The Work Programme Junior Johnson DWP Head Of Work Programmes

What going to cover Context Work Programme Performance Commissioning Strategy What will follow the Work Programme

The wider impact of what we do…. it matters!

The Work Programme The Work Programme is delivered through 40 contracts held by 18 Private, Public and Voluntary and Community Sector organisations. By the end of 2012-13 the Work Programme was supporting 1.2 million people Work Programme providers (which some of you in this room represent) - using their experience and creativity - have complete flexibility and freedom to innovate and to design support that addresses the needs of the individual and the local labour market - a ‘black box’ approach This allows for the greater personalisation of support which is essential, because the Work Programme covers a far broader range of claimants than under previous programmes. With the Work Programme claimants do not find themselves ineligible for appropriate support, simply on the basis of the benefit they are claiming. The support they receive is instead based on their individual needs.

Work Programme Performance Statistics The latest performance figures released in June show the Work Programme has significantly improved. More people who are being helped by the Work Programme, are moving off benefit and into work, and providers are keeping them in sustained employment. The numbers of people finding lasting work – at least six months for most people or three months for the hardest to help – has risen from 9,000 in March 2012 to 132,000 in March 2013. Next stats release is on 26 September 2013. More than 130,000 jobseekers have escaped long-term unemployment and found lasting work thanks to the Work Programme, according to the statistics published on 27 June. Those statistics showed that the numbers of people finding lasting work – at least six months for most people, or three months for the hardest to help – has soared from 9,000 in March 2012 to 132,000 in March 2013. The figures demonstrate the growing success of the scheme, with all jobs achieved before people had completed the full two years on the programme. Many had received help for only a matter of months. The success of the scheme is specifically measured on those who find sustained work and so the June figures only count those who have been in work for long periods – six months in most cases, or three months for the hardest to help. Figures published by the industry last week showed that so far 321,000 people have gone into work through the Work Programme. The June figures also reveal that 488,000 people – 62 per cent – of those who joined the scheme in its first 12 months have spent at least some time off benefits. The next statistical release (26 September) as well as showing those who have moved into work will show the amount of people who have spent two years on the programme and have now moved back to get help from Jobcentre Plus.

Market Share Shift PIN’s The Department is determined to drive up performance to support as many people into sustained work as possible,  to deliver best value to the taxpayer, and will use all the contractual means available to do so. The Department has reviewed market shares, based on performance delivered during the 12 months ending 31 March 2013, and adjusted shares accordingly from August 2013. This equates to 5 percent of the referrals to the Work Programme in an affected Contract Package Area being diverted from the lower performing provider to the higher performing provider. The August start allowed sufficient time for the technical changes needed to effect the shift. Moving more referrals to the better-performing provider in an area clearly increases the proportion of people likely to gain employment, whilst giving the poorer-performer some breathing space (through lower referrals) and a strong incentive to improve. It is up to providers to ensure they have the resources in place to handle increased referrals and maintain service standards. Details on the providers affected by the market share shift will be published on the Work Programme page of the DWP website on 26 September 2013 Contract termination remains an option available to the Department should a provider fail to improve sufficiently. PINs 12 Work Programme Contracts (10 Providers) failed to meet both of the Year 2 Minimum Performance Levels (MPL's) for Payment Group 1 - 18-24 customer group; and Payment Group 2 25+ customer group; and were issued with a Performance Improvement Notices (PIN) on 28 May. Specific Performance Levels were set in the PIN at 39% for PG1 and 31% for PG2. Performance Levels in the PIN must be met as at 321 October 2013 and are calculated in respect of performance during the 12 month period from November 12 to October 2013.

Partnership Working Engagement with local partners is critical Providers are encouraged to work with local partners at all levels Work Programme prime providers have made good progress in building up supply chains. They have engaged with local partners and worked with a broad range of subcontractors The Best Practice Group Engagement with local partners is critical to the delivery of employment outcomes and in securing improvement to employment services. Providers have considerable scope to deliver innovative services that best meet local needs; and are encouraged to work with local partners at all levels Over all Work Programme prime providers have made good progress in building up supply chains and tapping into the experience, knowledge and specialist skills of local partners. In the first two years of the Work Programme they have engaged with local partners and worked with a broad range of subcontractors to deliver the tailored, targeted support that has helped individuals from all claimant groups into work. These supply chains have continued to evolve as providers build up their networks identifying innovative approaches to supporting individuals. The Best Practice Group was launched by the Department in April this year. Its objective is to help organisations delivering the Work Programme to find the best ways to help tens of thousands of former incapacity benefit claimants, people claiming ESA, ex-offenders and other harder to help claimants overcome issues which are stopping them from getting a job. The group is chaired independently by Andrew Sells. Andrew has extensive experience in finance and business and is a trustee at Policy Exchange. The group will develop a framework so that all of these harder to help claimants can all benefit from as much expertise as possible.

Review of the Commissioning Strategy The Department is currently embarking on a process of review and revision of our Commissioning Strategy. The strategy will set out the principles underpinning our approach to commissioning welfare to work services. Consultation will be a key feature. DWP’s key partners and stakeholders have the opportunity to input their views, experience and expertise up to 27 September - the end of the consultation period.  Website link for the consultation is: https://www.gov.uk/government/consultations/dwp-commissioning-strategy-2013 You will be interested to learn that the Department is currently embarking on a process of review and revision of our Commissioning Strategy, taking account of good practice and key developments in DWP and broader government strategy. The strategy will set out the principles underpinning our approach to commissioning welfare to work services, and will inform what follows the Employment Related Support Services framework.  We are looking at three key areas: Market structure and stewardship Driving performance Working in partmership Consultation will be a key feature of the production of the new strategy – DWP’s key partners and stakeholders have the opportunity to input their views, experience and expertise during the consultation exercise..  If haven’t commented on the review of the commisioning strategy and would like to do so go to the the DWP Commisioning Strategy website and, following the prompts and information given. The Department would welcome your views The commisioning strategy will end in November/December 2013 when the results will be published. The results will be a driver for a revision of the Departments commisioning framework which ends in November next year. We haven't finalised the strategy yet; we want a genuine consultation to help us and until that consulation has finished we can’t provide a highly detailed blueprint of how the strategy will look.

Future Developments The term Work Programme 2 has been used. It is too early to say what form a successor to the Work Programme will look like. The Department will look at the lessons learnt from the Work Programme. The Departments strategy on a successor will be published later in the financial year. We must remember that the Work Programme is still running and we are only into year three of a five year programme. We haven’t as yet had the full results from the Work Programme and we will have to look at these along with analysis of the lessons learnt. One area we will be looking at the how best to deliver welfare to work provision, for example is a move to localism and local partners a way forward. We will be looking at the contracts, can we make them better, for example some elements of the current contracts have led to concerns about hands being tied in some areas of welfare delivery. An area that we will look at in the successor to the Work Programme that is especially pertinent to Scotland is rural areas which have a low population density and ensuring they receive parity of service. Link this back to the commissioning strategy and encourage comment.