Select Committee on Work and Pensions Appendices to the Minutes of Evidence


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


 
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