Guidance

Universal Credit: in-work progression randomised control trial

Updated 16 October 2018

1. About the Universal Credit in-work progression randomised control trial

Universal Credit (UC) supports people in work to earn more. To help build the design of UC, DWP is developing an evidence base to help understand how to support people to reach their potential, progress, and be more productive.

We are currently at the stage of testing a range of approaches to provide evidence for future learning, recently through the delivery of a large-scale Randomised Control Trial (RCT).

The RCT was launched as a proof of concept in April 2015 in 10 jobcentres. It was rolled out to all Jobcentre Plus offices in December 2015. The RCT was delivered by all Jobcentre Plus offices.

Recruitment into the trial completed in March 2017. The RCT tested the effect on earnings of an active labour market regime for claimants who were in low-paid work or low-income households and:

• embedded the expectation that claimants took reasonable steps to increase their earnings in return for the support offered
• gave a clear understanding of what was required from claimants, regular engagement with a work coach and delivery of agreed actions in an individually tailored Claimant Commitment
• coached claimants to have conversations with their employer, where possible, about opportunities for more, or better paid, work and where appropriate, look at wider opportunities for earnings progression
• identified barriers to progression, such as confidence and motivation, skills, or childcare, and directed them to support available
• provided supportive but challenging conversations to help guide, steer and motivate claimants to realise their potential and free themselves from benefit dependency

1.1 RCT groups

The RCT randomly assigned eligible claimants into 1 of 3 groups, providing different degrees of in-work support and conditionality.

The groups were as follows:

• Group 1 – claimants met with their work coach every 8 weeks to get support and review mandatory actions agreed in their claimant commitment. These claimants had access to a flexible time bank of work coach support.
• Group 2 – claimants had the same set of requirements as Group 1 and access to work coach support, but with a fortnightly review, rather than 8 weekly.
• Group 3 – this group got the DWP business as usual UC service for people in work. This was an initial telephone appointment to establish voluntary actions, and follow up telephone appointment 8 weeks later to consider progress.

Evidence from the 3 groups will help to determine inform the future development work to determine what support may be offered to in-work claimants.

An update on the RCT was published in March 2017. The RCT ended on 31 March 2018.

The evaluation reports were published on 12 September 2018.

2. External trials

DWP also supported a number of external trials which looked at alternative approaches to progression, including a range of employer led projects.

3. UK Commission for Employment and Skills

DWP supported the UK Commission for Employment and Skills (UKCES) initiative, the UK Futures programme, which delivered a series of projects from April 2015 to June 2016.

The projects aimed to develop and test strategies in the Retail and Hospitality Sectors that would demonstrate both clear business benefits (increased workforce retention and productivity) for low paid employees.

The UKCES findings were published as a report and a press release in August 2016.

4. Timewise in Retail

Timewise in Retail aimed to tackle the barriers in retail for women working in entry level part-time roles which are most affected by low pay and least likely to progress.

The project redesigned job entry, intermediary and management roles to allow greater flexibility for jobs to be filled by part-time staff.

As well as job redesign, they provided training and coaching to up–skill staff into the new roles and engage managers in the benefits of flexible working.

The pilot addressed the barriers to progression for low paid, entry level workers who are mostly part-time.

5. Timewise

This trial delivered support for 100 low income parents. It aimed to explore how best to assist low paid part-time roles, helping them progress in their careers while they continue with caring responsibilities.

It also looked at how employers could be encouraged to adopt greater flexibility in their employment and recruitment practices and support progression.

6. GOALS UK

GOALS UK delivered a proof of concept trial to support around 80 part-time workers not entitled to current out of work benefits, and who had not considered progression with a view to increase their earnings.

The trial tested whether a motivational intervention could change individuals’ attitudes to employment progression, stimulate increased claimant activity leading to the claimant achieving progression in work.

Read GOALS UK’s Step Up and Timewise Foundation’s Earnings Progression and Flexible Career Pathways in Retail: an evaluation.

7. Future plans

The results from the in-work progression randomised contral trial show some positive, but relatively small, impact on earnings. The wider evaluation contains a range of findings about the delivery and reception of the interventions being tested.

There will be further analysis of the findings from the RCT and DWP is developing a programme of research, analysis, tests and trials to further develop the evidence base on in-work progression. This will be carried out using funding secured in the Autumn Budget 2017. An additional £8 million was secured to support this work over 8 years from 2018 to 2019.

DWP will be working in partnership with organisations both inside and outside government to develop evidence about what works to help people earn more and progress in work.

The scope of the research and trials are broad and details will be worked up taking account of the findings from existing trials, proof of concepts and other research, input from DWP Operational activities, and from external stakeholders.

Both the research and trials will be used to improve understanding of future in-work claimants and how best to support them. DWP will build on the findings from the RCT.