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

Appendix 4
DWP Unit Cost Savings for people moving into work
ESF Oxford City LSSF Pilot 2014 - 2015
Source: DWP Unit Cost Database v1_4
Cost / saving detail
Job Seeker's Allowance
Fiscal and economic benefit from a workless claimant entering work
Job Seekers' Allowance
Fiscal benefit from a workless claimant entering work - benefits payments
Job Seekers' Allowance
Fiscal benefit from a workless claimant entering work - improved health
Unit
Agency bearing the cost /
making the fiscal saving
Level 1 Level 2
Estimated
cost/saving
Fiscal value
Year
Updated
cost/saving
Estimated
cost/saving
Economic value
Year
Updated
cost/saving
Per claimant per year Multiple DWP £ 9,800 2015/16 £ 9,800 £ 14,044 2015/16 £ 14,044
Per claimant per year DWP HM Treasury £ 9,234 2015/16 £ 9,234 2015/16
Per claimant per year NHS £ 566 2015/16 £ 566 2015/16
Employment and Support Allowance / Incapacity Benefit
Fiscal and economic benefit from a workless claimant entering work
Employment and Support Allowance
Fiscal benefit from a workless claimant entering work - benefits payments
Employment and Support Allowance
Fiscal benefit from a workless claimant entering work - improved health
Per claimant per year Multiple DWP £ 8,632 2015/16 £ 8,632 £ 12,568 2015/16 £ 12,568
Per claimant per year DWP HM Treasury £ 7,500 2015/16 £ 7,500
Per claimant per year NHS £ 1,132 2015/16 £ 1,132
Income Support
Fiscal and economic benefit from a workless claimant entering work
Income Support
Fiscal benefit from a workless claimant entering work - benefits payments
Income Support
Fiscal benefit from a workless claimant entering work - improved health
Per claimant per year Multiple DWP £ 7,570 2015/16 £ 7,570 £ 8,701 2015/16 £ 8,701
Per claimant per year DWP HM Treasury £ 7,004 2015/16 £ 7,004 2015/16
Per claimant per year NHS £ 566 2015/16 £ 566 2015/16
Into Work Numbers and Values
ESF project participants into work 62
Main benefit before starting work Fiscal Economic Total Public
ESA 3 £ 25,896 £ 37,704 £ 41,100
Incapacity Benefit 0 £ - £ - £ -
IS 8 £ 60,560 £ 69,608 £ 74,136
JSA 42 £ 411,600 £ 589,848 £ 613,620
Tax credits 1 £ - £ - £ -
Other - not on JSA/ESA/IC 8 £ - £ - £ -
Total number of customers into work 62 £498,056 £697,160 £728,856
Assumptions
1) Each person into work for a full 12 month period
2) 'Tax Credits' and 'Other' assumed nil saving