Social Firms UK

This document shows the response by Sally Reynolds of Social Firms UK to the high profile seminar on Welfare Reform held in London on 26 March 2007.

In this paper, Sally Reynolds, Chief Executive of Social Firms UK outlines the issues faced by the Social Firm sector and recommends solutions.

A profile of Social Firms was included in a recent Treasury report called, "The Future Role Of The Third Sector In Social & Economic Regeneration: Final Report".

The government recently brought out a consultation paper called 'In Work Better Off'. The paper sets out that the Government’s aim is to reduce the number of people on Incapacity Benefit by 1million, enable 300,000 more lone parents to get work and increase the employment rate of older people by 1 million. The consultation focuses on employment support.

From Social Firms UK’s point of view, these proposals are limited in that they focus primarily on supporting people to find jobs in the open labour market, through advice, skills training and the use of incentives. However, Social Firms UK sent a response to the DWP in October 2007 that highlights what Social Firms are all about and offers ideas on changes that could be made and how Social Firms UK could play a positive role in this.

The government’s latest policy announcement, “Opportunity, Employment And Progression: Making Skills Work” heralds a new range of steps aimed at enabling people to get into work and then to develop their skills at work. Changes are to be made to rules on incapacity benefit and eligibility for Pathways to Work, and the “Train to Gain” funding available for employers is to be extended.  Full details have yet to be announced, but highlights include:

This discussion paper http://www.communities.gov.uk/publications/communities/principlesofrepre... sets out some principles that are aimed at assisting third sector bodies to come together to form networks and act as the collective voice for the sector in a local area. The principles are not intended to be a blueprint, but try to offer a framework which can be adapted according to local circumstances. Social Firms UK’s response explains what Social Firms are and the impact they can have on local social and economic wellbeing. It highlights the need for Local Strategic Partnerships to be aware of the Social Firms in their area.

The Department for Communities and Local Government (CLG) is setting up a Third Sector Partnership Board to provide them with strategic advice on the design, development, implementation and evaluation of their activities. In our response we stress the importance of the social enterprise sector being represented, in addition to representatives of the voluntary and community sectors. We also point out that the Board’s remit must be clear, and that the work of this board should complement and not overlap with the activities of similar boards in other government departments. We see that this board can provide opportunities to gain greater recognition for the role social enterprises are already playing and to find ways to overcome barriers that constrain social enterprise and Social Firms at a local level.

In its consultation on Welfare to Work Reform the Department for Work and Pensions (DWP) proposes that, apart from severely disabled people, or those with full-time caring responsibilities, the government expects everyone receiving benefits to take active steps towards employment and to take up suitable employment. They are introducing skills assessments and will make it compulsory for people receiving Job Seekers Allowance to take up training if the assessment shows that they need it. (They are consulting on whether training should be compulsory for people receiving Invalidity Benefit). They propose that people on JSA for more than 2 years will be required to take up unpaid work in the community. With the introduction of the Employment Support Allowance, people who are assessed as being in the Work Related Activity Group will be required to participate in Work Focussed Interviews and will receive personalised support to gain work.

Social Firms UK has fed into the interim "Tackling Worklessness" report that Claire Dove (Chair of the Social Enterprise Coalition) with Councillor Stephen Houghton (Leader of the Labour Group at Barnsley Metropolitan Borough Council) has submitted to Hazel Blears. The final report is due to be published by the end of March 2009. Social Firms UK's position statement here shows what Social Firms UK sees as some key issues raised by Working Neighbourhood Fund as well as our comments on the "Tackling Worklessness" interim report.

This consultation set out the Government’s plans increase the numbers of people getting work. By 2013, people will either be on Job Seekers Allowance (JSA), or the Employment Support Allowance (ESA). Emphasis will be on what people can do and, where relevant, this will be tested by a new medical assessment. People with severe disabilities will get more cash under ESA.  Others who qualify for the benefit will be placed in a “work” category and will receive personalised back-to-work support to help them prepare for work and overcome any barriers they face. It will be made clear to this group that ESA is a temporary situation to help them get fit to return to work.  The proposals also include streamlining the benefit system, moving lone parents with children under seven on to JSA and offering more support to prepare them for work.