Posts Tagged ‘jobseekers allowance’

Household benefits cap defeated in the Lords

The Welfare Reform Bill has completed its Commons stages and is now in the penultimate stage in the House of Lords. Ministers have already said a defeat in the Lords will be overturned in the Commons, but it seems that the bill will be subject to a ping-pong effect until an agreement is reached.

Most recently, the government has been defeated in the Lords in a vote on its plans for a £26,000-a-year household benefit cap.

This was an amendment that child benefits should not be included in the cap, and this was backed by 252 to 237 peers.

The government argued that the benefit cap will save £290m next year, with 67,000 families losing on average £83 a week.

Benefit cap proposals:

  • From April 2013, the total amount of benefit that working-age people can receive will be capped so households on out-of-work benefits will not receive more than the average household weekly wage.
  • this applies to combined income from the main out-of-work benefits – Jobseeker’s Allowance, Income Support, and Employment Support Allowance – and other benefits such as Housing Benefit, Child Benefit and Child Tax Credit, Industrial Injuries Disablement Benefit
  • Exemptions for households in receipt of Working Tax Credit, Disability Living Allowance or its successor Personal Independence Payment, Constant Attendance Allowance and war widows and widowers.
  • Forecast to save £290m in 2013-14 and £330m in 2014-15.

Read more on the current progress of the Welfare Reform Bill in the House of Lords.

Amanda Frewin

Research & Project Support



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Thank you and seasons greetings

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A Prince’s Trust & Royal Bank of Scotland Group (RBS) report reveals cost of youth disadvantage across UK. The Cost of Exclusion report warns that the price of youth disadvantage in the UK is at a new high. This report also highlights a strong causal link between both unemployment and crime and educational underachievement and crime. For example, a one per cent reduction in unemployment or educational underachievement is estimated to lead to a one per cent reduction in the crime rate, in relation to property offences.


The new report is based on research conducted by the Centre for Economic Performance at the London School of Economics and is broken down into three main strands:

(1)   The Cost of Youth Unemployment


According to the report there is a cost to the taxpayer of £22 million a week in terms of Jobseeker’s Allowance. Those claiming JSA for 12 months or longer has increased more than fourfold since before the recession – from 5,840 claimants in 2008 to more than 25,800 claimants in 2010.

On top of this, there is the cost to the economy of lost productivity. A conservative estimate for this is approximately the same amount per week again. Long-term youth unemployment has recently hit a 16-year high, with 232,000 16-to-24-year-olds who have been out of work for 12 months or more.


The report also states an upper figure for lost productivity of unemployed young people equates to £133 million, making the upper bound estimated cost of youth unemployment £155 million a week.


(2)   The Cost of Youth Crime

Even though the number of convictions has reduced, the rate of imprisonment has continued to accelerate in the UK. The rate of re-offending after prison for children and young people is extremely high – about 75 per cent re-offend within two years.


The cost of youth crime is a further £23 million a week, which equates to £1.2 billion a year.

(3)   The Cost of Educational Underachievement

Based on the estimated lifetime cost of an individual not having qualifications (£45,000) multiplied by the number of young people in the population who have no qualifications, the cost of educational underachievement in the UK is estimated as £22 billion for a generation. It takes into account evidence that there are high wage returns for those who stay in education – at least 10 per cent on average.

The percentage of people with no qualifications is very high. In 2009, the percentage of people aged 16-24 with no qualifications in England, Wales, Scotland and Northern Ireland respectively was 11 per cent, 12.4 per cent, 9.2 per cent and 19.3 per cent.

The UK compares unfavourably with many other countries when it comes to the percentage of young people who leave the education system with low-level qualifications.

A RBS Economist, Fionnuala Earley, said: “As the UK struggles to clear record levels of national debt and to compete on an international scale, we simply cannot afford to ignore the growing costs of youth disadvantage. By giving young people the skills and confidence they need for the workplace, we can help address the deficit, lift the load on the taxpayer and strengthen our economy and communities across the UK.”

According to the research, young people with few qualifications have been hit particularly hard by the recent recession. Martina Milburn, chief executive of The Prince’s Trust adds: “The annual cost for an individual jobseeker can be as much as £16,000. The argument for intervention and support is unquestionable.”

For the full analysis and details of The Prince’s Trust’s report please click the following Princes Trust Research Cost of Exclusion apr07 (3)


Jason McGee-Abe

Project Support Officer


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The Supply Chain or should I say Providers are increasingly thirsty for news from DWP.

Most feel that due to their size (smaller turnover or staff) they are being left out in the cold with no information.

I am sure that DWP have a plan but it would be really helpful if they undertook a program/process of Stakeholder EngagementYes Minister specialises in this and we are happy to help…. sorry about the blatant pitch…but we can help.

In the last two days I have spoken to Providers who are preparing to lay off staff, others are extremely tense and angry that there has been no communication with them.

Others have called me and have been inquiring whether i have any news on the proposition that we are moving away from Prime Contractors to Super-Primes.

I really do not know, but what I can say is that confidence is eroding and even potential SUPER PRIMES will have reservations about the veracity of contracts going forward.

For example, lets consider the cost of tendering; in fact lets look at the costs of information security and Data Protection, lets calculate the implementation period, lets look at implementing PRaP, lets look at the cost of partnership building and stakeholder engagement, lets assesses the break even point on contracts, lets look at the cost of investing in new facilities, systems and processes, lets look at unit costs on outcomes based contracts, lets look at the increased sanctions and conditionality that will be applied, lets look at the role of providers moving towards a policing role vis-a-vis clients, lets look at the reduction of jobs in the market place, lets look at and discuss what 12 month sustained job outcomes look like (financially).

Its at times like this when ERSA – or some other body, collective or association needs to have a strong voice not only for it’s members but for the sector as a whole.

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New figures published by the Office for National Statistics today show that while the number of people claiming Jobseeker’s Allowance has gone down this month, there are nearly five million people claiming one of the main out of work benefits.

Minister for Employment Chris Grayling said:

“……… we need to create real incentives for businesses to grow and create job opportunities.

“The figures also demonstrate why our planned Work Programme is so important. With nearly five million people on out of work benefits and record numbers of people who are economically inactive, we have to make sure that as the economy grows and jobs are created in the next few years that we learn from the mistakes of the past, and ensure that we provide real help and support for people on benefits so they can take advantage of employment opportunities and make the move into work.”


February 2010 to April 2010

The numbers of people in work rose slightly this quarter.

  • 28.86 million in work
  • employment rate 72.1% down 0.1% on the quarter and down 1.2% on the year
  • JSA claimants fell.
  • 5 million people claiming out of work benefits
  • The claimant unemployment rate  is 4.6% down 0.1 percentage points on the month
  • ESA: the numbers claiming ESA has remained stable since November 2009.  The figure stands at 2.62 million
  • numbers receiving Lone Parent benefit has fallen in April to 675,000

Read the figures for yourself……The Figures

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Newsletter: Queens Birthday Honours, Increase Child Benefit, ALP Conference

Having difficulty viewing? visit http://www.yesminister.org.uk then click on PRESS

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This is quite amazing, we have had over 14,000 visitors to this blog…. and numerous other correspondences!!

If you would like to receive our ground breaking newsletter please email floyd@yesminister.org.uk

Please feel free to visit our home site http://www.yesminister.org.uk for more details about our work!

look out for more info on WELFARE TO WORK….. EMPLOYMENT AND SKILLS  et.al

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