The Work Programme: Providers and contracting arrangements

Written evidence submitted by Lifelong Learning UK

1. Lifelong Learning UK, as the Sector Skills Council for employers working in welfare to work, formal and informal learning and training, career guidance, further and higher education, youth and community work, community development, and libraries, welcomes the inquiry and the opportunity to comment

2. We call on the Department of Work and Pensions to recognise that having a high quality professional workforce delivering the Work Programme will be a significant factor in its success. Therefore the workforce needs a range of professionally-aligned skills reflecting standards and qualifications from across lifelong learning and other sectors. In order to maximise the "black box" potential of the Work Programme (where providers are free to design support according to the needs of the individuals referred to them and to local circumstances), it needs to integrate seamlessly with the other parts of the lifelong learning sector. This integration should be underpinned by an overarching skills framework for the provider workforce.

3. Lifelong Learning UK is working collaboratively on standards and qualifications needed by employers across the lifelong learning sector to ensure that the provider workforce is the best it can be.

4. We would like to see Work Programme providers, across the UK, challenged and encouraged to develop a cohesive system of initial and continuing professional development (CPD) for their workforce, to ensure the maintenance and enhancement of skills of those working in all organisations delivering the Work Programme.

5. Lifelong learning UK is well placed to work with DWP and partners to take existing professional standards and 'repackage' them to define competencies, develop workforce skills programmes (and where relevant qualifications), to support the delivery of the Work Programme. We are already linking with the work being led by the Centre for Economic and Social Inclusion to investigate the standards and qualifications that may apply or may need developing for the provider workforce. As the Sector Skills Council for Welfare to Work providers within the lifelong learning sector, we understand these needs and are able to support it looking across a range of standards.

6. In our response we have concentrated on those elements that have an impact upon the skills of the provider workforce.

7. We have three summary statements we would like to contribute to this inquiry.

7.1 We support the concepts of the Work Programme. We particularly welcome the provision of an integrated service across the UK to support all people not in work to move closer to work.

7.2 Having a highly skilled and motivated delivery workforce is vital to ensuring that Work Programme will be effective and of the highest quality. All measures to improve the work readiness of people in the UK must take into account the needs of the workforce who will provide those skills. Working with employers and partners, Lifelong Learning UK plays an important role in identifying these emerging skills needs and acting upon them.

7.3 The provider network is not universally robust. The contracting process, both the process of prime and sub contracting and payment by results, must be designed to work to ensure that providers are able to support the initial and ongoing development of their workforce, thus enabling them to give the best possible support to their clients. Providers should be enabled to work collaboratively across geographical areas so that the procurement of training can be made cost-effective.

Our response to the consultation

The steps the Department for Work and Pensions needs to take to ensure that a procurement programme of this size and complexity is managed effectively and delivers high quality outcomes

8. There are two main factors that will impact upon the quality of the outcomes.

9. The first of these (and the one with the largest effect) will be the economy. Local and national employers need to have sufficient confidence to engage with the Work Programme to ensure its success. This needs them to have confidence in their own business in order to invest in the skills of their workforce.

10. The second significant factor affecting the quality of the programme will be the quality of the staff working for the providers. As the Programme will require a variety of different generalist and specialist providers working in partnership together, it will call on the provider workforce to have a range of professional skills, to support people with different needs in getting into work. Typically, skills will include employer engagement, skills analysis and training, career advice and guidance, employability training and support, engagement of learners and prospective learners and community learning. In addition there are other skill needs such as leadership and management and collaborative partnership working.

11. National Occupational Standards (NOS) underpinning these skills are in place, many developed or updated by Lifelong Learning UK and other Sector Skills Councils in the last eighteen months, and others that are in the process of being updated. There are specific professional qualifications in place based on these NOS available across the UK. These have been designed flexibly, to suit differing qualification and credit systems, with a small mandatory core and a range of optional units. This allows qualifications to be built around the requirements of a role. We are confident that this approach working with the developments led by the Centre of Economic and Social Inclusion will result in flexible professional qualifications leading to a variety of career pathways.

12. As new developments occur (such as innovations and developments in the use of technology) delivery staff need to update their skills through a structured system of formal and informal CPD. This will enable them to either develop multiple skills or follow a more specialised route. We suggest that this system mirror the approach being taken in our new framework for learning professionals. This will provide clarity about CPD opportunities, articulate the differences between different types of qualifications, define units to develop core competencies and enable credit transfer for those who engage in CPD, but wish to develop their skills through awards and longer qualifications later in their careers.

13. Providers will be required to meet their responsibilities under the Equalities Act, both in relation to their staff and their learners and service users. Lifelong Learning UK is developing an Equalities Framework, which will help Work Programme providers and support their business needs in this area.

14. Working with our partners in the lifelong learning sector, Lifelong Learning UK has developed a number of workforce strategies, including for the community development sector in Wales and the wider further education sector in England. These integrate activities across the workforces enabling limited resources to be focused on priority needs and emerging issues. Developing a similar workforce strategy for the Work Programme will pay dividends by improving the delivery workforce. This will provide an overarching strategy to address the skills needs of the Work Programme workforce across the UK by identifying a common core of workforce development priorities and themes. If this were then aligned with other existing and developing workforce strategies it would enable staff in the Work Programme to develop flexible skills to meet the needs of unemployed people.

15. The contracting process for providers needs to take account of this need for quality staff. Providers should be asked to describe how they will invest in their workforce to appropriately meet the needs of their specific client group, in particular their overarching strategies for recruitment, initial training and ongoing CPD.

16. Given the current financial climate, the more the different parts of the sector can work collaboratively and support their combined workforces in partnership to achieve the aim of increased sustainable employment for the UK, the greater the impact will be. Lifelong Learning UK is currently developing an overarching framework to reflect the skills and knowledge needed by learning professionals. This will reflect the diversity of the workforce while demonstrating common competencies. The competencies required to deliver the Work Programme sit at the heart of this emerging framework.

The extent to which the Work Programme will differ from existing contracted employment programmes

17. In the past, the programmes designed to help people into work and up-skill individuals have not been effectively integrated across the UK. As all the previous work related programmes now come under the Work Programme, many people looking to return to work would benefit from updating their skills. Fully integrating the two elements, of job search and upskilling, will enable providers to deliver a better service.

18. The new Skills Strategy for England places a large emphasis on supporting the skill needs of unemployed people, whilst the Work Programme includes some skills training. It is critical to ensure that the Work Programme and skills delivery side act together to the benefit of the client. This collaboration between and within providers is important for the success of both programmes.

19. Underlying this will need to be a fully articulated framework of skills needed by the delivery workforce across both areas.

The relationship between prime contractors and sub-contractors and DWP’s role in overseeing this relationship

20. The relationship between prime and sub contractors is critical to the success of the programme. We support the development of the Merlin standard and look forward to its future development. However there should not be an assumption that partnership and collaboration will happen without investing in these skills. The Lifelong Learning UK Sector Skills Assessment 2010 identifies that providers see the development of collaborative working as one of their priority skill needs for the future. Recognising the rapidly changing skills landscape, we are currently placing development of collaborative skills at the heart of the framework for all learning professionals.

The role of Jobcentre Plus in delivering the Work Programme, including the lessons learned from the Delegated Flexibility Pilots

21. By working in close collaboration with providers, the role of Jobcentre Plus will be pivotal in ensuring that an integrated approach to meeting clients’ needs is in place. This needs to link across to providers delivering the Work Programme and to other services. The principles underpinning the Delegated Flexibility Pilots, with their emphasis on personalising interventions and support for clients, especially those who may otherwise be excluded, is a concept that has been in development over the last five or more years within lifelong learning. Personalisation is now central to what lifelong learning providers do as a matter of course.

The implications for providers of the increase in volume and the change in profile of Jobseeker’s Allowance claimants arising from the migration from Incapacity Benefit and Employment and Support Allowance

22. There are a number of implications for providers. Not least is that with these changes there will be a need for an increase in the numbers of delivery staff and different skill sets for existing staff, especially those with the skills of working with people in complex circumstances. Delivery models may also have to change with more emphasis on in-community delivery. Again, a key question that should be asked during the tendering process is: how will providers ensure that their staff are able to work professionally with a range of people, especially those in complex circumstances?

23. Provider staff development should be based upon the National Occupational Standards, and qualifications derived from them, to enable delivery staff to develop the generic skills that will be needed to support the increased volume and changed profile of Jobseeker’s Allowance claimants.

The implications for providers of ‘payments by results’ arrangements, with particular reference to the voluntary and social enterprise sector

24. The provider network is not uniformly robust. Some have a very strong financial base but many, especially those from the voluntary and social enterprise sector and those whose primary income comes from similar programmes of work, can be fragile businesses. Those that specialise in working with the most disadvantaged, where predicting results and maintaining people in work is most difficult, are most likely to have unpredictable incomes. Yet these are the very providers who are best able to deal with the complex issues of the long term unemployed or those who have been on incapacity and other benefits for significant periods of time, and they bring significant experience of successful interventions with those groups.

25. If organisations are put under financial pressure, investment in staff skills is most likely to suffer and consequently the quality of provision may drop.

26. One likely outcome of the payment by results arrangements is that some providers, both prime contractors and sub contractors, may leave the programme, either voluntarily or because of an inability to stay financially viable. Where this has happened in the past, the knock-on effect has been that some of the people being helped have had to start again or drop out of the system altogether. This is particularly concerning if these people are those clients who are furthest from work and training.

The likely effectiveness of a differential payment scheme in encouraging providers to support harder to help groups

27. The harder to help groups demand a different and wider variety of skills from the provider workforce, compared to those who are nearer to work. They also need to have more time invested in them in the early stages of programmes to enable them to develop the skills needed to reduce their dependency on benefits. The differential payment scheme will be effective providing it sufficiently recognises these additional costs.

The implications of regional variations in the labour market, and whether these will be reflected in the differential payment arrangements

28. In many cases the provider workforce and the programmes they offer already reflect regional variations in the labour market. It is important that the differential payment arrangements recognise that in certain regions getting people into work may require not only new training for Work Programme recipients, but may also require some re-training of provider staff. This is likely to be most evident where the traditional industrial base is changing to accommodate new priority industries. It will also be an issue in areas with a competitive labour market, as providers may struggle to attract and retain the quality staff they need.

29. Therefore, there is a need for strong labour market intelligence from Sector Skills Councils in order to address the existing and emerging skills gaps and shortages described above.

How providers will be encouraged to work effectively with local authorities and other local agencies

30. Local authorities are currently seeking to manage a cut in their budgets. Many will be reducing staff numbers, redeploying existing staff and if employing new staff, doing so using flexible contracts. Other local bodies, such as the Local Enterprise Partnerships in England and their equivalents in the devolved administrations, will be looking to work as smartly as possible. It is likely they will want to work with as few external bodies as possible. In order to ensure that the voice of the provider is heard, providers should work together in networks reflecting the local authorities and bodies in their area, as well as on a national basis. The minimum contract value requirement for the delivery of skills programmes in England and Wales is already encouraging this. Therefore, a similar arrangement needs to take place for the Work Programme.

31. Such collaborative measures will assist in staff development, as a local network of providers will be able to purchase training for a group instead of on an individual basis. This will also enable the provider workforce to develop the skills they need to respond to the needs of their service users and the local labour market.

About Lifelong Learning UK

32. Lifelong Learning UK (LLUK) is the independent employer-led sector skills council responsible for the professional development of those working in career guidance, community learning and development, further education, higher education, libraries, archives and information services, and work based learning across the UK. We represent the interests of the 2 million+ individuals working in lifelong learning in England, Northern Ireland, Scotland and Wales and are the voice of employers in this sector on skills issues.

33. This consultation response focuses on the UK Welfare to Work industry which includes many members of the lifelong learning workforce who work within the sectors listed above.

November 2010