Select committee DWP recommendations

 Benefit sanctions policy beyond the Oakley Review

Sanctions

The two specific areas that Sanctions normally relate to are JSA  ( Job Seekers Allowance ) and ESA (Employment Support Allowance) Though Universal Credit may also feature as time evolves

Lower Level Sanctions

Higher Level Sanctions
     

Categories of JSA “sanction”
The Select Committee". We recommend that DWP make a clear distinction—in its processes, its communications with claimants, and in the official data—between claimants who are not meeting the underlying conditions of entitlement, in particular those who are genuinely “not actively seeking employment” and may therefore be abusing the system, and those who have not fully complied with the precise terms of a Claimant Commitment. At the moment, both receive the same penalty.  We recommend that the Government confirm the steps it has taken to ensure that suspensions of JSA payments where the JCP Work Coach believes that the claimant has not been “actively seeking employment” do not occur before good reason can be considered, and a decision made, by a Decision Maker detached from the employment support process. DWP should set out the steps it has taken to address this issue, to provide assurance that the newly instituted procedure of making decisions in these circumstances within two days of referral is sufficiently robust to ensure that the decision has in fact been made, and the claimant notified, before the JSA payment is suspended. We also believe that notification should be by either written or telephone communication, depending on the claimant’s preferences as previously expressed to JCP staff when signing the Claimant Commitment, or subsequent to this. Review of the legislative framework for sanctioning Given the complexity of the existing legislation, there is a strong case for a review of the underpinning legislative framework for conditionality and sanctions, to ensure that the basis for sanctioning is clearly defined, and safeguards to protect vulnerable groups clearly set out. We recommend that the clarity and coherence of the legislative framework for benefit sanctions policy be included in the terms of reference of the full independent review which we have recommended.
Use of Jobseeker Directions
We note the concern expressed by some witnesses that use of Jobseeker Directions has increased in some JCP offices in recent years. While we appreciate that there may be circumstances in which it might be appropriate for JCP staff to mandate a JSA claimant to undertake a very specific type of work-related activity, such as particular skills training, it is not immediately clear why such activities could not invariably be included in Claimant commitments. Intuitively we would expect there to be minimal, if any, use made of Jobseeker Directions, as the Claimant  Commitment becomes more firmly established. We recommend that DWP’s evaluation of the Claimant Commitment include an assessment of the appropriate use of Jobseeker Directions and their interaction with the Claimant Commitment process.
  ESA sanctioning
Employment and Support Allowance (ESA) is a relatively new benefit; it was introduced in 2008 as a replacement for incapacity benefits (IB), for unemployed people with long-term health conditions and disabilities. ESA claimants considered to have “limited capability for work”, but with the capability to undertake “work-related activity” and considered to have a reasonable prospect of being able to work in the future, can be placed in the ESA Work-related Activity Group (ESA WRAG). These claimants are subject to a more limited range of conditionality than JSA claimants—attendance at mandatory  work-focused interviews at JCP and/or mandatory participation in the Work Programme

Unemployment-Jan 2015 stats

Unemployment 20150 rather the last of last years stats. There are however very clear aspects that sanctions targets as well as the unemployment figures
There are many that have struggled and searched and have been sanctioned
however there are those that  inspire

Key Points for September to November 2014

• Comparing the estimates for September to November 2014 with those for June to August 2014, employment continued to rise and unemployment continued to fall. These changes maintain the general direction of movement since late 2011/early 2012.
• There were 30.80 million people in work. This was 37,000 more than for June to August 2014, the smallest quarterly increase since March to May 2013. Comparing September to November 2014 with a year earlier, there were 512,000 more people in work.
• The proportion of people aged from 16 to 64 in work (the employment rate), was 73.0%, unchanged from June to August 2014 but higher than for a year earlier (72.0%).

• There were 1.91 million unemployed people. This was 58,000 fewer than for June to August 2014, the smallest quarterly fall since July to September 2013. Comparing September to November 2014 with a year earlier, there were 418,000 fewer unemployed people.

• The unemployment rate was 5.8%, lower than for June to August 2014 (6.0%) and lower than for a year earlier (7.1%). The unemployment rate is the proportion of the economically active population (those in work plus those seeking and available to work) who were unemployed.
• There were 9.09 million people aged from 16 to 64 who were out of work and not seeking or available to work (known as economically inactive). This was 66,000 more than for June to August 2014 and 41,000 more than for a year earlier.
• The proportion of people aged from 16 to 64 who were economically inactive (the inactivity rate) was 22.4%, slightly higher than for June to August 2014 (22.2%) and for a year earlier (22.3%).
• Comparing September to November 2014 with a year earlier, pay for employees in Great Britain increased by 1.7% including bonuses and by 1.8% excluding bonuses.

Overview of regional labour market published 21 January 2015

The employment rate estimates, for those aged 16 to 64, for the three months to November 2014, compared to the three months to August 2014, showed very few large movements for the regions and countries of the UK.

The largest increases in the employment rate estimates were for the West Midlands, at 1.0 percentage point and the North East, at 0.7 percentage points. For both regions, the employment rate estimate for three months ago was low, compared with other recent estimates, with the general pattern much flatter than suggested by the latest estimates.

The largest decrease in the employment rate estimate was for London, at 0.6 percentage points. This followed an employment rate estimate for three months ago that was unusually high, compared with other recent estimates, again with a relatively flat pattern suggested by recent estimates.

For most regions, the general picture has been for employment rates to be increasing or close to flat, with all but one region having employment rates higher than a year ago. The exception is Wales, which has been falling from record highs since late 2013, with the latest estimate 2.2 percentage points lower than a year ago.

Employment rates remain higher in the East of England and South East, both at 76.6% and South West, at 76.3%, than the rest of the UK.

The employment levels for the North East, East Midlands and Scotland, are all at record highs, with many other regions close to record highs. Despite this, the rates are below previous records, due to increasing population levels.

Regional estimates for the unemployment rate are quite volatile, which needs to be allowed for when considering the pattern of change over time.

The largest increase in the unemployment rate estimates for the three months to November 2014, compared to the three months to August 2014, was for Wales, at 0.6 percentage points.

The largest decreases in the unemployment rate estimates for the three months to November 2014, compared to the three months to August 2014, were for the West Midlands, at 1.2 percentage points and North East, at 0.7 percentage points. These decreases are consistent with the increases in the employment rates in these regions, partially due to estimates for three months ago that were high, compared with other recent estimates. The general pattern has been for a much slower rate of decrease.

All regions are showing decreases in the unemployment rate, compared with a year ago.

The unemployment rate for the North East remains the highest in the UK, at 8.5%, followed by Wales, at 7.0% and Yorkshire and The Humber, at 6.8%.

The Unemployment Stats produced today The Claimant Count for December 2014 compared with November 2014, is showing decreases in the count for both men and women across all regions of the UK.

 Employment by nationality and country of birth, changes between July to September 2013 and July to September 2014, not seasonally adjusted

Employment by National Birth

makes interesting reading and viewing

 Changes in the number of people in the labour market,

 seasonally adjusted

Probably the starkest stat from the 

graph ius the Unemployment ( aged 18+ )that has the minus stat

Unemployment-job seeker allowance-jsa -sanction

Unemployment Job seeker Sanction

job seeker jsa sanction letter

In the U,K a person who leaves a job voluntarily can be sanction or have their money stopped for a period of 3 months. The sanction is in respect of behavior.

The claimant has to make contact with an office in the Midlands. Whilst the letter seen here was in respect to the termination of a job in November it takes until the 13/1 for the letter to be sent.

The letter seen here is in respect of a sub contracted job. The job seeker had worked for a cleaning company, that had a contract with a major chain.

The manager of the major chain had sacked the Job seeker, however the Job seeker had had work with other companies and is expecting work in the future

The form is sent out with a sae ( stamp addressed envelope for the claimant to complete and return

DWP JSA Sanction Process

There is no form of secure online appeals procedure provided by DWP. Neither is there any support provided in processing the evidence to appeal any decision made by DWP.

Whilst the letter may be distributed by a local Job centre the job seeker is given 1 week to appeal the letter.

The form requires reading completion and returning within the week.

There is space for written submition. For many this may be a challenge. 

CAB

Can local CAB ( Citizens Advice Bureau handle the volume of Appeals that they may be required to support. The chances are that skills are likely to be in demand.

Each appeal would have to reflect any basis that a decision maker my have to make based on DWP guidelines. CAB and other providers have access to CPAG and Rightnet which may assist but there is little online about the Appeals procedure for this. You only have to look at Youtube to see the  need for video's on this and related subjects.

WATCH THIS SPACE

DWP-Christmas- & Stats for Year

...

Department of Work and Pensions

DWP Payment dates over Christmas New Year

Payment dates at Christmas and the new year from DWP the Department of Work and Pensions. This takes into consideration the Banks holidays of Christmas and New Year.

Payment due date	When you’ll be paid
24, 25, 26 December 2014	24 December
1 January 2015	31 December 2014
2 January 2015 (England and Wales)	2 January 2015

The Department of Work and Pensions ( DWP) have produced a number of statistics over the last year.

The ONS videos

Their results on Unemployment figures can be see on a monthly basis when the ONS produces their stats.

The ONS figures come out middle of the month. Here are a sample of the videos from the year.
We have produced videos on this and feedback throughout this year

The Real DWP results

But as I have often said this has not been the entire story as they do not take into consideration the figures for Universal Credit and ESA etc. [caption id="attachment_1331" align="alignleft"
 Indeed the figures for Sanctions also make interesting viewing throughout the year as featured here. The Appeals as you see in the presentation add to an interesting story. These figures are available as are the success rates of the Appeals

Vacancies and Unemployment

Vacancies and Unemployment in the U.K

The vacancies throughout the year have changed. As I pointed out in a previous post the ratio has gone from 3.8 to 2.8 This makes the bargaining power of the potential employee look bettter. However is that a reality for the Job seeker. Ask most job -seekers looking for vacancies under £20.000 and they would probably say no.

Vacancies in Industries

A short while back i did some research into the stats.  Vacancies by industry[/caption] I have a few pages for employers on further information in this area but the figures would also indicate which sectors of the economy have grown and which are struggling. The image seen here shown many of the sectors that are featured on the Stats. But this sort of information is not as well published as the ONS monthly Stats.

  John Fairest author
I wonder why?

Benefits and welfare and the real situation

The Welfare challenge

The Institute for Fiscal Studies says"



Working-age benefit spending has always been sensitive to the unemployment rate. But the rapid growth of housing benefit and tax credits over the couple of decades (documented in thisbriefing note published today) means that slow earnings growth now has the potential to push up spending too. Much of the hoped-for savings from the introduction of ESA have failed to materialise, and it is an open question whether the personal independence payment will be any different. Mr Osborne wants further cuts to social security spending to help reduce the deficit. He may end up having to make cuts just to stay on track."

The gov .uk Stats for your area-
Benefit stats

The BBC quote the Institute of Fiscal studies

Explaining why spending had in fact reduced by £2.5bn in real terms, it said:

• All of the £5bn rise in the cost of pensioner benefits could be explained by the rising cost of state pensions. It said this was partly down to the ageing population, but also the "more generous" entitlements of a new generation of pensioners who had recently retired
• There had been an "unanticipated" rise in housing benefit spending of £1bn, despite cuts of £2bn, which was down to the growth of the private rental sector, rising rents and slow earnings growth
• This slower earnings growth meant spending on tax credits had not come down as quickly as expected, reducing costs by less than £3bn compared with a forecast saving of £4.6bn
• "Significant delays" in the replacement of disability living allowance with the "less generous" personal independence payment had led to a £1.6bn increase in spending, rather than a £1.2bn cut
• Switching from the Retail Prices Index to the Consumer Prices Index measure of inflation for up-rating benefits had not saved the expected £4bn

Note the challenge of the Tax Credit - this will become the Universal Credit in due cource. The slow earnings growth has made a difference

Many may agree with Edd Balls and Rachel Reeves. They wrote: "A key cause of the Tories' overspending is their failure to make the economy work for working people, leaving thousands more reliant on housing benefit."

So how are the Welfare Reform changes affecting people

The changes to council tax benefit have also hit Blackpool particularly hard, as the council decided to pass on most of the 10% shortfall in government grant to its residents.

Mike Clague, a former RAF chef whose 19th floor flat has such a spectacular view, is having to find £15 a month extra.

"It doesn't sound much," he says. "But on top of all the other bills, it's a lot."

Ann Morris gives out school uniforms to those who cannot afford them

He has had to cut back on food as a result. Chocolate has become a once-a-week treat.

In Blackpool even those on jobseeker's allowance (JSA) have to find an extra £206 a year.

Many people have not yet paid anything.

"We recently had a huge influx of clients for non-payment of that money," says Julia Hannaford of Blackpool Citizens Advice.

"In one week we saw 40 people."

For those that are paying, the extra outgoings have stretched household budgets. Half the council tenants in Blackpool are behind with their rent.

In two or three cases, the local housing association has now obtained suspended possession orders, the first stage in the eviction process.

Sanctions

Elsewhere in the North West there are already some striking memorials to the first six months of the benefits changes: the houses that no one wants.

In Sefton, on an estate once known as Beirut, there are roads where dozens of people have moved out.

One resident of Daley Road points out 10 empty houses in her street.

One of the empty houses in Daley Road

"They don't even bother to board them up anymore," she tells me.

"It's all because of the bedroom tax. Nobody wants a three bedroom place anymore."

On this part of Merseyside, community workers also report that, since April, more people are having their benefits temporarily stopped.

JSA claimants, for example, now have to prove that they are job hunting, by applying online.

But not all are computer literate.

Ann Morris, a development worker in Litherland, says that as a result many parents can no longer afford to buy school uniforms.

She and her colleagues have set up a uniform bank to help.

"They all want their kids to go back to school with new uniforms. But some have benefit sanctions, so they just don't have the money," she says.

Continue reading the main story

“Start Quote

I never thought I'd see the day that we'd all get in and share a bath. A treat is getting in the bath first.”

Carol WilsonBenefit claimant

'Blind Scouse'

Carol Wilson, a carer from the Tuebrook area of Liverpool, was herself sanctioned earlier in the year.

She lost one week's Employment and Support Allowance (ESA), as a result of being in hospital.

Since April she has also had to find £80 a month as a result of having a spare room, and £9 a month extra for council tax.

Along with all claimants, she has also been affected by the 1% cap on annual benefits increases.

She, her partner, and her son now share their bath-water to try to economise.

"I never thought I'd see the day that we'd all get in and share a bath. A treat is getting in the bath first."

And she stretches a pot of stew, known as scouse, so that it lasts for three days.

"You just add potatoes each day. When the meat runs out, it's known as "blind scouse".

Blind scouse is certainly making a comeback in Liverpool at the moment, she says.

Coping

All along the Department for Work and Pensions (DWP) has insisted that the changes are not about saving money, but about encouraging more people into work.

Indeed since claimants were warned about the cap on total benefits back in April, the DWP says more than 15,000 have been helped to find jobs.

"Since April we have made great strides delivering our reforms," a DWP spokesman told the BBC.

"The rollout of universal credit and personal independence payments have begun, reforms to housing benefit are making the system fairer and the benefit cap is now in place across the country."

The government also says it has cut income tax for 25 million people, saving a typical taxpayer £700 a year.

It claims the typical household will also save £600 as a result of council tax being frozen for five years.

And even among those hit by benefit cuts, there are those who support the principles of the reforms.

"I do think it's right that people should be in work if they can be," says Carol Wilson.

"And I don't think being on benefits should be too comfortable.

"Whilst I would like more, the country is in a crisis. And I cope with what I have," she says.

The Welfare Reform

This is the reality watch the video to hear the truth!!!