1 Adam Sharples Director General for Employment Department for Work and Pensions 23 May 2011 Increasing Employment London’s Employment and Skills Convention 2011

2 Department for Work and Pensions Increasing employment Economic growth Making sure work pays Increasing conditionality Stronger employment support –Jobcentre Plus –Work programme

3 Department for Work and Pensions The Work Programme Unified welfare to work programme Supporting those at risk of long term unemployment Delivered by private and third sector providers To launch in June – national coverage by July Innovative features…

4 Department for Work and Pensions Payment by results Payment (£) Time on Programme Job Outcome Payment Attachment Fee Start on Programme Job Start Start of additional weeks in work Sustainment payments 26 weeks 52 weeks

5 Department for Work and Pensions Differential payments Maximum payments £0 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £400 £1,200 £2, JSA 25+ £400 £1,200 £2, JSA £400 £1,200 £5, JSA seriously disadvantaged £400 £1,200 £5, JSA Ex-IB £600 £1,200 £4, ESA Flow £600 £3,500 £9, ESA Ex-IB5. ESA £400 £1,000 £2,300 volunteers Sustainment payments Job outcome payment Attachment fee

6 Department for Work and Pensions Incentives for performance At least two competing providers in every area – three in London We will shift market share from worse to better performers …and measure performance against a ‘non intervention’ level have to exceed by 10% to keep contracts exceeding by 30% attracts bonus

7 Department for Work and Pensions Paying for results out of benefit savings 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Months Additional saving from Work Programme Cohort of customers on benefit Remaining cost of paying benefits Saving from normal off-flow without intervention

8 Department for Work and Pensions Delivery of Work Programme in London West London: Ingeus UK Ltd Maximus Employment UK Reed in Partnership 55% of supply chain in voluntary sector East London: A4E Ltd Careers Development Group Seetec 55% of supply chain in voluntary sector

9 Department for Work and Pensions London performance has been worse % of starts converted to job outcomes

10 Department for Work and Pensions Adam Sharples Director General for Employment Department for Work and Pensions 23 May 2011 Increasing Employment London’s Employment and Skills Convention 2011