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The Work Programme. 10 June 2010, the government set out initial plans for the implementation of the Work Programme: Greater freedom for suppliers, helping people into sustained jobs;
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The Work Programme • 10 June 2010, the government set out initial plans for the implementation of the Work Programme: • Greater freedom for suppliers, helping people into sustained jobs; • Delivery partners given longer to work with individuals, and greater freedom to decide the most appropriate support; • Payment to delivery partners by results they achieve; • Stronger incentives for delivery partners to work with the harder to help; • DEL/AME Funding mechanism switch – benefits realised as a result of placing people back into work; and • Flexible New deal folded into the Work Programme as soon as possible.
The Work Programme Framework • A new contracting vehicle to deliver the Work Programme: • The Framework will cover ’11 lots’ – 9 Regions, Scotland and Wales; • Lincs and Rutland in East Midlands Region • Cambridge, Suffolk and Norfolk in East of England • DWP expect to appoint 3/8 organisations to each ‘lot’; • The Framework ‘lot’ to be organised into contract package areas; • Contracts awarded through the Framework could be between £0.3 – 3 billion per year; • Average individual contract values estimated to be £10 - £50 million per year; • The Frameworks will also be used to procure other contracting opportunities, including those funded by other Government Departments; • Evaluation of Framework PQQ responses are based on: capacity to deliver; VFM and capability to deliver.
Work Programme highlights The expected client groups for the Work Programme will be: • JSA 25+, 12 months plus unemployment, essentially the core FND customers. • JSA 18-24 age group, 6 months plus on JSA. • New Employment Support Allowance (ESA) claimants • Stock Incapacity Benefit claimants, currently there are 2.6m. • And a number of people considered at high risk of being on benefits for some time. Funding will be a mixture of: • Small up front service fees • Outcome based payments, as per FND • AME benefit savings. Replaces • FND Phase1, Employment Zones, Pathways to Work, New Deal for Disabled People, New Deal LP’s, FND Phase 2, Personalised Employment Programme, Invest to Save, Young Persons Guarantee
Employed 28.8m 72.0% 8.2m 21.5% Unemployed 2.5m 2.6m Incapacity benefits 8.0% The Work Programme Customer Inactive 0.4m Carer benefits 0.7m Income support 1.6m JSA 4.5m Inactive 5.9m Benefit claimants in UK 15.5% UK Job Vacancies @ 470,000 – Benefit Claimants East of England @ 450,000 UK Labour Market Survey April 2010
Timeline for Implementation DWP intended timeline for implementation is as follows:
The Work Programme Funding Model • While DWP are currently developing the specifics of the • provider pricing model, the intention of that model is that: • Payment should be exclusively or largely for delivering results and that payment should be made after results have been delivered; • DWP will avoid paying for customers who would have moved off benefits without help; • The price paid for job outcomes should be set to make it worthwhile for delivery partners to help each group of customers; • DWP should not specify what delivery partners can, or should do; they should have freedom to innovate; and • The price paid for job outcomes should not exceed the benefit savings that have been generated.
Management of Termination Framework Competition WorkProgramme Implementation Start Work Programme Delivery Work Programme Competition
