Introduction

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Monday 30 September 2013

George Osbourne's Work Programme revamped

George Osborne extends 'work for benefit' for jobless





The long-term unemployed will have to undertake work placements in return for their benefits, under tougher rules unveiled by Chancellor George Osborne.
Welfare must be "fair for those who need it and fair for those who pay for it", he told the Tory conference.

Cleaning up litter
By running a budget surplus in the good times, he would "fix the roof while the sun was shining".

Analysis

There is nothing new about making jobseekers work on pain of losing their benefits.
The government began what it called Mandatory Work Activity back in 2011.
Under the scheme, JobCentre advisers sent people on four-week placements on pain of losing their Jobseeker's allowance. It was down to private contractors to source the placements.
There is nothing new in the policy affecting many thousands of people.
Between May 2011 and February 2013, there were 146,810 referrals to Mandatory Work Activity placements.
Although government figures show there were only 53,720 occasions on which people actually started the placements.
Those who failed to begin may have got a job, decided not to claim the benefit or simply refused to take part.
And there is nothing new in putting some people on work placements once their time on the Work Programme has finished.
Plans to do that were announced in May. George Osborne is changing the system, though, by extending the placements from four weeks to six months.
Only about a third of the 200,000 Jobseekers Allowance claimants affected will be on the work placements.
The other two thirds will either have to attend a jobcentre every day or undergo programmes to address the reasons they cannot find work like illiteracy or mental health problems.
The new system will affect people completing the Work Programme without finding jobs from April 2014.
Labour said Mr Osborne could not be trusted to deliver a surplus, having had to backtrack on his earlier pledge to eliminate the structural deficit in 2015.
"By opposing the measures Labour announced last week to freeze energy prices and expand free childcare for working parents, the Tories have shown once again that they only ever stand up for a privileged few not for hard working families," shadow minister Rachel Reeves said.
On welfare, Mr Osborne said that while the government would not "abandon" the long-term unemployed, no-one would be able to get something for nothing.
Those who had not found work after two years on the existing Work Programme - where contractors are paid a fee to get people into a job - will face a new scheme called help-to-work.
To still qualify for jobseeker's allowance they will have three options - work placements, such as cleaning up litter; daily visits to a job centre; or taking part in compulsory training, for example, to improve their literacy.
People would have to remain on help-to-work until they found employment - unlike the current scheme which is limited to six months.
Those who breach the rules will lose four weeks' worth of benefits. Anyone who breaks the rules a second time faces losing three months' worth of benefits.
'Useful work'
Mr Osborne told the conference: "We are saying there is no option of doing nothing for your benefits, no something-for-nothing any more.
"They will do useful work to put something back into their community; making meals for the elderly, clearing up litter, working for a local charity.
"Others will be made to attend the job centre every working day.
"And for those with underlying problems, like drug addiction and illiteracy, there will be an intensive regime of support. No-one will be ignored or left without help. But no-one will get something for nothing."
A Department of Work and Pensions assessment of mandatory work activity - a similar compulsory work scheme introduced by ministers in 2011 - found it "had no impact on the likelihood of being employed". And on the work programme, DWP figures suggested one in 10 of those seen found a long-term job.
Unions said the help-to-work plan was an admission that existing schemes had failed.
And business groups said "warm words" on enterprise and wealth creation must be backed up by a "relentless focus" in the years ahead.
"Breaking government addiction to debt and achieving a surplus in public finances is the most important ambition any administration can have," the Institute of Directors said


The Reality in the areas of high Unemployment



The classic challenge has been with us for years. The challenge is that the Programme thus far has not been set fit for the needs of industry. often the training has lacked as has the opportunities in the respective areas.

many of the jobs taken up are part time or 0 hours which then leads to an immediate suspension of support. Because of the set up many are left in an area if income generation without the needed support. This Blog has already featured posts indicating the issues.How the Work Programme has failed
Having claiments attending the Job Centre Daily means the Job centre has to have the capacity to meet that need. Reality is it hasn't.thus more fall through the system


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