Job Start Payment: evaluation
This report considers evidence from qualitative research with Job Start Payment (JSP) recipients, stakeholders and Social Security Scotland staff alongside management information to provide learning about the implementation and impact of JSP.
Findings
In this chapter of the report, the data sources outlined in the methodology chapter are used to evaluate progress towards Job Start Payment's immediate, short-term and medium-term policy outcomes. Based on this, potential progress towards the Scottish Government's longer term outcomes are discussed. The section ends with a discussion of the policy implications which emerge from the evaluation findings.
Achievement against immediate Job Start Payment policy outcomes
This section evaluates Job Start Payment against the following policy outcomes:
- Job Start Payment is well promoted
- Job Start Payment and its eligibility criteria are well understood
- Making an application is clear and easy
- Applications are well administered
- Job Start Payment is taken up
It uses data from bespoke commissioned research and Official Statistics.
Job Start Payment is well promoted
There are a number of ways to evaluate whether Job Start Payment is well promoted. An indirect method would be to determine how many eligible people have (and have not) claimed the benefit, as this could be related to the effectiveness of promotional activity. This can be done by calculating the 'take-up' rate, which is the number of benefit recipients divided by the number of people eligible to receive the benefit. However, at the time of writing the Scottish Government has not published a take-up rate estimate for Job Start Payment - an estimate is due to be published later this year.
The commissioned research also gives some insight into the promotion of Job Start Payment. A survey of 16-24 year olds (n=159) living in Scotland, which was promoted on the Young Scot website, found that only 20% of respondents had heard about the benefit. Additionally, in the qualitative research, young people expressed the view that there was a lack of awareness of the benefit amongst their peers.
"I don't think young people know about it just cos there's not much information about it. You might if you've got someone like [charity organisation] telling you about it…But if you're by yourself without any support, I don't think you'd know about it."
(Job Start Payment recipient)
In the interviews, Job Start Payment recipients (n=26) explained how they first heard about the benefit. Their responses, shown in Table 1, indicate that most were signposted by organisations - Job Centre was mentioned by 13 recipients, and other organisations (i.e. employers, employability and third sector organisations, and Social Security Scotland) were mentioned by 10 recipients. Only one recipient said they had heard about the benefit through a media advertisement.
| Information source | Number of successful applicants |
|---|---|
| Job Centre | 13 |
| Friend or family member | 5 |
| Employer | 4 |
| Employability or third sector organisation | 4 |
| Social Security Scotland | 2 |
| Social media advert | 1 |
Note: 3 recipients heard about Job Start Payment from more than one source
Employability and third sector stakeholders who took part in the qualitative research recognised that their roles were important in signposting Job Start Payment to young people. However, some felt they needed better promotional materials to advise young people about Job Start Payment effectively.[9] Stakeholders also sensed that there was a general lack of awareness and knowledge of the benefit within their organisations and professional networks, with one saying that the COVID-19 pandemic may have diverted attention and resources away from it. They also had a perception that awareness of the Job Start Payment was low amongst employers.
Job Start Payment and its eligibility criteria are well understood
The next intended outcome of Job Start Payment is that the purpose of the benefit and its eligibility criteria are well understood. In the commssioned research, most young people and stakeholders understood that the purpose of Job Start Payment is to help people with costs of starting a new job. Indeed, the majority of recipients had spent at least part of the payment on items suggested on the Scottish Government website (such as work clothes, travel passes, lunches, or childcare).[10] However, it should be noted that it is up to recipients how they use the money, and that spend is not monitored.
Despite the purpose of the benefit being generally understood, stakeholders expressed the view that the eligibility rules are unclear, and felt that young people would also find this information confusing.
"You look at it and you think 'I don't know if you are eligible or not'. And we don't want to refer them to something they might not be eligible for…We want to be confident referring that they are eligible, rather than a vague signposting."
(Skills and Employability stakeholder)
Stakeholders also raised concerns about the fairness of eligibility rules – specifically that applicants must have been out of paid work and receiving an income related benefit continuously for six months or more. Firstly, they highlighted that young people are often encouraged to undertake short-term, paid work placements (or trial shifts), which can interrupt otherwise long periods of unemployment. These were described as being a 'stepping stone' to full employment. However, because they count as paid work, they render the young person ineligible for Job Start Payment. All stakeholders felt strongly that this was a negative feature of the benefit, and unfair on young people – particularly because (with the agreement of the Job Centre) these type of placements do not impact other benefits such as Universal Credit.
Secondly, stakeholders pointed out that existing employability initiatives for school leavers meant that few 16-17 year olds were classed as 'unemployed'. As such, they felt that this group were especially unlikely to have claimed income-related benefits for 6 months or more. Several stakeholders suggested having different eligibility criteria for this age-group which corresponded to the education and training opportunities they were taking up.
"Young people who leave school and go through employability fund training […] are not unemployed, or claiming. But neither are they earning a major wage. They earn £55 a week on a training scheme. Which is not a lot of money. […] And for those young people that are lucky enough to go onto employment that money would go a long way to help them too."
(Skills and Employability stakeholder)
Making an application is clear and easy
Official Statistics show that for the period covering 17 August 2020 to 31 March 2022, 10,105 Job Start Payment applications were received. Of these, 9,440 (93%) were made online, 625 (6%) were made on the telephone, and 35 (less than 1%) were paper-based.
In the commissioned research interviews, both young people and stakeholders were positive about filling out the Job Start Payment application form. Stakeholders who supported young people explained that the form was straightforward to complete if they were prepared with the evidence required to support the young person's claim.
"I've helped participants myself, three within the last six months which I must say is very simple […] Once you do it more than once it's quite simple. And we can sit and support them with it."
(Skills and Employability stakeholder)
Of the 10,105 applications received to 31 March 2022, 9,595 had been processed - 43% of which were authorised, 53% were denied, and 3% were withdrawn (see Figure 2). It is notable that:
- The proportion of denied applications for Job Start Payment is higher than for other low income benefits administered by Social Security Scotland.[11]
- 79% (n=265) of processed applications received from 16-17 year olds were denied.
The most common reasons for applications being denied were that they failed to meet one or both of the following eligibility criteria: (a) being in receipt of a qualifying benefit for at least 6 months prior to the job offer, and (b) being out of work for at least 6 months prior to the job offer.
The commissioned research explored issues around Job Start Payment application denials. As mentioned above, stakeholders highlighted concerns with the main eligibility criteria - i.e. that (a) unemployed young people are encouraged to take up short, paid work placements which can break up otherwise lengthy periods of employment, and (b) 16 and 17 year olds are unlikely to have been on qualifying benefits for 6 months. The testimony given by Social Security Scotland staff in discussion groups shows that these factors are sometimes linked with application denials.
"I had […] a denial that stuck with me. They were a poll worker during the election, their work coach said 'yes go for that', good experience, something to talk about on their CV. So they had worked one day. And because of that, when they got their job offer, and when they applied to us for JSP they were ineligible. The experience had helped them get that job, and then we knocked them back with the benefit. They had only got £50 for that poll work."
(Social Security Scotland staff member)
"Technically we can provide support to people who are between 16 and 18. Functionally it's very rare that we are able to pay anyone who is that age. Because one of the criteria is that they have to [be on a] qualifying benefit. And most young people aren't."
(Social Security Scotland staff member)
Evidence from the commissioned research also indicates that the way Job Start Payment is administered – particularly procedures relating to application supporting evidence - could be contributing to high application denial rates. The Job Start Payment application form explains that applicants must provide the following supporting evidence for claims:
- Confirmation of job offer from the employer, including key details such as the name of the applicant, the name of the employer, and the date of job offer
- Confirmation of time in care for applicants who are care leavers and wish to have their application considered against the less stringent eligibility criteria
Social Security Scotland staff expressed the view that the supporting evidence required was excessive for a one-off payment, and one staff member felt that this could be leading young people to drop out of the process after submitting their initial application form.[12] Indeed, interviews with young people revealed that obtaining supporting evidence from employers, or proof of care leaver status, could be challenging and stressful.
"The employer offered to give me a contract and that's it – but then the manager actually quit before they did and the new manager refused to provide this. All I had was a Whatsapp message asking me to start tomorrow and they [Social Security Scotland] wouldn't accept the screenshot. When I talked to [ Social Security Scotland] staff about this I was told I needed to have my name, the position, and contact details of my manager as evidence and I couldn't get this so ultimately couldn't provide evidence of getting a job. It was absolutely infuriating."
(Unsuccessful Job Start Payment applicant)
"So being a care leaver means I can apply sooner than other people. But I've not been in contact with social services since I was 18 so about 7 years ago. I didn't have a great experience with social services when I was a kid so it was quite traumatic having to get back in touch with them, and the communication with them wasn't great. It kept going back and forth to get what I needed from them."
(Job Start Payment recipient)
In the commissioned research, Social Security Scotland staff highlighted how they had to apply rigid procedures when processing Job Start Payment applications – an experience which they generally found to be frustrating. For example, they highlighted that they cannot validate claims in the following cases:
1. When applicants submit supporting documents (e.g. job contracts) which do not contain key details such as the date of job offer.
2. When applicants provide a date of job offer on their application form which does not match exactly with the date of job offer which is stated in supporting documents. This can be because (a) the applicant has put the job start date on the form by mistake, or (b) the job offer date was given verbally and in writing on separate days.[13]
3. When the date of job offer indicates that the applicant was not out of paid work and/or on a qualifying benefit continuously for 6 months – even in cases where they fall short by a single day.
Social Security Scotland staff also cited difficulties contacting young people to obtain supporting information. They felt this was compounded because they could not contact applicants by methods other than phone or letter.
"We don't have text functionality. We can't email. So we really need to bring our communications into the twenty first century. Phone or letters that's it… People just ignore phone if they don't recognise the number, or they're working, so they can't answer it anyway."
(Social Security Scotland staff member)
Finally, the commissioned research also indicates that the clarity of information provided to Job Start Payment applicants could be linked to application denials. Stakeholders felt that the information provided to Job Start Payment applicants is not clear – specifically on the eligibility criteria and the nature of supporting evidence required – and could be leading to ineligible claims. This was supported by the testimony of a care leaver.
"They told me that I 'did not have the care experience that they were looking for'…They said that I wasn't subject to a supervision order when I was of the age 16 years. And that was that. So I was just left thinking, I was in care, I spent time getting evidence together. I had to think back to that period of my life, and even reconnect with agencies and think through what happened to me. And then nothing came of it…it was a few months not subject to a supervision order overlapping my 16th birthday. If there are criteria around these things they should say. I don't really understand the logic either."
(Unsuccessful Job Start Payment applicant)
Conversely, another young person who applied unsuccessfully was fully aware that they did not meet the eligibility criteria for the payment, but hoped this would be overlooked.
"I thought the eligibility was quite clear and I applied even though I didn't fit all criteria. I didn't fit the length of time on the benefit – I had only been getting Universal Credit for a little over five months and thought they might look at it on a case-by-case basis."
(Unsuccessful Job Start Payment applicant)
Applications are well administered
According to Official Statistics, a total of 9,560 Job Start Payment applications were processed between 17 August 2020 and 31 March 2022 (not including cases where an internal review was requested - i.e. approximately 2.6% of applications). Processing times are calculated in working days (excluding public holidays) from the point of initial benefit application until a decision on the application is made, and includes time spent waiting to receive copies of documents or evidence requested from applicants.
On the basis described above, a quarterly breakdown of Job Start Payment application processing times is shown in Table 2.[14] The figures show that there has been a general increase in application processing times since the benefit was introduced in August 2020. For example, the percentage of applications processed in 21 working days or more (not including cases where an internal review was requested) has increased in each quarter, except the April to June 2021 quarter.
More information on the figures in Table 2 is provided at Annex A.
| Quarter[15] | Number of processed applications (excluding reviews) | Percentage of applications processed in 0-10 working days | Percentage of applications processed in 11-20 working days | Percentage of applications processed in 21 working days or more |
|---|---|---|---|---|
| Aug-Sep 20 | 940 | 96% | 3% | 1% |
| Oct-Dec 20 | 1,130 | 70% | 19% | 11% |
| Jan-Mar 21 | 865 | 57% | 9% | 34% |
| Apr-Jun 21 | 1,380 | 43% | 41% | 16% |
| Jul-Sep 21 | 2,360 | 44% | 23% | 32% |
| Oct-Dec 21 | 1,620 | 21% | 45% | 35% |
| Jan-Mar 22 | 1,260 | 34% | 25% | 42% |
In the commissioned research, a number of Job Start Payment recipients who took part in interviews said that they did not receive the money until after their first pay check, due to the length of time they had to wait for an application decision.[16] This meant they did not have the money at the point of need, and caused some participants stress and/or financial difficulties.
"Was a frustrating and a worrying wait. I was very close to the edge financially. Okay, knowing money would come, I knew I would get paid and I was confident I would also get Job Start….every day I was watching the money get lower and lower and just holding out until then….I had to push rent back for a few days actually. But my landlord was okay with that as I hadn't asked before."
(Job Start Payment recipient)
Job Start Payment is taken up
A direct way to assess progress on this outcome would be to estimate the 'take-up' rate, which is the number of benefit recipients divided by the number of people eligible to receive the benefit. As mentioned above, the Scottish Government has not yet published a take-up rate estimate for Job Start Payment, but an estimate is due to be published later this year.
As explained in the Social security: benefit take-up strategy, there are three primary reasons for non-take-up of benefits amongst eligible people.
1. Social barriers – (perceived) stigma, felt lack of need, people in vulnerable
situations, pride, or lack of trust in institutions.
The commissioned research findings provide mixed evidence that social barriers could stop eligible people from applying for Job Start Payment. On the one hand, all of the young people who took part in interviews - including unsuccessful applicants and non-applicants - were supportive of the benefit, said they would recommend it to others (and in some cases already had recommended it). They also did not feel there was any stigma in applying for it. However, on the other hand, recipients reported feeling anxious about approaching employers for supporting evidence when making claims – as discussed in more detail below. It is possible, therefore, that the need to approach employers for evidence could be a barrier to claiming Job Start Payment.
2. Lack of information - a lack of awareness or misunderstandings about the benefit, eligibility, or application procedures.
The findings indicate that lack of information about Job Start Payment could lead to eligible young people not claiming the benefit. As outlined above, there appears to be low awareness of the benefit amongst young people, and also amongst professionals who would be expected to signpost them to it. Also, stakeholders feel that the Job Start Payment eligibility criteria are unclear, and could be misunderstood by young people. Indeed, some stakeholders expressed caution about signposting their clients to the benefit, because they did not want them to experience a denied application.
3. Costly or complex access - complexity of the application, lack of time or money, limited administrative abilities or experience.
The commissioned research also indicates that costly or complex access could impact take-up of Job Start Payment. Firstly, it is possible that issues with supporting evidence, described previously in the findings section, mean that some eligible people have had their applications denied – e.g. if they had difficulties obtaining evidence from employers.
However, stakeholders also felt that eligible young people might be put off applying altogether because it involves (a) putting their employers details on the application form, and (b) backing up their claim with supporting evidence obtained from the employer. Whilst there is no direct evidence that young people chose not to apply for these reasons, Job Start Payment recipients did report feeling awkward and anxious about seeking application evidence from their employers, as mentioned above. This testimony gives some weight to the idea that having to approach employers could be putting young people off from making an application.
"[It was] my first kind of official job for a proper company, you know a big company. And I was nervous to talk to my manager...I'm grateful for the money, but it really wasn't an easy process. Even during that time I thought sometimes 'just leave it'. It seemed too much anxiety to get the money."
(Job Start Payment recipient)
"If they want us to prove anything then why don't they have a standard form that is completed by the manager with the information needed and that's that, end of story. But they wanted one thing, and then needed more, and needed more. It was a hassle for my manager. Even if they need to contact the employer, they should have a separate relationship and not involve us in that in a way that we are being put in an awkward situation. And so we don't feel any pressure. I felt like I was under pressure."
(Job Start Payment recipient)
Another way to assess the overall reach of Job Start Payment is to consider the diversity of people applying for or receiving the benefit. This can be done by examining data on the demographics and individual characteristics of applicants.
Official Statistics show that Job Start Payment applications were submitted by people living in all 32 local authority areas in Scotland. In terms of total approved applications to March 2022, the highest number of applications were from Glasgow City (575), Fife (295), and Edinburgh City (260). The lowest were from Orkney Islands (25), Na h-Eileanan Siar (20), and Shetland Islands (10).
Both Official Statistics and Social Security Scotland client diversity and equalities analysis provides more information on the outcomes of applications by each of the equalities groups:
- Table 3 presents (a) a secondary analysis of Official Statistics data on the age and care leaver status of approved applicants to March 2022, and (b) a supplementary analysis on the parental status of approved applicants, based on the same data used in the production of the Job Start Payment Official Statistics publication.
- Table 4 presents a secondary analysis of data on clients who had their applications approved from December 2020 to May 2021, using data from client diversity and equalities analysis publication.[17]
A more detailed breakdown of the data in both of these tables, with additional notes, is provided at Annex A.
| Age-group | % |
|---|---|
| 16-17 years | 1% |
| 18-21 years | 47% |
| 22-24 years | 51% |
| 25 years | 1% |
| Care leaver status | % |
| Care leaver | 6% |
| Not declared as a care leaver | 94% |
| Parent status | % |
| Parent | 23% |
| Not declared as a parent | 77% |
| Category | % |
|---|---|
| Gender | |
| Woman | 47% |
| Man | 50% |
| In another way | 1% |
| Prefer not to say | 2% |
| Physical or mental health condition or illness | |
| Yes | 17% |
| No | 77% |
| Prefer not to say | 6% |
| Ethnicity | |
| White | 95% |
| Asian | 1% |
| African | 0% |
| Mixed or Multiple ethnic groups | 1% |
| Other ethnic group | 0% |
| Caribbean or black | 0% |
| Prefer not to say | 2% |
| Sexual orientation | |
| Heterosexual | 81% |
| Gay & lesbian | 5% |
| Bisexual | 9% |
| In another way | 1% |
| Prefer not to say | 5% |
| Transgender | |
| Yes | 2% |
| No | 97% |
| Prefer not to say | 2% |
| 6-fold Urban Rural Classification[18] | |
| Large urban area | 38% |
| Other urban area | 40% |
| Accessible small town | 7% |
| Remote small town | 4% |
| Accessible rural area | 7% |
| Remote rural area | 5% |
| SIMD Quintile[19] | |
| 1 (most deprived) | 38% |
| 2 | 24% |
| 3 | 17% |
| 4 | 12% |
| 5 (least deprived) | 10% |
| Residence on mainland or island communities | |
| Scottish Mainland | 98% |
| Scottish Island | 2% |
Achievement against short-term policy outcomes
This section evaluates Job Start Payment against the following policy outcomes:
- Supports young people to take-up employment
- Helps to meet the costs of starting a new job
- Increased confidence when starting a job
- Increased confidence about employment prospects
It is based on findings from the commissioned research.
Supports young people to take-up employment
There was a consensus amongst commissioned research participants (both young people and stakeholders) that there is a need for Job Start Payment, due to the challenges people face meeting up-front costs when starting a new job. Young people explained how they, and their friends, had been caught off-guard by the amount of money they had to pay for travel, accomodation, work equipment, and uniforms.
Additionally, all of the young people who were interviewed – including young people whose applications were denied – said that they would recommend the benefit to others, and in some cases had already done so. They did not feel that there was any stigma in applying for Job Start Payment, and had a strong sense that it could make a real difference to people entering employment.
"It's a great helping hand if they're starting a job, they might need transport or clothes or equipment and not [having that] come out of the money they need to live on."
Job Start Payment recipient
Helps to meet the costs of starting a new job
In the commissioned research interviews, Job Start Payment recipients (n=26) were asked what they had used the money to buy. As shown in Table 5, recipients often spent the money on costs directly associated with starting their new job. For example, the two most commonly mentioned items were work clothes and travel passes.[20] Other items mentioned by participants included food for lunches, childcare costs, car costs, and work equipment.
| Type of item | Number of young people mentioning item | Examples given included |
|---|---|---|
| Work clothes | 16 | Clothes and shoes suitable for working environment- including office wear, uniforms, safety clothing for building sites |
| Travel | 14 | Travel passes |
| Food | 7 | Food for their lunches, food for family |
| General bills | 5 | Own bills, and bills of parents when living at home |
| Savings | 4 | Put into bank account for unexpected expenses |
| Settling debt | 3 | Paying back money borrowed from friends and family, paying credit card debt |
| Childcare costs | 3 | Upfront payments |
| Leisure | 3 | Day out with children, trip to visit relatives, dinner out with partner |
| Car costs | 3 | Fuel, MOT costs |
| Work equipment | 2 | Computer equipment, furniture to work from home |
| Miscellaneous | 1 | Toys for children |
Note: some participants mentioned more than one item
All of the interview participants who had received Job Start Payment spoke positively about the payment. It was described as being 'fair', 'helpful', and 'amazing'. Participants also explained how the money had helped them meet the costs of starting a new job.
"My partner was out of a job, so we didn't have a stable income…All the money was going onto bills. And even going into Glasgow, where the office was, to pick up my laptop to start the new job for instance, I didn't have money to do that. So JSP helped me pay for that…I felt that amount was more than enough for my circumstances at the time."
(Job Start Payment recipient)
Stakeholders agreed that Job Start Payment helps young people meet the costs of starting a new job, and spoke positively about the benefit. However, they also felt that the payment amount may not be enough in some cases. Indeed, one young parent who received Job Start Payment said the benefit had contributed towards her childcare costs, but described taking on debt to cover remaining expenses.
"So, the majority of the payment went towards the childcare and we set up a payment plan to pay the rest of the up-front childcare cost. And for the likes of travel and uniform, then that just went on the credit card so I had to get myself into a bit of debt. It was quite daunting…Well to cover the full month of childcare and the travel, that would have been £1,300…Oh it was a huge relief [getting JSP]. That came up with about a third of the money I needed and it made it a lot more manageable. Like, I wouldn't have been able to get all that on credit."
(Job Start Payment recipient)
Additionally, as mentioned previously, whilst participants felt Job Start Payment helped with the costs of starting a job, a number of recipients did not receive the money until after their first pay check, due to the length of time they had to wait for an application decision.[21] This meant they did not have the money at the point of need, which, according to some participants, caused stress and financial difficulties.
Increased confidence when starting a new job
In the commissioned research, young people who had successfully claimed Job Start Payment discussed how receiving the payment made them feel. Those who had spent at least some of the money on work uniforms described how this made them more confident about starting their new job.
"First impressions are everything, and I didn't want to walk up to the jobs in some skinny jeans. Even though other people did, that's their choice. I always like to dress smart to give a good first impression. And not only did I give a good impression, but I felt confident and smart. And it helped me feel that I could do that job properly."
(Job Start Payment recipient)
"The Job Start Payment helps a lot, it really cuts down on a lot of stress. I felt a lot more confident knowing that I didn't have to buy the uniform with no way to pay for it. That was where a lot of the anxiety was; it said you needed a dressy shirt but I just didn't have any."
(Job Start Payment recipient)
As indicated by the quote above, many recipients also felt like Job Start Payment reduced their anxiety about starting work. Some also specifically mentioned that being able to choose how they spent the money made them feel good about themselves.
"I think it is really incredible, that it's open to you spending it. It feels like it's rewarding you for doing a good job for getting a job. And sometimes that's what some people need. Because I know it's incredibly difficult to get a job. And it makes them feel less scared about getting a job, if you can get that to help you."
(Job Start Payment recipient)
Increased confidence about employment prospects
In the commissioned research, young people who received Job Start Payment said they felt more confident about their medium- and long-term employment prospects as a result of getting the job. However, they did not directly link this with receiving the benefit. One young person with experience of homelessness spoke about how employment had boosted their overall confidence and prospects.
"Getting that job and starting fresh, it's made such a difference. I'm more motivated to spend time with my friends, I have my own space, and because I've enjoyed my job so much, I'm actually working towards a promotion."
(Job Start Payment recipient)
Achievement against medium-term policy outcomes
This section evaluates Job Start Payment against the following policy outcomes:
- Helps young people to sustain employment
- Helps young people to build social networks
- Improved lifestyle and participation in society
- Improved health and wellbeing for recipients' families
It uses data from bespoke commissioned research. However, a full evaluation against these outcomes would require: (a) more time to have passed since the benefit was implemented, and (b) access to more robust quantitative data. The outcomes will also be affected by a range of factors in addition to Job Start Payment, and would involve isolating the influence of the payment from other contributing factors, such as wider social security benefits and other government interventions designed to support young people entering employment.
Helps young people to sustain employment
The commissioned research provides only limited evidence that Job Start Payment helps young people to sustain employment. However, two interview participants did say that receiving Job Start Payment not only helped them to take-up employment, but also helped them to stay in their new job.
"[I] wouldn't have been able to work there for that long if I hadn't got it to be honest. Because I would have started off in debt to pay for my travel and food and bills before getting my salary."
(Job Start Payment recipient)
Participants were also asked about their current employment status at the time of interview. Out of the 26 who had received Job Start Payment,14 (54%) were still working with the same employer, 7 (27%) were working with a new employer, 3 (12%) were unemployed, and 2 (8%) were in education or training. However, without access to further data, it is not possible to link these outcomes directly with Job Start Payment.
It is notable that, while they felt Job Start Payment helps young people to take-up employment, stakeholders were less convinced that it would help them to sustain work – citing that this would entail additional costs which could not be covered by the payment.
"It's a grant that will help somebody, but it's not of an adequate amount that it would completely take away the problems that people have [sustaining employment]. Because of that, it would need to be substantially more to do that, but it does go some way towards acting as a bit of a buffer."
(Skills and Employability stakeholder)
Helps young people to build social networks
In the commissioned research, those who received Job Start Payment explained how they had made friends and bonded with colleagues in their new jobs – although they did not directly link this to receiving the benefit. In some cases participants linked their expanding networks with improved personal wellbeing.
"Interacting with colleagues - it is good because I've not really been interacting before with anyone outside my parents and my partner. And now I have colleagues and speak to them and socialise a bit more again."
(Job Start Payment recipient)
"I would say I've matured a lot in this job. And my mental health is a lot better due to the support we get in here. We are a small business, and a family owned business, it's not my family, but a family. And we are really close knit and family run on here. So I've got a tonne of support. I've made so many new friends and I've allowed myself to grow."
(Job Start Payment recipient)
Improved lifestyle and participation in society
In the commissioned research, several young people who received Job Start Payment compared being in employment favourably with being on benefits – although they did not link this directly with the benefit. Parents in particular spoke about how their new jobs had improved their quality of life.
"It's made me feel a lot more independent. I've got a working wage now rather than just having to be on benefits. And I feel a lot better in myself, I'm not just having to look after kids all the time."
(Job Start Payment recipient)
"I was on Universal Credit and I've got 2 young kids – it was absolutely not enough to get by. It got us out of poverty and created better living circumstances for me and my children…It meant that my kids can start eating better, go back to the youth club. My childminder is worth her weight in gold; she's an amazing support not just to my kids but for me. She's expanded my whole support network."
(Job Start Payment recipient)
In exceptional cases, recipients also spoke about how their job had led to new education and career development opportunities.
"I'm now doing a course for a diploma. I'm essentially just doing really great. And actually […] now I realise this is the job I want to do long-term, so working more in digital marketing. So I'm developing my career now."
(Job Start Payment recipient)
Improved health and wellbeing for recipients' families
The commissioned research provides only a limited amount of evidence that Job Start Payment has contributed to better health and wellbeing for recipients' families. As shown in Table 5, a number of recipients spent at least part of the money on items that would benefit family members – e.g. on food for the family, or as a contribution towards bills. One parent who spent the money on childcare explained how this had had a positive impact on her daughter's wellbeing.
"Yeah it helped my little girl get into nursery which is great. She's a Covid baby so I feel really guilty, she's not been around a lot of other children so it's great to see her make friends and thrive."
(Job Start Payment recipient)
Also shown in Table 5, a small number of recipients used Job Start Payment as a means to spend time with family members, which may have contributed to their families' wellbeing, albeit temporarily and in a modest way.
"I actually spent it on a train ticket to see my mum, who I hadn't see in months. Because I was on Universal Credit I couldn't afford the ticket before then. I went to see her, and I took my partner out for dinner. Because we hadn't done that at all. So I really saw it as a reward and spent it on two things that I hadn't had the money to do before then, as a treat for starting my job really. So obviously there were things coming out my account that month, bills for necessities. But I put that money aside to spend time with people and enjoy that."
(Job Start Payment recipient)
Evidence of progress towards long-term outcomes for young people on low incomes
The Scottish Government is committed to supporting young people into fair and sustainable employment. To do this, it has been delivering support for those who are further from the labour market across a range of policy areas, including social security. These actions are intended to contribute to the following long-term government outcomes:
- Increased youth employment
- Reduced youth unemployment
- Reduced inequalities in the labour market
Job Start Payment could contribute towards these targets. However, measuring its impact would require (a) suitable time to have passed since the payment was introduced, and (b) access to more robust and suitable quantitative data than is currently available. It should also be noted that the targeted nature of the support means Job Start Payment claimants are likely to represent only a small proportion of total unemployed 16-24 year olds in Scotland at any given time. As such, the benefit could only make a modest contribution in these areas.
Despite the above, it can be reasonably expected that success against Job Start Payment's immediate, short-term, and medium-term policy outcomes could contribute positively to the Scottish Government achieving its long-term outcomes – as a (relatively minor) part of wider measures to support unemployed young people. Based on the evidence presented in this report, the following summary of progress can be made.
Progress towards immediate outcomes
- With regards to promotion of Job Start Payment, the qualitative evidence indicates that young people commonly find out about the benefit via stakeholder organisations, but are less likely to find out about it through media advertising. General awareness of the benefit also appears to be low amongst young people.
- Stakeholders from employability and charity organisations recognise that they have an important role in signposting Job Start Payment to eligible young people. However, they also have a sense that awareness and knowledge of the benefit is generally low within their organisations (and also amongst employers).
- The purpose of Job Start Payment is generally well-understood by recipients. However, stakeholders feel the eligibility rules are not clear, and raise concerns about the need for applicants to be out of paid work and on a qualifying benefit for 6 months continuously, because they say that:
- Young people are encouraged to do short, paid work placements, which can break up long periods of unemployment. These placements do not impact benefits like Universal Credit, but can make young people ineligible for Job Start Payment.
- 16-17 year olds are less likely than older applicants to be on qualifying benefits for 6 months, due to employability initiatives for school leavers. There is a sense that eligibility criteria should be different for this age-group.
- Young people and stakeholders report that the initial Job Start Payment application form is straightforward to complete. However, 53% of applications have been denied (rising to 79% for 16-17 year olds) – most commonly because applicants were not out of paid work and/or on a qualifying benefit for at least 6 months prior to job offer. The qualitative findings highlight that the following factors could be contributing to denial rates:
- Some applicants can be ineligible because, as mentioned, they (a) are encouraged to take-up short, paid work placements which interrupt long spells of unemployment, or (b) are under 18 and unlikely to have been on a qualifying benefit for 6 months.
- Young people can find obtaining supporting evidence from employers to be challenging and stressful.
- Social Security Scotland staff say they have to stick rigidly to procedures when processing claims e.g. they cannot validate claims if the supporting evidence provided does not contain details such as the date of job offer, or if the job offer date does not match the one stated on the application form.
- Social Security Scotland staff find it difficult to contact young people by phone or letter about supporting evidence, and say they cannot use other methods such as email or text.
- A lack of clarity around eligibility rules and the supporting evidence could be leading to ineligible claims. Also, testimony from an unsuccessful applicant suggests some young people may apply hoping their ineligibility will be overlooked.
- Application processing times have been generally increasing since the benefit was introduced. Longer waiting times can be stressful for applicants, and mean that they do not receive the payment at the point of need.
- The qualitative findings highlight that the following factors could be impacting take-up of Job Start Payment amongst eligible young people:
- A lack of awareness of the benefit amongst young people, and within stakeholder organisations which signpost unemployed young people to benefits, could mean that some eligible young people are not making applications.
- Challenges obtaining supporting evidence for applications could mean that some eligible people have claims denied.
- The need to put employer details on the application, and/or to approach employers for supporting evidence, could be putting some eligible people off from applying altogether (albeit there is no direct evidence of this).
- People from across Scotland with a wide range of personal and demographic characteristics have applied for Job Start Payment.
Progress towards short-term outcomes
- There is a consensus amongst young people and stakeholders that Job Start Payment is needed due to challenges people can face meeting the up-front costs of a new job. Young people do not report any stigma claiming the benefit, and say they would recommend it to others.
- The benefit helps young people meet the costs of starting a new job. It is spent on a range of items, with work clothes and travel passes being amongst the most common purchases. Young people are very positive about the payment amount – describing it as 'fair', 'helpful', and 'amazing'.
- Job Start Payment can boost recipients' confidence and help to reduce anxiety when starting a new job. Young people also appreciate being able to choose how to spend the money.
- Recipients report feeling more confident about their employment prospects as a result of getting a job, albeit they do not link this confidence directly with the payment.
- The payment amount is not always enough to cover everyone's expenses e.g. parents with high childcare costs. Additionally, as mentioned, longer application processing times mean that some young people do not receive the money at the point of need.
Progress towards medium-term outcomes
Medium-term outcomes cannot be fully evaluated until (a) more time has passed since Job Start Payment was implemented and (b) more robust quantitative data has been obtained. However, the following summary can be made based on existing evidence:
- There is limited evidence Job Start Payment helps young people to sustain employment. Stakeholders expressed the view that sustaining employment would involve more costs than the payment covers. However, two recipients in the qualitative did feel the payment helped them to stay in their jobs, and most qualitative participants were still in employment at the time of interview.
- There is limited evidence that Job Start Payment has led to improved health and wellbeing for recipients' families. However, some use the payment in ways that would benefit family members – e.g. as a contribution towards household bills or food costs.
- While not linked directly with receiving Job Start Payment, young people reported other positive outcomes of getting a job e.g. increased social networks and improved lifestyles.
This summary shows that positive progress has been made towards Job Start Payment's short-term outcomes – which relate primarily to the impact of the payment on people who receive it. It also indicates that positive steps have been made towards its medium-term outcomes, albeit the benefit may only be contributing indirectly in these areas, and in a small way. In combination, it can be reasonably assumed that Job Start Payment is making some contribution towards the Scottish Government's long-term aims for unemployed young people.
However, the evaluation has also highlighted that there are substantial issues with Job Start Payment, which relate primarily to its immediate outcomes – i.e. the promotion and administration of the benefit. Implications are discussed in the conclusion chapter below.
Contact
Email: Social_Research@gov.scot
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