DWP Commissioning Strategy Disability Employment Support: Looking Forward 25 th July 2013 Dan Ramsey Provision Performance and Controls Division, Department for Work and Pensions

2 Department for Work & Pensions DWP Commissioning – where we’ve come from Prior to the 2008 Commissioning Strategy: £1bn a year spend through 20+ programmes, contracts, 600+ providers Issues: A fragmented market Process driven Low on innovation Performance not where we wanted it to be Too much performance measurement – not enough focus on improvement Not strategic What change did we need: Freud Review (2007) A marketplace fit for welfare-to-work reform: –A focus on the individual and on tailored solutions – amongst other things –Step change in what we deliver and how we deliver –Changes in programme structure to support this

3 Department for Work & Pensions Market-wide approach Commissioning Strategy Market structure Market development and stewardship Provider capabilities Commercial strategy Performance management DWP capability Customer experience

4 Department for Work & Pensions What followed… and why look again at this now? What we got: Significant reduction in labour market programme contracts directly managed by DWP; these are delivered through a smaller core of prime providers operating with supply chains. A more dynamic welfare-to-work market: e.g. learning, consolidating, developing. Market response to Work Programme, at prime level: some new entrants, lots of more established providers, developing their approach. BUT… Five years since the last strategy: Experience from Work Programme, Work Choice, etc. Key developments in DWP strategy and delivery – Social Justice, Universal Credit. Cross-government – a number of developments, including Open Public Services, Civil Service Reform. With key commissioning challenges in the pipeline, it is time to revisit our approach.

5 Department for Work & Pensions 2013 Commissioning Strategy Where’s the focus this time? Market structure and stewardship Driving performance Working in partnership DWP Commissioning Strategy 2013 Consultation

6 Department for Work & Pensions Tensions? Outcomes for claimants/service users Strategic market oversight Capability, specialist capability Control environment Competition Collaboration Resilience Outcome-focused payment models Service levels, quality monitoring Lean, efficiency Innovation Open data Flexibility (in partnership) Co-commissioning Best Value

7 Department for Work & Pensions We’re beginning a consultation shortly… Get in touch through: