Universal Credit and Employers: exploring the demand side of UK active labour market policy
Lead Research Organisation:
Manchester Metropolitan University
Department Name: Manchester Metro Uni Bus School (MMUBS)
Abstract
Research context: Active labour market policies (ALMPs) are government interventions traditionally focused on moving unemployed people into work. As those ultimately in control of the employment opportunities participants are seeking to access, employers are fundamental to ALMP outcomes (Bredgaard; 2017; Sissons and Green, 2017). However, research and policy relating to ALMP has tended to ignore employers. Focusing on UK ALMP, as enacted through Universal Credit, this research will help to advance knowledge of this topic by focusing on employer perspectives of ALMP and the conditionality that underpins it for unemployed people and workers on a low income. The research will explore how ALMP is understood and experienced by UK employers, how it impacts on how businesses are run, and how employment services can work more effectively with employers, leading to better outcomes for individuals and the wider economy (McCollum, 2012).
The UK's main vehicle for ALMP, and flagship policy of recent welfare reforms is Universal Credit (UC). UC is the new working age benefit for those who are either out of work or on a low income (DWP, 2010). Under UC, social security for unemployed people is conditional on claimants demonstrating work search and other work-related activities. This is underpinned by a 'Work First' approach, emphasising high volumes of applications and fast work re-entry. It also potentially involves the extension of conditionality to those in work, blurring the traditional distinction between social security claimants who are in and outside of the paid labour market (Dwyer and Wright, 2014).
Aims and objectives
The project has four main aims. Through qualitative semi-structured interviews with employers, policymakers and other key stakeholders, this research project will:
1. explore how UK ALMP is understood and experienced by employers
2. identify how ALMP impacts UK businesses, including how they recruit, retain and progress their staff (and explore differences between sectors)
3. explore how the impact of ALMP on employers varies in different low pay sectors
4. explore how the public employment service can work effectively with employers to lead to better employment outcomes for claimants
To realise these aims, the project is underpinned by four related objectives:
1. To generate new qualitative data on how ALMP impacts on employers and firm behaviour through consultation with employers, policy makers and other key stakeholders
2. To expand scholarly understanding of ALMP and its impact, beyond a traditional supply side focus on unemployed claimants
3. To identify ways in which public employment services (i.e. Jobcentre Plus and other contracted providers) could work with employers to help Universal Credit claimants enter and progress in work
4. To inform policy development and debate relating to ALMP for both unemployed and working Universal Credit claimants
Potential applications and benefits
This research has been designed to have clear benefits for multiple stakeholders: policymakers in the Department for Work and Pensions (DWP) will benefit through the insight it will provide into employer interactions with ALMP; employers will benefit as it will enable their voices to be heard on policy which impacts them and their staff; employer representative organisations will benefit through greater awareness of how UC impacts on the businesses they represent; employment and skills agencies, unions and other organisations supporting UC claimants will benefit from a greater awareness of how UC interacts with employment practices, which can help to shape their advice and support; Universal Credit claimants will benefit through more informed public debate and policy development which better reflects the realities of work, thereby enhancing the effectiveness of support for claimants; and academics will benefit through new insights and the creation of a new dataset.
The UK's main vehicle for ALMP, and flagship policy of recent welfare reforms is Universal Credit (UC). UC is the new working age benefit for those who are either out of work or on a low income (DWP, 2010). Under UC, social security for unemployed people is conditional on claimants demonstrating work search and other work-related activities. This is underpinned by a 'Work First' approach, emphasising high volumes of applications and fast work re-entry. It also potentially involves the extension of conditionality to those in work, blurring the traditional distinction between social security claimants who are in and outside of the paid labour market (Dwyer and Wright, 2014).
Aims and objectives
The project has four main aims. Through qualitative semi-structured interviews with employers, policymakers and other key stakeholders, this research project will:
1. explore how UK ALMP is understood and experienced by employers
2. identify how ALMP impacts UK businesses, including how they recruit, retain and progress their staff (and explore differences between sectors)
3. explore how the impact of ALMP on employers varies in different low pay sectors
4. explore how the public employment service can work effectively with employers to lead to better employment outcomes for claimants
To realise these aims, the project is underpinned by four related objectives:
1. To generate new qualitative data on how ALMP impacts on employers and firm behaviour through consultation with employers, policy makers and other key stakeholders
2. To expand scholarly understanding of ALMP and its impact, beyond a traditional supply side focus on unemployed claimants
3. To identify ways in which public employment services (i.e. Jobcentre Plus and other contracted providers) could work with employers to help Universal Credit claimants enter and progress in work
4. To inform policy development and debate relating to ALMP for both unemployed and working Universal Credit claimants
Potential applications and benefits
This research has been designed to have clear benefits for multiple stakeholders: policymakers in the Department for Work and Pensions (DWP) will benefit through the insight it will provide into employer interactions with ALMP; employers will benefit as it will enable their voices to be heard on policy which impacts them and their staff; employer representative organisations will benefit through greater awareness of how UC impacts on the businesses they represent; employment and skills agencies, unions and other organisations supporting UC claimants will benefit from a greater awareness of how UC interacts with employment practices, which can help to shape their advice and support; Universal Credit claimants will benefit through more informed public debate and policy development which better reflects the realities of work, thereby enhancing the effectiveness of support for claimants; and academics will benefit through new insights and the creation of a new dataset.
People |
ORCID iD |
Katy Jones (Principal Investigator) |
Publications
Jones K
(2024)
A step too far: Employer perspectives on in-work conditionality
in Journal of European Social Policy
Description | Work and Pensions Select Committee - Plan for Jobs Written Evidence Submission |
Geographic Reach | National |
Policy Influence Type | Contribution to a national consultation/review |
Impact | Following this written evidence submission, I have been invited to give further oral evidence to the Committee. I will record details of this in my next research fish submission |
URL | https://committees.parliament.uk/writtenevidence/111570/pdf/ |
Description | Written submission to Commission on the Future of Employment support |
Geographic Reach | National |
Policy Influence Type | Contribution to a national consultation/review |
Description | Co-hosted event with Greater Manchester Chambers of Commerce |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Industry/Business |
Results and Impact | 20 Greater Manchester employers and wider stakeholders from the employment and skills sector came together to reflect on Kickstart - a key active labour market policy for young people claiming Universal Credit. The event was a great opportunity to engage local stakeholders in discussion of this policy area, and was also an opportunity to promote the Universal Credit and Employers research project. The event has already (it was held today) led to new leads in relation to project recruitment, but also has helped to further build on and deepen connections with Greater Manchester Chambers of Commerce who are a key target stakeholder for this project. The event included a panel discussion with a Kickstart Gateway, a Kickstart Employer, a Kickstarter and a senior representative from the DWP. |
Year(s) Of Engagement Activity | 2022 |
URL | https://www.eventbrite.co.uk/e/after-kickstart-the-employers-role-in-supporting-people-into-work-tic... |
Description | Final findings launch event |
Form Of Engagement Activity | A talk or presentation |
Part Of Official Scheme? | No |
Geographic Reach | National |
Primary Audience | Policymakers/politicians |
Results and Impact | Just under 60 people attended this event to hear about the main findings from the UC and Employers project. I (Katy Jones, PI) delivered a presentation of key findings followed by a panel discussion, audience Q&A and networking. Prof Ashwin Kumar chaired the event and the panelists were Tony Wilson from the IES and Saira Hussain from the FSB. The findings sparked a lot of debate and discussion, and feedback from attendees was overwhelmingly positive. The event led to further invitations to present and share findings across the DWP in both policy and practice-based teams - see other entry for more detail), plans to host another solutions-focused event in collaboration with West Yorkshire Combined Authority and invitations to present at industry events later in the year (ERSA/Warehousing conference etc) |
Year(s) Of Engagement Activity | 2023 |
URL | https://www.eventbrite.co.uk/e/universal-credit-and-employers-research-report-launch-tickets-4837203... |
Description | Greater Manchester Housing Providers Network Workshop |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Professional Practitioners |
Results and Impact | We were invited to attend this workshop for housing practitioners interested in employment support to tell them about our research and see whether they were able to assist with recruitment. 15 practitioners attended, and this led to new contacts and follow up offers of support. |
Year(s) Of Engagement Activity | 2021 |
Description | Invited presentation at Efficiency North Forum |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Professional Practitioners |
Results and Impact | We were invited to attend this workshop for practitioners interested in employment support to tell them about our research and see whether they were able to assist with recruitment. 31 attended, and this led to new contacts and follow up offers of support. |
Year(s) Of Engagement Activity | 2022 |
Description | Participation in Greater Manchester Work and Skills Forum |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Professional Practitioners |
Results and Impact | We were invited to attend this workshop for employment support stakeholders from policy and practice to tell them about our research and see whether they were able to assist with recruitment. 60 practitioners attended, and this led to new contacts and follow up offers of support. |
Year(s) Of Engagement Activity | 2021 |
Description | Presentation of findings to DWP In-Work Progression Leads |
Form Of Engagement Activity | A talk or presentation |
Part Of Official Scheme? | No |
Geographic Reach | National |
Primary Audience | Professional Practitioners |
Results and Impact | Invited presentation to DWP's new in post 'In-Work Progression Leads' following interest from launch event. This sparked questions and discussion, and further contacts regarding future related research projects. Feedback was that the research is very helpful for informing the development of the DWP's in work support in particular. |
Year(s) Of Engagement Activity | 2023 |
Description | Presentation of findings to DWP analysis division |
Form Of Engagement Activity | A talk or presentation |
Part Of Official Scheme? | No |
Geographic Reach | National |
Primary Audience | Policymakers/politicians |
Results and Impact | Invited presentation to share emerging findings DWP Universal Credit Analysis Division. This sparked questions and discussion, and feedback helped us in finessing the final report. Feedback was that the research is very helpful for informing the development of the DWP's in work policy in particular. Following this, many participants also attended our findings launch in January 2023 and have championed our research in the Department. |
Year(s) Of Engagement Activity | 2023 |
Description | Presentation of findings to DWP policy officials |
Form Of Engagement Activity | A talk or presentation |
Part Of Official Scheme? | No |
Geographic Reach | National |
Primary Audience | Policymakers/politicians |
Results and Impact | Invited presentation to DWP policy officials following interest from launch event. This sparked questions and discussion, and further contacts regarding future related research projects. Feedback was that the research is very helpful for informing the development of the DWP's in work policy in particular. |
Year(s) Of Engagement Activity | 2023 |
Description | Presentation to Federation of Small Businesses West Yorkshire Academia-Industry networking event |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Industry/Business |
Results and Impact | We were invited to attend and present at the Federation of Small Businesses West Yorkshire Academia-Industry networking event to tell them about our research and see whether they were able to assist with recruitment. 25 practitioners attended, and this led to new contacts and follow up offers of support. |
Year(s) Of Engagement Activity | 2022 |
Description | Project launch event |
Form Of Engagement Activity | Participation in an activity, workshop or similar |
Part Of Official Scheme? | No |
Geographic Reach | Regional |
Primary Audience | Industry/Business |
Results and Impact | An online launch event to kick off the project - providing an overview and detailing how participants can get involved. The event was chaired by Elizabeth Taylor, CEO of the Employment Related Services Association (project partner) and Clive Memmott (Chief Executive of the Greater Manchester Chambers of Commerce) provided a response and encouraged employers to get involved. The event was well received, led to interest in the project and offers of support to help our recruitment efforts. A good relationship was established with GM Chambers, which subsequently led to further collaboration on a later event related to this project - "After Kickstart" (see other submission) |
Year(s) Of Engagement Activity | 2021 |