The relative cost of employment for people with a significant intellectual disability: the Australian experience

Abstract

In Australia, adults with a moderate to severe intellectual disability receive a Commonwealth Government Disability Support Pension and may enter Commonwealth Government funded employment programs or State Government funded community activity programs. This paper compares the cost to government of Jobsupport (an open employment program) and the available alternatives.

Background data about Jobsupport, including satisfaction surveys of employers and people with disabilities supported by Jobsupport, is included.

Comparisons with other options show Jobsupport to be a cost effective option for government and almost revenue neutral per client for the Commonwealth Government compared to the pension after 12 months. This result has been relatively robust over time; as government funding has increased and the program has grown in size, cost per client has remained steady in real terms.

In evaluating the cost of the Jobsupport program, displacement effects have proved to be less important than had been previously believed and smaller for Jobsupport than in general labor market programs. Even when displacement differences are included, there are significant savings, including reductions in pension payments, from programs such as Jobsupport. When these savings are considered, a Jobsupport open employment program is much less expensive than State-funded Post School Options activity programs.