Press release

Publication of working paper No. 86 The Department for Work and Pensions Social Cost-Benefit Analysis framework: Methodologies for estimating and incorporating the wider social and economic impacts of work in cost-benefit analysis of employment program

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Recommendations for the integration of social impacts into the DWP Cost-Benefit Analysis framework for employment programmes.

This report provides a series of recommendations for the integration of social impacts into the Department for Work and Pensions Cost-Benefit Analysis framework for employment programmes. It is based on a comprehensive review that draws on a full search of the relevant academic literature and evaluation evidence.  The review encompasses the most robust and highly cited UK and international research and all efforts have been taken to ensure the applicability of evidence to employment programmes within the UK.  It was undertaken by the Department for Work and Pensions.

The author finds that assisting people into work benefits them and society as a whole through increased income and economic output, improved health conditions and reduced crime.  The report also considers some of the social costs associated with operating employment programmes.  All significant impacts have been quantified in monetary terms for use in Cost-Benefit Analysis.  Considering these social impacts in Cost-Benefit Analysis allows the policymaker to assess whether a policy is worthwhile from the point of view of society as a whole. 

For some of the analyses there is a lack of good evidence for the UK and there is therefore potential for the Department to undertake primary analysis in the future to further improve the Cost-Benefit Analysis framework.

Notes to Editors:

  1. The  Working Paper was undertaken by Daniel Fujiwara (from DWP and London School of Economics and Political Science)
  2. It is published on 4th November 2010 in the DWP Working Paper Series