The Coalition Government sees the Voluntary Community & Faith (VCF) Sector as being instrumental in delivering public services offering a local response to local needs.

The procurement process for The Work Programme is due to start shortly leading to a network of ‘preferred providers’. Delivery of the programme is scheduled to start in the summer 2011.

The Work Programme will be a framework for a collection of programmes which will apply to all major benefits including: Jobseekers’ Allowance, Incapacity Benefit, Employment & Support Allowance and Income Support. The Programme replaces recent contracts such as Flexible New Deal, Future Jobs Fund and Community Task Force. The Work Programme will cover all unemployed people and will include personalised ‘return to work’ plans and participation will become a condition of benefit payments.

The Programme – and how it will work

Across the UK there will be 11 “Lots” of which the North West region is 1 Lot. It is expected that 3 – 8 prime contractors will be selected for each Lot. Only those Prime Contractors will be able to bid for contracts, which may cover whole ‘Lot’ areas or smaller areas within a Lot.

Individual contracts are expected to be valued between £10 - 50 million per annum with many long term contracts possibly running up to 7 years.

The payment structure will create a balance between up front financing of providers and rewards for positive results. Payment will also be based on the complexity of claimant need.

Contracting

VOLA recognise that a significant number of member organisations provide employment support and operate in the welfare to work market and we want to make sure that VOLA members play a part in the delivery of the work programme.

Existing Prime Contractors are already coming together to form consortia and VOLA are working with sub-regional counterparts (Learning Together Cheshire and Warrington, GMCVO, Lancashire Learning Consortium, Cumbria CVS plus Voluntary Sector North West, LSEN, Merseyside Network for Europe and North West Network) as leads for North West SPV Ltd, the new North West Regional Third Sector Special Purpose Vehicle (consortium) to negotiate with potential prime contractors to help position the sector within the emerging framework.

Sefton CVS (as lead body for VOLA) and Merseyside Network for Europe are founding members of NW SPV Ltd and Stuart McGrory, VOLA Consortium Manager sits on the board. We would urge all VOLA members that have not already done so, to apply to join NW SPV Ltd.

Next Steps

Following intial expressions of interest from potential prime contractors by the end of July, ‘Meet the Buyer’ events will be scheduled for August which will give Prime contractors an opportunity to meet potential partners.

Providers will be appointed in November 2010 with contracts awarded early 2011 for delivery to start in the summer.