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Welfare Reform Green Paper

Welfare Reform Green Paper. DWP Provision Forum Wednesday 3 rd September. Identifying the challenges…. 80% employment rate 1 million off Incapacity Benefit by 2015 Eradication of child poverty by 2020 Provide equality for disabled people by 2025.

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Welfare Reform Green Paper

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  1. Welfare Reform Green Paper DWP Provision Forum Wednesday 3rd September

  2. Identifying the challenges… • 80% employment rate • 1 million off Incapacity Benefit by 2015 • Eradication of child poverty by 2020 • Provide equality for disabled people by 2025

  3. Capability - helping people stay in and return to work Control - giving disabled people choice and control over services Contribution - modernising the benefit system Three key principles for reform… The changes proposed will be undertaken with three key principles in mind:

  4. The direction… • Support with responsibility • Personalisation • Simplification • Devolution • to individuals • to local partnerships • to providers

  5. Chapter Seven – Empowerment and devolution – a new way of delivering our services • A ‘triple devolution’ of power to individual customers, local partnerships and providers • to improve the quality and effectiveness of services by • bringing together Government programmes • giving customers increased powers to choose providers • giving providers greater freedom to innovate through a new ‘Right to Bid’ process • giving a bigger role to local partnerships in developing, monitoring and letting contracts

  6. Devolution/localisation (1) • Green Paper sets out three potential levels of devolution: • Level 1: local partners having active involvement in DWP commissioning processes. • Level 2: co-commissioning and joint investment planning. • Level 3: full joint commissioning in some areas, and devolution of some funding decisions in others.

  7. Devolution/localisation (2) • Potentially major implications for providers and commissioners. • Work underway to establish how the three tiers might operate in practice, which services comprise the ‘national spine’ and what is flexible locally. • Strong links with Integrated Employment and Skills agenda and early work on co-commissioning trials in West Midlands, Manchester, Glasgow etc.

  8. Consultation Questions on Devolution: • What would the processes around contributing to commissioning and performance management look like in a range of different partnership areas? • How might they best be managed to achieve the desired outcomes? • How could a link be made to the AME DEL proposals which seek to reward providers for outcomes out of the benefit savings they achieve? • How effective are current monitoring and evaluation arrangements for City Strategies?

  9. ‘Right to Bid’ • Green Paper restated DWP intention to implement a ‘right to bid’ process. • aim is to encourage innovative thinking from providers and other organisations about ways to tackle longstanding systemic problems. • we will build a system that is relatively simple to access, but is consistent with the legal and contracting framework in which we operate. • every serious idea will be evaluated and reasons will be given if we do not proceed. • Commitment to have a process in place by the autumn

  10. Question 26: Right to Bid • What information would providers need to make the Right to Bid effective? • How would the evaluation process need to work to give providers confidence that their ideas would be evaluated fairly and effectively? • How do we get the balance right between rewarding those who come up with new ideas and the obligation to tender projects?

  11. Multi Client Contracts • Green Paper flags Government’s interest in a single employment programme for both ESA and JSA customers. • DWP looking to pilot this – potentially in some fND Phase 2 areas – and will want to work with providers on the detail. • Huge challenges around single conditionality regime, funding models, allocation of resources, safeguards for customers etc. • potential benefits, particularly around economies of scale, simplification and rationalisation of contracts.

  12. Other relevant areas of the Green Paper • Pathways type package of personalised support for IB customers migrating to ESA • Increased back to work support for IB/ESA customers through AtW and Workstep. • AME DEL Pilots – part of the overall IB/ESA package. • ‘Work for Benefit’ proposals for Jobseekers

  13. Some additional thoughts from us • Too soon to give a definitive ‘big picture’ at this point, but there are clear implications for the market. No doubt that pace, scale and complexity of commissioning activity will increase. • Very early stages of consultation – so where next, and how best to engage with provider community and communicate that big picture as impact on contracting timelines and procurement exercises becomes clearer? • On specific measures, lots of detail to work through with you and provider community – how best to do that?

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