Summary
In light of the current unemployment crisis triggered by the pandemic, I propose a benefits bonus to enable those unemployed to volunteer in organisations that benefit their local communities without having to look for paid work. Those volunteering would gain endorsements on a ‘skills passport’ that guarantees interviews at certain companies to enable increased employment opportunities. The benefits of the scheme would include increased diversification within the voluntary sector, mental and physical health benefits for individuals volunteering and the potential for increased social mobility. I propose pilot models to be tested in areas with the greatest unemployment before a national rollout once key aspects are refined against success criteria.
The problem
The COVID-19 pandemic has left 5% of the UK unemployed, the highest level in 5 years, with estimates that around 700,000 have been pushed into poverty as a result. Beyond its economic consequences, unemployment also leads to poorer outcomes for both physical and mental health.
It has also been repeatedly shown that the unemployment crisis has disproportionately affected those from lower socioeconomic groups and the BAME community, with jobless rates from the latter double the rate for white individuals, reflecting racial inequality within the UK employment market.
The solution
The pandemic has led to a dramatic increase in those pursuing voluntary roles. Mark Rowland (CEO of the Mental Health Foundation) highlighted increased voluntary participation throughout the pandemic as having enabled us to glimpse at ‘a kinder society’. The NHS volunteer scheme, for example, achieved a quarter of a million sign ups within just 24 hours of its launch.
The economic value of volunteering is clear, with estimates that volunteering contributed 23.9 billion pounds to the UK economy in 2016. Volunteering has been demonstrated to have multiple benefits for individuals, with improved health, increased confidence, and the potential for improved future employment chances. Despite this, it has been demonstrated that access to voluntary work is currently skewed towards those from higher socioeconomic classes, with additional evidence that BAME groups are underrepresented in the charity sector as a whole.
The current unemployment crisis presents a unique opportunity for the government to both recognise the economic value of volunteering and enable diversification within the sector. I propose a financial incentive in the form of a benefits bonus for those who want to engage in voluntary work that benefits their local communities. This could improve the lives of those that access it whilst also helping to improve cross cultural dialogue and social cohesion.
The details
The following section gives a brief outline of how this might work in practice, covering selecting organisations, ensuring volunteering leads to improved outcomes for employment and pilot testing
1.Selecting organisations for voluntary work
One study found the following features to be correlated with positive volunteering experiences:
• Volunteering span of 50 hours or more
• Volunteering for more than one organisation
• Working with the public at least some of the time
• Ongoing informal training and to a lesser extent formal training • Discussion/review of volunteering activity
• Working in a team at least some of the time
• Variety of experience
A more thorough literature review could help to refine these features further before identifying key voluntary organisations meeting success criteria. Jobcentres could then provide lists of local organisations which would provide structured voluntary placements.
2.Ensuring volunteering leads to improved access to employment opportunities It should be noted that studies have shown mixed results for the link between voluntary work and employment opportunities. To help establish links between the scheme and access to paid employment, the skills developed could be recorded in a ‘skills passport’ which enables individuals to gain endorsements from voluntary organisations as proof of various skills gained. Furthermore, the government could secure contracts with a variety of companies that would guarantee an interview for individuals that have gained specific skills, to ensure the scheme provides improved access to career opportunities.
3.Pilot testing The scheme could be tested in regions with the highest current unemployment to identify the ideal length of time, financial incentive and voluntary model:
a.The length of the scheme needs to strike a balance between encouraging access to paid employment and allowing sufficient time for individuals to gain new skills, build relationships and make a difference in their local communities. Periods of 3, 6, 9 and 12 months could be trialed.
b.The financial incentive needs to enable individuals to access the scheme and fully engage in voluntary work for the period it lasts without the need to seek paid employment. This must be balanced with funding available and the number of individuals targeted by the scheme. In one model, there could be a flat rate bonus regardless of the number of hours volunteered to maximise those who can access it. In another, the bonus could be pro rated against the equivalent number of working days in which someone volunteers. A final model could investigate targeting the scheme at certain groups e.g school leavers, or those unemployed for a certain period of time, with a higher value bonus for this smaller group.
c.The voluntary model could encourage work for several different organisations, or focus on encouraging a placement at only one. The former may allow a more diverse range of skills to be developed, whereas the latter may provide more benefits to the organisations hosting volunteers by allowing them to become more proficient in skills required, whilst also enabling volunteers to build more meaningful relationships. Both could be trialled in pilot schemes.
Each pilot should be tested against these key success criteria:
-the % that gain employment after the scheme ends (both immediately and within a year)
-the % that moved up a payment or skill bracket in comparison to previous employment
-changes in mental health indicators during the course of the scheme
-qualitative surveys to identify any other benefits gained from the voluntary experience for both volunteers and organisations that host them.
Results would be used to refine the scheme before a national rollout.
2076-11