The long-term jobless will see their benefits cut if they refuse to go on work placements, under tough new proposals designed to ensure life on the dole does not pay.
Long-term unemployment is a growing problem in the island. There are currently 195 jobseekers who have been registered as unemployed for at least the last 12 months.
Under proposals announced by Social Care Minister Chris Robertshaw, those who have been claiming Jobseekers’ Allowance from more than five months will be encouraged to join work placements with newly created social enterprises.
Those taking part in placements will still be treated as being available for work so will be able to retain their benefits and earn at least the minimum wage.
However, those who refuse to take up placements will see their benefits cut.
Mr Robertshaw said: ‘The way we currently provide our social welfare is no longer sustainable and we need to address our long-term issues. We must ensure that our systems do not create any form of welfare dependency and that jobseekers are doing everything they can to find new work.
‘On the one hand we have a lot of things that need doing and no money or people to do them and on the other hand we have a lot of people with nothing to do and being paid to do nothing. We want to bring those two together.’
He said he wanted to move people progressively from the idea that they would be more comfortably off on benefit than in the workplace.
The Minister said he believed in the concept of ‘dignity in work’ and giving long-term jobseekers the opportunity to develop their confidence and skills in work placements will help them become more employable.
He said his department is also reviewing the levels of benefits payable to ensure that ‘work pays’. Proposals include adjusting the levels of income-based JSA and modifying the rules of the ‘Employed Person’s Allowance’ so as to provide additional support to help ensure that people are better off in work.
Measures will go before the October Tynwald.
Mr Robertshaw said his department wanted to encourage the creation of social enterprises, organisations whose profits are reinvested in the community. He said that the third sector was a likely area to set up such bodies but there was no reason why central government and local authorities could not be involved.
He said work placements would not last less than six months but could last up to a year. The Minister said he hoped the first placements could begin in the early part of next year. ‘I don’t think it’s going to be overnight change, a massive change. I see it as a gentle curve.’
