Select Committee on Public Accounts Sixth Report


2  Tackling the variable quality of provision

10. The programmes to help disabled people find and retain work are managed by Jobcentre Plus and contracted out to approximately 500 providers in the public, private and voluntary sectors.[26] Disability Employment Advisors within Jobcentre Plus offices have an important role in finding suitable support that meets the needs of their clients, and they therefore need to be able to rely upon the providers in their area to deliver good quality services. Careful monitoring of providers' activity is essential if the Department is to deliver quality assistance.

11. Workstep is aimed at those disabled people furthest from obtaining work and who need higher levels of support. There are more than 200 providers of Workstep, some of whom have very few clients and have poor records of helping people to get into or remain in employment. Some programmes include a number of clients remaining from the older supported employment programmes and they are unlikely to match the progress achieved by providers who specialise in clients who are less institutionalised. Nevertheless, there remains the need for a careful examination of the service that is being provided and consideration of whether poorer performers are delivering an adequate service.

12. Between 2002 and 2005 the Adult Learning Inspectorate, which has a remit to inspect Workstep providers, reported that the educational and training element of over 50% of Workstep places was 'unsatisfactory'.[27] The review is based on an annual self-assessment report that inspectors use to inform their judgement about the effectiveness of the provider. The Department advised that its Workstep contract management and the Adult Learning Inspectorate Provider Development Unit worked with those providers judged unsatisfactory to help them improve. Later inspections showed an improvement in performance, with 93% of those re-inspected shown to be satisfactory or better. The Department said that since Workstep became subject to inspections in 2002, 37 providers (25%) have withdrawn in agreement with Jobcentre Plus. Of the contracts withdrawn, eight related to an impending inspection or were the result of the inspection.[28]

13. The New Deal for Disabled People is aimed at disabled people who are closer to being able to work and who typically need less assistance and support than those eligible for Workstep. In 2004-05, 97,800 people were participating. Contracts for New Deal for Disabled People are all negotiated with each individual provider and the availability of certain types of assistance varies across the country. Limited numbers of providers in some areas may lead the Department to accept poorer quality than it would in a more competitive market.

14. Providers of the New Deal for Disabled People may be deliberately picking people who are easier to help, at the expense of the more difficult to help.[29] The contract for New Deal for Disabled People specifies that providers must accept all self-referred people who are eligible. However, such a stipulation does not preclude subtle encouragement to the easiest to place and discouragement of those who would require more effort. The Department is aware of the issue and reported that it has altered contract incentives to help alleviate the problem.[30]

15. Although Jobcentre Plus has quality monitoring arrangements in place, limited resources meant that its inspections of providers were not always undertaken according to plan.[31] With more than 500 providers there will never be sufficient resources to undertake all the necessary quality and performance monitoring, which is an additional justification for the Department giving consideration to reducing the number of organisations involved. There does however need to be sufficient provision, particularly in areas with limited number of suppliers.

16. Jobcentre Plus is undertaking an overall review of labour market programmes, looking at more efficient models of delivery.[32] It has significantly reduced the number of providers already and indicated that it will move toward a prime contracting model, whereby smaller organisations deliver for a main contractor. This model should reduce the cost of administration and improve the Department's ability to monitor quality, while maintaining access to the smaller specialist providers that cater for smaller sub-sets of the disabled population.[33]

17. The Comptroller and Auditor General's Report found that the level of service received by disabled people varied across the country.[34] The Department is making positive steps to provide a more consistent service. It has professionalised its disability employment advisory service in the new Jobcentre Plus offices and has revised the learning and development opportunities for the Disability Employment Advisers.[35]


26   C&AG's Report, para 5 Back

27   ibid, para 3.13 Back

28   Qq 17, 104-106; Ev 3 Back

29   C&AG's Report, para 2.13; Qq 18, 31 Back

30   Qq 19-21, 97 Back

31   C&AG's Report, paras 3.10-3.12 Back

32   Q 16 Back

33   Q 17 Back

34   C&AG's Report, paras 3.2-3.8 Back

35   Q 60 Back


 
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