Supported Employment (Hansard, 26 October 1999)

§ Ms Jowell

Responsibility for the subject of the question has been delegated to the Employment Service agency under its Chief Executive. I have asked him to arrange for a reply to be given.

Letter from Richard Foster to Mr. Tim Boswell, dated 25 October 1999: As the Employment Service is an Executive Agency, the Secretary of State has asked Leigh Lewis to reply direct to your question about research into the demand for place for our Supported Employment Programme. This is something which falls within the responsibilities delegated to Mr. Lewis as Chief Executive of the Agency. I am replying in his absence. The research was conducted by Sheila Honey and Matthew Williams at the Institute for Employment Studies and published in July 1998 under the title: Supply and Demand for Supported Employment. A copy is available in the House of Commons Library. The Programme provides job support to over 22,000 disabled people with a range of employers and in supported factories and businesses. It is open to disabled people who face more complex barriers to getting or keeping a job because of their disability, but who can work effectively with support. The Programme is delivered in partnership with over 230 local authority and voluntary organisations and Remploy Ltd. Around 12,000 supported employees work in a variety of jobs with mainstream employers with the remainder working in around 190 supported factories and businesses, including some 6,3000 in Remploy factories. 808W The research provided estimates, using a variety of data sources, of the extent to which the supply of places on our Programme matched the potential demand on a geographical basis. Depending on the definition, the research indicated a potential additional demand of between 40,000 and 180,000 places. The lower figures was based on people who were unemployed and actively seeking work and the upper figure included those who were currently inactive in the labour market (such as students, those looking after families or homes, or people temporarily unable to work due to illness). It is unlikely, however, that all of those estimated as eligible for our Supported Employment Programme will actually demand a place—many are likely to find work in open employment or training. The research also indicated that the degree to which the potential supply of places on the Programme matched the potential demand varied by Employment Service Region. Wales had the closest match between supply and demand, followed by the South West and the Northern Region. The greatest mismatch between supply and demand occurred in London, followed by the West Midlands and the North West. East year some 3,000 people enter the Programme; and we are using the findings of the research to inform contract discussions with a view to addressing geographical imbalances over time. One key factor we take into account in these discussions is that any rapid redistribution of existing places could force people off the Programme (and potentially out of work). Many contractors also have a specific geographical rather than a national remit, for example local authorities, and cannot support people elsewhere. Government funding for our Supported Employment Programme for 1999–2000 is £155.1 million. A further £5 million for this financial year and the two following financial years to March 2002 has been allocated as part of a new £30 million fund for disability services, announced in 1998 by the Secretary of State for Education and Employment. We are using this additional resource to increase the grant per place to local authority and voluntary body contractors, to support developments at Remploy, and to support proposals for a series of projects to develop and test ways of improving the effectiveness of the Programme and, in particular, its success in helping people to progress into open employment. Helping those disabled people who can cope with unsupported open employment to make the transition will release places for new people to enter the Programme. I hope this is helpful.