Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Any second surge in new benefit claims and unemployment as the furlough scheme comes to...
Conclusion
Any second surge in new benefit claims and unemployment as the furlough scheme comes to an end could disrupt the Department’s ability to provide employment support. At the start of the pandemic, the Department moved around 10,000 extra staff into claim-handling roles to respond to a surge which reached over 100,000 new claims a day at its peak. The Department has also hired 13,500 new work coaches and in doing so has returned work coach caseloads to pre-pandemic levels. The Department believes that it is now better equipped to respond to any further wave of benefit claims when furlough ends and that it could again respond by diverting resources towards benefit administration. However, the Department effectively switched off many of the usual conditions attached to people’s benefits entitlements to manage the first surge in claims, meaning claimants could not meet their work coach, and employment support was not provided. Responding in this way in the event of another claimant surge may not be an option: if people are expected to return to work once furlough ends, the Department will reasonably be expected to maintain its employment support offer. Recommendation: By October 2021, the Department should write to us with an explanation of how its contingency plans will ensure it can continue to provide its employment support alongside administering new claims in the event of a second surge in new claims, and avoid the scarring effect of unemployment and disruption to the recovery.
Government Response
Not Addressed
HM Government
Not Addressed
2: PAC Conclusion: Any second surge in new benefit claims and unemployment as the furlough scheme comes to an end could disrupt the Department’s ability to provide employment support. 2: PAC Recommendation: By October 2021, the Department should write to us with an explanation of how its contingency plans will ensure it can continue to provide its employment support alongside administering new claims in the event of a second surge in new claims, and avoid the scarring effect of unemployment and disruption to the recovery. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The department wrote to the committee on 29 September 2021. 2.3 During the pandemic the department saw an unprecedented increase in new claims. The department successfully managed this through the introduction of easements, recruitment and Jobcentre Plus estate expansion. 2.4 Furthermore, the department has designed and invested in a resilient, digital service that incorporates automation to allow for surges in claims. The department has made improvements to its caseload management system, enabling work coaches to filter their caseload and provide targeted support based on health conditions, age and employment status. This allows quick claimant referral to targeted support within the Plan for Jobs programmes, such as Kickstart, Restart, the Youth Offer, Sector-based Work Academy Programmes (SWAPs) and Job Entry Targeted Support (JETS). 2.5 Where face-to-face contact was unavailable, the department used alternative channels including telephone appointments, digital interventions and video calls. Work coaches are now conducting more appointments face-to-face in Jobcentres and in new Youth Hubs as capacity in buildings increases. In the event of another increase in claimants, the flexibility the department has built through using telephony and video, expanding its estate and hiring additional work coaches will ensure the department is able to continue to provide support to claimants. As well as encouraging claimants to undertake independent work search, through signposting to services such as JobHelp, the department is currently exploring further ways of using technology to help people switch sectors via a Job Matching pilot. 2.6 The department will continue to monitor the situation closely as furlough has come to an end and the department is satisfied with its level of preparedness. 18