Public Sector Supported Employment Programmes: What Works, What Doesn't, and Where Next

The Evidence Hierarchy

Not all supported employment models are equally effective. Decades of research have established a clear evidence hierarchy:

What Works: Individual Placement and Support (IPS)

IPS is the most evidence-based supported employment model. According to the IPS Employment Center, 28 randomised controlled trials have shown a significant advantage for IPS.

Core Principles of IPS (based on the IPS Employment Center's eight practice principles):

1. Competitive, integrated employment as the goal — regular jobs that anyone can apply for, paying at least minimum wage; not sheltered work, not volunteering, not "work readiness training" as an end in itself
2. Zero exclusion — people are not turned away because of symptoms, substance use, lack of housing or other personal circumstances
3. Rapid job search — in-person contact with a hiring manager within about 30 days of the first meeting, not months of pre-employment training
4. Integration with clinical services — employment specialists work closely with mental health treatment teams
5. Attention to worker preferences — what the person wants, not just what is available
6. Individualised, time-unlimited support — available for as long as the person wants and needs it
7. Benefits planning — help navigating the interaction between employment and disability benefits
8. Employer relationships — IPS specialists actively build relationships with local employers

Evidence:

• Across 28 RCTs, IPS showed an average competitive employment rate of 55% compared with 25% for control groups (IPS Employment Center)
• A meta-analysis of 17 RCTs found people receiving IPS were 2.4 times more likely to be employed than controls (Modini et al., 2016)
• Works across settings: trials have been run in the US and in countries including Sweden, England, the Netherlands, Australia, Hong Kong and Japan
• IPS was developed for people with serious mental illness; researchers are now testing it with other groups, including people with intellectual disabilities, autistic people, transition-age youth and people with chronic medical conditions

What Partially Works: Customised Employment

Customised employment goes further by negotiating individualised job roles:

• Job carving: Restructuring an existing position to match the worker's strengths
• Job creation: Creating a new position based on unmet employer needs that match the worker's abilities
• Self-employment support: Microenterprise development for people whose needs don't fit traditional employment

The evidence is promising but less robust than for IPS. It is often used for people with significant intellectual disabilities or complex support needs.

What Doesn't Work: Traditional "Train Then Place"

The traditional model — assess, train, make "work-ready," then seek employment — tends to produce poorer outcomes than place-then-train approaches like IPS:

• Lengthy pre-vocational training delays employment and can demotivate participants
• Skills learned in training settings often don't transfer to real workplaces
• "Work readiness" is a subjective judgement that can gatekeep access

What Is Controversial: Sheltered Workshops

Sheltered workshops (also called "sheltered employment") employ disabled people in segregated settings:

Arguments for:

• Provide structure, social contact, and a sense of purpose
• Some workers prefer the security and reduced pressure
• Can serve as a stepping stone (though evidence for this is weak)

Arguments against:

• Sub-minimum wages: in the US, Section 14(c) of the Fair Labor Standards Act still allows employers with a certificate to pay disabled workers below the minimum wage. The US Department of Labor proposed phasing out new certificates in December 2024 but withdrew that proposal in July 2025
• Segregation sits uneasily with UNCRPD Article 27, which recognises the right to work in a labour market and work environment that is "open, inclusive and accessible to persons with disabilities"
• Low transition rates to open employment
• Can become permanent placements without progression
• "Creaming": Some workshops select the most able disabled workers, undermining the argument they serve those who cannot work in open employment

Trend: Many disability rights advocates and progressive jurisdictions favour moving from sheltered workshops towards supported employment in the open labour market.

Major National Programmes

UK: Access to Work

• What it does: Funds specialist equipment and assistive software, support workers (such as a BSL interpreter, job coach or travel buddy), travel to work when public transport isn't possible, workplace changes, and mental health support
• Scale: In 2024–25, 74,200 people received Access to Work funding totalling £321 million (Public Accounts Committee, 2026)
• Limitations: The Public Accounts Committee found that people wait too long for applications to be processed — an average of 106 working days — and that applicants report inconsistent advice and poor communication

UK: Disability Confident

• Employer scheme at three levels: Committed (level 1), Employer (level 2), Leader (level 3)
• Level 2 is based on self-assessment; level 3 (Leader) requires a validation template
• Criticism: Holding a Disability Confident level does not by itself guarantee good disability employment outcomes
• Value: Creates a framework and conversation, but needs stronger teeth

US: Vocational Rehabilitation (VR)

• Federally funded, state-administered programme: federal grants are distributed to states by formula, with states providing matching funds
• Provides services so that individuals with disabilities can prepare for and engage in competitive integrated employment or supported employment
• Order of selection: If a state VR agency cannot serve all eligible individuals, priority must be given to those with the most significant disabilities

EU: European Social Fund Plus (ESF+)

• The EU's main instrument for investing in employment, social inclusion and skills, which member states can use to fund disability employment programmes
• Budget: €142.7 billion for the 2021–2027 period

Australia: Inclusive Employment Australia (formerly Disability Employment Services)

• Government-funded specialist disability employment programme delivered by contracted providers
• Inclusive Employment Australia replaced Disability Employment Services (DES) from 1 November 2025
• Opens access to a wider range of people, including those not on Centrelink payments and people who can only work part-time
• Watch point: Contracted-provider models create pressure to place people quickly, which can lead to poor job matches if quality isn't monitored

Germany: Integration Offices (Integrationsämter)

• Support employers to hire and retain workers with severe disabilities
• Funded by the compensation levy (Ausgleichsabgabe): private and public employers with at least 20 workplaces must fill at least 5% of them with severely disabled people, and pay a levy to the Integration Office for each unfilled position
• Levy revenue may only be used for special services that promote the participation of severely disabled people in working life, such as workplace support
• A strong, ring-fenced funding model

What Needs to Change

1. Scale IPS: The most effective model is available to only a fraction of disabled jobseekers. Scaling IPS nationally could substantially improve competitive employment outcomes.
2. Shift away from sheltered workshops: Redirect funding to supported employment. Offer existing workshop participants pathways to open employment with support.
3. Fix benefit systems: The interaction between disability benefits and employment income is a major barrier. Taper benefits gradually rather than cliff-edge removal.
4. Invest in employment specialists, not programmes: The quality of individual support matters more than the programme brand.
5. Employer engagement: Supported employment programmes must invest in employer relationships, not just candidate preparation.
6. Measure what matters: Track sustained employment (6+ months), wage levels, career progression, and worker satisfaction — not just job starts.

Resources

• IPS Employment Center: ipsworks.org
• European Union of Supported Employment (EUSE)
• World Association of Supported Employment
• OECD: Disability, Work and Inclusion
• UNCRPD Article 27: Work and Employment