Feb 2 2010

The Work Programme and LSEN's role in ensuring that Third Sector learning providers in Manchester gain sub contracts in the latest Welfare to Work initiative  

The Coalition Government sees the Voluntary Community & Faith (VCF) Sector as being instrumental in delivering public services offering a local response to local needs.

Following the procurement process for The Work Programme a network of ‘preferred providers’ was published. Delivery of the programme is scheduled to start in the summer 2011.

The Work Programme will be a framework for a collection of programmes which will apply to all major benefits including: Jobseekers’ Allowance, Incapacity Benefit, Employment & Support Allowance and Income Support. The Programme replaces recent contracts such as Flexible New Deal, Future Jobs Fund and Community Task Force. The Work Programme will cover all unemployed people and will include personalised ‘return to work’ plans and participation will become a condition of benefit payments.

The Programme – and how it will work

Across the UK there will be 11 “Lots” of which the North West region is 1 Lot. It is expected that 3 – 8 prime contractors will be selected for each Lot. Only those Prime Contractors will be able to bid for contracts, which may cover whole ‘Lot’ areas or smaller areas within a Lot.

Individual contracts are expected to be valued between £10 - 50 million per annum with many long term contracts possibly running up to 7 years.

The payment structure will create a balance between up front financing of providers and rewards for positive results. Payment will also be based on the complexity of claimant need.

Contracting

The LSEN recognises that a significant number of its member organisations provide employment support and operate in the welfare to work market and we want to make sure that LSEN members play a part in the delivery of the Work Programme.

Existing Prime Contractors are already coming together to form consortia and the LSEN are working with the following sub-regional counterparts

www.volamerseyside.org.uk/, Learning Together Cheshire and Warrington, GMCVO, Lancashire Learning Consortium, Cumbria CVS plus Voluntary Sector North West, Merseyside Network for Europe and North West Network as leads for North West SPV Ltd, the new North West Regional Third Sector Special Purpose Vehicle (consortium) to negotiate with potential prime contractors to help position the sector within the emerging framework.

The LSEN are one of the founding members of NW SPV Ltd and Walt Crowson, the LSEN Co-ordinator, sits on the board. We would urge all LSEN members that have not already done so, to apply to join NW SPV Ltd.

Summary of the Work and Pensions Select Committee session with the Work and Pensions Secretary

Extract from the ERSA summary of the Work and Pensions Select Committee's evidence session with Iain Duncan Smith

Please see full summary below, however the main points regarding the Work Programme are as follows:

•The Work Programme cannot be a net expense [to the public purse]
•There will be outcome based payments and providers will be paid as people stay in work for sustained periods, for example “3 months, 6 months, 9 months, 12 months”
•IDS stressed the importance of localism – Providers must be well integrated into the local environment with local businesses.  Primes need to be locked in at a local level through their supply chains
•DWP is looking at provision for primes to include SMEs and the voluntary sector within the Work Programme spec
•IDS does not want major primes to push down the risk [through the supply chain] to those who cannot sustain it.
•Work Programme contracts will offer enough of an incentive for the Prime Contractor as a business, with savings for the taxpayer and cash flow for all those in the supply chain
 

The Work Programme

Employment has increased by 286,000 this quarter, the biggest quarterly  increase since 1989 and in response to questions about regional differentiation, the spread of new jobs has been quite good across the country.  Also the number of vacancies stands at 470,000 and these are well spread around the country. Unemployment is down by 8,000 and claimant count has increased by 2,300.

A question was asked about unemployment and the impact of public sector job cuts in particular areas of the country and how this might impact on the success of the work programme. IDS commented that his role is not to create jobs and that this is for the private sector. The Work Programme is about getting people ready for work and supporting them to be able to take work offered There was some discussion about skills shortages and hard to fill vacancies and IDS replied that many of the jobs available now are lower skilled. The main difficulty is getting people to take jobs and he quoted a case with two employers in Merthyr Tydfill who were offering jobs and unable to fill vacancies despite this being an area of deprivation.  It suggests that people just didn’t want the jobs and rather than making any moral judgement the coalition government must address this through reform.

Leigh Lewis reminded the committee of the work trial programme and this is continuing, and the Work Programme will ensure that people are ready to go to work and with local providers delivering the work programme, they should be able to reassure business/employers that their candidates are ready to work and will make good employees.

There was some questioning over the DEL/AME switch. The purpose of the programme is to get more people into work and achieve savings. There will be an element of spend to save and the work programme cannot be a net expense. Advanced modelling is underway and the role of JCP is integral to that as the workforce of government able to get the majority of unemployed people back to work. There was some discussion about the value for money of JCP and whether this was greater than the private sector.  IDS stressed the need for a balanced approach through a  mixed economy and that the work programme would call on the expertise of JCP and then for harder to help customers the private and voluntary sector. There will be outcome based payments and providers will be paid as people stay in work for sustained periods, for example  3 months, 6 months, 9 months, 12 months.

IDS stressed on a number of occasions the importance of localism. That providers offering the Work Programme will be well integrated into the local environment with local businesses and that large primes taking on the overall contract will need to ensure they are locked in to that local level through their supply chains.

Further discussion about the supply chain and how small companies and voluntary organisations can be protected – IDS said that whilst those with the capacity to contract may be the very largest private companies ( so called major primes)  there is on-going dialogue with the third sector on developing consortia to bid  and DWP is looking at provision for primes to include SMEs and the voluntary sector. There was also a question about differential payments and outcome payments and how these will be passed to the supply chain. IDS stated that the department is working on ensuring that the WP contracts offer enough of an incentive for the Prime Contractor as a business with savings for the taxpayer and  cash flow for all those in the supply chain

Leigh Lewis then spoke about the Merlin Standard which will monitor supply chains.

There was  also a further question about managing risk and IDS stated that he did not want major primes to push down the risk to those who cannot sustain it. Leigh Lewis commented that management of risk and assurances and arrangements for the supply chain will be a criteria for selection of major Primes

Latest Reports from ippr on the Work Programme 

The Institute for Public Policy Research (ippr) is the UK’s leading progressive think tank, producing cutting-edge research and innovative policy ideas for a just, democratic and sustainable world.

The Secretary of State Iain Duncan Smith’s plans to reform the benefits system to ‘make work pay’ come at a time of unprecedented pressure to cut the benefits bill and reduce departmental expenditure. This means some tough trade-offs which will test the Coalition Government’s commitment to their stated goals for the Department of Work and Pensions (DWP) – to improve quality of life for the worst-off and remove the barriers to social mobility.

This report examines what changes are needed for a fairer, more progressive and citizen-centred welfare-to-work system. Although the disincentive to work created by the benefits system is a key barrier, ippr argue that the period of weak employment growth we face in the UK over the next few years is as great a challenge.

The labour market is precariously poised as the Coalition government’s austerity measures are set to hit. According to Office for Budget Responsibility (OBR) projections, unemployment will not return to pre-recession levels until 2015 or beyond. With public sector job losses of over 600,000 predicted and private sector job growth not expected to come quickly enough to fill the gap, OBR forecasts show employment in the UK is likely to stay close to its current levels until 2013.

However, as well as uncertainty, now is a time of opportunity: ippr urge the Coalition Government to think more radically about root-and-branch reform of the welfare system.

Based on findings from ippr’s innovative Now It’s Personal action research project ippr argue for:

A radically devolved, localised welfare-to-work system
A greater alignment of welfare-to-work policies with the needs of employers, including a greater emphasis on enterprise through sector-focused skills training and ‘supported’ employment
A more innovative and fluid sub-contracting market in the Work Programme.

The findings that ippr present are based on a programme of action research in conjunction with organisations working at the coalface in the field of welfare-to-work and skills. We have worked closely with eight partners in the public, private and voluntary sectors to identify and evaluate successful practice. Through extensive interviews with employment advisers and those they serve, they have built up a comprehensive picture of the ‘customer journey’ for a range of unemployed workers. These findings have in turn influenced and enriched their policy analysis of areas for reform.

The report and it's executive summary can be accessed by following the links - Now Its Personal Landscape of Welfare to Work and the Now Its Personal New landscape Executive Summary

Ippr have also produced a report with the Joseph Rowntree Foundation which looks at widening economic opportunities for people from deprived communities, this is the final report of a major programme of work undertaken by ippr north, the Joseph Rowntree Foundation and The Northern Way.

The programme sets out to understand why some deprived areas within city regions in the North of England have prospered whilst others have remained deprived even when the surrounding economy was performing strongly; to explore how deprived areas can be better linked to areas of economic opportunity; to consider the roles of local, sub-national and national bodies; and to inform a new generation of policies targeted at deprived neighbourhoods. Click to download a copy of Rebalancing Local Economies - Widening Economic Opportunities for People from Deprived Communities - Oct

G4S holds first online event

As the Work Programme begins to take shape, G4S continued its consultative dialogue with partners by holding their first live ‘online event’. This interactive session gave organisations and individuals across Great Britain a chance to quiz the G4S Welfare to Work team, including Managing Director Sean Williams.

The event was scheduled to take place between 1pm and 2pm but was extended to 3:15pm in an attempt to cope with as many of the 500 questions received as possible from over 350 people. Discussion covered a range of welfare-to-work issues, including the role of subcontractors, funding for the Work Programme, regional delivery and the G4S model. It represented a new and innovative way to communicate across the industry. Participants were able not only to interact with the G4S Welfare to Work team, but to gain a better understanding of the concerns and thoughts from other stakeholders across all regions. G4S received excellent feedback both during and after the event from participants.

If you missed the online event, you can replay the whole discussion by visiting the G4S Welfare to Work website at http://www.g4swelfaretowork.com/events/default.php. G4S will also post a full list of questions and answers on the ‘FAQ’ section of the website.
The G4S Welfare to Work website will be updated shortly with details of G4S’s next live online event.

Preferred Supplier List for the Employment Related Support Services Framework

Download the full list of Preferred Suppliers for the Employment Related Support Services Framework

Work Programme Prospectus - Updated version released (November)

DWP have released an updated Work Programme Prospectus with more details of the expected contracting arrangements. The prospectus shows that 40 Work Programme contracts will be let across 18 package areas. Each individual contract is expected to fall within the range of £10-50 million per year.

It appears that the North West will be split into Merseyside, Halton, Cumbria and Lancashire, with two providers, and Greater Manchester, Cheshire and Warrington, with three providers.

For further information see: http://www.dwp.gov.uk/docs/work-prog-prospectus-v2.pdf

Click here to download the updated (November 2010) version of the Work Programme Prospectus

Work Programme Invitation to Tender

The Department for Work & Pensions released the Work Programme Invitation to Tender on 22nd December 2010, follow the links below to download a selection of the final documents for the Work Programme competition, all documents have been issued directly to those organisations on the Framework for Employment Related Services.

The Work Programme Invitation to Tender

Work Programme Question & Answer Log

If you are interested in accessing all documents related to the Work Programme ItT please see the following: http://www.dwp.gov.uk/supplying-dwp/what-we-buy/welfare-to-work-services/work-programme/

CAT (Cashflow Assessment Tool) 2

Rocket Science announced the launch of the mark 2 version of the Cashflow Assessment Tool (CAT2) which has been developed as a free tool to help sub-contractors understand the implications of offers that are made to them by Prime Contractors, bidding for the Work Programme.

This version has been adapted to reflect the requirements of the Work Programme Invitation to Tender released just before Christmas. Whilst retaining all of the original functionality this version has been enhanced allowing:

• breakdown of different client groups and variable pricing structures; and
• comparisons of offers between Primes

To download the CAT tool please visit: www.rocketsciencelab.co.uk  or for further information on the CAT2 and how Rocket Science may be able to help your organisation please contact Cherri Blissett - cherri.blissett@rocketsciencelab.co.uk

Useful Resource Documents

Merlin Standard - Promoting Supply Chain Excellence
DWP Work Club Information Leaflet