It has been widely reported that that the Government’s flagship back-to-work scheme, the Work Programme, was failing to help the unemployed back into work and was accused by the Labour Party of being ‘worse than doing nothing’. While we don’t agree with this view, it’s clear the Programme has had some teething problems, particularly for the over 55s involved.
To quickly re-cap, the Work Programme is a major policy costing between £3 and £5 billion over five years, aimed primarily at the long-term unemployed. It uses private companies (‘contractors’) to help people return to work. And to clarify a common misunderstanding, it is not the same as the different but much talked about scheme where jobseekers do unpaid work experience at a business or other organisation!
NOT WORKING FOR OLDER JOBSEEKERS
Age UK has now had a detailed look at the results by age group to find out how successful it was for older jobseekers and published a briefing.
While the Work Programme came in below expectations for everyone, it is even worse for the over 55s (see chart below. This shows the proportion of people sent on to the Work Programme who entered and remained in a job for at least three months).
The over-55s suffer a drop in successful job outcomes of nearly 30 per cent compared to the average for the under-55s (interestingly, the 50-54 age group have the same outcomes as 45-49s). The age profile of the job success rate is shown below.
This is a huge shortfall and represents a huge problem because the Work Programme appears to be failing to tackle the barriers faced by older jobseekers – it is simply not offering sufficient support.
OVER 55s STRUGGLING TO FIND WORK
For anyone who loses their job once over the age of 50, it can be very difficult to move back into work. So it would be expected that the Work Programme would be less successful for older jobseekers, right? Well yes, and no.
Because the Work Programme is a labour market tool designed to improve job outcomes, it’s possible to change how it operates. Doing so could correct the natural imbalances found within the labour market which almost always harm the prospects of disadvantaged groups, including older jobseekers.
Our briefingrecommends several ways of changing the Work Programme without hampering contractors’ freedom to operate as they choose.
This could be by paying contractors more to place over 55s into jobs or by moving people to the Work Programme after six months unemployment rather than 12 – giving the right support earlier can help, although ‘right’ is the key word here. Measures such as these could make all the difference.
But it seems clear that if nothing changes, older jobseekers will continue to find themselves cut out of the workforce, often permanently, while being expected to wait longer before being able to draw their state pension.