APPENDIX 8
Memorandum submitted by the Royal British
Legion Industries (EDP 12)
THE NEW DEAL FOR DISABLED PEOPLE (NDDP)
SUMMARY OF
SUBMISSION
1. Introduction
Royal British Legion Industries (RBLI) is a
leading contractor within the WORKSTEP programme and operates
a number of other programmes including New Deal for Disabled People.
RBLI fully supports the objectives of assisting disabled people
back to work and is committed to providing a quality service.
2. Flaw in funding basis
Although the principles of the NDDP programme
are sound, the basis of funding is flawed. No recognition is allowed
for working with and preparing disabled people for job readiness,
as funding is almost entirely linked to job outcomes. The consequence
is that the costs of initial resourcing are borne entirely by
the contractor rather than shared by Jobcentre Plus.
3. Level of registrations
The position is worsened by the fact that only
a fraction of anticipated registrations are being achieved. It
is now known that this was also the case in the initial pilot
areas, despite substantial resources being seconded to the pilots
from Jobcentre Plus.
4. Lack of financial viability
The result is that contractors have incurred
substantial losses and cannot continue to do this. The programme
as it stands is not financially viable.
5. Re-balancing of funding
It is essential that the basis of funding is
adjusted to provide a more even distribution of funds between
the initial stage of registration, the support and preparation
stage and the final stage of placing candidates in employment.
It is also important to recognise that the cost of achieving part
time outcomes is the same as for full time outcomes.
6. Future success
The future success of the programme will be
dependent on quality contractors resourcing the programme effectively.
To do this they must be recompensed adequately and appropriately.
DETAILED SUBMISSION
1. Introduction
Royal British Legion Industries (RBLI) is a
leading employer of disabled people and has been a contractor
within the Supported Employment Programme for over 20 years. RBLI's
current WORKSTEP Contract is for 440 places covering the South
East and North East of England. RBLI also operates a number of
other Jobcentre Plus programmes including Work Preparation and
Short Intensive Basic Skills as well as operating specialist Vocational
Assessment and Training Centres for disabled people. RBLI has
also been the lead partner since 2001 in a contract for the delivery
of New Deal for Disabled People in Kent and is committed to provide
an effective, quality service.
2. Flaw in funding basis
Although the principles of the NDDP Programme
are sound, the basis of funding is flawed. Considerable resources
are required by contractors working with clients to understand
their abilities and aspirations, preparing them for employment
and where possible finding a suitable and sustainable job opportunity
for them in due course. However, funding is entirely linked to
job outcomes and makes no allowance for the extensive up front
work required to achieve successful outcomes.
3. Level of registrations
The position is worsened by the fact that only
a fraction of registrations originally anticipated are actually
being achieved. This can be seen in the published figures for
the national uptake to June 2002. Indeed, it is now known that
registrations from the original pilots carried out in Brighton
and Hove and Newham were less than a third of the registrations
originally anticipated. It should be noted that substantial resources
were seconded from Jobcentre Plus to the original pilots, but
despite these resource the outcomes were only a small percentage
of the original targets.
4. Lack of financial viability
With the current contracts no resources are
provided by Jobcentre Plus leaving the contractor to fund the
extensive work required with clients. This has resulted in substantial
losses for contractors involved in NDDP. The programme as it stands
is not financially viable and contractors will be unable to continue
with the programme unless this fundamental issue is resolved.
5. Re-balancing of funding
It is essential that the basis of funding is
adjusted to provide a more even distribution of funds between:
the initial stage of registration;
the support and preparation stage;
the final stage of placing a proportion
of candidates in employment.
A new funding band for support and preparation
is required together with an increase in the registration fee.
It is also important that funding for part-time outcomes should
be the same as for full time outcomes as the work involved is
exactly the same for both.
6. Future success
The future success of the programme will be
dependent on quality contractors resourcing the programme effectively.
For this to be achievable, adequate and appropriate funding must
be put in place with up front resourcing matched by up front funding.
John Quinn
Chief Executive
3 January 2003
|