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Showing posts with label jobseeker's allowance. Show all posts
Showing posts with label jobseeker's allowance. Show all posts

Tuesday 12 February 2013

This Poundland ruling is a welcome blow to the Work Programme


It's invaluable that three judges have ruled in the Cait Reilly case against an appalling back-to-work system
Cait Reilly appeal
Cait Reilly after winning her claim that requiring her to work for free was unlawful. Photograph: Cathy Gordon/PA
 
Before we get too excited about the judges' ruling in Reilly and Wilson v the secretary of state, this is not a judgment against slavery or forced labour. Both Cait Reilly and Jamieson Wilson lodged this appeal on the basis that, in forcing them to do unpaid work or lose their benefits, the government was breaching its own regulations.

You may think that there is a moral case to answer for the secretary of state, in pulling someone away from unpaid work in a sector they're interested in, forcing them instead to work unpaid stacking shelves in Poundland, with no training and no advancement of their skills, driving down wages for the rest of Poundland's employees while benefiting nobody but the retailer and the workfare provider. I know that's what I think.

You might think that when you train a skilled engineer to clean furniture – on the basis that the reason for his idleness was that he'd got out of the habit of work, that he needed to prove his mettle with whatever menial task you chose for him – there's a moral case to answer here, too. I'd agree.
But judges Black, Pill and Burnton haven't ruled on morality, they have merely ruled on nuts and bolts: Reilly was told that her scheme was mandatory, where in fact it was not. Wilson was told that if he refused to take part in a six-month work experience programme, he'd lose his benefits for that period. In fact, the maximum sanction would have been a two-week loss of benefits.

Nevertheless, though a ruling on slavery might have added some weight to it, this remains a punch in the face for this government, the Work Programme generally, and workfare in particular. Even the profile of these two cases significantly damages the reputation of this policy, whose raison d'etre is that long-term unemployment is the result of people getting out of the habit of work.

"What are the barriers that people have?" the employment minister Mark Hoban wondered aloud today on World at One. "One of the things people need to demonstrate to an employer is that they can turn up on time." This old chestnut – that long-term unemployment is the preserve of people who can't haul their sorry bones out of bed, must be countered all the time. The more cases we know about of unemployed people who are highly trained, gainfully occupied and routinely insulted by stupid workfare suggestions, the better.

On a practical note, people who've had their jobseeker's allowance stopped on grounds that are similar to Reilly or Wilson's can now claim the money back. This rights a grave social wrong, and delivers a sorely needed sanction to the workfare providers themselves, who understand nothing but money, and might finally question their deficiencies with cash at stake.

But most importantly, there is a growing sense that this back-to-work system is corrupt – my colleague Shiv Malik discovered recently that people on unpaid schemes were being counted as employed to massage the government's figures, even though by any reasonable person's understanding, they were not. Then the BBC revealed that people were being told to declare themselves "self-employed", even when they were simply without work, on the false basis that they could claim more in in-work benefits than JSA – the real benefit, of course, accruing to the Work Programme provider who could then claim them as having been "helped".

All the statistics released about the Work Programme show execrable results, and yet we've heard nothing about penalties, or remaking the contracts, or rethinking the system. There is a creeping sense that this is turning into a cash cow for the private sector, a get-out-clause for the government ("we've spent all this money, if people can't get jobs despite our help, it's because they are inadequate"), and unemployed people will be left at the bottom, ceaselessly harassed by a totally specious narrative in which their laziness beggars a try-hard administration.

A judge, casting doubt on all this in a sober way, is invaluable – three judges, better still. It makes me want to shake the legal profession by its giant hand.

Tuesday 15 January 2013

Statistics cast doubt on coalition's '500,000 new jobs' claim

Labour accuses government of 'fiddling figures' after ONS data shows 105,000 of total on mostly unpaid back-to-work schemes
Stephen Timms, shadoopw employment minister
'105,000 of claimed new jobs turn out to be just schemes - this explains why employment seems to have risen,' said Stephen Timms, the shadow employment minister. Photograph: Graham Turner for the Guardian
 
Government claims to have created an additional 500,000 jobs in the past year have been called into question after it was revealed that one in five of the people involved are on government work schemes, including tens of thousands still claiming unemployment benefits.

In the last few months the government has trumpeted "record high" employment and the net creation of half a million jobs over the past year.

But figures obtained by the Guardian from the Office for National Statistics show that just over 20% of this total (105,000) involves those on largely unpaid government back-to-work schemes, the majority of whom are still claiming jobseeker's allowance.

They include unpaid workers doing voluntary and mandatory work experience in supermarkets and charity shops.

Many more tens of thousands with no jobs, training or pay, who simply attend regular job hunt workshops as part of the work programme run by the Department for Work and Pensions, are also being counted as employed.

The ONS, which is responsible for employment figures, says it is following guidelines set out by the International Labour Organisation (ILO) and counts people as employed if they are adding to the nation's economic output, regardless of whether or not they are paid.

But Labour accused the government of "fiddling the figures" by continuing to highlight them.
Ministers said that they were aware of the "quirk" in the system and had asked the ONS to alter its methods but still insisted that it made little difference to the overall picture.

Figures released in November showed that in the year from September 2011 510,000 net jobs had been created in the UK.

In December's autumn statement, the chancellor, George Osborne, highlighted these statistics, saying employment was "at a record high" and that it was forecast to continue to rise, adding that Britain now had "a greater proportion of its people in work than either the eurozone or the US".
But of those "employed", 105,000 were in back-to-work schemes. While people on such schemes have been counted within the employment figures for years, last year there was a dramatic increase in their number. This growth was partly down to new ONS 2012 counting criteria, under which the statisticians stopped tracking people on Labour's back-to-work schemes as the programmes were being wound down, and started tracking those on the new schemes of the coalition.
Though some of the people on government schemes were doing paid work while being helped as part of the work programme's support service, data from the Labour Force Survey, upon which employment figures are calculated, shows that at least 26,305 of these were doing voluntary unpaid work experience.

Overall a substantial majority of the 105,000 were likely to be subsisting on unemployment benefits – given that several DWP schemes are entirely unpaid – and only a minority of people on the work programme would have been in paid work placements.

Paul Bivand, from the research organisation Centre for Economic and Social Inclusion, said: "People who are unemployed should be counted as unemployed, whether or not they are on government schemes.

"The ONS should recognise that people who are not in a paid job, and are required to look for work to get their benefit, are unemployed. Whether they are getting job search help from Jobcentre Plus or work programme providers is immaterial."

A parliamentary answer from the ONS director general, Glen Watson, given in October last year, confirms that even if people were claiming jobseeker's allowance, they could still be counted as employed.

He said: "Those participants [in government schemes] whose activity comprises any form of work, work experience, or work-related training, are classified as in employment. This is regardless of whether the individual is paid or not."

Shortly after taking office in the last reshuffle in the autumn, the employment minister, Mark Hoban, wrote to the ONS director general seeking a change in the organisation's methods, saying he was "surprised to discover that a number of people on government programmes are classed as in employment".

Hoban wrote: "Many people struggle with the idea that someone in work-based training or a period of work experience can be categorised [as employed]."

The DWP dismissed as ridiculous any suggestion that it was creating back-to-work schemes involving work experience to boost overall job figures, saying its record of trying to deliver transparent figures spoke for itself.

Hoban said: "The fact is that there are 700,000 extra people in work compared to 2010 and unemployment has been falling since last spring. Any quirk in the way a small number of people on our schemes are counted makes little difference.

"These figures are independent of government and were collected in the same way under the previous administration, but I want them to be absolutely transparent which is why I've already raised this issue with the ONS last year."

The shadow employment minister, Stephen Timms, said that the government had been caught "fiddling employment figures".

He said: "105,000 of the claimed new jobs turn out to be just schemes. This helps to explain why employment seems to have risen when there has been no growth.

"Ever since the election ministers have accused the last government of fiddling employment figures – now they have been caught red-handed themselves."

Asked whether it was appropriate to count those on the jobseeker's allowance as employed, an ONS spokesperson said: "The classification of people as either employed, unemployed or economically inactive is based on an internationally agreed set of guidelines.

"This approach has been applied as consistently as possible to our labour market statistics for over 20 years, despite many changes to government training programmes and work-related benefits.
"The criteria are reviewed on a regular basis although no fundamental changes are expected in the foreseeable future."