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NAWRA Glasgow September 2004 Incapacity Benefit Pilots Alison Murray

NAWRA Glasgow September 2004 Incapacity Benefit Pilots Alison Murray. The Pilot(s). Pathways to Work Work Focussed Interviews Working Neighbourhoods Bridgend, Renfrewshire, Derbyshire, Somerset, Essex, E Lancashire, Gateshead. Research.

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NAWRA Glasgow September 2004 Incapacity Benefit Pilots Alison Murray

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  1. NAWRA Glasgow September 2004 Incapacity Benefit Pilots Alison Murray

  2. The Pilot(s) • Pathways to Work • Work Focussed Interviews • Working Neighbourhoods • Bridgend, Renfrewshire, Derbyshire, Somerset, Essex, E Lancashire, Gateshead

  3. Research • Incapacity Benefit Pilots in collaboration with the Policy Studies Institute, National Centre for Social Research and the Institute of Fiscal Studies . Researchers. Roy Sainsbury, Anne Corden. Katharine Nice. Funder - Department for Work and Pensions. Duration - September 2003 to March 2007.

  4. Why IB? • 2.7 million working age on incapacity benefit (1 in 13 adults) • 1 million people sick each week • 3000 remain off for 6 months and • 80% not work in next 5 years

  5. What makes us so sick? • 35% mental and behavioural disorders • 16% Other conditions or not specified • 22% musculo-skeletal and connective tissue • 11% circulatory and respiratory diseases • 10% nervous system • 6% injury and poisoning

  6. New Claimants • Initial Work focussed interview • Skilled Personal Advisers • Action Plans • CMP’s • Financial Incentives • 5 or more WFI’s • Compulsion • PCA (12 weeks) • Health Management • Back to Work

  7. Work-focussed Interviews • Schedule 2 Specified benefit • Reg 5 (1) The interview • Reg 6 (1) Waiver • Reg 7 (1) Deferment • Reg 8. Exemption • Reg 9.(1) Taking Part • Reg 10 (1) Failure to take part

  8. Relevant Decision • Regulation 11 - matters to be taken into account in determining good cause. • Regulation 12 provides an appeal right to an appeal tribunal under section 12 of the Social Security Act 1998 (c. 14).

  9. Benefit Reductions • Whole reduction ceases • New facts (within one month) • Special circumstances (longer) • Relevant decision can be revised • Move out of WFI area (no reduction) • Turn 60 (no reduction)

  10. Working Neighbourhoods • On specified benefit • 13 weekly interviews • 5 interviews for claimants • Up to 8 interviews for partners • Waiver, defer or exemption

  11. Consequences • As if they never claimed • terminate benefit the next week • benefit reduction for each relevant decision • 20% of personal allowance of 25 year old • Good Cause • Appeal Rights • Employment Zone Programmes

  12. Maria Eagle: We will be publishing reports although the full and final impact assessment will not be available until early 2007. An interim assessment of the impact of the incapacity benefit pilots will also be available in summer 2005. we will be assessing direct feedback from those responsible for, and participating in, the pilots, and apply appropriate lessons more widely.

  13. Maria Eagle there will be approximately 14,000 new claims for incapacity benefits during 2003–04, and 65,000 1 during 2004–05. In addition, all the pilot provision is available to existing incapacity benefit recipients in the pilot areas, numbering approximately 193,000. Their participation is currently on a voluntary basis.

  14. Maria Eagle One of the purposes there is scope for savings...potential to generate savings which will outweigh the projected pilot costs of approximately £40 million a year. However there has been limited previous success in this area on which to make a firm assessment of the financial implications. • The primary purpose to achieve their aspirations to return to employment and to avoid long-term incapacity.

  15. Running Costs • latest estimates for the running costs from 2004 to 2006 are as outlined: 2003–04 2004–05 2005–06 Personal advisers 625,895 3,020,839 3,160,150 Return to Work Credit 248,560 5,594,400 9,038,400 Condition Management 887,500 8,651,211 8,202,00 Other costs 3,577242 22,733,550 19,599,450

  16. Under Pilot IB reforms Schlumberger have reduced the average time taken to carry out medical examinations from 52 days to 30 days, which has contributed to an annual cost saving of £21 million. • On the basis of evidence from Incapacity Benefit reform pilots, the Department consider it is possible to reduce this further to 15 days, which would result in further financial savings as ineligible customers are identified quicker.

  17. Customer Quotes • “Friends have remarked on the change in me since the programme. My confidence has really improved”. • “I would recommend this course to anyone, it really boosted my confidence”. • “It gave me an idea of what I would like to do. Exercises were informative and fun”.

  18. Other Resources • SI No 2004 959 • SI No 2003 No 2439 • Memo DMG Vol 1 02/04 • Memo DMG Vol 1 07/03 • Notes for GP’s www.dwp.gov.uk/medical/hotopics/pathways.asp

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