APPENDIX 22
Memorandum submitted by the National Association
for Supported Employment—South East (EDP 31)
SUMMARY
The National Association for Supported Employment
(NASE) represents Workstep and New Deal for Disabled People (NDDP)
contractors nationally, through its four regional organisations.
NASE South East, NASE South West, NASE Central and NASE Scotland.
This submission is on behalf of those members of the South East
region who have both Jobcentre plus Workstep and NDDP contracts.
Of the 32 members in the South East Region, 10 members have an
NDDP contract in addition to their Workdtep contract.
Whilst members are firmly committed to the success
of this programme, we would draw to the attention of the committee,
issues which require early resolution to ensure the full impact
of this programme results in significant numbers of people claiming
Incapacity Benefit move to secure, sustained gainful employment.
The two principle issues are discrimination of information from
pilot areas and major changes to the funding structure to ensure
a shared financial risk between Jobcentre Plus and the NDDP contractors.
LESSONS FROM
EARLIER PILOTS
Regrettably very little information was released
by Jobcentre Plus following the seven pilot projects. This information
would have been invaluable particularly at the "Invitation
to Tender" stage and again at the series of "Dissemination
of Further Information for Potential Bidders" meetings, organised
by the NDDP Project Director, which were held in January 2001.
It was never revealed that substantial numbers of additional staff
were seconded into the pilot areas thus creating a false picture
of the resources and associated costs to set up this programme.
It is interesting to note from figures published by Jobcentre
Plus in August 2002. The numbers of potential clients registering
for the programme in the pilot areas have still fallen significantly
short of the profiled numbers.
A MORE EFFECTIVE
PROGRAMME
As early as March 2002, it was becoming apparent
to NASE participating contractors that funding the necessary resources
from very little income was beginning to jeopardise the continued
participation in this programme. NASE members whether Local Authority
or Voluntary Body (Charities), could not continue to face significant
financial losses. Despite a series of networking meeting to share
"best practice", it was apparent that the funding structure
is basically flawed.
As the programme is results funded, organisations
are unable to provide the necessary "up-front" expenditure
necessary to build a experienced team of Employment Advisers which
is required for the effective delivery of this programme without
leaving the organisation with a significant financial exposure.
One NASE member showed an operating deficit in excess of £100,000,
for the year 2001-02.
A major shift in the distribution of funding
is necessary which should move funding from the sustained job-outcome
to the front end of the programme, such as production of a skills
analysis and personal development, without increasing the overall
cost of a successful placement. These views have been shared with
Jobcentre Plus at Sheffield, but whilst greeted with understanding
no action has been taken to resolve this fundamental issues.
The NASE experience is that there are large
numbers of people claiming Incapacity Benefit and who do genuinely
want to return to the labour market. Early changes to the funding
structure would achieve substantial additional into job outcomes.
David Rowlands
Chairman
7 January 2003
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