Improving Specialist Disability Employment Services

Further information is available for members - click here

The Department for Work and Pensions is proposing to tender a new specialist disability programme to replace the existing Workstep, Work Preparation and Job Introduction Scheme programmes. This new programme has a working title of IDEAS and will be subject to a two stage tendering process starting in late March 2009. BASE is extremely concerned that the current proposals for this programme will not meet the needs of customers or employers.

BASE has worked very closely with DWP over the last three years and remains very supportive of the original proposals. However, we are disappointed to see that many views obtained during the original consultation during Spring 2008 have not been incorporated in the provisional proposals and that the procurement of the new programme is likely to worsen rather than improve services. We believe that unless the proposals are substantially modified then it will lead to

  • a reduction in the resources available for customer support
  • a significant disinvestment in employment support by local authorities
  • the loss of up to 5,000 jobs, mainly those of disabled workers
  • widespread cherry-picking whilst marginalising those most at risk of exclusion
  • a transfer of the greatest risk burdens on to subcontracting organisations leading to market failure, and
  • widespread confusion and distress for customers and employers

BASE is calling on all members, organisations and other interested parties to oppose the proposals as they stand and we have produced a briefing paper that outlines our position in more detail.
BASE briefing paper
BASE response to the latest DWP proposals
BASE response to the original DWP consultation

DWP have organised seven consultation events for December 2008 but we believe that these have not allowed sufficient debate about the issues raised by their current proposals. You can view the consultation questions here.

BASE is calling for reasonable adjustments to the procurement process. We do not believe that regional contracts will provide a suitable service and fear that this will further marginalise those most at risk of exclusion. We are arguing for a programme that maximises the potential links with activity under Public Service Agreement 16, health and social care services, and transition from education. We further believe that the DWP Code of Practice is unenforceable and will lead to market failure within the subcontractor sector.

You can find links to background materials below:
DWP consultation home page - This page contains the original consultation document and the summary of responses to the consultation.
Consultation event - DWP slides - This links to an acrobat document containing slides from the DWP events.
DWP consultation documents - This page contains the original consultation document in a variety of formats.
DWP Commissioning Strategy - This link opens the DWP Commissioning Strategy. The Code of Conduct is in Annex 1.
Welfare Reform impact assessment - Version 3 of the welfare reform impact assessment. Version 2 is here

Useful papers

Contracting Out Employment Services Lessons from Australia, Denmark, Germany and the Netherlands (Child Poverty Action Group - December 2008)
Programmes to promote employment for disabled people Evidence from the United States on providing return-to-work support for people with disabilities (DWP - December 2008)
Lessons from contracting out welfare to work programmes in Australia and the Netherlands - an analysis of experiences in Australia and the Netherlands (Joseph Rowntree Trust - November 2008)
Flexible New Deal - Powerpoint presentation from the Social Market Foundation about contracting issues related to Flexible New Deal (Social Market Foundation, September 2008)