Research

Summary page

Research

Complex not simple: The vocational education and training pathway from welfare to work

The policy underpinning the Australian Welfare to Work initiative is driven by a perceived need to reduce dependency on income support payments by moving those who are considered able, or potentially able, into paid employment. This has been part of a wider process of ‘welfare reform’, which is evident in a group of nations, including Australia, Canada, the United States, Great Britain and New Zealand, and has been pursued by both liberal and conservative governments (Saunders 2001, p.1). Welfare-to-work programs require a fundamental shift in the traditional relationship between the vocational education and training (VET) sector and the welfare sector, necessitating the establishment of policies, structures and processes designed to support cross-sector working relationships.

In Australia, the Welfare to Work policy was implemented with the 2005–06 federal budget and took effect from 1 July 2006. Income support recipients are expected to pursue pathways that lead to paid employment through work experience, training or community work. Parents of children over the age of six receiving the Parenting Payment, long-term unemployed people, mature-age people on the Newstart Allowance and people receiving the Disability Support Pension are the groups targeted by this policy.

Themajority of people in these four groups have relatively low levels of formal education (Australian Council of Social Service 2007), which means that the VET sector can play a critical role in increasing their employability. Increasing the skills and employability of people in the groups targeted by this initiative brings benefits to them, while addressing the need for a skilled workforce and skill shortages. Consequently, the VET sector is a key component of the welfare-to-work journey (Shah & Burke 2006; Australian Industry Group 2006).

The importance of educational attainment and skills acquisition to achieving employment is a recurring theme in the literature. The activities most linked to labour market success are education and training, effective job searching and paid work. Longitudinal research identifies a strong relationship between type of training and quality of employment, with short-term programs being likely to lead to low-wage, low-quality work and a higher likelihood of returning to the welfare system (Saunders 2005).

Although the Australian income support system acknowledges that training is a pathway to employment, the emphasis of the Welfare to Work policy is on moving unemployed people into work as soon as possible. It does not adequately acknowledge that high-quality employment needs to be distinguished from low-paid, insecure employment, and that the length of training and a recognised credential needs to be distinguished from ‘quick fix’ training. Here the difference is between training that increases skills and provides a work-relevant qualification leading to long-term employment and short courses that may not increase skill levels nor provide a credential and often lead to poor-quality employment and a return to unemployment.

Research purpose and method

This research explored the role that VET can play in assisting the transition from welfare to work using the following research questions to guide the project.

What are the issues faced by the Welfare to Work target group, especially parents, older people and those with a disability, in making a successful transition into employment?
What do we know about what makes training effective for these groups?
What is the existing state of training provision for people in receipt of welfare in Australia? Are there any examples of where this is working well?
What are the relevant findings from international research regarding welfare-to-work education and training programs?
What do VET providers require to ensure they deliver the most effective training possible for these specific groups of people? Are some providers better placed than others to respond to these needs?
How can VET programs be designed to dovetail well with non-VET programs to give a complete ‘package’ of assistance to the affected groups?

The project was structured according to five interrelated research methods:

a review of national and international research on transition from income support to paid employment, with an emphasis on the role played by education and training
structured interviews with key stakeholders to explore the issues facing people with complex needs in accessing VET and the paid labour market
two case studies of good practice, focusing on the lessons learned at the delivery level, when assisting Centrelink recipients to transition from welfare to work through the VET pathway
a telephone survey involving a sample of 130 TAFESA students in preparatory programs who were also current or recent recipients of Centrelink payments
five focus groups involving a total of 31 people, each group structured to allow more in-depth exploration of issues emerging from the telephone survey findings.

The role VET can play in assisting the welfare-to-work transition

Our findings indicate that VET can provide a pathway to employment for disadvantaged students, provided it:

²addresses students’ needs in a holistic way, rather than focusing on training-specific needs

²includes, where necessary, a preparatory pathway prior to engagement with ‘mainstream’ VET programs to assist the achievement of effective training outcomes.

The education and training pathway to employment is neither simple nor direct for most people with low educational attainment and other disadvantages. The need to integrate preparatory with ‘mainstream’ VET has been confirmed by several researchers (Martinson & Strawn 2003, pp.15–16; Trutko, Nightingale & Barnow 1999, p.29; Plimpton & Nightingale 1999, p.74), and is demonstrated in case study 2 of this research.

The VET sector, particularly the technical and further education (TAFE) component, has a tradition of providing initiatives that promote access and equity, but it cannot be assumed these will automatically meet the needs of the group targeted by the Welfare to Work initiative. Our findings from the case studies show that TAFESA staff have needed to develop three specific strategies to address the challenges faced by the Welfare to Work target groups:

the development of collaborative working relationships outside the VET sector with Centrelink, rehabilitation and Job Network providers, social workers and psychologists; and inside the sector between teaching and support staff, and between preparatory and mainstream teaching staff

the provision of personal and learning support services to accompany VET studies

the flexible design and delivery of preparatory vocational programs.

These strategies are seen very positively by the students interviewed and their impact has been significant, not only in terms of learning outcomes, but also in the form of personal and social outcomes. The Welfare to Work initiative has had its own impact on the VET sector—an increased workload for teaching and support staff, which arises both from the numbers and the complex needs of this group of students.

Consultations with VET sector stakeholders identified a number of Centrelink eligibility requirements that reflect a lack of understanding of how the VET system operates and which can have a negative impact on students. For example, prior to the implementation of Welfare to Work, disadvantaged students were able to attend a preparatory course. However, VET staff report that they now see more of this group of students entering programs directly, since the students believe they must get a job as quickly as possible in order to meet Centrelink requirements and that therefore they have no time for a preparatory course.

Good practice in the VET pathway from welfare to work

Previous research, coupled with feedback from students, VET stakeholders, and our case studies, suggests a model which can be described as ‘good practice’. Features of good practice include:

case management and coordination of support services

an individualised approach, including individual training plans

collaboration and linkage across and within sectors

links between VET staff and local employers

a systems-based structure for collaboration, that is, built into the system, rather than being ad hoc and relying on the goodwill of individuals

flexible delivery, including flexible timetabling

professional development of VET staff/trained VET staff

targeted induction and pre-enrolment assessment processes

reduced costs for disadvantaged students, for example, with books and transport

assistance with child care for disadvantaged students

assistance with transport for disadvantaged students

a range of learning and support services, integrated with studies

creative combinations of work, study and support—‘one-stop shop’

provision of work–study–life balance.

Taken together, these features of good practice result in two key implications. The first concerns resources, in terms of additional VET provider time, professional development and the provision of individualised services and support. The second involves collaboration at both policy and delivery levels across sectors, which brings with it a requirement for new protocols and agreements, new methods of accountability and reporting, and an accompanying commitment to working in this way.