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Community Allowance Pilot Partners Wanted

Tuesday, September 8th, 2009


We (the CREATE Consortium) are looking for three community organisations to pilot the Community Allowance with us. Could you be involved?

Background – the Community Allowance proposal
A Community Allowance would allow benefit claimants to supplement their income without incurring a penalty – this month’s New Start magazine has a useful overview of the idea, which is starting to be picked up by government. We hope to be involved in piloting the idea, and would welcome your involvement.

Under the government’s Right to Bid scheme, any organisation can propose to the Department for Work and Pensions (DWP) a new way of delivering any of its services. We thought this was a good opportunity to work with the DWP to pilot the Community Allowance. We developed a Right to Bid proposal for a £2.2 million pilot programme in 15 areas across the UK, and submitted it in January 2009. In April, they asked us a number of questions about our proposal, and you can read our answers here.

In July 2009 they called us to a meeting where they informed us that the Right to Bid process was looking for much smaller scale pilots. They also said that the outgoing Secretary of State, James Purnell MP, had made it clear that the Community Allowance could not be piloted for people on Income Support or Job Seekers Allowance.

They rejected our bid but asked us to submit another proposal for a smaller scale pilot operating in three areas anywhere in the UK. They also said our bid would stand a greater chance of success if we restricted the people who could participate to those who are on Incapacity Benefit and Employment and Support Allowance.

We asked all the organisations that had already expressed an interest in piloting the Community Allowance if they would be prepared to go ahead on that basis, and over 30 organisations said they would.

Aims of pilots:

  • To test the feasibility and impact of the Community Allowance on participants and their communities in a range of settings across the UK.
  • To capture learning and evidence that could inform further development of the Community Allowance to people on other benefits (e.g. Income Support and Job Seekers Allowance).

Want to be involved in the pilot programme?

We are looking for community organisations from across the UK that are interested in becoming a partner with CREATE in order to run the Community Allowance. We would like to work with organisations that are:

  • Local community based charities, social enterprises or community interest companies
  • Trusted locally, with a track record of working with ‘hard to reach’ people
  • Equipped with the capacity and skills to support the Community Allowance participants
  • Able to generate local paid work (e.g. community research or youth work) or identify and place people in paid work that strengthens their neighbourhood (e.g. School Crossing Patrol)

We’d like these pilots to be in a range of rural and urban areas. In each area we anticipate identifying and working with one or more partners, each of whom would recruit, employ, and support people. We have estimated that in each area the Community Allowance could create around 80 part time jobs.

If you wish to develop a proposal for how your organisation would deliver a Community Allowance pilot programme in your area, please download a proposal form and guidance notes. Completed forms need to be back to the CREATE Consortium by 5pm on 1st October 2009, either to CREATE Consortium, 33 Corsham Street, London N1 6DR or to n.alexander@dta.org.uk

Type of Jobs: Eligible jobs on the Community Allowance would be restricted to those that contribute to strengthening the neighbourhood. This would be defined and refined by the CREATE Consortium over the duration of the pilots through dialogue with the CREATE partners.

Real Time Evaluation: The CREATE Consortium will contract with an independent evaluator to carry out a real time evaluation of the pilot programme.

 Do get in touch on aaron.barbour@community-links.org with any suggestions or questions.

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Posted in Benefits, Community Engagement, Innovation, Regeneration, Welfare, employment | No Comments »

Community Allowance: Latest News

Tuesday, July 7th, 2009

We at Community Links have been a part of the CREATE Consortium since its inception. The campaign calls for changes to benefit rules which would enable community organisations to pay people to do work that strengthens their neighbourhood without it affecting any of their benefits.

In a guest blog here CREATE Consortium co-ordinator Naomi Alexander updates the campaign progress. 

Well, we finally have some news from the governments Department for Work and Pensions about the Community Allowance.

We (Steve Wyler, Executive Director of the DTA, Aaron Barbour, Head of linksUK at Community Links and me) went to a hastily arranged meeting with 6 officials from the DWP this morning to discuss our Right to Bid proposal that we submitted back in January.

We’ve got through two rounds of intensive scrutiny and evaluation from across the Department and they wanted to give us their feedback.

Because the last Secretary of State, James Purnell, said that people on Job Seekers Allowance (JSA) would not be eligible for the Community Allowance, our bid, which includes a lot of detail about people on JSA is not eligible for funding and they are rejecting our proposal as it stands.

While we are obviously, really disappointed that this is the decision after all the work that has gone into getting this far, there is still hope.

They have asked us to write another bid (!) as they are keen on the Community Allowance concept and can see the value in piloting it to test the approach. They have given us some guidance as to how we should re-shape the bid to stand the best chance of being approved.

This includes:

  • Re-shaping what we would deliver through the Community Allowance only for people who are on Employment and Support Allowance and Incapacity Benefit
  • Scaling back the pilot programme from 15 pilots across the UK to just 3 pilots as the Right to Bid process is targeted at funding small scale activity that can act as the DWP’s research and development arm to test out new ideas and add value to their existing work
  • Choosing which three pilot areas it would be piloted in and having identified lead community organisations in each area before the bid is submitted
  • Ensuring that each of these pilot areas fits within Job Centre Plus and Pathways to Work provider boundaries, which are different to local authority boundaries
  • Beginning to develop a dialogue between the community organisation(s) running the pilot and local Job Centre Plus and Pathways/FND providers in each area
  • Including more of a focus on how many people will move into jobs as a result of the activity, specifying which of these are part time, full time and sustained over a 26 week period  

We have had lots of discussions about this since Friday and we think it is worth being pragmatic at this stage and moving ahead with another bid as outlined above. At the same time we will continue our lobbying and campaigning work to convince politicians that the Community Allowance should be available to anyone on any benefit and try to get the scope of the pilots extended to include those on JSA at a later date.

What do you think?

We would like to hear if community organisations are still interested in being pilot partners under this scaled back version of a Community Allowance pilot.

If you are interested, or you’d like to discuss the practicalities of becoming a pilot partner please email me (and copy in Jess Steele the Chair of the CREATE Consortium j.steele@dta.org.uk).

Depending on the level of interest, we will set up a short selection process that enables us to choose three pilot locations and partners. The aim is to get the new bid to DWP for their end of August selection panel, so that we have a decision in September and a contract signed and monies flowing to pilot partners as soon as possible after that.

It’s a challenging timescale, especially as it’s over the summer whilst people will be taking leave, but if you’re up for it – we’re up for it!

We’ve come this far and now have an opportunity to get something up and running next year that will begin to demonstrate how the Community Allowance could work. It may not be what we know is needed in our most deprived communities but it’s a start and we have no intention of giving up. With your involvement we will keep up the pressure on politicians to realise the full potential of the Community Allowance over the long term.

We look forward to hearing what you think.

Thanks so much for your support.

Naomi Alexander

Email: n.alexander@dta.org.uk Web: www.communityallowance.org

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Posted in Benefits, Community Engagement, News, Regeneration, Welfare | 4 Comments »

Unemployment figures, welfare reform and ending child poverty

Tuesday, March 17th, 2009
Courtney, David and Daniel deliver the End Child Poverty petition to No. 10 Downing Street

Courtney, David and Daniel deliver the End Child Poverty petition to No. 10 Downing Street Photo: (c) Andy Aitchison / ECP

It’s the tenth anniversary of the Labour Government’s pledge to end child poverty in a generation. Community Links are proud members of the Campaign to End Child Poverty: three young people, Courtney, David and Daniel from our Arc in the Park open access childcare project went to Downing Street to  ask the Prime Minster: “Will you keep your promise Gordon, and improve the lives of millions of UK children living in poverty today?”

As the recession bites, an investment of at least £3 billion would provide a vital timely and targeted injection for families in our poorest communities who are hardest hit. Without this £3bn in the forthcoming budget the Government will be 700,000 children short of its target to halve child poverty by 2010.

It is timely that on the tenth anniversary of the historic promise by this government to end child poverty the latest unemployment figures are released today. As unemployment rises, more and more people are becoming dependant on benefits to support them through the recession. However the current welfare system is not equipped to provide the right support and will ultimately trap thousands more on benefits. The rigid nature of the outdated system does not reflect modern day employment. Jobs advertised at the Jobcentre are temporary, part time, weekend work and often pay on commission.

A recent Observer article ‘At the Mercy of Gang masters: the growing army of jobless’ shows that more and more people will fall into the informal economy during the recession. Government needs to reform the welfare system in a way that will enable people to remain in the formal labour market to some degree and prevent the need for cash-in-hand work, where currently people are criminalised if they are to accept any work earning over £5 on Job Seekers Allowance.

Community Links have made a number of recommendations to Secretary of State for Work and Pensions Rt Hon James Purnell including increasing the levels of earnings disregard and removing the 16 hour rule which would enable benefit claimants to work legally- retaining their skills during the economic downturn.

At Community Links we have researched the impact of poverty on local children and published our recomendations for change … we’ll continue to address child poverty by both providing direct services locally and campaigning  for change nationally.

Three children from Community Links in Newham handed in the End Child Poverty petitions yesterday, recently parents involved in our Need NOT Greed campaign spoke to MPs and Lords at Westminster about poverty and the benefits system.

 

Mike Crim, Programme Manager for Community Links open access childcare Ark in the Park said:

“I’m very proud of three Arc in the Park children; Courtney, David and Daniel, who, this morning, knocked on the door of No. 10 Downing St. and handed over a petition to the Prime Minister on behalf of the End Child Poverty Campaign. Well done children! This is Community Links at its finest!”

Government needs to establish a modern, flexible welfare system to prevent children from growing up in poverty and to help families cope with the effects of the recession. We think that the best way to ensure this happens effectively is for government to listen to people with first-hand experience of poverty, unemployment and the welfare system: and its great to see our youngest and finest standing up and taking action!

Let us know what you think.

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Posted in Benefits, Child Poverty, Community Engagement, News, Voices from the Ground Up, Welfare, employment | 3 Comments »

Need NOT Greed campaign mentioned in Parliament yesterday

Wednesday, March 11th, 2009

Dai Davies MP at launch of Need NOT Greed Campaign along with Secretary of State DWP James Purnell (photo Eva Savojic www.evasajovic.co.uk )

Following the successul launch of our Need NOT Greed campaign on 24th Februrary in the House of Commons, it was great to see that Dai Davies MP referred to the launch in yesterday’s debate in the House on Unemployment. You can read the full debate from Hansard (the record of Parliamentary proceedings) via They Work For You website.  

Mr Davies said “People need support before they get there (to Jobcentre Plus), but often those support mechanisms are not in place. Jobcentres need to work more closely with other organisations and signpost people much better. A week ago, the Secretary of State (Rt. Hon James Purnell ) and I were at a presentation by a campaign group called ‘Need Not Greed’. We listened to some of the experiences of people who were struggling through the benefits system and the unemployment system, trying to find work. Jobcentre Plus does all it can, but huge numbers of people are falling through the net. Individuals are often not informed of the welfare rights that are available to them. Again, there is a failure to join up what is out there in the marketplace.”  

It’s great to see our local experience, knowledge and recommendations being taken on and actively used by politicans and policymakers in Westminster. If you’d like to find out more about our Need NOT Greed campaign then visit our dedicated website: www.neednotgreed.org.uk   And download a free copy of our latest Social Change booklet on the Informal Economy.

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Posted in Benefits, Child Poverty, Community Engagement, Informal Economy, Voices from the Ground Up, Welfare, employment | No Comments »

When the Powerful met the Poor

Tuesday, March 10th, 2009

P1000141

It can be fun, if a little unfair, to think of the folks down at Westminster, a bastion of British power and status, in silly, stereotypical ways. Tall, older men in suits, possibly a little round in the middle, perhaps sporting a top-hat or even (my favourites) a cane and monocle, striding hurriedly from one high-powered meeting to the next.

Clearly, such a description does real MPs a disservice. Still, you wouldn’t really expect Westminster to welcome people who see the government as distant and threatening; people who are technically in breach of law and actively hunted by the authorities.

 But that is what happened on the 24th February, when the Need NOT Greed campaign was launched in Westminster. A panel of around nine people openly discussed their experiences of working cash-in-hand, explaining the ways in which they are forced to do so out of need rather than greed, in front of an audience of MPs, peers and others. It was a courageous thing to do and that courage was rewarded with some real and generous engagement from the audience.

One member of the audience drew attention to the situation of many illegal immigrants who have worked informally in Britain for over twenty years and live on a knife-edge, fearing the consequences of injury or sickness. Panel and audience members discussed the criminalisation of those working cash-in-hand and the disruption of communities it leads to. The idea of an amnesty for those working informally was raised more than once, again from panel and audience.

Nearly all the panel members related experiences of the complexity and lack of co-ordination on the benefits system. Members of the audience told similar stories, such as that of a man who, upon starting a job, was told he could keep both of his benefits. This turned out to be false information, eventually leading to debt and a nervous breakdown. The ’starvation amount’ of Jobseeker’s Allowance, £60.50 a week for over 25s, was criticised by the panel and audience alike. These stories from the panel and audience showed that stressful and difficult experiences of the benefits system really are widespread.

The positive tone of the discussion was also shown by various audience members really listening to people’s criticisms of the system and acknowledging the difficulties that people have had with it. In response to the many stories of the system’s complexity, some audience members pointed out that the system is so huge and complex that even though a simple and flexible system is a very attractive ideal, it is a horribly difficult to realise. Indeed, it was suggested that simplicity and flexibility are at odds with each other.

What could have been a traditional stand-off between those in power and those who feel distant from and threatened by those in power, was actually a positive exchange. No tempers flared; no-one interrupted others. This good relationship between the panel and audience maybe reflects the fact that for many people, not just the poorest, the benefits system is very complex, difficult and (if you’ll allow me) taxing.

Whilst it is all too easy to be cynical about politics and politicians to the point of surrender, the good rapport and respect shown at the launch between politicians and people working informally is not an end in itself. The Need NOT Greed campaign has only started and must rumble on steadily and noisily. Support the campaign by visiting the campaign website at www.neednotgreed.org.uk/ and getting involved.

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Posted in Benefits, Child Poverty, Community Engagement, Informal Economy, Voices from the Ground Up, Welfare, employment | 1 Comment »

Welfare to Work: ACEVO, DWP Third Sector Taskforce report

Wednesday, February 4th, 2009

Report Cover Image: The Potential Role for the Third Sector in Welfare to Work ReformThis morning, 4th Feb, James Purnell, Secretary of State for Work and Pensions, received the Third Sector Taskforce’s report (Download here) on the role of the third sector in welfare to work reform.  The taskforce was set up jointly by ACEVO and the Department of Work and Pensions DWP in summer 2008. ACEVO Chief Executive, Stephen Bubb chaired this morning’s launch and stressed to James Purnell that the sector has a key role to play in creating jobs and volunteering opportunities.

On behalf of Community Links I travelled to Birmingham to present evidence to the enquiry.

 

Reflecting on our 11 year involvement in New Deal delivery as we drove towards Birmingham to present our evidence to the DWP review of New Deal – the ACEVO / Groundwork / DWP Taskforce, it seemed ironic that we (Community Links) needed a “new deal” to be able to compete for the new contracts in the future.

Arriving in good time after 120 miles on the road, it was annoying to discover that the previous consultation session was over-running and our one hour of opportunity was now going to be squeezed into just 45 minutes.

After formal introductions / forewords given by the attendees, David Freud and Tony Hawkhead (the chair of the session), we had just 38 minutes left for several organisations to put their cases forward!

Our case was as follows:

 Concerns about contracting ‘welfare to work’ services

  • VCO currently not on a level playing field
  • Perception / attitude by government that private sector always the best and that VCO are inferior (in terms of poorer quality, outputs, meeting cost and time deadlines)
  • Some of the big providers, we feel, are profiteering by taking a management fee and then sub-contracting the actual work. Why not give it directly to the on-the-ground provider?
  • The type of organisation delivering ‘back to work’ programmes is the key to successful getting numbers of people into work
  • Community Links would only look to scale up in London, not other parts of the country (the process needs local knowledge)

 To go for big contracts VCOs need:

  • Access to capital
  • 70% of payment up front
  • To address cash flow
  • To get rid of TUPE
  • To build their capacity to deliver the services

 Possible solution: 

1. DWP to set up a fund

  • to put bids together (again large companies have dedicated bid writing teams)
  • to carry some of the risks
  • provide investment up front and setting up costs

2.  Investigate reduction to the size of regions and/or contracts – e.g. £10-15M/contract

Our case was received with respect by all present, indeed it soon became apparent that our points were shared even by the large national providers.

Following our appearance in Birmingham we have used every available opportunity to make our case heard and our New Deal operation has had a recent visit from Tony McNulty, the Minister for Welfare and Employment reform and his predecessor Stephen Timms.

For us the case is simple:

If the DWP are serious about maintaining locally based third sector organisations as main welfare to work providers, given the unique attributes we bring, then we need a New Deal model that we can compete for on a level playing field with the national (and international) companies that are hovering.

Given that our services of excellence are in one of the most deprived inner city areas of the country, we hope to inform DWP thinking! We wait and see.

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Posted in Benefits, Child Poverty, Informal Economy, Welfare | No Comments »

The second reading of the Welfare Reform Bill: conceived in a boom world?

Wednesday, January 28th, 2009

House of Commons Chamber: Speaker's tableThe Welfare Reform Bill had its second reading Yesterday at Westminster. Newly in post as Shadow Work and Pensions Secretary, Theresa May’s ability to succeed her predecessor and stand against James Purnell has been questioned by The Telegraph and by The Spectator. May raised concerns over lone parents and what exactly work related activity would consist of. She was joined by other MPs from all political backgrounds in highlighting the worry that sanctioning lone parents may dangerously increase the levels of child poverty.

 Steve Webb MP, Liberal Democrat questioned the strategic approach to the Bill describing it as not only skeletal but actually invertebrate. He too asked, “What happened after sanctions, would a child live in poverty as a result?”

There too was an overall consensus that benefits were too low. Last week Lynn Jones MP picked up on a letter submitted to the Guardian and quickly turned it into an Early Day Motion EDM543. John Mason MP worried that this would cause a disincentive to go back to work and called for “more conditional carrots such as increasing the minimum wage as part of a much needed joined up government approach” Despite tweaks to the current Bill there was little in the way of outright opposition. May described their policy as ‘progressive’ and supported the bill ‘on the condition that Purnell would not back track’ She went on to advise him that he ‘needed to stand firm’

Terry Rooney MP was one of only a few who got to the nitty gritty, the specifics of the reforms needed and in doing so illustrated his knowledge of the welfare system. He quite rightly drew attention to the dramatic reduction in money lost due to fraud in comparison to the continued levels of money lost due to error. Talking about the psychology of the recession Mr Rooney touched on creating a more flexible modern benefit system,  which is what we are campaigning for at Need NOT Greed, as a way to remove the reliance on cash-in-hand work. To maintain job retention he suggested a wage subsidy scheme and spoke of changes to the 16 hour rule, earning disregards and greater benefit take up. “We need to remove the barriers so providers can be more effective”

Even Conservative Charles Walker MP praised the Bill but was “worried that it may have come at the wrong time” and echoed Mr Rooney that “the barriers need to be removed and the complexities of the benefits system resolved.” He finished with ” For the most excluded the benefits are a safely net, a leg out of poverty. Some will never escape the benefits system and they must not be ignored but a civilised society must provide a route out.”

Almost all too harmonious, or at least until Frank Field  MP stepped in voicing his opposition to the Bill. “The Bill was conceived in a boom world and by the time it occurs it will be largely irrelevant to our constituents.” He suggested pulling the plug on current schemes and spending the money more effectively. Direct intervention was more favourable to Mr Field; community programmes for Young people offered real jobs for young people to go into and VAT cuts would be better spent on Job Seekers Allowance.

By the end it was difficult to assess where each party stood regarding Welfare Reform. What struck me the most was the uncertainty in the House. In an era of economic gloom it seemed that no one had the answers, but there were a lot of ‘what ifs’, ‘is the Bill suitable?’ Yet attending the Need NOT Greed focus groups it is very clear that people with first-hand experience of poverty, unemployment and benefits do have the answer, there are too many barriers and not enough incentives. Watch ‘Working what’s the point?‘

On February 24thwe will be launching the Need NOT Greed campaign at Westminster. Chaired by Terry Rooney MP there will be a discussion between MPs and people struggling on benefits to create a better understanding of the systematic traps, the fear and the policy changes needed to end dependency on benefits. Welfare Reform was developed in the boom, making it all the more necessary for government  to consult the experts, the individual in an era of unknown gloom.

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Posted in Benefits, Child Poverty, Informal Economy, Inspiration, Welfare | No Comments »

Initial reaction to new DWP White Paper

Wednesday, December 10th, 2008

DWP Report cover Raising Expectations and Increasing Support: Reforming Welfare for the FutureThe latest DWP White Paper Raising Expectations and Increasing Support: Reforming Welfare for the Future came out 30 minutes ago so I’m still trawling through all 201 pages. Really pleased to see that on page 92 our idea of piloting the Community Allowance is given the go ahead within the new Employment and Support Allowance (the new Incapacity Benefit). This is a step in the right direction. However we do want it to be available for anyone on any benefit, so will keep pushing for this.

Sad to see that the government has not made mention of cash-in-hand or informal paid work. With so much talk of recession in the White Paper to ignore the obvious reality that more people will be pushed into supporting their families by turning to cash-in-hand work is a missed opportunity. Visit our ‘Need Not Greed’ Campaign website to find out more.  

And finally just a thought about the jobs that people are going to have to move into. this doesn’t quiet tally with the daily reports of thousands being made redundant. What are the government’s suggestions on this within the White Paper and beyond? I will have to read on to find out… I hope.   There will be more thoughts and comments from us over the next couple of days, but what’s your reaction in the meantime? Leave a comment below.  

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Posted in Benefits, Child Poverty, Communication, Informal Economy, Research, Welfare | 2 Comments »

DWP Welfare Reform – who benefits?

Tuesday, July 22nd, 2008

Cover Image: No One Written Off report. DWP July 2008Yesterday the Secretary for Work and Pensions, James Purnell, introduced the Green Paper on Welfare Reform “No One Written Off”. The contents were previewed at the DWP’s Annual Conference and highlighted what people can do rather than what they cannot do. Ministers talked about enabling the individual and an emphasis on employment was central.

“The Green Paper focuses on the ‘three C’s; capability, contribution and control. It has a focus on the individual, on their ability to work, their contribution to the world of work and the personal responsibility they have for their own lives.”

“Work is good for people’s health, it has a transforming effect on both their skills and self esteem” according to Stephen Timms MP.

A message echoed both at the annual conference and at a seminar held yesterday on an internal review on Housing Benefit. Generally there was a very positive energy about Welfare Reform on both occasions.

Numerous interpretations of the Green Paper have been reported causing confusion and anger over its implications. The Times headlined their story ‘Work-for-dole will force the benefit cheats to start earning their keep’,  whilst other online media focus on the move away from outdated benefits Welfare shakeup to scrap incapacity benefit. In The Independent  Johann Hari describes how the safely net of benefits should infact be a trampoline. Based on the personal experience of a friend he describes how the current benefits system ‘keeps people in a rut’ and this ‘inactivity is infectious, you become convinced you can’t do anything’

Whatever way you interpret it, the Green Paper is themed around deterrence. James Purnell justified the tough sanctions as a way to deter people from work in the informal economy by filling their time up with community jobs they will have no opportunity to work on the side. The new Welfare System seems to be targeting people who work to earn a little bit of money as a way to lift themselves out of poverty.

(more…)

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Posted in Benefits, Informal Economy, Welfare | 1 Comment »