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flexible New Deal

flexible New Deal. WELCOME. Welcome. Who is here and why Plan for the day. Today - agenda. Welcome and domestics Progress in Welfare to Work Commissioning strategy/Commissioning cycle The flexible New Deal model flexible New Deal volumes Contracting strategy and walkthrough of the PQQ

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flexible New Deal

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  1. flexible New Deal

  2. WELCOME

  3. Welcome Who is here and why Plan for the day

  4. Today - agenda Welcome and domestics Progress in Welfare to Work Commissioning strategy/Commissioning cycle The flexible New Deal model flexible New Deal volumes Contracting strategy and walkthrough of the PQQ Question and answer session with panel Lunch Table sessions Close

  5. DOMESTICS

  6. Clarification Amendments to PQQ • advertisement • location

  7. A flexible New Deal

  8. Welfare to Work • Over the last 10 years - transformation of employment support: - Creation of Jobcentre Plus - New employment programmes launched - Improved work incentives • More to be done to achieve ambition of 80% employment rate

  9. Modernising help for Jobseekers • JSA & New Deal about getting people into work as quickly as possible • Focus help on those with bigger problems who stay on benefits for long periods • We’ve learnt a lot about what works and now need to rationalise current programmes, and focus resources where they are needed most

  10. Principles for Reform The flexible New Deal will: • deliver flexible, personalised help • focus on successful and sustainable outcomes; • increase rights and responsibilities the longer a person is on benefits and; • build on the strengths of suppliers in both the public sector, including Jobcentre Plus, and in the private and third sectors.

  11. The rest of today • Presentations on contracting strategy and the detailed model will follow.

  12. DWP Commissioning Strategy fND PQQ event

  13. Commissioning Strategy – the context Increasing focus on shared objectives Focus on the individual Focus on place Step change in what we deliver and step change in how we deliver We have evolved a market that is fragmented, driven by process and short-term objectives Silo mentality and dependent Performance is not where we want it to be No-one has all the answers

  14. The market we want Our relationships with providers will be more strategic and based on shared understanding of government objectives A focus on place not structures with providers taking a more strategic role We’ll increasingly link with local delivery mechanisms such as LAAs and MAAs, engaging with the City Strategy and with other joint arrangements in Scotland and Wales Smaller, specialist providers will be encouraged to flourish and develop

  15. The provision we want Programmes will be broader; there will be less segmentation of customers We will involve providers early on in our thinking when developing policy and provision We will involve strategic partners in the procurement process There will be greater flexibility in provision delivery Customers will be offered informed choices in what they get and how they get it Provision will offer personalised support DWP will spell out the capabilities and requirement of providers in a high performing supply chain.

  16. Rewards and incentives Competition will remain key – both for contracts and in contracts Payments will be based on outcomes and increasingly on sustainable job outcomes Risk/reward balance will be different We’ll take evidence of previous performance and evidence of working in partnership into account We will introduce a code of conduct describing best practice with regard to treatment of sub-contractors We will contract, inspect, manage and intervene on the basis of the provider capabilities spelled out in the strategy.

  17. Better performance Performance management not just performance measurement with providers involved as partners Transparency in performance management processes and sharing of performance information Coherent MI requirements and improved MI systems Customer experience will be key to effective delivery.

  18. The Model

  19. flexible New Deal - in practice • Flexible personalised help • Conditionality increasing over time • Accelerated entry to intensive support • Better integration of employment and skills • More use of outcome funding • Increasing time in employment - reduced recycling between benefits.

  20. The Model Jobcentre Plus Supplier Increasing Conditionality Stage 4 flexible New Deal Stage 3 The Gateway Stage 2 Directed Jobsearch Stage 1 Self Help New Customer Diagnosis 6 months 0 months 3 months Fast Track 6 months 12 months Ongoing improvements in skills

  21. The Model • Stage 3 – • The Gateway • 6 months • formal review • action plan • up to 3 mandatory • activities • skills assessment • Stage 2 – • Directed Jobsearch • 3 months • 13-week review • extended jobsearch • 20% additional • interviews • Stage 1 – • Self Help • 3 months • access to • vacancies • fortnightly • signing

  22. The model - flexible New Deal • For up to 12 months • Initial in-depth assessment • Individually tailored Action Plan • Regular contact • Continued fortnightly signing with Jobcentre Plus • Return to work support • Four week Mandatory Work-related Activity

  23. Expectations • Job outcomes • Sustained job outcomes • Appropriate support • Minimum standards for all • Strong links with employer and partners

  24. Implementation - timetable From April 2009: Jobseekers will access revised Jobcentre Plus support By October 2009: Jobseekers will be referred to suppliers for the flexible New Deal We expect those customers with existing claims to move to the new arrangements as they are introduced.

  25. Flexible New Deal Volumes

  26. Outline • Baseline flexible New Deal starts nationally • How we have baselined the fND start volumes – a two stage approach • National volumes • District breakdown • Next steps for ITT and beyond The figures presented are indicative, and should only be used as a guide to the number of jobseekers expected to start fND

  27. Baseline flexible New Deal starts See PQQ Supporting Information Annex 4 for more information.

  28. Stage 1: National volumes • Claimant count and threshold flows • Removing the existing New Deals • A revised JSA regime for all jobseekers • Gateway linking rule • Fast tracking to the Gateway • Existing jobseekers - 25+ year olds between 6 and 18 months JSA - Introduction of Employment and Support Allowance (ESA) • Removing lone parent entitlement to Income Support from when their youngest child reaches 16 years to seven years of age, from 2008 • Equalising State Pension Age (ESPA) from 2010 to 2020.

  29. Stage 2: District Breakdown

  30. Next Steps For the ITT stage • Update FND start volumes • Baseline short job and sustained employment conversion rates • What else would you like? Post-ITT and during the life of the contracts • Update the indicative FND start volumes • What else would you like?

  31. JSA and flexible New Deal Provider Briefing Event April 2008 DWP Commercial Directorate

  32. Commercial Strategy Purpose is to incentivise performance Designed to increase job outcomes and reduce costs Balance risk and reward for providers Ensure diverse supplier base

  33. Commercial Strategy – the package for Phase One Longer and larger contracts Attractive both to new entrants, and scope for existing providers to grow Contract areas larger than a JCP district, but smaller than a region Policy and commissioning reviews in contracts Funding based on outcomes.

  34. The flexible New Deal Contracting Strategy A phased approach. Introducing customer choice in the majority of areas to encourage competition between suppliers. The overall contract value will be split into a service fee and employment outcomes. The service fee will equate to 20 percent of the contract price over the life of the contract. The remainder will be paid for intermediate job outcomes and sustained job outcomes.

  35. FND job outcomes Short job outcome: In employment for a continuous period of 13 weeks – potentially in more than one job; and Sustained job outcome: In employment for at least 26 weeks during a 30 week period. Evidence – General approach is an off benefit check.

  36. The flexible New Deal Contracting Strategy DWP will enter into contracts with a single lead entity to deliver flexible New Deal in one of the following ways: direct delivery of a proportion of the provision and sub-contracting of the remaining provision to other organisations; or sub-contracting of the entire provision to other organisations; or direct delivery by a single lead entity.

  37. Support for subcontractors Vital role of voluntary and third sector /smaller providers DWP workshops delivered to support Third Sector and smaller organisations Welfare to Work convention – June 2008

  38. The Procurement Process for flexible New Deal Two-stage procurement process Pre-Qualification Questionnaire Invitation to Tender document

  39. Weighting of the PQQ Questions Responses to this PQQ will be used by the DWP to form an assessment of a bidder’s capacity and capability to deliver this service Quality assessment Financial assessment

  40. Completion of the PQQ Part One - Organisation identity Part Two – Eligibility to submit a pre-qualification questionnaire Part Three – Fraud prevention

  41. Information required in the PQQ Part Four – Organisation information

  42. Information required in the PQQ Part Five – Financial information

  43. Information required in the PQQ Part Six Contracting Strategy Part Seven Business Capability Part Eight Quality Part Nine Transfer Undertakings (Protection of Employment) (TUPE)

  44. Information required in the PQQ Part Ten – Declaration

  45. Timetable - Phase One Issue PQQ 20 March 08 Final PQQ Questions and Answers 07 May 08 Deadline for PQQ responses Noon 14 May 08 Short-listed bidders announced W/C 14 July 08 Issue ItT and supporting documentation W/C 28 July 08 Deadline for ItT responses 12 November 08 ItT clarification 12 November 08 to 30 January 09 ItT evaluation W/C 20 November 08 Announcement of Preferred bidders W/C 09 February 09 Post Tender discussions W/C 16 February 09 Contract Award W/C 13 April 09 Implementation and Transition 20 April 09 to 02 October 09 Service commencement 05 October 09

  46. IMPORTANT INFORMATION Please ensure that your response to parts 6 - 8 of the questionnaire does not exceed 12 sides of A4 There is no page limit for Parts 4 and 5. Please submit the original and signed PQQ response together with 3 paper copies, plus one electronic version on CD-ROM or USB data stick Please don’t send brochures, glossy leaflets etc as these will not be used. Please ensure that we receive your completed PQQ by Noon on 14 May.

  47. Further information Further information and Questions and Answers will be published on the Supplying DWP website: http://www.dwp.gov.uk/supplyingdwp/what_we_buy/notice_to_providers.asp Please contact us at: sheffieldmayfieldcourt.flexiblenewdeal@dwp.gsi.gov.uk

  48. Q&A to Panel

  49. Panel Senior representatives from DWP Presenters Opportunity to ask questions before lunch

  50. Next • Lunch • Chance to network • Opportunity to raise detailed questions • Question and answers process

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