From obligation to opportunity: the impact of the youth obligation on disadvantaged young people

Executive Summary

Less than a quarter of the young people who had been on the Youth Obligation programme were in work after a year, and nearly half of those were in informal employment. For young people in formal employment, wages and hours tended to be low.

The evidence is mixed on whether the Youth Obligation played any role in people finding employment as the numbers are too low to draw more than indicative conclusions. Both Youth Obligation and non-Youth Obligation participants become increasingly more negative about their chances of finding employment as time went one. The proportion who believed it was very difficult went from 65% at the start of the Youth Obligation to 90% one year on. The Youth Obligation appears to do little to make participants more positive about their potential to find the kind of work they want.

Looking beyond employment outcomes to measure nearness to the labour market, which is a particularly important measure for very disadvantaged young people, there is some evidence that participation in the Youth Obligation in both London and Manchester helped young people to focus on the type of work they wanted.

It improved their knowledge of what employers are looking for and their understanding of where to find work. It is important to note these benefits and to acknowledge that whether or not a young person actually finds work is, to an extent, determined by the labour market and employer attitudes, not only Jobcentre Plus.

There are also clear areas where Jobcentres could improve the support they offer, based on the barriers that young people face. Easements do not seem to have been applied in those cases where young people were clearly at a crisis point and could not engage effectively. Better partnership working with local agencies is needed, whether that is in referring to specialist services or working alongside those providers who are already supporting that young person. This would help Work Coaches to better identify vulnerability and facilitate additional support.

Overall, the picture that emerges is of a group who are not being offered sufficient flexibility by the programme to meet their specific needs. Young people are being rushed onto the programme when they are evidently not ready or able to benefit from it and are expected to remain on the programme despite significant difficulties.

This results in young people who are most in need of support, dropping out and consequently losing access to any support they might have received through the programme. Once these young people have dropped out, it becomes increasingly difficult to re-engage them, and they become people who live outside the system until a crisis forces them to seek much more immediate and costly interventions.

Key recommendations

The Department for Work and Pensions should:

1. Review the Intensive Activity Programme requirements and incorporate provision which builds soft skills such as self-confidence.
   The current work first approach does not meet the needs of the most disadvantaged young people. The Youth Obligation needs to support them to become work-place ready, before they can start applying for jobs. Getting ready for employment should be recognised as a successful outcome in itself, where the young person has the soft skills needed within the workplace.
    
2. Overhaul explicit consent within Universal Credit, creating a mechanism which facilitates information sharing between DWP and trusted organisations supporting a claimant.
   Explicit consent rules currently prevent information sharing between DWP and other support  agencies. Crucial information about a claimant’s vulnerability, which might ensure the right support is put in place, cannot be shared. A mechanism is needed through which claimants can give their consent for other professionals supporting them to communicate directly with DWP. This must be promoted by DWP to ensure organisations know that their input is both welcome and essential in working together to support a claimant.
    
3. Promote the use of advocates within Jobcentres and ensure that no claimant is prevented from bringing an advocate to a Jobcentre appointment.
   For some of the most vulnerable claimants, an advocate can play a vital role in facilitating their relationship with the Work Coach. The advocate might be from an organisation already supporting the young person and can offer a source of support and expertise. This would ensure that the young person knows their rights and entitlements while also aiding the Work Coach in understanding how best to work with the claimant.
    
4. Ensure that a young person’s Youth Obligation Support Programme is personalised according to their identified needs, including referring to specialist support services.
   Personalisation must go beyond simply identifying individual needs, to actually addressing these needs. Work Coaches cannot be specialists in supporting every vulnerable group and so referrals must be made to specialist agencies. Partnership Managers must play a central role in facilitating links with wider support networks and ensure Work Coaches know about the support available locally, and staff must ensure that Jobcentre funds and resources which can benefit young people are properly signposted and promoted.
    
5. Conduct a national impact assessment of the Youth Obligation that goes beyond currently collected monitoring data.
   The Youth Obligation data currently collected by DWP is monitoring data, reflecting process rather than efficacy. This may drive Work Coaches to focus on certain procedural outcomes rather than implementing the personalised approach which is best for the claimant. A national impact evaluation is needed to examine whether the programme has brought about change for those participating, what worked effectively and for whom.
    
6. Take a Psychologically Informed Environment approach within Jobcentre buildings and ensure all Work Coaches are trained in identifying and supporting claimants with complex needs.
   Creating a welcoming atmosphere is crucial to enabling claimants to disclose their needs and to build a positive working relationship with their Work Coach. The physical environment of the Jobcentre must reflect this as well as the attitude and approach of the Work Coach.
    
7. Better promote Traineeships and recognise participation in one as a positive outcome.
   Traineeships are a vital stepping stone for those young people who are ready to enter the work-place but need to build skills and experience. While participants may need to continue claiming Universal Credit during their traineeship, their participation should increase their employability in the longer-term.
    
8. Provide all Youth Obligation participants with information about the programme in a range of formats.
   It is crucial that young people fully understand what is expected of them prior to signing their Claimant Commitment. Information about the content of the Youth Obligation, including support and easements that are available, should be provided in written, easy read and video format. These should be publically available so that other agencies supporting a young person on the Youth Obligation can also understand the programme requirements fully and appropriately support the young person to participate.