Welfare Reform Team Evaluation of European Social Fund pilot project 2014-2015

and working hours of typical claimants are assumed to be consistent with those
reported by relevant former benefit claimants to the DWP.
For the financial year 2015-2016 the fiscal value 12 , the economic value 13 , and the
total public value 14 to the UK economy of each person who moves into
employment, expressed as benefits not paid out and the saving to the NHS as a
result of improved health, are estimated by the DWP as follows.
£16,000
£14,000
£12,000
£10,000
£8,000
£6,000
Moving Into Work Unit Saving 2015/16
£14,610
£14,044 £13,700
£12,568
£9,800
£9,267
£8,632 £8,701
£7,570
IS
ESA
JSA
£4,000
£2,000
£-
Fiscal value Economic Value Total Public Value
Source: DWP Unit Cost Database v1_4
Using these illustrative values the total public value added as a result of the 62
participants in the project who moved into work is calculated as £728,856. This
calculation makes the assumption that all of the participants in the project who move
into work remain in work for exactly 12 months. This reasoning is supported by the
fact that 85% of those who found work were still in employment at the end of the
project and more participants will remain in work for more than 12 months than less.
For the detailed breakdown of this calculation see Appendix 4.
12 The Fiscal Value comprises savings in benefits payments accruing to the DWP's Annually Managed
Expenditure, and savings to the NHS related to a reduction in health care costs associated with being
out of work. Source: DWP Unit Cost Database v1_4
13 The Economic Impact relates to increased earnings as a result of entering employment. Note that
when considering the overall public value relating to a JSA claimant entering work, the fiscal saving
from benefits payments should be excluded, as this is effectively a transfer payment (non-payment of
a social security benefit just moves money from one place to another). Source: DWP Unit Cost
Database v1_4
14 Total Public Value comprises the fiscal benefit to health agencies plus the economic benefit to the
individual. Source: DWP Unit Cost Database v1_4
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