The Work Programme Fact and Fiction Sean Williams Managing Director, G4S Employment Support Services 10 th July 2012

Fact: The Work Programme is Working  G4S’s Work Programme has supported over 9,000 people into work in its first year;  Over 80% of the people that we help are sustaining that employment;  We have already saved the taxpayer £54 million in annualised benefit savings.

Fact: The Work Programme is Already More Cost- Effective than the Programmes it Replaced

Fiction: The Best Way to Measure the Performance of Active Labour Market Programmes is to Focus on the Percentage of People Supported into Employment Consider 3 employment projects  Project 1 costs £1 million. It has 10 referrals and helps 9 people into jobs.  Project 2 costs £1 million. It has 1,000 referrals and helps 400 people into jobs.  Project 3 costs £1,000 million. It has 1,000,000 and helps 399,000 people into jobs.

Percentages Verses Absolute Numbers  Percentages into jobs are not nearly as important as absolute numbers;  Cost per job is important but not as important as absolute numbers;  In a payment-by-results AME/DEL funded model it is better to have a high investment/high return programme than a low investment/low return model even if the cost per job start is higher.

Fiction: The Work Programme is Being Given the Opportunity to Support All Customer Groups Breakdown of UK Benefit Claimants

Fiction: The Work Programme is Being Given the Opportunity to Support All Customer Groups Breakdown of Referrals to the Work Programme

Fiction: The Work Programme is Being Given Enough Referrals to Ensure that it is a High Investment/High Return Programme

Fiction: The Black Box Approach Leads to Some Customers Being Parked  Black Box (with payment by results) creates the best conditions to guard against parking;  It is not possible to achieve a step-change in performance without appropriately supporting every individual;  Centrally prescribed minimum standards lead to less personalised support not more;  Centrally prescribed minimum standards lead to casuistry.

Fact: G4S’s Situational Approach is Proving More Effective than a traditional Rule-Based Model  Situational Approach:  Proven;  Pragmatic;  Personalised.  ‘Appropriate’ support not ‘identical’ support;  Quality measured through observation, narrative and questioning. Not through tick- boxes.

Fiction: There are no jobs to place people into so we should stop trying  Lump of Labour Fallacy;  2 Islands – each with a population of 3  Island A: 1 person fishes, 1 person cooks, 1 person collects herbs  Island B: 1 person fishes, 1 person cooks, 1 person is unemployed.  Skilled, motivated jobseekers increase the amount of jobs in an economy;  Getting people into work increases the amount of jobs in the economy;  In difficult economic times it is more important to support unemployed people not less.

Fiction: Sector A is Better Than Sector B at Supporting People into Employment  G4S have a completely transparent and fair comparative performance system;  We have a broad range of subcontractors drawn from the public, private and voluntary sectors;  We produce monthly league tables of our subcontractors comparing Referrals to Job Starts and Referrals to Job Outcomes;  There is no correlation between what sector an organisation is from and their performance on either measure.

Fiction: Sector A is Better Than Sector B at Supporting People into Employment SectorOrganisationRank VNewhaven1 £Pinnacle People2 VRichmond3 £Kennedy Scott4 VRBLI5 £PPDG6 PMedway7 PKent Supported Employment8 £ATS9 VRomney10

Fact: Prime Contractors Evolving the Supply Chain Works Job Starts pre and post supply chain change

Questions?