Creating Incentives to Work
Description
Unemployment in the UK is now above two million for the first time since 1997. The number of people claiming Jobseeker’s Allowance is rising at a record rate. Many economists predict that unemployment will go above three million in 2010.
However social enterprises are well placed to deliver employment related public services, due to their relative independence from the state, focus on beneficiary need over profit and the way in which the sector can effectively and actively engage with the most disadvantaged groups. They have a track record of developing a wide range of successful welfare to work projects, and help unemployed and economically inactive people to gain the skills and experience they need.
The Government must work with social enterprise and social firms (distinct social enterprises which create employment for people furthest removed from the labour market) to create genuine incentives to work. Employers must be incentivised to train and employ individuals lacking confidence and skills, and offer decent jobs that offer a real reason to move into employment.
Many social enterprises, incluidng social frims, seek to employ people with learning disabilities or who are long term unemployed, yet they find individuals are often deterred from working in order to comply with the benefits system. Changes to this system such as an increase in the disregarded earnings limit could make work worthwhile again.
Increasing workplace skills and confidence is a necessary first step to support individuals taking their first steps back into employment, however there needs to be jobs to access at the end of this process. By supporting a comprehensive community allowance - proposals that allow local organisations to pay people to undertake work that improves the community, without it affecting thier benefits, the Government could provide the incetive, flexibilty and opportunity for individuals looking to re-enter the labour market.
>We believe the Government must focus on creating support systemsn and financial incentives that address the objectives of employability, community cohesion and business development at the same time.
Related pages
Gallery
