Challenges for the Third Sector The Work Programme and payment by result models Phil East Partnership Manager

CDG Background CDG is one of two charities in the UK to deliver the Work Programme as a prime provider, and the only one in London CDG works with MAXIMUS in BBOH, West London and in Surrey and Sussex with Avanta 21 centres across London, the South East and East Midlands Partnerships: MAXIMUS UK, CDG Wise Ability (Work Choice), BESTCDG (Australia)

The Third Sector Work Programme Challenge Opportunity to show how the 3rd sector can make a major impact in helping people back into work in East London. Over 80% of partners are voluntary or public organisations. We have a leadership role for the 3rd sector in the welfare to work sector and more widely.

Third Sector - The Benefits Local delivery with embedded existing networks Specialisms and support for the hardest to help Innovation and value for money Accountability / Trustees

Payment by results models The Direction of Travel – The Changing Market DWP – Work Programme Ministry of Justice – offender programmes Breaking the cycle - Green paper.

Payment by results models Risk Management Financial modelling Performance modelling Working capital Payment Schedules Securing Finance

Payment by results models Supply chain structuring Merlin Using appropriate services and models Performance / added value TUPE Contracting appropriately Step down contracting Sharing the risk Driving change to meet the changing market Matching specialities with programme needs

Overcoming the Challenges Understanding the market and evolving to meet it Performance Partnerships Financial pro-activeness Marketing

STEVE SWAN, DIRECTOR OF WELFARE TO WORK

BACKGROUND TO TOMORROW’S PEOPLE

THE WORK PROGRAMME Black Box Large regional contracts Long-term results Differential payments Payments for what’s achieved

MAIN CONSIDERATIONS - Working capital TUPE Contract terms

SUBCONTRACTING CHALLENGES Relentless nature of delivery Previous experience / lessons Right staff External factors

BROADER THIRD SECTOR CONSIDERATIONS What is the actual % of TSO delivery? How can we ensure our voice is heard? What does the future hold?

MERLIN

THE JURY IS OUT

Challenges for the Third Sector Questions and Comments

Thank you