September 2013

Routes onto ESA

Paul Sissonspaul.sissons@coventry.ac.uk

• Discussion of ESA claimant characteristics, barriers to work and claim trajectories

• Data from DWP funded evaluation of the introduction of ESA. Undertaken by the Institute of Employment Studies. Survey fieldwork by IPSOS-MORI

• My views only

Outline

Sissons P, Barnes H, Stevens H (2011) Routes onto Employment and Support Allowance DWP Research Report 774

Barnes H, Stevens H, Oakley J, Sissons P (2011) Ended claims for Employment and Support Allowance – qualitative research DWP Research Report 762

Barnes H, Sissons P, Stevens H (2011) Employment Support Allowance: Findings from a follow-up survey with claimants DWP Research Report 745

Barnes H, Sissons P, Stevens H (2010) Employment Support Allowance: findings of a survey of claimants DWP Research Report 707

Barnes H, Sissons P, Aston J, Dewson S (2010) Early Implementation Study of the introduction of Employment Support Allowance DWP Research Report 631

References

• Large increase in claiming for sickness benefits in UK from 1980s onwards. Similar patterns in other European countries (Houston and Lindsay, 2013).

• Reforms to sickness benefits from 2003 on – introduction of Pathways to Work (2003); Reforms to PCA (2007); Introduction of ESA for new claims (2008); Extension to existing IB claimants (2011).

• Incapacity Benefit claim numbers tend to be highest in weakest labour markets (Beatty and Fothergill, 1997; Beatty et al, 2009). These areas also saw the biggest growth in unemployment in the recession (Sissons, 2009).

Background

• 3,650 ESA claimants interviewed 8-10 months after initial claim; 1,842 followed-up 6-8 months later

• Survey covered:• Pre-claim employment experiences• Health • Claim experiences• Medical assessment• WFIs• Appeals• Destinations

• New claimants only

Notes on the study

WCA results – change over time

(Results of completed initial WCA assessments for new claims [excludes IB reassessment]. Source: DWP, 2012)

Routes onto ESA

(Source: ESA claimant survey)

Main health conditions

(Source: ESA claimant survey – conditions here self-reported)

• 1 in 5 conditions were directly work-related (1 in 3 for musculo-skeletal conditions)

• Half had a fluctuating condition • 2/3 had multiple health problems• Around 1 in 3 had both a physical and a mental health condition• 8 in 10 were receiving treatment and almost 4 in 10 awaiting further

treatment

Health conditions: 2

Other characteristics

(Source: ESA claimant survey; Labour Force Survey Q3 2010)

Other characteristics: 2

(Source: ESA claimant survey)

Barriers to work: health plus…

(Source: ESA claimant survey. Shows most widely cited barriers, claimants could report more than one barrier)

WRAG – a complex picture

Employment trajectory – work origins

Employment trajectory of claimants with work origins

Notes: 1 Claim status at baseline excludes cases that were still in progress (9 per cent of all claimants who were in work before claiming ESA) 2 Based on linked administrative data.

Claim status at baseline survey 1 Employment situation at follow-up survey

Flow of claimants

Employment situation immediately before claim

48%

74%

In work, 51% Comprised of:

Employees Self-employed

At work: 43% At work: 14%

Off sick: 33% Off sick: 10%

Allowed ESA, 22% Comprised of:

Support Group

Work-related Activity Group

7% 15%

In work, 44% Comprised of:

Employees Self-employed

At work: 27% At work: 8%

Off sick: 4% Off sick: 6%

Out of work, 56% Of whom:

7% in receipt JSA 2

22% permanently sick

26%

52%

Fit for Work/Off-flow, 69% Comprised of:

Fit for Work

Closed or withdrawn

claims 38% 31%

Employment trajectory – non-work origins

Employment trajectory of claimants with non-work origins

Notes: 1 Claim status at baseline excludes cases that were still in progress (13 per cent of all claimants who were in work before claiming ESA) 2 Percentage receiving J SA is based on cases with linked administrative data only.

Employment situation immediately before claim

Claim status at baseline survey1 Employment situation at follow-up survey

21%

9%

Out of work, 49% Of whom:

50% in receipt JSA

Allowed ESA, 21% Comprised of:

Support Group

Work-related Activity Group

6% 15%

In work, 17% Comprised of:

Employees Self-employed

At work: 13% At work: 2%

Off sick: 0% Off sick: 2%

Out of work, 83% Of whom:

20% in receipt JSA2

27% permanently sick 79%

Fit for Work/Off-flow, 66% Comprised of:

Fit for Work

Closed or withdrawn

claims 41% 25%

91%

Flow of claimants

Factors influencing a return to work among ESA claimants - men

• Recovery from health problem• Being in employment immediately prior to their claim• Health ‘getting better’ • Having some work or academic qualifications• Having a musculoskeletal condition• Having a consistent longer-term work history

• Recovery from health problem• Health was not ‘getting worse’ • Being in employment immediately prior to their claim• Being aged 35-54

Factors influencing a return to work among ESA claimants - women

• The ESA population has a comparatively disadvantaged profile, but is heterogeneous

• Those who enter the benefit from work tend to leave most quickly

• Improved health and recent work experience appear to drive employment outcomes

• Diverse and complex circumstances require differentiated employment support – health and wider employability barriers (applies to FFW group as well)

• IB reassessment will have older profile, worse health, and be more concentrated in weakest labour markets

Conclusions