15. Nearly 60% of incapacity benefit recipients have been receiving their benefits for over five years, compared with no more than 5% of Jobseeker's Allowance recipients. Evidence from countries such as the Netherlands shows that early intervention is a key success factor in helping people with complex needs into employment. Claimants receive statutory sick pay for six months prior to claiming incapacity benefits, but they only have the opportunity to attend a work-focused interview when moving onto incapacity benefits. Some incapacity benefits claimants are unable to work due to their medical condition, but there is a risk that people who are able to work will not receive appropriate assistance early enough.[19]

16. Helping disabled people into work via the New Deal for Disabled People programme provided a net financial benefit to the Exchequer of £1,260 in 2005-06 (Figure 2).[20] The Department is working more closely with the National Health Service to tackle health barriers to work, and it is also tackling employer discrimination against disabled people. Existing programmes have experienced mixed success in assisting disabled people into work. The level of worklessness for people with severe mental health problems is high and people with mental illness often need further support. The National Audit Office's report on Gaining and retaining a job: the Department for Work and Pensions' support for disabled people found that the New Deal had been most effective for people with mild to moderate disabilities, and that its reach had been limited.[21] There has been some early success for the Pathways to Work scheme, which is aimed at people receiving incapacity benefit. Departmental evaluation found that the number of programme participants who find work within 10.5 months was 9.3% higher than for incapacity benefits claimants who do not participate in the scheme. However, the scheme had not succeeded for people with mental illness.[22]

17. People in workless households are less likely to have basic skills than others, and having basic skills qualifications is closely associated with economic activity and being in employment. Research indicates that people with Level 2 qualifications (which are equivalent to GCSEs grades A*-C) are more likely to be in work, more likely to stay in work and more likely to receive training and progress in their work. As a result, the Learning and Skills Council has changed its priorities to place more emphasis on free training provision to help people who lack literacy, numeracy and employability skills. The 2005-06 academic year saw a rise in the number of learners on priority training provision which lead to Skills for Life, Level 1 (equivalent to GCSEs grades D-G) and Level 2 qualifications.[23]

20   Based on the difference between the cost per participant and the benefit payments saved, together with the increased tax revenues less the cost of increased Tax Credits payable to people who move into work. Back

21   C&AG's Report, Gaining and retaining a job: the Department for Work and Pensions' support for disabled people, HC (2005-06) 455 Back

22   Qq 18, 30, 78, 45-51; C&AG's Report, paras 3.11-3.13, 2.12-2.17 Back

23   Q 69; C&AG's Report, paras 3.23-3.25 Back