IRRV Alert September 2 2008

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Publication of DWP research report: ‘Implementation and second-year impacts for New Deal 25 Plus in the UK Employment, Retention and Advancement (ERA) demonstration’.

 

 

 

26 August 08

Research published today reports the findings on the implementation and second-year impacts for New Deal 25 Plus in the UK 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 presents the outcomes for New Deal 25 Plus two years after the start of the ERA programme. 

ERA was launched in 2003 to test the effectiveness of a package of in-work support and financial incentives, in helping customers sustain and progress in employment.  ERA has been evaluated using a Random Assignment research design, in which customers were randomly allocated to either a programme group, that received ERA services, or a control group that did not.  Outcomes for both groups are compared, to determine the impacts.  ERA was aimed at customers who have difficulty in keeping full time work, or advancing to more secure and better paid positions.  This report presents findings for customers that were on New Deal 25 Plus (ND25+) when they entered the study.

  • The main findings are:
  • Two years after being on ERA New Deal 25 Plus, there was no evidence that ERA led to an increase in earnings for this group.
  • Less than half of ND25 Plus customers worked during the two year period.
  • ERA customers were slightly more likely than the control group to work at some point over the two years, but there was no increase in the total number of months worked.
  • ERA led to small reductions in benefit receipt for New Deal 25 Plus ERA customers
  • ERA’s impacts did not differ across sub-groups of ND25 Plus customers.
  • The effects of ERA on lone parents were more positive than for ND25 Plus customers, and the more severe barriers to work faced by the long term unemployed are likely to be a key factor in explaining these limited impacts. 

Notes to Editors

Research Report 520, Implementation and second-year impacts for New Deal 25 Plus in the UK Employment and Advancement (ERA) demonstration is published on 26th August 2008.  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 5144)
Out of hours: (As above)
Public Enquires: (As above)
Website: www.dwp.gov.uk/asd/asd5
Prepared by: Department for Work and Pensions Parents Employment Division


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