DWP Employment Support
Closed
What the inquiry looked at
“The COVID-19 pandemic has had a major impact on the labour market, and unemployment in the UK is expected to increase significantly. The Department for Work & Pensions (DWP) provides a range of welfare benefits and support for unemployed people through Jobcentres and through more intensive programmes, such as the Work and Health Programme. In response to the pandemic, DWP has announced a range of measures to support people to get and keep a job, including major new programmes like Restart and Kickstart, and it is significantly increasing the number of front-line work coaches in its Jobcentres to support increased demand for Universal Credit. The Committee will question senior DWP officials on: - DWP’s objectives in providing employment support and how it works with other parts of government to meet these objectives; - how DWP delivers its support , including through its network of jobcentres, and the support people can expect from schemes; and - the challenges and risks DWP may face in delivering value for money in this area in the coming years. If you have evidence on these questions please submit it here by 6pm on Thursday 10 June 2021.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
When the COVID-19 pandemic hit, the Department for Work and Pensions (the Department) responded quickly to an unprecedented surge in people claiming benefits, by developing a new programme of employment support initiatives to help prevent long term unemployment. To achieve this the Department drastically increased its spending on employment support programmes from £300 million in 2020–21 to £2.5 billion in 2021–22 and also hired 13,500 new work coaches to support new claimants on the front-line. These work coaches will play a pivotal role in whether the Department’s employment support is a success, through the important decisions they make about what support claimants need from an extensive and growing range of options.
The full impact of the pandemic on the labour market is still not known, but it is clear that the context around the Department’s employment programmes has moved on.
The Department, however, has not adapted its programmes or changed its plans. For example, the government’s Plan for Jobs, announced by the Chancellor in July 2020, included the Department’s £1.9 billion Kickstart scheme for young people. At that point, the Office for Budget Responsibility (OBR) was expecting a 10% peak in unemployment in quarter 2 of 2020, and furlough was expected to end in October 2020. The OBR now expects unemployment to peak at 6.5% in the final quarter of 2021, while the furlough scheme will not end until September 2021. The Kickstart scheme, meanwhile, is due to end in December 2021, just as unemployment is now expected to peak.
While the increase in unemployment has not yet been as sharp as feared, some groups have been affected significantly. The impact on young black people has been particularly acute, with unemployment rising to a shocking 41.6% in the last quarter of 2020 compared to an already high 24.5% a year earlier. While the Department’s major new employment support schemes aims to reduce the “scarring” impact of long-term unemployment amongst young people, it is impossible to measure its effectiveness as the Department is not publishing regular performance data, such as the take-up of schemes locally. This makes it difficult for Parliament, local authorities, or others to challenge or work with the Department to improve schemes’ impact. If government truly intends to address the issue of race disparities in unemployment, it should work with the Office for National Statistics to provide more regular statistics on the claimant count and unemployment rates broken down by ethnicity and age.
What the government said
The government responded on 8 November 2021. The deadline was 8 November 2021.
The government states that it agrees with most of the Committee's recommendations, marking many as "implemented", but disagrees with the recommendation for quarterly statistical publications on its schemes.
- On the recommendation for quarterly statistics on take-up and outcomes at local level, the government "disagrees", saying the department "will not be introducing regular statistical publications at this stage" as many programmes are "about to come to an end". It is "considering" how to publish information after closure.
- On diversity data, the government agrees, noting that the declaration rate is now "above 70%" but that the department "cannot and should not compel" people to provide it. It "will ensure that its evaluation considers diversity characteristics".
- On the In-Work Progression Commission, the government agrees (target implementation date March 2022). It is "carefully considering the recommendations and will respond shortly", and says it will bolster work coach support for low-paid Universal Credit claimants from April 2022.
- The government agrees to evaluate how well work coaches provide employment support (target December 2022). It says research timescales are "still to be finalised" but findings are expected to "start becoming available throughout 2022".
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 21 May 2021 to its close on 16 November 2021. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 17 Jun 2021
- Report 8 Sep 2021
- Government response 8 Nov 2021
- Correspondence 2 letters
What it recommended 11 recommendations · 11 conclusions
2Any second surge in new benefit claims and unemployment as the furlough scheme comes to...
3We are concerned that the Department does not know why the unemployment impact of the...
4The Department’s focus on getting people into any form of employment risks neglecting its wider...
5The Department is not sufficiently transparent about the impact and take-up of its schemes at...
6The Department does not make the most of local authorities’ and employers’ in depth knowledge...
7The quality of claimants’ experience with the Department and whether they receive the right support...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
8In the event of a further surge of claimants when the furlough scheme ends, the...
9The Department also effectively switched off many of the usual conditions attached to people’s benefit...
10The Department does not have complete data on diversity or disadvantage of the people it...
11In March 2021, the Office for National Statistics produced statistics showing that unemployment for young...
12The Department’s current flagship programmes are aimed at youth unemployment, and the long term unemployed.
13The Department explained that it is planning to evaluate the impact of its new schemes,...
14While the Department publishes selective statistics about some of its support schemes, such as information...
15The Department’s employment support is mainly accessible to people on benefits, and they will usually...
16The Department told us that a real advantage of delivering employment support through its work...
17The Department told us that its “top priority” now is getting people into work through...
18People with health and disability issues continue to face major challenges in the workplace, including...
19The Department, and the Department of Health & Social Care, ran a consultation from July...
20The Department has established a Commission to review the evidence base around in-work progression and...
21The Department told us that it recognises that the needs of local areas differ, and...
22We asked the Department whether it could be more proactive in sharing basic information such...
Evidence
Oral evidence sessions 1
- 17 Jun 2021DWP Employment Support3 witnesses, listed belowparliament.uk ↗
Who gave evidence 3 witnesses
- Jonathan MillsDirector General, Energy Markets and Supply, Department for Energy Security and Net Zero
- Margarita MorrisonDirector Work and Health Services, Department for Work & Pensions
- Peter SchofieldPermanent Secretary, Department for Work and Pensions
Correspondence 2 letters
- 25 Oct 2021Correspondence from Peter Schofield CB, Permanent Secretary, Department for Work and Pensions, re TM15 – DWP Employment Support – Recommendation 2, dated 29 September 2021
- 13 Jul 2021Correspondence from Peter Willan, Chair, Richmond Heathrow Campaign, re Employment Support Follow up, dated 5 July 2021