The Departments of Social Care and Economic Development have announced proposals designed to support the Government’s objective of reducing long term unemployment.
The proposed changes will combine a tougher system for those jobseekers who are not doing all they are required to do when claiming Jobseekers Allowance (JSA) together with the provision of new opportunities for the long term unemployed to be trained and to gain work experience through placements with Social Enterprises.
In addition, benefit provisions will be reviewed and rebalanced where necessary to ensure that Jobseekers are not financially penalised when they take up work and that ‘work pays’.
Minister for Social Care Chris Robertshaw MHK said:
'The way we currently provide our social welfare is no longer sustainable and we need to address our long-term issues. We must ensure that our systems do not create any form of welfare dependency and that Jobseekers are doing everything they can to find new work.
However, while we expect the claimant to make every effort, we are also committed to providing meaningful support to allow Jobseekers to re-train and gain critical experience. I sincerely believe in the concept of ‘dignity in work’ and consider that our young and long-term jobseekers need to be given every opportunity to participate - both in the workforce and in the community.
Following on from the success of our skills academy initiative with Sleepwell hotels, we are seeking to further develop this concept in conjunction with local Social Enterprises. My Department will amend the JSA rules to ensure that jobseekers taking part in approved social enterprise work placement will be treated as being ‘available for work’. This means that they will be able to retain their benefit and the reduction in employment cost will therefore cover part or all of the social enterprise’s training costs.
Social enterprise work placements will only be made available to claimants who have been on JSA for over 5 months.
The long-term unemployed will have the opportunity to develop their confidence and skills in work placements with organisations whose profits are reinvested in the community. The trainees will become more employable, the Social Enterprise will reinvest and the Island will gain a dual benefit.
My department is also reviewing the levels of benefits payable to ensure that ‘work pays’ and that there is a clear financial benefit to take employment where it is available. These proposals include adjusting the levels of income-based JSA and modifying the rules of the ‘Employed Person’s Allowance’ so as to provide additional support to help ensure that people are better off in work.
These proposals will be brought before Tynwald before the end of the year.'
Minister for Economic Development John Shimmin MHK added:
'Providing opportunities for the long-term unemployed to return to work is a key objective for Government. Our two Departments are working very closely to help people find suitable jobs and to make work pay. The measures that the Department of Social Care has announced today fit well with the measures we are already taking, including substantially expanded support for training and work placements to help individuals to build their skills.
With the approval of Tynwald at its June sitting, I am raising the level of the Minimum Wage to £6.40 an hour with effect from October 2013. I have also made an early commitment that I expect this rate to increase significantly over the next 2 years. This, combined with plans outlined by Social Care to revise certain benefit rules, will result in a system where individuals are better off for seeking and taking paid work than they would be on benefits, so we make work pay.
Often the barriers faced by those who have been out of work for some time are significant and some employers are reluctant to provide the opportunity needed. Social Enterprises are capable of filling that gap, providing retraining and real work experience to ease the transition back into permanent paid employment.'
