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

2. 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)

3. 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.

4. 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

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

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

7. 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

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

9. STEVE SWAN, DIRECTOR OF WELFARE TO WORK

10. BACKGROUND TO TOMORROW’S PEOPLE

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

12. MAIN CONSIDERATIONS
- Working capital
TUPE
Contract terms

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

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

15. MERLIN

16. THE JURY IS OUT

17. Challenges for the Third Sector
Questions and Comments

18. Thank you