Title
Contents
Acknowledgements 9
The Authors 10
Glossary of terms 12
Abbreviations and acronyms 14
Summary 16
1. The ERA scheme for New Deal 25 Plus participants: background and implementation 26
1.1 Introduction 26
1.2 Summary of first-year impacts 28
1.3 Policy background 30
1.4 Research on retention and advancement in work 33
1.5 Design of the ERA programme 35
1.5.1 Work-related services 37
1.5.2 Financial incentives 37
1.6 The ERA evaluation 40
1.6.1 Site selection 40
1.6.2 The ND25+ target group 42
1.6.3 The random assignment design and the intake process 43
1.6.4 Key research areas 45
1.6.5 Data sources 46
1.7 Characteristics of the ND25+ research sample 47
1.8 Timeline of ERA implementation 49
1.9 The remainder of this report 52
2. Implementation of ERA 53
2.1 Introduction 53
2.2 Programme implementation and delivery 54
2.2.1 The structure and management of ERA 55
2.2.2 Staff training and support 56
2.2.3 Delivering out-of-work support 57
2.2.4 Delivering advancement support 58
2.2.5 Monitoring in-work support 59
2.2.6 The promotion of ERA in the districts 60
2.3 The strength of the ERA programme over time 60
2.4 Programme delivery as ERA came to an end 62
2.4.1 Weaning customers off ERA 62
2.4.2 Post-ERA customer contact 63
2.4.3 ERA staff reductions 63
2.5 Conclusion 64
3. Use of ERA post-employment services and financial incentives 65
3.1 Introduction 65
3.2 Pre-employment support 66
3.3 Patterns of engagement with Jobcentre Plus among working customers 67
3.3.1 In-work contact with Jobcentre Plus 68
3.3.2 Patterns of engagement among the programme group 70
3.4 Support with retention 74
3.4.1 Help dealing with problems that made work difficult 74
3.4.2 Re-employment efforts 75
3.4.3 EDF payments 76
3.5 Support with advancement 78
3.6 Customers' receipt of ERA's in-work financial incentives 80
3.6.1 Employment retention bonus 80
3.6.2 Training fees and bonus 84
3.7 Comparison with the New Deal for Lone Parents customer group 89
3.8 Conclusions 91
4. Impacts of ERA on labour market outcomes and benefits receipt 94
4.1 Introduction 94
4.2 Overview of findings 95
4.3 The expected effects of ERA 96
4.4 ERA's impacts on work and earnings 96
4.5 Impacts on benefits receipt 102
4.6 Impacts on retention 103
4.7 A descriptive look at jobs held by the programme group 105
4.8 Effects across districts 108
4.8.1 Labour market and benefits outcomes 108
4.8.2 Receipt of incentives 111
4.9 Conclusions 113
5. Impacts across subgroups 114
5.1 Introduction 114
5.2 Economic impacts across subgroups 114
5.3 Receipt of incentives across subgroups 121
5.4 Conclusions 124
6. Conclusions 125
Appendix A. Data sources 127
Appendix B. Non-response analysis for the two-year customer survey 131
Appendix C. Implementation features of ERA districts 144
Appendix D. Customers' contacts with Jobcentre Plus, receipt of help and advice, and receipt of Emergency Discretion Funds 150
References 155
Table 1. Effects of ERA on employment, earnings and benefits receipt for ND25+ customers within two years after random assignment 24
Table 1.1 Staff and services available to ERA (programme group) and non-ERA (control group) customers 36
Table 1.2 Demographic profile of ND25+ customers randomly assigned between October 2003 and April 2005 48
Table 3.1 ND25+ ERA bonus recipients' assessments of the influence of employment retention bonuses on their decisions concerning employment 72
Table 3.2 Receipt of in-work help or advice from Jobcentre Plus staff within two years after random assignment among ND25+ customers who worked 75
Table 4.1 Effects of ERA on employment and earnings within two years after random assignment for ND25+ customers, estimated from administrative records 99
Table 4.2 Effects of ERA on benefits receipt within two years after random assignment for ND25+ customers, estimated from administrative records 102
Table 4.3 Effects of ERA on employment dynamics within two years after random assignment for ND25+ customers, estimated from administrative records 104
Table 4.4 Characteristics of the current or most recent job held by the ND25+ ERA group within two years after random assignment 106
Table 5.1 Effects of ERA on employment and earnings within two years after random assignment for ND25+ customers, estimated from administrative records, by subgroup 116
Table 5.2 Effects of ERA on benefits receipt and payments within two years after random assignment for ND25+ customers, estimated from administrative records, by subgroup 119
Table 5.3 Bonus receipt rates for ND25+ customers, estimate from administrative records, by subgroup 122
Table A.1 Data sources used for the ERA process and impact studies 128
Table B.1 Survey response rates for ND25+ customers, 24-month customer survey 132
Table B.2 Survey respondent sample size for ND25+ customers, by customer group and district 132
Table B.3 Comparison of impacts on the benefits receipt and employment of the full, fielded, and respondent samples for ND25+ customers, estimated using administrative records 134
Table B.4 Comparison of impacts on the benefits receipt and employment of the full sample by cohort for ND25+ customers, estimated using administrative records 137
Table B.5 Comparison of the baseline characteristics of the full, fielded, and survey samples for New Deal 25 Plus customers 139
Table B.5 Comparison of the baseline characteristics of the full, fielded, and survey samples for ND25+ customers 140
Table B.6 Ordinary least squares estimates from a model predicting survey response 141
Table C.1 Implementation features of ERA districts 144
Table D.1 Effects of ERA on job search advice or help received among ND25+ customers within two years after random assignment 150
Table D.2 Frequency of various types of in-work contact with Jobcentre Plus staff among ND25+ customers who worked within two years after random assignment 151
Table D.3 Receipt of ERA Emergency Discretionary Fund (EDF) payments among ND25+ customers 152
Table D.4 Receipt of ERA employment retention bonuses among ND25+ customers 153
Table D.5 ND25+ ERA customers' receipt of ERA training fee assistance and training completion bonuses 154
Figure 1.1 Map of the six ERA districts 41
Figure 1.2 Random assignment process for ND25+ customers 44
Figure 1.3 Timeline and national benefits policy context of the ERA demonstration, 2003/07 51
Figure 3.1 Patterns of contact with Jobcentre Plus staff among ND25+ ERA customers who worked within two years after random assignment 69
Figure 3.2 Receipt of EDF payments among ND25+ ERA customers within two years after random assignment 77
Figure 3.3 Awareness and receipt of employment retention bonuses among ND25+ ERA customers within two years after random assignment 81
Figure 3.4 Awareness and receipt of ERA training fee assistance and training completion bonuses among ND25+ ERA customers within two years 85
Figure 4.1 Control group employment rates over the first two years after random assignment for ND25+ customers, estimated from administrative records 97
Figure 4.2 ERA group and control group employment rate trends over the first two years after random assignment for ND25+ customers, estimated from administrative records 100
Figure 4.3 Effects of ERA on employment, earnings, and benefits receipt within two years after random assignment for ND25+ customers, estimated from administrative records, by district 109
Figure 4.4 Receipt of ERA work and training bonuses within two years after random assignment for ND25+ customers, estimated from administrative records, by district (ERA group only) 112
Boxes
Box 1.1 Second-year findings for lone parent participants: New Deal for Lone Parents and Working Tax Credit recipients 29
Box 1.2 Description of the US ERA project and the Work Advancement and Support Center demonstration (WASC) 39
Box 2.1 Periods of ERA programme operations and data collection 54
Box 4.1 Case study 1, The challenge of breaking out of the 'no pay, low pay' cycle: Tom 98
Box 4.2 How to read the impact tables in this report 101
Box 4.3 Case study 2, The challenges of advancement: Kevin 107
Box 4.4 Lessons learned from Wales: Staffing for pre-employment support 111