22 February 2007 - Publication of DWP research report 412: ‘Implementation and first-year impacts of the UK Employment, Retention and Advancement demonstration’
Research published today by the Department for Work and Pensions provides findings from the implementation and early effects of the Employment Retention and Advancement (ERA) demonstration. The evaluation is being carried out by a consortium led by US organisation MDRC alongside the Policy Studies Institute, the Office for National Statistics and the Institute for Fiscal Studies. This report highlights initial results of the outcomes for customers 12 months after starting the ERA programme.
ERA is aimed at three groups of customers that have difficulty getting and keeping full time work, or advancing to more secure and better paid positions. These customers are; lone parents (LP group) who receive Income Support and volunteer for New Deal for Lone Parents (NDLP), longer term unemployed people over the age of 25 and are mandated to enter ND25+ and lone parents who are already working part time and receiving Working Tax Credits (the ‘WTC’ group).
Customers on ERA were randomly assigned to either a programme group to receive ERA services or a control group where they received standard New Deal services.
The main findings are:
- NDLP ERA customers earned substantially more than they would have without the programme. These customers earned 29% more during this period than they would have earned had they not taken part in ERA.
- ERA increased the NDLP customers’ earnings by raising the proportion of the ERA group that worked full time to 22% - an increase of 7 percentage points over the 15% rate observed for the control group.
- ERA’s first year impacts on earnings were smaller for the New Deal 25+ customer group than the LPs. A 12% gain was observed over the control group.
- ERA did not substantially increase first year earnings among the WTC LP customer group, although it did increase their likelihood of working full time.
- ERA customers, especially the WTC LPs were more likely to combine education or training with employment than they would have without the programme.
- By the second year of operation, the six districts substantially improved their delivery of advancement-related services, demonstrating more clearly the feasibility of operating ERA as a Jobcentre Plus initiative.
Notes to Editors
Research Report 412 - ‘Implementation and first-year impacts of the UK Employment Retention and Advancement (ERA) demonstration’ is published today.
The research presents the findings from initial results of the outcomes for customers 12 months after starting the ERA programme.
The report is available on the DWP website and hard copies can be obtained from Paul Noakes, Room 4-26, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.
DWP Press Office: 0203 267 5120
Out of hours: 07659 108883
Public Enquires: 0207 712 2171
Website: www.dwp.gov.uk/asd/asd5
Prepared by: The Department for Work and Pensions Family, Poverty and Work
Division