14 June 2007 - Publication of DWP research report 435: the Impact of Pathways to Work
Research published today by the DWP examines the impact of the ‘Pathways to Work’ Incapacity Benefit Reform pilots. The report forms part of a comprehensive and ongoing programme of evaluation for ‘Pathways to Work’.
The main findings are:
- Pathways significantly increased the probability of being employed about a year and a half after the initial incapacity benefits enquiry by 7.4 percentage points. The effect of Pathways was to raise the probability of employment in month 18 from roughly 28 to 35 per cent.
- The effect of Pathways on incapacity benefit receipt after the same period was small and not statistically significant, though there is clear evidence of a significant decrease in the first 10 months. Estimates suggest a reduction of about 1-1½ percentage points in the probability of claiming incapacity benefits after a year and a half, but also that Pathways reduced benefit receipt by a maximum of 6.3 percentage points five months after the start of the claim.
- To try and reconcile these findings the effect of Pathways on combined employment and incapacity benefit status was examined. Pathways increased by 8.7 percentage points the probability of working and not receiving incapacity benefits a year and a half after the enquiry. This was mostly accounted for by a decrease of 6.9 percentage points in the probability of not working and not receiving incapacity benefits. These results suggest that a higher proportion of those no longer receiving incapacity benefits are in work as a result of Pathways.
- ‘Pathways to Work’ was not found to have a statistically significant effect on the probability of individuals stating that they had a health condition or disability that limited their ability to carry out their everyday activities. Pathways did, however, significantly reduce the probability of respondents reporting that they had a health condition or disability that limited their ability to carry out their everyday activities ‘a great deal’ by 10.8 percentage points.
Notes to editors
- The DWP research report: The Impact of Pathways to Work is published on 14 June 2007.
- The evaluation follows a ‘difference in difference’ approach. This involves comparing a change in outcomes among individuals in pilot areas before and after the introduction of Pathways with the corresponding change in a set of comparison areas. The difference between the two before-after differences provides an estimate of the effect of Pathways. Both survey and administrative data were used. The outcomes were measured for a year and a half after the enquiry to claim incapacity benefit. The analysis was undertaken by the Policy Studies Institute (PSI) and the telephone interviews were undertaken by the National Centre for Social Research. The reports authors are Helen Bewley, Richard Dorsett and Getinet Haile from PSI.
- This report builds on the earlier impact assessment by the Institute for Fiscal Studies (DWP report no.354). The research is part of an ongoing evaluation of the IB Reforms, ‘Pathways to Work’ pilots being conducted by a consortium led by the Policy Studies Institute. 11 reports have been published to date. The latest DWP statistics on Pathways to Work are available from: http://www.dwp.gov.uk/asd/workingage/pathways2work/pathways_perf_0507.pdf
- Details about the expansion of Pathways and the Welfare Reform Bill were set out in the DWP Press Release dated 4th July 2006.
- Details about the Welfare Reform Bill receiving Royal Ascent were set in the DWP Press Release dated 3 May 2007.
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