ARGYLL & BUTE COUNCIL Economy PPG DEVELOPMENT& INFRASTRUCTURE 23rd November 2010 UPDATE ON THE UK GOVERNMENT’S WORK PROGRAMME 1. Summary This report provides an update to the paper presented at the Economy PPG meeting on 25 th August 2010 with a particular focus on the preparation work undertake by the Argyll and Bute Employability Team in light of the introduction of the UK Government’s Work Programme in early 2011. 2. Recommendation 2.1 This report is for noting. 3. Argyll and Bute Employability Team Activities 3.1 It is known that only one Prime Contractor will cover the whole of Scotland with between smaller geographical ‘arrangements’ to be established. The Employability Team Manager has had detailed one-to-one discussions with six organisations (Working Links, The Wise Group, Ingeus, A4E, JHP Training and SERCO) that could potential become the Prime Contractor. The positive outcomes further to these meetings are detailed below. 3.2 Working Links This took the form of an update on the position the Employability Team was at with regard to the previous Flexible New Deal programme and was a matter of confirmation that the Employability Team was still prepared to take on the role of a ‘super’ sub-contractor (through service level agreements) on behalf of Working Links and delivery the new Work Programme throughout the Highlands, Islands, Clyde Coast and Grampian (HICC&G) area. 3.3 The Wise Group The Employability Team Manager was invited to meet with Laurie Russell (Managing Director) in their offices in Glasgow to discuss what areas the Argyll and Bute Team would be comfortable in taking on as a delivery area. It was intimated that the whole of HICC&G is important for the Employability Team as this provides sufficient customer numbers to make delivery viable. Therefore, it was agreed that should The Wise Group be successful at the tender stage, the Argyll and Bute Employability Team would have the opportunity to take on the delivery of the Work Programme across the HICC&G area. 3.4 Ingeus Louise Chisholm (Business Development Manager) from Ingeus met with the Employability Team Manager in Campbeltown and expressed an interest in the team taking on a similar area to that discussed with other prospective ‘Primes’. Louise stated that following that meeting she would be recommending that the Argyll and Bute Employability Team would deliver the Work Programme, on their behalf, for the whole of HICC&G. 1 3.5 A4E The Employability Team Manager has met with A4E on several occasions over the past few months. Geraldine Muir their Business Development Manager has visited the team’s premises in Oban and was very impressed with the range of options on offer to the customer groups. Likewise, if successful in securing the tender, A4E has asked if the Argyll and Bute Employability Team would be prepared to take on the HICC&G area on their behalf. The significant difference between the approach of A4E and the others, so far, has been that they are bringing all their prospective ‘partners’ together for two meetings to discuss both the delivery model for the new Work Programme and any possible funding model. 1 This is a real departure for such a large company, as it is usually the case that such an organisation, if successful, would ask a smaller organisation to deliver and then dictate how, when and for how much. 3.6 JHP Training JHP Training already holds the contract for the Jobcentre Plus Support Contract (JCPSC) in both the north and south of Scotland. On this basis they would appear to be a favourable position in terms of tendering for the new Work Programme contract. However, there have been some difficulties with their handling of this contract. That aside, JHP Training would like the Argyll and Bute Employability Team to deliver the Work Programme on their behalf across the Highlands and Islands, the same area the team currently delivers the JCPSC. There is a possibility that the geographical area of delivery could be extended. Meetings have taken place with their representatives on this matter. 3.7 SERCO John Lynch from SERCO (based in London) visited the Employability Team’s operations in Campbeltown. He spent the day with the team and was very impressed with the Employability Team’s delivery model and expressed that SERCO would want the team to deliver on their behalf across HICC&G area. 4. Other Areas of Interest 4.1 Over and above these, often intense, meetings there have also been expressions of interest lodged with several other prospective ‘Primes’ who have managed to get themselves onto the new ‘Framework’ (i.e. the method of entering the first phase of the new tendering process for Welfare to Work provision). Although some 26 companies have lodged an interest in being on the ‘Framework’ it would appear that only 11 or 12 of them would realistically be interested in tendering for Welfare to Work services. These have all been approached by the Argyll and Bute Employability Team Manager. 4.2 There is now a period of waiting, with one or two meetings still to be held, until the actual Contract Package areas are announced later in November. This will then inform who will or will not be tendering for our area. It is speculated that there will be two Package Areas in Scotland, the north and the south, however this has yet to be confirmed. This would indicate that all those organisations already spoken to, plus potentially some others, will tender for the north and the Argyll and Bute Employability Team may have to enter into further negotiations with other organisations. 1 Both meetings will have taken place by the 23 rd November and a verbal update will be provided at the EPPG meeting. 2 4.3 It would appear that the new Work Programme will absorb all previous contract areas and will include those customers currently on Incapacity Benefit, Lone Parents, those with physical and mental health issues and all other eligible individuals who are in receipt of any out of work benefit. This will create a challenging environment for the Employability Team to work in and will require an element of re-training for some of the existing staff. All of these issues are being taken into consideration at this time in the planning for the introduction of this new programme. 4.4 The Employability Team currently has a well established ‘Supply Chain’ throughout the Highlands and Islands involved with the delivery of the Jobcentre Plus Support Contract. During recent months several other smaller specialist providers have requested that they become part of this chain. This is encouraging and indicates that the team continues to be held with high regard in Welfare to Work circles. Discussions are also underway with The Highland Council with a view that this local authority will join the ‘Supply Chain’. 5. Conclusion 5.1 Although the Argyll and Bute Employability Team’s involvement in the delivery of the new Work Programme is still unclear at this time, the team is confident that sufficient funding, as a ‘super’ sub-contractor (through service level agreements) will be achieved to enable much of the current delivery model to survive the changes proposed to the system. For further information and clarification please contact : Ishabel Bremner, Economic Development Manager, tel: 01546 604375 or Ray McIntosh-Walley, Employability Team Manager, tel: 01586 551389 3 .