Department for Work and Pensions: Procurement

(asked on 7th November 2016) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, which contracts in his Department operate on a payment by results basis.


Answered by
Caroline Nokes Portrait
Caroline Nokes
This question was answered on 17th November 2016

The Department will not pay suppliers that do not fulfil their contractual obligations. In that respect all contracts managed by the Department operate on a payment by results basis.

I have however interpreted the question as relating to contracts designed to help people back into employment, where suppliers are paid for individual job outcomes.

The following contracts operate on this basis:

Work Choice

Specialist Employability Support (SES)

Access to Work (AtW) Mental Health support service

Access to Work (AtW) Assessments

European Social Fund Contracts (ESF)

Work Programme (WP)

Community Work Placements (CWP)

Youth Engagement Fund (YEF)

New Enterprise Allowance (Phase 1)

Relationship Support Contracts

Dynamic Purchasing System (DPS) – in part

Notes:

Work Choice – 29 contracts. Payment by results is linked to job outcomes and sustained job outcomes which relate to 50% of the income

Specialist Employability Support (SES) – 6 contract. Payment by results with same design as Work Choice.

Access to Work (AtW) Mental Health support service – 7 contracts. Payment by results linked to delivery of support to customers

Access to Work (AtW) Assessments – 7 contracts. Payment by results linked to delivery of assessments

European Social Fund Contracts (ESF) – 31 contracts. Payment by result linked to job outcomes and sustained job outcomes.

Work Programme (WP) – 41 contracts. Payment by result linked to job outcomes and sustained job outcomes.

Community Work Placements (CWP) – 18 contract Payment by result linked to four outcomes.

Youth Engagement Fund (YEF) – 4 contracts Payment by results relating to six outcomes

New Enterprise Allowance (Phase 1) – 15 Contracts Payment by result for four outcomes

Relationship Support Contracts – 5 separate contracts that use a mix of outcome result payments (36%) and output payments.

Dynamic Purchasing System (DPS) – 10 live contracts in place which include payments by results in the form of client job starts and job outcomes.

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