Management and Administration of Contracted Employment Programmes - Work and Pensions Committee Contents


Memorandum submitted by the National Autistic Society (EP 10)

  The National Autistic Society welcomes the opportunity to submit evidence to the Work and Pensions Select Committee inquiry into the management and administration of contracted employment programmes. The NAS believes that the Department for Work and Pensions needs to:

    — Develop a customer charter that ensures that individuals are aware of their rights to employment support.

    — Work to ensure that prime providers are supporting all of their clients not just those closest to work.

    — Ensure that the use of large prime contracts does not undermine customer choice.

    — Do more to monitor the relationship between prime and sub contractors.

    — Carry out a more thorough Disability Equality Impact Assessment for the new Work Choice programme.

ABOUT US

  1.  The National Autistic Society (NAS) is the UK's leading charity for people affected by autism. We were founded in 1962, by a group of parents who were passionate about ensuring a better future for their children. Today we have over 18,000 members, 80 branches and provide a wide range of advice, information, support and specialist services to 100,000 people each year, including a welfare rights helpline and Prospects, the NAS' specialist employment service for people with autism. A local charity with a national presence, we campaign and lobby for lasting positive change for people affected by autism.

ABOUT AUTISM[45]

  2.  Autism is a lifelong developmental disability that affects how a person communicates with, and relates to, other people. It also affects how they make sense of the world around them. It is a spectrum condition, which means that, while all people with autism share certain difficulties, their condition will affect them in different ways. It affects around one in every 100 people. Some people with autism are able to live relatively independent lives but others may need a lifetime of specialist support.

  3.  Asperger syndrome is a form of autism. People with Asperger syndrome are often of average or above average intelligence. They have fewer problems with speech but may still have difficulties with understanding and processing language.

AUTISM AND EMPLOYMENT

  4.  Currently, only 15% of adults with autism are in full time employment[46] but many want to work and have a lot to offer employers. However, people with autism face many challenges in applying for work and in the workplace itself. People with autism often need long term, specialist support to overcome the communication barriers associated with autism and find work.

  5.  With the right support, people with autism can thrive in the workplace. The NAS' employment service, Prospects, is a specialist service supporting people who have autism into mainstream jobs. They have a very successful record of helping people find and retain work. Between 1995 and 2003, 67% of the clients they supported found work. Furthermore, 70% of the pilot scheme's beneficiaries from 1995-97 were still in employment in 2003.[47]

CONTEXT

  6.  We do not believe that the only way to deliver employment support is through the prime provider model and we would prefer the DWP to continue to contract directly with all providers. By retaining direct control of all contracts the DWP could ensure that prices reflect the real costs of supporting those facing the greatest barriers into work, that provision is fairly distributed across both rural and urban areas and that support is delivered to all client groups.

  7.  Furthermore, in the case of Work Choice, the rationale for moving to provision based around prime providers is that people have multiple and complex needs and that services focused on just one of these needs fail to provide all the support necessary for the individual to move into work. However, the reality of the intended prime-sub relationship is that people will continue to receive support according to their impairment and there will just be an extra layer of administration put into place before this happens.

RESPONSE

Will the customer charter proposed by DWP ensure that customers, Jobcentre Plus and contractors know what they can expect of employment programmes?

  8.  The DWP customer charter should clearly identify the rights of those accessing employment services and the value of such a charter has been recognised by the (then) Secretary of State for Work and Pensions (James Purnell) and we also welcome the recognition of the importance of a customer charter by the Work and Pensions Select Committee.[48]

  9.  The customer charter recently developed by the DWP does set out some of the rights and responsibilities of individuals accessing Jobcentre Plus services. However, we feel more needs to be done to make people aware of the support available and also to ensure that people understand the full implications of the sanctions regime.

Will contract management in the prime contractor model be transparent and effective in monitoring quality throughout the supply chain, and in maintaining a role for sub-contractors?

  10.  Many people with autism have high support needs and it can therefore cost more to support them into work relative to other clients. With private providers delivering the majority of contracts we are concerned that the focus on profit will result in the neglect of those who may cost more to support.

  11.  Again, we welcome the Work and Pensions Select Committee's recognition that under the current payment structure "parking" and "creaming" are a real risk.[49] To address this it is crucial that there is rigorous monitoring of prime contractors and this must include different impairment groups in order to ensure that DWP employment programmes are working for and being accessed by all disabled people and that individuals are not being "parked".

  12.  Furthermore, whilst many prime providers rely on specialist sub contractors to deliver support to those with more complex needs we are concerned that the price offered will lead to specialist providers being forced to either deliver support at a loss or leave the market. These concerns are based on the fact that those prime providers motivated by profit will bid for the contract using costings based on the profit margin that would occur through supporting the minimum number of clients into work. Again, the profit motive implies that these would be those clients easiest to support as they have less expensive support needs and are more likely to produce quick returns for the prime. Therefore, by the time the prime provider approaches the sub contractor to deliver more specialist support there is not enough money in their budget to enable them to offer specialist providers, who do not have the benefits of economies of scale, a realistic price for this support.

  13.  The reality of the threat posed by the prime contractor model to smaller, non-profit providers is demonstrated by the experience of New York City where the introduction of the prime contracting model saw the loss of many of these smaller organisations.[50] Many of these smaller, specialist providers are charities who cannot afford to make a loss.

  14.  Altogether, this will have a negative impact on those clients who need more intensive support and also risks a loss of specialist knowledge and support from the employment programme market.

ADDITIONAL CONCERNS

Customer choice

  15.  We are concerned that the use of large, regional contracts to provide DWP employment programmes will severely limit customer choice. Although the DWP is committed to rating providers, this information will be of little use unless customers are able to choose alternative provision.

Code of Conduct

  16.  Without tighter monitoring of the relationship between prime contractors and subcontractors, those with the most complex needs are likely to miss out on specialist support. If prime providers are to successfully engage with sub contractors it is important that there is a strong Code of Conduct governing this relationship. It is also vital that there is independent adjudication available for when disputes between prime providers and subcontractors arise. The Merlin Standard has the potential to address this and it is vital that it introduces tighter regulation of the prime-sub relationship.

Disability Equality Impact Assessment for Work Choice

  17.  The DWP are currently issuing contracts for Work Choice, the employment programme to replace Workstep and Work Preparation. We are worried that the current disability equality impact assessment, contained within the impact assessment of "Raising expectations and increasing support—reforming welfare for the future", does not adequately address the impact of Work Choice on different groups of disabled people.

  18.  The current disability equality impact assessment is as follows:

    Re-shaping and providing additional funding for the successor to WORKSTEP and other specialist disability employment programmes

    692.  There is a risk that a better resourced and reformed programme does not target the support it provides at groups of disabled people with the greatest need for the support it provides. Around 8 per cent and 36 per cent of customers on WORKSTEP are people whose disability is, respectively, poor mental health or a learning disability. Both groups are disadvantaged by particularly poor work opportunities.

    693.  The new programme, which was consulted on earlier this year, will be less prescriptive and more flexible than current arrangements, with a greater focus on those who need specialist support. Our proposals help to promote equality through incorporating improved progression to unsupported employment and a greater focus on job entries for customers who reach the stage at which they could work without support.

    694.  The Department has recently commissioned A Baseline Survey of WORKSTEP customers which will encompass a quantitative and qualitative survey. The fieldwork is due to take place in the first half of 2009 and is due to report in late summer 2009. The results of this survey will form a baseline for a future evaluation of our reformed programme. We are committed to producing a full evaluation strategy for the new programme by early 2010, in time for implementation when the new programme is introduced.

  19.  Given the extent of these reforms and their potential impact on people with autism we feel that the existing disability equality impact assessment is inadequate and a more comprehensive assessment needs to be carried out.

October 2009












45   The term autism is used throughout this document to refer to all people on the autism spectrum including Kanner autism, Asperger Syndrome and high functioning autism. Back

46   Rosenblatt, M. (2008) I Exist. National Autistic Society Back

47   Howlin P, Alcock J, Burkin C, "An 8 year follow-up of a specialist support employment service for high-ability adults with autism or Asperger syndrome" in Autism 9(5) (2005). Back

48   DWP's Commissioning Strategy and the Flexible New Deal, Work and Pensions Committee Report, 5 March 2009, para 169. Back

49   DWP's Commissioning Strategy and the Flexible New Deal, Work and Pensions Committee Report, 5 March 2009, para 118. Back

50   Finn, D. (2009) The welfare market and the flexible New Deal: lessons from other countries. Local Economy, 24 (1). Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2010
Prepared 18 March 2010