in touch – August 2010

Each month, in touch keeps you up to date with the latest news from Jobcentre Plus.

In this edition we include:

• Support for Mortgage Interest: News on how Standard Interest Rate rates will be calculated.
• Work programme: An update on how the programme is progressing. This will replace the current schemes including Flexible New Deal, Pathways to Work and the Young Person’s Guarantee by the summer of 2011.
• Crisis Loans: News about a simpler way for customers to get the money they need.
• The Next Step: The new integrated adult careers service.
• Finally, it’s the time of the year when Jobcentre Plus recognises organisations throughout Britain who have made a positive contribution to increasing employment.  

If you have a suggestion for a future edition, or any feedback, please let us know.

Change in support for mortgage interest

Support for Mortgage Interest (SMI) helps people with the eligible interest on loans they have taken out to buy their home (up to certain limits) and on certain home improvement loans.

A Standard Interest Rate (SIR) is used to calculate SMI. From December 2004, this was the Bank of England Base Rate plus 1.58 per cent. At the beginning of November 2008, this meant SIR was 6.08 per cent at which rate it was frozen as a temporary measure.

In June’s emergency Budget, the Chancellor announced the intention that in future SIR will be the same as the average mortgage rate charged by bank and building societies as calculated monthly by the Bank of England. In May 2010 this was 3.66 per cent.

When the change is made on 1 October, SIR will initially be the rate published by the Bank of England on 31 August 2010.

A change in SIR will be triggered only when the Bank of England average goes up or down by 0.5 per cent or more.

Framework for Employment Related Support Services bids

Expressions of interest from organisations interested in delivering employment related support services, including the new Work Programme, closed on 30 July.

As reported in the July issue of in touch, the Work Programme will replace the current range of support programmes and schemes including Flexible New Deal, Pathways to Work and the Young Person’s Guarantee. It will be in place by the summer of 2011.

The expressions of interest will now be evaluated to create a short-list. Shortlisted organisations will then be invited to tender to be included on the framework of the Work Programme providers in the 11 DWP regions. Organisations may compete to be included in one or any combination of regions.

A decision of which organisations have been shortlisted is expected around November.

Crisis Loans without a signature

The Fast Electronic Payment (FEP) way of making Social Fund Crisis Loans for living expenses was introduced in May. It’s a secure, cost effective method of making same-day payments into a customer’s bank or Post Office account rather than by cheque.

Building on this, on 14 July Jobcentre Plus introduced a new ‘signatureless’ application process that doesn’t require the customer to sign a form when applying for a Crisis Loan for living expenses. This significantly reduces the time it takes a customer to receive their loan once a decision has been made. For many, it removes the need to attend a Jobcentre at all.

This signatureless process is available to customers applying for their first or second Social Fund Crisis Loan for living expenses. A signatureless application still involves a telephone call to Crisis Loans Direct. The Crisis Loan Decision Maker confirms the customer’s identity and also confirms that the customer agrees to the terms and conditions of the loan, including repayment terms, if the customer receives a positive decision.

The difference is that customers who also fit the criteria to be paid by FEP no longer need to come to a Jobcentre Plus office. Customers who make a third application will attend the Jobcentre for their interview and can then be paid by FEP if the Crisis Loan for living expenses is approved.

Customers wanting to be paid by cheque still need to collect their payment.

Applications for alignment or rent in advance payments, as well as customers making their third or subsequent application, still need to sign a form. But we are looking at amending legislation to allow third applications to be processed without a signature.

Adult careers take the Next Step

The new integrated adult careers service went live on 1 August under the brand Next Step. It is available to all adults in England aged 19 and over (or 18 and over if they are a Jobcentre Plus customer). People can access Next Step online, by phone or face-to-face.

Next Step provides information, advice and resources to help all adults (including Jobcentre Plus customers) make more effective choices about skills, careers and work.

Through the website, customers are able to assess their skills and look for information about careers, job profiles or training courses. They can also store information - including their skills development, achievements and CV - in a secure online space.

Those who want additional support can speak to a Next Step adviser on the telephone or face-to-face. More intensive and ongoing support is available for those who need it.

The new phone number for customers is 0800 100 900 and the web address is –

• www.direct.gov.uk/nextstep

Awards for the best employers

Over 100 companies and organisations were rewarded for their contribution to employment at this year’s 11 Jobcentre Plus regional awards ceremonies. The awards recognise the best approaches to recruitment and celebrate the success of employees whose lives have been transformed since gaining a job.

Over 900 entries were received for the 2010 awards which were split into six categories:

• recruitment partnership
• youth employment
• diversity
• skills development
• new recruit of the year
• employer of the year.

In each of the categories there were two awards: one for large businesses with over 250 employees, and another for small and medium sized firms. Jobcentre Plus is proud of its working relationship with small businesses and has recently enhanced the level of recruitment support it provides to them.

• Using Jobcentre Plus services to fill your job (Business Link)

The winners were a mix of public and private sector organisations, some based locally and others national chains. Many were successful in more than one category. ASDA picked up four awards on the North East. Organisations receiving three awards were Burger King in the South West, Co-operative Community Action in the East Midlands and Active Luton in the East of England.

• Winners – Jobcentre Plus Awards 2010 (Business Link)

About in touch

in touch aims to provide you with short summaries of the latest news, progress of our modernisation programme, forthcoming changes to benefit rules, updates on performance, as well as news on important policy issues which affect our shared customers.

If someone you know might like to receive in touch, they can subscribe online. Jobcentre Plus will not pass on any details to a third party. Your information will only be used to provide you with information on Jobcentre Plus and DWP business.

If you have any comments or suggestions, please email the editor (including your name, job and organisation).