-off.pdf
Sets out labour market policies government will use to effect access to employment for the most disadvantaged. Principles are:
- Rights and responsibilities (helping people to help themselves)
- Personalized and responsive (development of individual activity plans)
- Retention and progression (upskilling the workforce, freeing up entry level posts)
- Partnership (public, private and CVS)
- Devolution (locality-based approach)
World Class Skills: Implementing the Leitch Review of Skills in England
DIUS, July 2007
http://www.dfes.gov.uk/skillsstrategy/uploads/documents/World Class Skills FINAL.pdf
First document from DIUS, published alongside In Work, Better Off, sets out how government will improve skills. Key principles include:
- Setting high 2020 targets for education and skills attainment
- Linking up DIUS, DWP, JCP, LSC
- Involving employers in design and delivery of skills provision through Sector Skills Councils
3. Research Papers
Population estimates of problematic drug users in England who access DWP benefits: A feasibility study
Gordon Hay and Linda Bauld, DWP, 2008
http://www.dwp.gov.uk/asd/asd5/WP46.pdf
Basis for figures on PDUs claiming benefits as used in DWP green papers.
The effects of benefit sanctions on lone parents’ employment decisions and moves into employment
DWP, July 2008
Summary: http://www.dwp.gov.uk/asd/asd5/summ2007-2008/511summ.pdf
Concludes that benefits sanctions have had negligible effects upon labour market behaviour.
Working out of poverty: A study of the low-paid and the ‘working poor’
Graeme Cooke and Kayte Lawton, IPPR, January 2008
http://www.ippr.org.uk/publicationsandreports/publication.asp?id=581
Exploration of poverty in working families with recommendations for welfare reform to ensure that moving into work is a route out of poverty.
Contracting out welfare to work in the USA: Delivery lessons
DWP, October 2007
Summary: http://www.dwp.gov.uk/asd/asd5/summ2007-2008/466summ.pdf
Summary of issues encountered in welfare contracting with the private sector.
Drugs and poverty: A literature review
Scottish Drugs Forum, March 2007
http://www.sdf.org.uk/sdf/files/Drugs and Poverty Literature Review 06.03.07.pdf
Literature review exploring the links between poverty, social exclusion and drug use, includes sections on welfare reform and employability.
Is Work Good for your Health and Wellbeing?
Gordon Waddell, A Kim Burton, 2006
http://www.workingforhealth.gov.uk/documents/is-work-good-for-you.pdf
Independent review of the evidence commissioned by DWP. Concludes that work is generally good for physical and mental health and wellbeing, if account is taken of the nature and quality of work and its social context.
Evaluation of the community sentences and withdrawal of benefits pilots
DWP, 2003
Summary: http://www.dwp.gov.uk/asd/asd5/summ2003-2004/198summ.pdf
During a pilot project which enforced benefit sanctions for people who did not comply with community sentences there was a small (1.8%) increase in compliance. The evaluation concludes that those offenders who intended to comply found a small positive impact but those who did not intend to comply, or could not because of personal circumstances such as drug use demonstrated no impact.
Sophie Johnson
Lifeline Bradford and Calderdale
August 2008
