Gareth Matthews, Director Wales & Chief Operating Officer

1. 3rd November 2010 Work Programme Coastal Regeneration Event Gareth Matthews, Director Wales & Chief Operating Officer

2. Talk About - The Work Programme • What it is • What’s different about it • Opportunity for Coastal Towns • Rhyl

3. Introduction • What I’m not – expert in coastal regeneration • What I am – a practitioner skilled in helping disadvantaged people back to work • Who I’m employed by – Serco, a FTSE 100 international service company • What I’m inspired by – Rhyl, Wales’ most deprived town………by the sea.

4. The Work Programme

5. Programme replaces: FND The New Deal’s Pathways Employment Zones Young Persons Guarantee 5 main customer groups: 18-24 JSA claimants (6 months +) 25+ JSA claimants (12 months +) ESA claimants ‘Stock’ Incapacity Benefit claimants Fast track i.e. ex-offenders, ex-service personnel etc Work Programme – Customer Group The first major DWP programme not driven exclusively by benefit type or customer characteristics.

6. Work Programme – Procurement Process • Tendered under a Framework Agreement • 11 Lots • Wales • Scotland • 9 x Govt Office regions in England • 3-8 Prime Contractors per Lot • Prime Contractor must be able to deliver across the Lot • Framework lasts for 4 years • Contracts for up to 7 years • Potential for other contracts to be tendered under framework The timeline

7. Structuring the Work Programme! • TIER 1 - Risk-bearing tier, with differential funding all tied to long-term employment outcomes (up to three years of sustainability?) • TIER 2 - Individual organisations, networks, or possibly consortia of frontline service delivery. • This is the existing welfare to work ‘industry’, including all Flexible New Deal, Prime Contractor New Deal, Employment Zones and Pathways to Work frontline contracts/services. It must also start to bring in new expertise and specialist interventions to address more complex needs.

8. The AME/DEL switch • AME – Annual Managed Expenditure • DEL – Departmental Expenditure Limit • DEL – approximately £10 billion, £1.1b on programmes (and under pressure) • AME – approximately £20 billion on direct benefits including JSA and IB • Traditional funding through DEL • Freud proposal switch

9. The Work Programme & Coastal Towns • Large scale contracts - may detract from localism • Black Box Design - potential to shape delivery to create local solutions • Work First and Human Capital Development Model • Recognising some people are work ready, even though long-term unemployed, with personal support designed to move them quickly into work • Providing active and positive engagement to people with the most serious barriers to work, helping them into sustainable work over time • Differentiated payments - its design will prevent creaming and parking or drive it

10. The Work Programme & Coastal Towns • Stakeholder Influence - ensuring the design of the WP help drives both economic and social cohesion • Extract from DWP Working Paper 83…………… Margate Central has a disproportionate number of young residents, many of whom have settled there after leaving care. Many former guest houses and hotels in the ward have been converted to low rent studio flats and bedsits, and many young residentsliving in this increasingly poor quality accommodation face multiple barriers to employment. Many have mental health issues, substance dependency problems, and criminal records. • Supply Chains: • building on existing networks and strategies • Recognising the challenge of long-term job sustainability requires new service providers

11. What will this mean for Rhyl • From a Serco perspective: • Working with local stakeholders to ensure the development of local solutions and local accountability • Maintaining and adding to our Network of Local Providers – improving service cohesion • Integrating the Work Programme with regeneration (North Wales Coast), driving change to align investments in skills (WAG) and employability (DWP) and justice (MOJ) • Influencing recruitment strategies – creation of social recruitment vehicles • Creating jobs locally – support of enterprise and direct employment • Continue to win hearts and minds with the occasional kick

12. 16 – 18 Edward Henry Street