Source · Select Committees · Work and Pensions Committee
Recommendation 30
30
Deferred
Paragraph: 190
Consider removing employer National Insurance payments for new employees on benefits for 12 months.
Recommendation
DWP and the Government should consider and provide a response to the Good Jobs Project recommendation that the Government remove the requirement for employers to pay employer National Insurance for 12 months for new employees who were in receipt of certain benefits.
Government Response Summary
The government noted the recommendations and will engage with the Good Jobs Project but explicitly stated it has no plans to issue a formal response. It also deflected the tax policy recommendation, stating it is a matter for HMT.
Paragraph Reference:
190
Government Response
Deferred
HM Government
Deferred
DWP notes with interest the evidence and recommendations in the Good Jobs Project. We will continue to engage with Regenerate as a stakeholder to understand their evidence and recommendations for the labour market. However, we have no plans to issue a formal response to the recommendations in the report, tax policy is a matter for HMT. Conclusion and recommendation 31 DWP’s employment support services do not currently offer much support beyond the point of securing employment. People who have multiple or complex barriers to employment or who have been unemployed for a long time are often seen as undesirable employees. People can also fall out of work if they are not supported during the transition into work. DWP should offer continued support beyond employment to claimants at greater risk of falling back into unemployment such as those with complex barriers to employment or those who have been unemployed for a long time. Support should be withdrawn gradually over the first three to six months of employment, depending on need, to support individuals as they establish themselves at work. (Paragraph 191) Response DWP is increasingly focusing on supporting the progression of those in work, as part of its aim of maximising employment opportunities and reducing economic inactivity. Universal Support will support individuals and employers beyond the point of a person securing employment and starting work. This in-work support will be personalised to reflect a person’s and employers’ needs. Universal Support will provide support for a maximum of 12 months, with no limitations on the amount of in-work support. DWP recognises the challenges that people with multiple and complex needs face and is committed to supporting this group to get the support they need to move towards sustained employment. People with multiple and complex needs will be able to access Universal Support, along with disabled people and people with health conditions. Universal Support utilises the concept of ‘place, train and maintain’ that helps match someone to a job that is right for them at the earliest opportunity, trains them to do the job in the way the employer wants it done and provides personalised, ongoing support to sustain their employment. This individual tailored “wraparound” support of up to 12 months will include help for the individuals to address issues like debt, manage their health condition and help employers to put in place job shaping or other adjustments to accommodate individual needs and help people to sustain employment for the longer-term. Further to this, DWP is working with the Department for Health and Social Care to expand the Individual Placement and Support (IPS) programme for drug and alcohol dependency to all Local Authorities in England by 2025. This programme uses a similar ‘place and train’ approach providing employment support alongside clinical treatment, making employment a key aim of recovery. DWP also offers other programmes that offer support beyond the point of securing employment; the Work and Health programme, which provides in work support for disabled people and those in early access priority groups for up to six months, for those that need it. From September 2023 there will be 25,000 additional places offered through the Work and Health programme for inactive customers using a place and train approach as part of the first phase of Universal Support. Intensive Personalised Employment Support (IPES) is national provision for disabled people with complex barriers to employment and provides up to six months of intensive in-work support when a participant starts work. Aside from supported employment schemes, DWP is extending the support jobcentres provide to people in work and on low incomes to help them to increase their earnings and move into better paid quality jobs. To achieve this, there are 2 key measures that we have introduced: i) increasing the Administrative Earnings Threshold (AET) in Universal Credit to ensure the lowest earners receive more intensive support from our work coaches to increase their earnings and ii) A new in-work progression offer for those earning above the AET who want to access support from our work coaches to earn more. This offer is currently live across all jobcentres in Great Britain, and claimants can access the support on a voluntary basis. Support is being provided by work coaches and is focused on removing barriers to progression and providing advice, such as considering skills gaps and identifying training opportunities. The offer is for people looking for progression opportunities in their current role or advice to support them into a new role. Conclusion and recommendation 32 Support that is tailored to the needs of the individual produces better long-term results that not only gets people into work but helps them overcome the barriers to employment that were preventing them from gaining and sustaining employment. If these challenges are not dealt with ef