Community Allowance in the White Paper
We were very happy to see that the Community Allowance appeared in the DWP's Welfare Reform White Paper Raising expectations and increasing support: reforming welfare for the future.
The DWP has “agreed that CREATE can pilot Community Allowance within the existing Employment and Support Allowance system”. It goes on to say, “If pilots show that Community Allowance improves the Employment and Support Allowance customers’ chances of moving into work and off benefit, we will consider introducing it on a larger scale.”
This is a very positive step towards acheiving our goal. Thank you to everyone who has supported the Community Allowance and enabled it to get this far.
Read our response to the DWP Green Paper
The CREATE Consortium worked with a number of organisations to respond to the DWP's Green Paper, which we submitted in partnership with the Community Sector Coalition. A number of other national networks of community organisations and the TUC contributed to our response to Chapter 2: An obligation to work. You can read our critique of the DWP's proposals for 'work for your benefit' and our ask to pilot the Community Allowance here.
CREATE Chair gives compelling speech at DTA Conference
Chair of the CREATE Consortium, Jess Steele, gave a compelling speech at the Development Trusts Association's annual conference in September, as the members discussed the inclusion of the Community Allowance in its manifesto. You can read her speech and presentation, which shine a light on the history of the benefits system and call for urgent change.
DWP research finds 'Work for Your Benefit' ineffective
In August 2008, one month on from the publication of the Welfare Reform Green Paper containing proposals to introduce mandatory 'work for your benefit' activity, DWP has published research into the impact of this policy in the US, Canada and Australia.
The DWP research found that:
- Work for your benefit is least effective for individuals with multiple barriers to entering the labour market
- Welfare recipients with multiple barriers often find it difficult to meet obligations to take part in unpaid work. This can lead to sanctions and, in the most extreme cases, the complete withdrawal of benefits that leaves some individuals with no work and no income.
- Some states in the US have scaled down large-scale, universal workfare programmes in preference for ‘softer’ and more flexible models that offer greater support to those with the most barriers to work. This includes a greater reliance on subsidised jobs that pay wages rather than benefits to participants.
- Subsidised (‘transitional’) job schemes that pay a wage can be more effective in raising employment levels than ‘work for benefit’ programmes.
You can tell the DWP what you think of their plans to introduce 'work for your benefit' at their online consultation until the 22nd October 2008.
DWP releases Welfare Reform Green Paper On 21st July 2008 DWP published the green paper No one written off: reforming welfare to reward responsibility The DWP says that "The Green Paper sets out plans for improving support and work incentives to create a system that rewards responsibility."
Alongside welcome proposals to simplify the benefits system is an alarming proposal to make people who have been unemployed for 2 years 'work for your benefit' by undertaking full time work in a community setting in return for normal benefit payments.
We are currently working with other key agencies to develop a response to these proposals to feed into the DWP's consultation on the green paper.
Alison Benjamin in the Guardian has written an interesting article about the affect of the 'work for your benefit' policy in the United States, which amongst other things, raised the absolute rate of child poverty.
Community Empowerment White Paper states aim to pilot Community Allowance
The CREATE Consortium and its supporters are delighted that the Government has announced its aim to pilot the Community Allowance in the Community Empowerment White Paper, published on July 9th 2008.
We will continue to work with all Government Departments to make this a reality. If you want to support this work, please back the campaign.
Positive and Productive Meeting with Stephen Timms MP, Minister for Work
On 15th May 2008, members of the CREATE Consortium met again with Stephen Timms, his Special Advisor and several civil servants to talk in more detail about the possibility of piloting the Community Allowance. The meeting was positive and productive and dialogue is ongoing. We will update you with further news as soon as we have it.
In the meantime, please help raise this issue up the political agenda and email your MP if you think the Community Allowance should be piloted within the UK benefits system.
Have your say from our blog on the Guardian Society website
On 14th May 2008, our blog, which tells the story of Lisa Banks and her difficulties with the benefits system, was featured in the Guardian Society. Let us know what you think about the Community Allowance and tell us about your experiences of how the benefits system has affected your community work, by commenting on our blog.
Our feedback to CLG
The Department for Communities and Local Government (CLG) published a paper recently called Unlocking the Talent of Our Communities. The CREATE Consortium wrote a response to this, about how the Community Allowance could contribute to work and regeneration in the UK's most deproved neighbourhoods.
We have estimated that if the Community Allowance was introduced into the UK benefits system that between 80-190 part time jobs could be created for every neighbourhood. One part time job is the equivalent of one four-hour shift a week. People could start off doing one shift a week and take on more as their skills and confidence grew.
Read our full response here.
Meeting with Stephen Timms MP, Minister for Work
Following a meeting with Stephen Timms on 15th February 2008 the CREATE Consortium has been working with DWP to explore the potential of a pilot programme to assess the feasibility and impact of the Community Allowance. We have another meeting in May to explore whether the regulations can be changed to allow the pilot programme to go ahead.
