September 2013 Routes onto ESA Paul Sissons paul.sissons@coventry.ac.uk

1. September 2013Routes onto ESAPaul Sissonspaul.sissons@coventry.ac.uk

2. Outline • Discussion of ESA claimant characteristics, barriers to work and claim trajectories • Data from DWP funded evaluation of the introduction of ESA. Undertaken by the Institute of Employment Studies. Survey fieldwork by IPSOS-MORI • My views only

3. References Sissons P, Barnes H, Stevens H (2011) Routes onto Employment and Support Allowance DWP Research Report 774 Barnes H, Stevens H, Oakley J, Sissons P (2011) Ended claims for Employment and Support Allowance – qualitative research DWP Research Report 762 Barnes H, Sissons P, Stevens H (2011) Employment Support Allowance: Findings from a follow-up survey with claimants DWP Research Report 745 Barnes H, Sissons P, Stevens H (2010) Employment Support Allowance: findings of a survey of claimants DWP Research Report 707 Barnes H, Sissons P, Aston J, Dewson S (2010) Early Implementation Study of the introduction of Employment Support Allowance DWP Research Report 631

4. Background • Large increase in claiming for sickness benefits in UK from 1980s onwards. Similar patterns in other European countries (Houston and Lindsay, 2013). • Reforms to sickness benefits from 2003 on – introduction of Pathways to Work (2003); Reforms to PCA (2007); Introduction of ESA for new claims (2008); Extension to existing IB claimants (2011). • Incapacity Benefit claim numbers tend to be highest in weakest labour markets (Beatty and Fothergill, 1997; Beatty et al, 2009). These areas also saw the biggest growth in unemployment in the recession (Sissons, 2009).

5. Notes on the study • 3,650 ESA claimants interviewed 8-10 months after initial claim; 1,842 followed-up 6-8 months later • Survey covered: • Pre-claim employment experiences • Health • Claim experiences • Medical assessment • WFIs • Appeals • Destinations • New claimants only

6. WCA results – change over time (Results of completed initial WCA assessments for new claims [excludes IB reassessment]. Source: DWP, 2012)

7. Routes onto ESA (Source: ESA claimant survey)

8. Main health conditions (Source: ESA claimant survey – conditions here self-reported)

9. Health conditions: 2 • 1 in 5 conditions were directly work-related (1 in 3 for musculo-skeletal conditions) • Half had a fluctuating condition • 2/3 had multiple health problems • Around 1 in 3 had both a physical and a mental health condition • 8 in 10 were receiving treatment and almost 4 in 10 awaiting further treatment

10. Other characteristics (Source: ESA claimant survey; Labour Force Survey Q3 2010)

11. Other characteristics: 2 (Source: ESA claimant survey)

12. Barriers to work: health plus… (Source: ESA claimant survey. Shows most widely cited barriers, claimants could report more than one barrier)

13. WRAG – a complex picture

14. Employment trajectory – work origins

15. Employment trajectory – non-work origins

16. Factors influencing a return to work among ESA claimants - men • Recovery from health problem • Being in employment immediately prior to their claim • Health ‘getting better’ • Having some work or academic qualifications • Having a musculoskeletal condition • Having a consistent longer-term work history

17. Factors influencing a return to work among ESA claimants - women • Recovery from health problem • Health was not ‘getting worse’ • Being in employment immediately prior to their claim • Being aged 35-54

18. Conclusions • The ESA population has a comparatively disadvantaged profile, but is heterogeneous • Those who enter the benefit from work tend to leave most quickly • Improved health and recent work experience appear to drive employment outcomes • Diverse and complex circumstances require differentiated employment support – health and wider employability barriers (applies to FFW group as well) • IB reassessment will have older profile, worse health, and be more concentrated in weakest labour markets