1 Department for Work and Pensions Pat Russell 22 May 2012 Troubled Families

2 Department for Work and Pensions What is the Troubled Families programme? The Prime Minister has committed to turn around the lives of 120,000 troubled families by the end of this Parliament The budget for the TF programme is £448 million, identified from a number of Government Departments The programme is a DCLG programme with other departments, e.g. DWP, DfE and MoJ, working collaboratively with local authorities

3 Department for Work and Pensions Why do this? Government is spending approximately £9 billion per year on troubled families £8 billion of this is spent purely reacting to the needs of, and problems caused by, these troubled families Only approximately £1billion per year is spent on targeted interventions The programme is a major domestic priority for the Prime Minister

4 Department for Work and Pensions How will it work? The programme will deliver interventions for troubled families identified by local authorities Funding will be made available to 152 local authorities on a payment-by-results basis DCLG will develop a network of troubled families co- ordinators across England – each one dedicated to the programme in each Local Authority

5 Department for Work and Pensions What will success look like? Reduction in crime and anti-social behaviour Children back in school Parents back in work or progress to work Big cuts in costs for the state

6 Department for Work and Pensions How do we expect Local Authorities and DWP to work together DWP is to play a major role in helping local authorities identify its troubled families To do this, DWP will shortly commence a major data sharing exercise with local authorities. We will be sharing data on adults who are out of work DWP has two legal gateways to do this – section 72 of the Welfare Reform and Pensions Act 1999 (interim position) and new regulations in the Welfare Reform Act 2012 (section 131), due to come into force July 2 DWP will also have in place a Memorandum of Understanding with the local authorities to ensure compliance with the safeguarding of data

7 Department for Work and Pensions How does the DWP ESF provision fit in? From December 2011, the DWP ESF provision for families with multiple problems went live £200m of funding made available in England to help these families move closer to the labour market and back into work The ESF provision is one part of the support that will be available within wider Troubled Families Programme

8 Department for Work and Pensions What will the ESF provision look like? Family focused to address family and individual barriers to work Part-time for all participants Tailored and flexible support In-depth assessments Agreed individual Action Plan Links to other support Post-employment support

9 Department for Work and Pensions Eligibility for ESF Multi-generational workless families with multiple problems, i.e. troubled families Family members must be aged 16 or over At start of the provision at least one member of family must be on a DWP working age benefit. This family member passports all other eligible family members Either no one in the family is working or there is a history of worklessness across generations Family members who are working more than 16 hours a week will not be eligible

10 Department for Work and Pensions What are the principles behind the payment model? Payment model focuses on giving incentives to providers by rewarding outcomes: progress measure payment job outcome payment

11 Department for Work and Pensions How will the ESF payment model work? 30% of the contract value has been fixed for job outcomes; the remaining proportion will be paid for achieving progress measures for the majority of individuals joining provision Progress measures payment is payable for each individual after 26 weeks on provision and when they have successfully completed three contracted progress measures Job outcome payment is payable for each individual who completes a continuous period of employment: - 26 weeks out of 30 for JSA claimants; and - 13 weeks for all other individuals.

12 Department for Work and Pensions How do we want LAs and providers work together? LAs will be responsible for identifying and informing families with multiple problems about the availability of DWP ESF provision and identifying them to the Provider Providers and LAs will also need to agree processes for referring families with multiple problems and agree an ongoing dialogue about the needs of the family and their progress The Provider will be required to work with LAs for the duration of the programme and understand how their offer best compliments the local area set up..