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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
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
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
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
the work programme customer

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
Timeline for Implementation

DWP intended timeline for implementation is as follows:

the work programme funding model
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
Management of Termination

Framework Competition

WorkProgramme Implementation Start

Work Programme Delivery

Work Programme Competition