LEONARD CHESHIRE DISABILITY – WRITTEN EVIDENCE (YUN0047)

Youth Unemployment Committee inquiry

1. Overview

1.1.        Leonard Cheshire is one of the UK’s leading charities supporting disabled people. We support individuals to live, learn and earn as independently as they choose, whatever their ability and to play our part in creating a fair and inclusive society. Led by people with experience of disability, we are at the heart of local life — providing opportunity, choice and support in the communities we work in.

1.2.        We have significant expertise in working with disabled people in the UK and internationally to support them to overcome barriers to employment. In the last year alone, we supported over 32,000 disabled people to find employment globally through our programmes. In the UK, this includes Change 100, which supports young disabled students and graduates to access the workplace by undertaking paid internships in top UK companies; Change Works, offering employability support to disabled adults in London; and Changing Futures, which offers employability training and paid work placements to adults with a disability or a long-term condition in Wales.

1.3.        Leonard Cheshire’s submission focuses on both our experiences of delivering employment support to disabled young people before and during the Covid-19 pandemic, as well as the findings of our recent research. Our Locked out of the Labour Market report highlights the disproportionate impact of Covid-19 on disabled people’s employment, with 84% of young disabled people who were employed in March 2020 experiencing an impact to their employment due to the pandemic, compared to 71% of all employed disabled people.[1] For over a decade, the disability employment gap has remained at around 30%. Covid-19 has exacerbated existing structural inequalities, posing the risk of entrenching barriers to the workplace for disabled people.

1.4.        Young people have also been disproportionately affected by the impact of Covid-19 on jobs. Data from the 2020 Labour Force Survey demonstrates that just 37% of disabled young people aged 16-24 are in employment compared to 55% of non-disabled young people. This is a 4% drop in the employment rate from 2019.[2] During post-pandemic recovery, we now have an opportunity to build back better, levelling up access to employment for the benefit of the UK’s young disabled people and the UK economy.  We are concerned that inaction will otherwise create the conditions for a ‘lost generation’ of young disabled people, unable to enter the labour market securely.

2.     What are the main challenges facing young people seeking employment today? How do structural factors impact youth unemployment, and how might these be addressed?

2.1.        Young disabled people, who are either more at risk of unemployment or emerging into the labour market for the first time, must be protected from absorbing the deepest shocks from the post Covid-19 economic landscape, both now and well into the future. Research from the Institute for Employment Studies demonstrates that young people are facing a 5-year high in unemployment levels, with 260,000 fewer young people in work compared to March 2020, representing 46% of the total fall in employment during the Covid-19 pandemic.[3] A Leonard Cheshire employment advisor reported an increase in entry-level job criteria, citing the example of an entry level admin position requiring 8 years of experience. Competition for jobs and heightened job requirements are making accessing the labour market difficult for any young person.

2.2.        Disabled young people experience additional labour market challenges, which compound wider barriers to youth employment. One such challenge is employer prejudice, which remains a critical issue. 1 in 5 employers surveyed by Leonard Cheshire stated they would be less likely to employ someone with a disability.[4] This stigma is due to the myths around disabled people’s capabilities – 39% of employers who were hesitant to employ a disabled person stated this was due to fears that the work was too manual or physically demanding. In addition, many application processes are not accessible, further excluding disabled people from the labour market. Our employment advisers report that some employers have been reluctant to make reasonable adjustments to application processes during the pandemic.

2.3.        Leonard Cheshire research also indicates that disabled young people are now set to bear the greatest impact in terms of current and future employment prospects.[5] Our Locked out of the Labour Market research, released in October 2020, shows that disabled young people have already had their employment impacted by the pandemic. 84% of young people have already experienced a change to their employment in terms of a reduction in working hours, compared to 71% of all disabled people. Alongside this:

• 22% of young disabled people reported being placed on furlough
• 29% of young disabled people experienced reduced hours due to Covid-19
• 9% of young disabled people told us they have become unemployed during the Covid-19 pandemic

For young people who experience unemployment, the impact is increasingly acute; wages can be up to 20% lower twenty years later than they would otherwise have been.[6]

2.4.        We have also identified a worrying crisis of confidence among young people about their future career prospects:

• 44% of young disabled people feel that Covid-19 has had a negative impact on their future career ambitions
• 54% of young disabled people felt the pandemic had a negative effect on their future earning potential

2.5.        The UK Government must learn from the impact of previous recessions on young people. Prolonged spells of unemployment are known to cause long-lasting ‘scars’ on an individual’s future earnings,[7] employment prospects and health and wellbeing.[8] There are also clear costs to the economy. It is estimated that the long-term cost to the public finances of youth non-participation in education or employment was between £10 billion and £30 billion in 2009.[9] The risks of falling out of work for an extended period are even greater for disabled people of all ages. They are more likely to struggle to return to the workplace and are twice as likely to remain unemployed when compared to non-disabled people.[10] Yet we know that lifting people out of continuous unemployment – even for short periods – offsets the long-term risk. Swift and direct action is needed from the UK Government to invest in young disabled people’s skills development, employment support and work experience.

2.6.        The government needs to invest in specific and tailored specialist disability employment support for disabled young people. A Jobs Guarantee for newly unemployed disabled people, could include benefits recipients as well as first time job-seekers leaving education or training. An entirely voluntary initiative, the Jobs Guarantee would offer six months of paid work and training at the Living Wage as a minimum – with full wrap-around support – and employers would be provided with a grant to cover salaries.

2.7.        The Department for Education and Department for Work and Pensions should also create a joined-up offer for disabled young people and introduce a ‘no wrong door approach’. This would enable young people accessing support from Jobcentre Plus to routinely receive information about Apprenticeships, Supported Internships and Traineeships, and colleges and further education institutions could advise young people about the employment support available to them via schemes such as Kickstart.

3.     What are the main challenges facing employers in the labour market today? What barriers do they face in recruiting young workers and setting up apprenticeships and traineeships?

3.1.        Leonard Cheshire’s Locked out of the Labour Market research has found that 54% of employers say that the cost of making workplace adjustments is a barrier to them employing disabled people. This is despite the existence of the Access to Work programme, which can pay for the costs of workplace adjustments.[11] Access to Work offers vital support and provisions for disabled people in order to mitigate these barriers, however we know that Access to Work is poorly understood among both employers and disabled people.[12] Only 23% of disabled adults in the UK (currently or previously working) say they have ever received Access to Work support. This figure drops to just 14% in Scotland and Wales, and as low as 10% in Northern Ireland.[13] The Government should develop a public awareness strategy for employers to increase take-up among the disabled people who would benefit.

3.2.        Greater investment in the Access to Work programme is also needed, with increased promotion to employers so that awareness and participation increases. In the current economic climate, Access to Work applications should be fast-tracked so that disabled young people’s ability to take up a job offer or stay in work isn’t jeopardised by a failure to provide timely support that they are entitled to. Our research found that 60% of disabled people have waited more than 3 months for their Access to Work application to be approved.[14] Fast-tracking Access to Work applications will ensure that all disabled people have access to workplace adjustments as a day one right. Our research reveals that employers’ negative preconceptions on cost and practicalities of workplace adjustments continue to be a deterrent in the recruitment of disabled people. Attitudes need to change, and the Government should show leadership by improving understanding amongst employers.

4.     What future social, economic and technological changes are likely to impact youth unemployment? What impact might these changes have, and how should this be planned for and addressed?

4.1.        With 40% of the working age population predicted to have a long-term health condition by 2030,[15] this is a critical moment to address what “good work” means for a large section of the population.[16] Our research shows that working more flexibly is a central element of retaining disabled people in the labour market who would otherwise be forced to leave their job due to their disability.[17] Advertising roles as flexible as standard also plays a part in making recruitment more inclusive to disabled people. As we transition out of Covid-19 it is crucial that the options of flexible working and working from home are maintained in order to support disabled people in work.[18]

4.2.        Leonard Cheshire’s Change 100 programme and Training and Consultancy team supports employers in making their workplaces more inclusive of disabled people’s needs. Employers told us about the changes that they were able to introduce to better support in their disabled employees – in the pandemic and into the future. Remote on-boarding, remote working and being more flexible to meet individuals' needs have been reported to 'be a great leveller for everyone' and has also 'widened the talent pool of candidates' by increasing access for disabled people to the workplace.[19]

4.3.        Access to Assistive Technology (AT) and digital skills training are critical in enabling effective working, particularly when working from home. Addressing the digital skills gap among disabled people and access to innovative technology is also a central part of building inclusive workplaces. Better awareness of AT among employers and disabled people is also needed, including its potential in enhancing disabled people’s capacity to work and live independently.

4.4.        Assistive Technology is often necessary for disabled people to use the internet. Most recruitment processes take place online, yet 22% of disabled people have never used the internet.[20] A lack of training and the cost of equipment are barriers to adopting technology that could enhance disabled people’s lives. There is a growing awareness of the potential that AT provides in enabling disabled people to be independent in all aspects of their lives. The cost of a mainstream laptop or smart phone is out of reach for many, yet these ‘universal’ forms of AT are becoming increasingly essential tools to access the job market. AT training should be made a core component of Access to Work.

5.     Is funding for education, training and skills enough to meet the needs of young people and of the labour market? How can we ensure it continues to reach those who need it most?

5.1.        The impact of the pandemic has shown that DWP must work better to deliver job outcomes for disabled people. Leonard Cheshire is calling for the Kickstart scheme – and participating employers – to be evaluated. This would ensure that meaningful skills, training and – most importantly – job outcomes for young disabled people are being delivered. Recipients of Education, Health and Care plans and people claiming Employment Support Allowance should have access to the scheme and Kickstart should be joined up to Supported Internships.

5.2.        We are also calling for the UK Government to build an inclusive recovery plan to respond to the labour market disruption of the pandemic, with specialist disability employment support, including digital skills support. A Jobs Guarantee for newly unemployed disabled people is central to this; offered to any disabled person unemployed for more than three months. An entirely voluntary initiative, the Jobs Guarantee would offer six months of paid work and training at the Living Wage as a minimum – with full wrap-around support - and employers would be provided with a grant to cover salaries.[21]

5.3.        The Government should also introduce adjustment passports, which work in collaboration with Access to Work, and introduce a day one right to reasonable adjustments, workplace modifications, and flexible working. For young disabled people in particular, these adjustment passports should ensure they are able to carry over any reasonable adjustments they received during their education into their workplace.

6.     How might future youth labour market interventions best be targeted towards particular groups, sectors or regions? Which ones should be targeted?

6.1.        Future youth labour market inventions should include the experiences and needs of young disabled people in order to establish a more equal workforce. With regards to sectors or regions to be targeted, an analysis of employers signed up to the Disability Confident scheme should be completed, to highlight both sectors and regions where employers should be supported to ensure they are committed to equality in the workplace. Sector-specific remedial action can be tailored to employers’ needs. The UK Government can build on the success of gender pay gap reporting by mandating large employers to report on their disability pay gap. To ensure that progress is being made towards reducing the disability employment gap, and to encourage employers to remain committed to disability inclusion, large employers employing more than 250 people should be required to undertake mandatory reporting of how many disabled people they employ and renumeration. Improved data collection and reporting must be introduced to monitor performance and ensure targeted youth labour market interventions lead to robust standards of equality.

7.     Key Recommendations

We are calling on the UK Government to build an inclusive recovery plan to respond to the labour market distribution of the pandemic, this should include:

7.1.        Specialist disability employment support, including digital skills support.

7.2.        The introduction of ‘adjustment passports’ to ensure that all young disabled people have access to workplace adjustments from day one.

7.3.        The introduction of a Jobs Guarantee to ensure that young disabled people have access to paid work and training and address the significant employment gap young disabled people are currently facing.

7.4.        A joined-up offer for disabled young people by the Department for Education and Department for Work and Pensions, to introduce a ‘no wrong door approach’.

7.5.        Greater investment in the Access to Work programme, with increased promotion to employers so that awareness and participation increases.

7.6.        Assistive Technology (AT) training should be made a core component of Access to Work, to ensure that all disabled people have the digital skills training to utilise the benefits of AT.

7.7.        Access to Work applications should be fast-tracked in order to address the significant number of disabled people who have waited up to 6 months for their application to be approved. 

7.8.        Improvements to Kickstart, so that it is better tailored to disabled young people.

7.9.        Widespread practices for flexible working and working from home during the Covid-19 pandemic should be maintained, in order to support disabled people in work.

7.10.   The introduction of mandatory reporting for large employers on their performance in employing disabled people, to ensure that progress is being made towards reducing the disability employment gap.

7.11.   Improved data collection and reporting to monitor performance and ensure targeted youth labour market interventions lead to robust standards of equality.

10th May 2021