Policy in PracticeWebinarWork and Health Programme: How you can stand out Thursday 9 February 2017

Housekeeping• Audio check• Please ask questions throughout • Poll and a survey• Finish by 12:30

Agenda• Introductions• About Work and Health• How to handle your performance offer• Top tips for the supply chain• Building a service around the frontline advisor• Finish by 12:30

Speakers

Tony WilsonLearning and Work Institute

Deven GhelaniPolicy in Practice

Anne GregoryPublicCo

555

Over to Tony

How to handle your performance offer

Work and Health Programme:Learning & Work view

Tony Wilson, Director of Policy and Researchtony.wilson@learningandwork.org.uk

@LWtonywilson

9 February 2017

What is it?• ‘National’ programme

– England and Wales– Excluding Greater Manchester and London– With seven ‘Devolution Deal Areas’ with input on design and bidder selection

(covers around one quarter of the country)• To support out-of-work disabled people (voluntary), long-term unemployed

(mandatory) and non-disabled people referred for early support (voluntary)

• £428 million budget – around one fifth of the programmes that it replaces• Likely to be 186,000 participants over five years

– Funding per participant up to £2,300 per person– Nearly double Work Programme (we estimate £1,281)

• DWP anticipate 75% ESA and disabled participants; 25% LTU and early entry – so 27,000 plus 9,000

What DWP wants

• Tailored support• High performance• Local integration• Added value

Which means?• Tailored support

– Specialist advisers/ coaches, smaller caseloads, personalised support– Supported Employment principles– Focus on engagement and retention in-programme

• High performance– Focus on results – meaning employment entry– Measures of progress towards work, progression in work?

• Local integration– Health and employment

• But services misaligned in objectives, delivery models and culture• Where it works, co-ordination at management and operational levels –

underpinned by public service leadership, governance, systems, ways of working

– With skills support, devo deals, housing, welfare…• Added value

– Ability to align other funding, achieve better outcomes through different ways of working

This will feel different toprevious DWP programmes

Housing

Local/ social services

Health

Other outreach

Eligibility check

DWP Gatekeeper

Yes/ NoTriage and

assessment

Programme deliveryPersonalised and intensive

Employment focusedIntegrated with local

services

Additional supportHealthSkills

Welfare, housing, debt, drug/ alcohol etc

In work supportRetentionTraining

Welfare, housing, debt, drug/ alcohol etc

Employer supportRecruitment practices

Workplace adaptationsAccessing funding/ support

Partnership working – leadership, governance, management, delivery

DWP referralsESA WRAG/ UC LCW (v)

Early access disadvantaged (v)JSA two years plus (m)

Effective management – at all levels – will be key

• With DWP – for referrals, partnerships and contract management• Local partners• Outreach• Caseload management• Referral systems, processes and monitoring• Employer – engagement, brokerage, support• Financial – within and without supply chains• Performance• And many different models for how this can work:

Source: L&W evaluation of DWP USDL trials

As will evidence of effective, evidenced, adviser support…

• One-to-one, regular and timely support• Smaller caseloads and more frequent intervention associated with

better results• Range of skills and capabilities matter

– Engagement, motivation, partnership working, job matching and brokerage, caseload management

• Action planning, building self-belief, overcoming setbacks• A focus on maintaining momentum and achieving outcomes• Supporting out of work and in transition into work• Linking with additional support, and focused on outcomes

No one adviser can do all of this! Implications for organisation, supply chains, contract and customer journey management

And doing what works for disabled people and those with health conditions

• Many of the key themes will be familiar:• Effective adviser support – right level of (specialist) support, tailored to

needs, with smaller caseloads and enough time• Whole person support – raising expectations, of participants and their

families, healthcare professionals, others• Effective profiling – of aspirations, capabilities, needs• Intervening at the right time – and often earlier• Job matching – including job (re)design – and in-work support• Effective employer engagement – ‘individual-based’ and ‘employment

agency’ approaches• Financial planning and incentives – RtWC, Permitted Work

But trade-offs: narrow and intensive versus broad and shallow

The funding model –still very (job) outcome based

• Delivery fee – 30% of contract value – Good news – this is not an attachment fee– Equivalent to £690 per participant

• 70% on outcomes– Cf. Work Programme, which will end up more than 80%– We think outcome payments in WP limited innovation and contributed to

selection/ parking risks• Innovative ‘accelerator’ model

– Standard outcome payment for first 75% of performance offer that achieve outcomes

– Higher outcome payment for everything above this– Provides an antidote to parking risks?– But sharpens performance risk – the losses from missing targets are

proportionately greater, will this inhibit innovation?

The shortlisted providers

Economic SolutionsG4SIngeusPeoplePlusReed

PeoplePlusPlussRemployShaw TrustWorking Links

G4SPeoplePlusPlussProspectsShaw TrustWorking Links

APMG4SIngeusPeoplePlusShaw Trust

G4SIngeusPeoplePlusReedShaw Trust

G4SPeoplePlusReedShaw TrustWorking Links

Timetable – incredibly tight!Activity DatesWHP Bidders submit Initial Stage Responses 24th Feb 2017

Initial Stage Presentations 6th March – 24th March 2017

DWP announces Shortlisted Bidders 3rd April 2017Commercial Dialogue Stage sessions 8th May 2017 – 14th

July 2017Shortlisted Bidders submit Final Offer 28th July 2017Final Offers evaluated August 2017DWP announces successful Bidders September 2017

WHP Contract Signature September 2017Go-Live From November 2017

Work and Health Programme modelling:the L&W financial model9 February 2017

Tony Wilson, Director of Policy and Researche: tony.wilson@learningandwork.org.ukt: 020 7840 8346 | m: 07504 054407

Lovedeep Vaid, Senior Statisticiane: lovedeep.vaid@learningandwork.org.ukt. 020 7840 8335 | m. 07944 303893

Overview• L&W are the leading independent experts on modelling employment

programmes – including a long track record of modelling Work Programme CPAs for primes; and developing programme models for government (including in Northern Ireland, the Republic of Ireland and Scotland)

• Our new Work and Health Programme model is a fully adjustable, excel-based tool that enables users to model the finances of the WHP

• It incorporates all aspects of the WHP specification set out by DWP – including the service period, outcome measure, payment model, accelerator, unit costs, and CPA baseline performance and volumes

• The model enables providers to input their own assumptions on performance, prices and costs – and from this generate forecasts of income, cashflow and profit/ loss

• The model can be used either to build your performance offer, or to QA your own internal modelling

Programme inputs

• The next three slides set out how the model treats programme inputs

• In each case, the model uses the ITT assumptions as starting points

• Providers can then fully customise these inputs, including to incorporate their own assumptions on performance, attachment rates, drop-outs and costs

The model sets out, and lets you customise:• Volumes – DWP’s estimates are included for each CPA and Devo Area, and can be

selected from drop-down menus• Performance – DWP’s baseline performance assumptions are also set out, CPA by CPA• Users can then incorporate their own performance offer, and assumptions on take-up

and drop-out (a key point of difference to Work Programme modelling)• This generates model estimates of starters and outcomes• Finally users can incorporate a performance scenario – what happens when volumes

are above or below their ‘offer’• All inputs are generated for each of the three client groups

Volumes, participation and performance

programme costs• The model includes an embedded ‘cost calculator’• This enables users to vary their start-up, fixed and variable costs over time

and for different groups.• This includes a ‘ready reckoner’ for estimating caseload sizes and adviser

volumes at different frequencies/ intensities of support• Programme costs then pull through to the model summary, to enable

estimates of margin and cashflow

• The model fully incorporates the DWP payment structure• So based on the performance offer and CPA, it automatically

calculates the standard and outcome payments (i.e. the accelerator); the delivery fee per starter and outcome payment per starter

• An illustration of this is set out below

The payment model

Programme outputs

• The next three slides set out the outputs that the model can generate

• These are illustrative examples for the Central England CPA, based on ITT inputs plus a set of assumptions (broadly, a performance offer 5 percentage points above counterfactual and with a profit margin of around 8%)

• The model uses payment and performance inputs to generate forecasts of income over time

• These show sources of income – e.g. delivery fees, outcome and sustainment payments

Programme income

Cashflow forecasts• By incorporating the costs data, the model can then

forecast cashflow• This is done both on a monthly basis and cumulatively

• The model can also generate income and expenditure forecasts at different levels of performance

• This assumes the same delivery model so in effect capture exogenous risks/ benefits (e.g. a stronger or weaker economy and no change in service)

• Costs increase at low performance and decrease at higher, due to a different balance between working and non-working participants

Income, expenditure and profit margin scenarios

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

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£M

£20M

£40M

£60M

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0%

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25%

30%

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40%Provider payments Costs Provider margin

Percentage point difference to performance

Prov

ider

pay

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osts

Provider margin %

Next steps• The model is available to framework providers for £7,500 plus VAT• For potential supply chain providers, the model is available for

£4,000 plus VAT • This includes guidance and ongoing user support• We would be delighted to demonstrate the model or to provide any

further information on its design and specification• For more information, please contact:

Lovedeep Vaid, Senior Statisticiane: lovedeep.vaid@learningandwork.org.uk t. 020 7840 8335 | m. 07944 303893

Work and Health Programme:Learning & Work view

Tony Wilson, Director of Policy and Researchtony.wilson@learningandwork.org.uk

@LWtonywilson

9 February 2017

292929

Over to Anne

Top tips for the supply chain

PublicCo is a leading consultancy practice dedicated to driving the very highest standards in public service design and delivery, globally. We are a joint venture with the Learning and Work Institute (L&W).

Some consulting firms treat business sectors as interchangeable, but at PublicCo, we know that this ‘one size fits all’ philosophy is flawed. Our real-world understanding of ‘what works’ enables us to provide a highly specialist, performance-focused approach to strategic and operational challenges.

30© 2017 PublicCo Limited. All rights reserved. This document is CONFIDENTIAL

About PublicCo and the team

Joel FeathermanCEO07739 119783Joel.Featherman@publicco.co.uk

Anne GregoryDirector07975 502969Anne.Gregory@publicco.co.uk

31© 2017 PublicCo Limited. All rights reserved. This document is CONFIDENTIAL

Key drivers of change

LOCALISM

COHORT

FUNDING

32© 2017 PublicCo Limited. All rights reserved. This document is CONFIDENTIAL

What do these drivers mean in terms of risk and things to get right?

WHP OPERATING MODEL

ORGANISATIONAL STRATEGY

WHP COMMERCIAL MODEL⁻ Vision/objectives and

values – at any cost?⁻ Ongoing bid

qualification ⁻ Your WHP USPs,

strengths and weaknesses

⁻ Service design linked to cohort and the delivery of the best outcome

⁻ Confidence on delivery of performance measures

⁻ Co-design with Primes and link with wider partners

⁻ Inputs ie. Pay / non pay / performance assumptions)

⁻ Understand impact of likely scenarios (risk and reward)

⁻ Balanced scorecard of offers and compare with your ideal

33© 2017 PublicCo Limited. All rights reserved. This document is CONFIDENTIAL

Some practical tips for WHP

Test your ideas

Evidence your performance

Assure your offer

Embrace co-design

Move at pace

⁻ Establishing strategy and offer⁻ Local design (what’s right in your

geographical areas) ⁻ Regional tailored commercials (P&L, risk,

scenarios etc)⁻ Local assessment of Primes offer against

balanced scorecard 34© 2017 PublicCo Limited. All rights

reserved. This document is CONFIDENTIAL

How PublicCo can help you

New to WHP?

Our enhanced offer provides development of your operating model, commercial assumptions and EOI responses as well as all assurance and critical review to ensure best in class responses

Tailored offer support

components ⁻ On hand support to respond to queries⁻ EOI completion support & clarification

management ⁻ Reporting and briefing on key movements

(DWP and Prime) ⁻ Project co-ordination and reporting ⁻ Attendance at events and briefings

Further down the track in thinking for WHP?

Our offer focuses on providing assurance and critical review of the design, commercial assumptions and offers received by Prime providers.

Over to DevenThe role of the adviser

www.policyinpractice.co.uk

Policynational impact

CONSULTANCYlocal impact

Softwareindividual

impact

We were founded to make the welfare system simple to understand, so that people can make the decisions that are right for them.

Things you are great at!

• Energy, enthusiasm, passion

• A commitment to transform the lives of programme participants

• Bringing together a wide range of expertise

New national priorities• Universal Credit• Universal Support • Digital inclusion • Financial Inclusion• Progression in work

New local priorities• Discretionary housing

payments• Council tax support• Hardship schemes and advice• Health related interventions

What do the DWP expect?

“Any bid that doesn’t talk about UC is missing a trick”

Patrick Hughes, Salient Works

“Advisors with more time, working with customers who are engaged and motivated to look for work, will achieve better outcomes.”

• People skills and empathy• Action planning, overcoming

setbacks and build momentum

• Support the transition into work and link to additional external support

Advisers also expected to:• Understand and explain a

complex and changing welfare system

• Link in with local support• Give the most effective

supportNo one advisor can do all of this!

What makes an adviser great?WHP - like its predecessors - will

be built around the adviser

404040

“I started my career in welfare to work and saw how powerful a better off in work calculator can be. Policy in Practice has built the best calculator on the market and that’s why I invested in them.”

Sean Williams

Accurate and comprehensive• Minimum requirement!• See how a calculation was reached• National and local policies• Updated automatically

Fast, Simple• 2 – 6 minutes – best in class!• Dynamic question generation• Save and retrieve cases

Engaging and outcome oriented• Generates relevant actions• Links into local support and

jobmatch• Beautiful UX and built in guidance

Tailored support – action oriented

We are more than a software company. We provide household level analytical services to over forty local authorities, helping them to identify, target and engage household eligible for work and health. Security is built in, with UK based servers, encrypted databases and advanced user management. Clear management information, comparing your usage to your peers. Self-service saves your advisors time and upskilling your customers. Built-in budgeting, customisation guidance, integration all within one tool.

Other benefits

There are six households eligible for Work and Health

around Hanworth Park

“Any software is only as good as its implementation.

The support we’ve had from the team to bed in the new service has been a massive benefit to us.”

Jemma Johnstone, Sercowww.policyinpractice.co.uk

444444

Poll: What do you wish your current Better Off Calculator could do?

45

Questions

Next steps

Please complete the short feedback survey immediately after the webinar

www.policyinpractice.co.uk

Thank you

Tony Wilson, Learning and Work Institutetony.wilson@learningandwork.org.uk

Anne Gregory, PublicCoanne.gregory@publicco.co.uk

Deven Ghelani, Policy in Practicedeven@policyinpractice.co.uk