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Mandatory Work Activity

Invitation to Tender Specification and Supporting Information

Version 2.0

MWA Specification

CONTENTS

1. 2. 3. 4. 5.

Overview The Service Requirement Performance and the Payment Model Additional Information and Delivery Standards Quality, Evaluation, Account and Performance Management

ANNEXES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Contract Packages and Indicative Volumes Overview of Mandatory Work Activity The Payment Model Service Delivery Standards Additional Information Flexibility During the Life of the Contracts Defining Community Benefit Principles of a Mandatory Work Activity Placement Labour Market Information Sources Sources of Additional Information Glossary of Terms List of Abbreviations

1. OVERVIEW Introduction 1.01 The Coalition Agreement1 set out a number of major welfare to work reforms, including a core integrated welfare to work programme plus a number of additional measures, designed to support people in finding employment. These measures will contribute to the overall aims of the Department for Work and Pensions (DWP) which are: help and support people who are out of work to move into work; encourage responsibility and fairness by simplifying the welfare system so that work always pays; recognise work as the primary sustainable route out of poverty and reduce the number of children in workless households; tackle pensioner poverty by providing decent State Pensions and encourage employers to provide high quality pensions for all employees; ensure that disabled people have the same opportunities as non-disabled people to succeed in life and fully participate in society; and to work with communities and partners to deliver excellent service to the Departments 20 million customers.

1.02

On the 25 November 2010 DWP announced successful bidders for the Framework for the Provision of Employment Related Support Services (thereafter referred to as the Framework), consisting of organisations with the capacity and expertise to deliver these services. Organisations successful in the competition in any given geographical Lot are eligible to tender for employment related provision contracts within that Lot. This Invitation to Tender (ItT) document, is for those Providers who have been awarded a place on the Framework.

DWP Business Plan 1.03 Mandatory Work Activity (MWA) was announced in Universal Credit: a welfare that works2. MWA will contribute to the DWP Structural Reform Plan3. Specifically MWA has been designed to deliver the following Critical Success Factors.

Critical Success Factors 1.04 Below are the Critical Success Factors against which the success of the MWA will be judged: re-enforce the responsibilities associated with claiming Jobseekers Allowance (JSA); provide jobseekers with the disciplines associated with employment while at the same time enabling them to make a contribution to the local community;

http://webarchive.nationalarchives.gov.uk/20100526084809/http://programmeforgovernment.hmg.go v.uk 2 http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/universal-credit/ 3 http://www.dwp.gov.uk/publications/corporate-publications/structural-reform-plan.shtml 3

experience increased job search activity and greater engagement with other back to work support from jobseekers who participate; and increase off-flow rates from JSA, as part of the wider support available through Jobcentre Plus (JCP).

MWA Specification 1.05 1.06 DWP is seeking bids from successful Framework Providers to deliver MWA as part of the Governments welfare reforms. This document provides information about DWPs requirements so that Providers can develop comprehensive delivery proposals and relative pricing schedules. It is comprised in two parts: the main specification which sets out requirements for delivery and additional information; and the annexes, which contain further detail, including indicative volumes and pricing information that may be useful in preparing bids.

1.07

MWA will commence from spring 2011 across Great Britain4 in a number of Contract Package Areas (CPAs) outlined in Annex 1. There will be one Provider operating within each CPA. The exact start date will be agreed with Providers but DWP is committed to having MWA in place no later than 16 May 2011 in all CPAs. As part of their bids, Providers will be asked to provide an implementation plan and advise DWP of their earliest start date. Referrals under the MWA contract will be made until March 2015 with the last customer starting on a placement on or before 31 March 2015. There will then be a further four week period for Providers to carry out their service delivery obligations as outlined in this document. The MWA payment model will be a 100% Start Fee paid at the start of the placement (Section 3 provides further details). This recognises the importance given to setting up and starting the customer on a work placement quickly, and ensuring robust processes are in place for timely exchange of information between JCP and the Provider thereafter. DWP, including JCP, will be working during the tender assessment stage to obtain input on local issues. There is no direct role for strategic partners in the assessment of MWA bids. Details of the bid evaluation can be found in the Instructions for Bidders.

1.08

1.09

1.10

Great Britain does not include Northern Ireland, the Channel Islands or the Isle of Man 4

Flexibility during the life of the Contracts 1.11 Contracts will be sufficiently flexible to handle changes that might occur during their lifetime because of fluctuations in funding or changes in policy. In particular the Department is undertaking fundamental reform of the welfare system with the introduction of the Universal Credit in 2013. This will potentially have impacts on MWA contracts (Annex 6 provides further details).

2. THE SERVICE REQUIREMENT 2.01 The Coalition Government has made a clear commitment to ensuring that receipt of benefits for those able to work is conditional on their willingness to work. MWA will be aimed at customers who are failing to engage with the measures available to help them return to work. MWA objective is to impose a short sharp period of mandatory work upon customers (with suitable sanctions for a failure to comply) so they may be better equipped to engage with other support. Customers who participate in MWA will gain a better understanding of the discipline and focus that is required for work by attending regularly on time, carrying out specific tasks and working under supervision, while at the same time making a contribution to their community.

2.02

MWA Delivery Model 2.03 MWA is for JSA customers only and will be mandatory for those referred. JCP Advisers will be able to refer a customer to MWA at any point in their claim, provided the individual is not currently undertaking contracted provision. Further information on the number of customers likely to be referred is available at Annex 1. Whilst the customer is on MWA they remain on JSA. Decision making in relation to benefit entitlement remains the responsibility of JCP. MWA will consist of a work placement lasting four weeks, for 30 hours per week, over a seven day period (unless restrictions have been agreed in the customers Jobseekers Agreement JSAg as described in Annex 2). The placement must be of benefit to the local community. The Provider is responsible for ensuring the customer attends the placement as instructed to do so, making it clear to the customer the consequences of failing to participate. The process the Provider adopts and the control mechanism they put in place will form a vital part of their service offer. The Customer Journey is outlined at Annex 2. If a customer fails to comply at any point of the Customer Journey, the Provider will be expected to inform JCP promptly with evidence of the failure, so that JCP can consider if a sanction is appropriate (Annex 2 provides further details). When the customer completes or leaves provision early the Provider will need to provide a Feedback Form to enable JCP to decide what further support will be appropriate. Further information about the Feedback Form can be found in Annex 2. Providers are responsible for ensuring customers have the support, including the financial support, they need to participate during their time on the provision and the placement (Annex 5 provides further details).

2.04

2.05

2.06

2.07

2.08

2.09

Community Benefit Placement 2.10 Providers will be required to work with local employers, organisations and the voluntary sector, to source placements that are of community benefit. Providers will need to have placements available across a range of sectors. Due to the short timescale associated with this provision Providers are expected to source placements where CRB checks will not be required. MWA is designed to help the customer develop disciplines associated with employment (for example attending on time and regularly, carrying out specific tasks and working under supervision) and as such will help customers develop the skills and behaviours that we know are widely valued by employers. As a result, it is not necessary (although clearly desirable wherever possible) for the placement to be in the same sector or type of work as the customers job goal. (Annex 7 provides further information) Placements must be additional to existing or expected vacancies. This is to ensure that employers do not take advantage of MWA as a source of labour at the expense of employing workers in the open labour market. It must, however, be as close to a real working environment as possible so that it can potentially form part of the customers CV in the future.

2.11

2.12

3. PERFORMANCE AND PAYMENT MODEL 3.01 This section sets out information on contracts, contract packages, the Departments expectations for MWA Payment Model and Performance. DWP will only award contracts to organisations that have been Momenta accredited and it is a condition of joining the Framework that Providers go through this process prior to any contracts being awarded. Referrals under the MWA contract will be made until March 2015. There will then be a further four week period for Providers to carry out their service delivery obligations as outlined in this document. Contract Packages, including indicative budgets and volumes 3.02 Annex 1 provides details of the contract package areas (CPA), including budgets, indicative volumes and competition parameters for each CPA.

Payment Model 3.03 MWA provision is paid on the customer starting the placement. The definition of a start on placement is that as a minimum: the placement organisation has confirmed they are able to provide the placement for the required duration; the customer has attended the placement; the customer has completed any necessary induction and health and safety requirements; and the customer is aware of the standards of behaviour, their responsibilities and required attendance arrangements and emergency procedures.

3.04

A Start Fee will be paid once the Provider has recorded that the customer has started on the MWA placement and by doing so makes a declaration that the minimum standards at 3.03 have been met. Further information on MWA placement start definition is outlined in Annex 3 para 3.06. The Start Fee will be 100% of the payments available for each individual customer. Contract values for MWA are fixed. However DWP is seeking competition based on increasing the number of placements each Provider can offer against this contract value. Annex 1 provides the contract value for each CPA and the maximum number of places. Providers are asked to offer a number of places within these parameters. See the Instructions for Bidders and Pricing Schedules for further information.

Performance 3.05 We are keen to ensure that MWA placements are of benefit to the community and appropriate to the customers referred. To support the policy intent for MWA it is important that a timely intervention takes place and momentum is maintained to ensure the customer receives the support MWA will provide. To deliver this Provider
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performance will be assessed against a series of delivery standards which are outlined in Annex 4. Payments to providers 3.06 All payments will be made via the Provider Referral and Payment system (PRaP). Please note that DWP can only make direct payments to UK and NI bank accounts.

4: ADDITIONAL INFORMATION AND DELIVERY STANDARDS 4.01 This section provides additional information Providers may wish to consider when setting out their bid, and expected delivery standards.

Additional information Local Level Delivery Information 4.02 Further information on the local labour market can be found in Annex 8 and at this link under JCP District Information Packs: http://www.dwp.gov.uk/supplying%2Ddwp/what%2Dwe%2Dbuy/welfare%2Dto%2D work%2Dservices/ Partnership Working 4.03 Working with Government, DWP and JCP: During the lifetime of the contracts, there will be regular interactions between Providers and JCP staff to ensure the effective delivery of provision and services to customers. JCP is committed to making its premises available to their local strategic and service delivery partners, when and where spare capacity exists. For the initial engagement with the customer, Providers may wish to consider the use of JCP premises on an ad-hoc basis as the first option if their service delivery model requires premises. Discussions should be initiated with the local JCP Manager on the viability of this. However, Providers must not assume that they will have access to JCP premises now or for the life of the contract. Full costs for premises should therefore be reflected in bids as Providers will be charged the market rate. Working with strategic and local Partners: Partnerships are central to the delivery of DWP objectives and statutory duties and DWP believes that effective partnership working will be key to the delivery of MWA. As a result, Providers are expected to work with a wide range of local partners and partnerships. Our track record in working with voluntary sector organisations within existing Welfare to Work supply chains is an excellent one; to continue to build on this we expect Providers to engage with the voluntary sector to ensure they play a major part in the delivery of Mandatory Work Activity provision. Working with employers: we require providers to work with local organisations and the voluntary sector, to source MWA placements. These should be supervised, with tasks similar to those they might experience in a normal working environment and will encourage the development of crucial disciplines associated with employment, while at the same time making a contribution to their community. Annex 5 provides further information on all these areas.

4.04

4.05

4.06

4.07

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Delivery Expectations Referrals and payment system 4.08 Providers will use the PRaP system to receive their referrals and to record customer activity. When a placement start date is entered into PRaP it will prompt the system to release a payment. Providers will therefore need to have met relevant security requirements when contracts go live. More information on PRaP can be found at: http://www.dwp.gov.uk/supplying-dwp/what-we-buy/welfare-to-work-services/prap/ 4.09 Direct access to PRaP will be limited to Prime Providers.

Business Continuity 4.10 As part of the contract start up, Providers will be asked to supply details of how business continuity arrangements will be implemented and how these requirements will be covered. We expect Providers to: provide robust Business Continuity Plans and Disaster Recovery Arrangements for all services; provide DWP with sufficient evidence to demonstrate these are in place; regularly test all contingency arrangements, providing relevant evidence and outcomes of tests to DWP via Account Managers; and immediately notify DWP in the event of a business continuity incident or a significant disaster.

Customer feedback and complaints handling 4.11 Providers must have an appropriate complaints process across the whole supply chain to attempt to resolve customers complaints. Where complaints cannot be resolved, a customer can complain direct to the Independent Case Examiner (ICE). ICE will mediate between the Prime Provider and customer to attempt to broker a resolution. If a resolution cannot be agreed between either party, ICE will undertake a full investigation of the complaint. If the complaint is upheld at this stage, in part or in full, then the Provider will be charged a fee of 5,000 and will also be liable for any financial redress recommended by ICE. In the event that the complaint against the Prime Contractor or Sub-contractor is dismissed, no fee shall be payable. Any fees in respect of complaints that have been upheld against the Prime Contractor or the Sub-contractor and any financial redress due to the customer shall be paid within four (4) weeks of the date of the ICE final investigation report.

4.12

Data Storage and Security 4.13 As outlined in the Framework competition, Providers will be required to comply with overall DWP data storage and data movement requirements. These obligations are included in the standard T&Cs for all contracts called off from the Framework, and
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should be made available to a Providers planning and IT departments. More information can be found at: http://www.dwp.gov.uk/docs/dwp-model-tc-nationalw2w.pdf and http://www.dwp.gov.uk/docs/prap-tandc.pdf. Annex 5 outlines data protections and security requirements. Legal Requirements and Minimum Standards 4.14 As outlined in the Framework competition, Providers must ensure that they remain compliant with current and future changes in the law, supporting the Secretary of State in meeting all obligations under the relevant legislation and principal regulations including fraud prevention. Additionally, Providers will need to have met the minimum standards for equality, diversity and equal opportunities including training and diversity plans throughout the supply chain, as detailed in the Framework Specification.

4.15

Code of Conduct and Merlin Standard 4.16 Providers must ensure that all sub-contractual relationships adhere to the DWP Code of Conduct and they attain the Merlin Standard. Information on the Code of Conduct and Merlin Standard was included in the Framework specification. Providers will be assessed against the Merlin Standard by a third party organisation within a year of contract go live and potentially every three years thereafter. Further information will be supplied in Provider Guidance. For further information on the Merlin Standard, please see: http://www.dwp.gov.uk/docs/merlin-standard.pdf; and http://www.dwp.gov.uk/docs/sub-contracting-merlin-guidance.pdf

Provider Charter 4.17 The Provider Charter outlines how DWP expects to build strong Provider relationships in order to deliver joint objectives, including what Providers can expect from DWP and what DWP expects from Providers. Please see: www.dwp.gov.uk/docs/dwp-Provider-charter.pdf

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5. QUALITY, EVALUATION, ACCOUNT AND PERFORMANCE MANAGEMENT Purpose 5.01 This section provides a summary of the information requirements to meet contractual obligations relating to quality, evaluation, performance and contract management. Further details will be set out in Provider Guidance. DWP is committed to raising the standards of its contracted provision making continuous improvement an integral part of its contracting arrangements.

5.02

Performance Management and Account Management 5.03 The MWA contracts will be managed by Account Managers and Performance Managers. Provider performance is based on an assessment of performance priority which considers a range of factors including contract value, compliance with the contract, performance and security. MWA Providers will be responsible for managing the arrangements with the placement organisation and also the performance of their sub-contractors, including addressing poor performance. The Provider will need to ensure that all systems and processes used for the monitoring and recording of performance are robust, provide a clear audit trail of evidence, and give confidence to DWP that the Provider and its supply chain are delivering the Programme in accordance with the Providers overall contractual obligations. The Provider must appoint appropriate named contacts who will work with the DWP Account Manager and Performance Managers to ensure that the MWA is delivered as specified in the contract and that required standards and performance levels are met.

5.04

5.05

Performance and Performance Information 5.06 Providers may be invited to discuss their performance regularly at Provider Engagement Meetings (PEM) which will focus on performance, delivery and customer experience; JCP and Strategic partners will also be invited to attend. DWP will use MI presented by PRaP for the ongoing management of the provision and for discussion with individual Providers. As DWP is committed to transparency on how its programmes are working, Providers need to be aware that MI may also feed into published Official Statistics on MWA. Consequently Providers must treat information they have access to as restricted, and for their use only, ahead of formal publication. Official Statistics may also cover performance expectations at Provider level.

5.07

5.08

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Provider Assurance Team 5.09 The Provider Assurance Team (PAT) provide DWP with assurance that: payments to contracted employment provision Providers are in accordance with DWP and Treasury requirements; public funds and DWP data are protected; and value for money has been obtained. This is done through an operation of a national standard risk approach, for example through visits to review internal systems and sub contractor arrangements. The PAT will work with successful Providers, particularly those new to DWP business, to ensure that they understand what is expected of them and are, therefore, adequately equipped to develop robust systems to support their service delivery model when MWA goes live.

5.10

5.11

Quality 5.12 Our expectation is that Providers will invest in and be active in their own improvement and development through a process of continuous self-assessment and action planning. This process will eventually be reviewed as part of the provider assurance process.

Programme Evaluation 5.13 Evaluation of the programme will seek to determine the success of MWA provision. DWP will analyse MI and conduct qualitative research with JCP/DWP staff, customers and Providers to build up a picture of the support delivered. Researchers will wish to visit and interview Providers as part of the evaluation. Providers will be contacted in advance of any fieldwork. Providers are expected to fully co-operate with MWA evaluation activity commissioned by DWP.

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Annex 1 CONTRACT PACKAGES AND INDICATIVE VOLUMES A1.01 We will award 11 contracts with one contract per framework Lot and one Provider per Contract Package Area (CPA). The CPAs are aligned with the Framework Lots. The MWA CPAs are outlined in table 1 below: Table 1 CPA (aligned to Framework Lots) CPA 1 South East CPA 2 South West No. of Providers per CPA 1

CPA sub-divisions Hampshire and Isle of Wight Thames Valley (Berkshire, Buckinghamshire, Oxfordshire), Kent, Surrey and Sussex Devon and Cornwall Dorset and Somerset, Gloucester, Wiltshire, and Swindon, West of England Ealing, Hammersmith & Fulham, Brent, Harrow, Hillingdon, Hounslow, Richmond Upon Thames, Kingston Upon Thames, Wandsworth, Enfield, Kensington & Chelsea, Barnet, Camden, Westminster, Islington, Haringey, Hackney, Newham, Tower Hamlets, Barking & Dagenham, Redbridge, Havering, Waltham Forest, City of London, Croydon, Bexley, Lambeth, Bromley, Greenwich, Lewisham, Southwark, Merton, Sutton Bedfordshire and Hertfordshire, Cambridge and Suffolk Essex, Norfolk Nottinghamshire, Derbyshire, Lincolnshire and Rutland Leicestershire and Northamptonshire Birmingham and Solihull Black Country, Coventry and Warwickshire, Staffordshire, The Marches Cumbria and Lancashire, Merseyside, Halton, Greater Manchester Central, Greater Manchester East and West Cheshire and Warrington West Yorkshire, South Yorkshire, North East Yorkshire and The Humber Northumbria, South Tyne and Wear Valley, Tees Valley
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CPA 3 London

CPA 4 East of England CPA 5 East Midlands CPA 6 West Midlands CPA 7 North West CPA 8 Yorkshire and Humber CPA 9 North East

1 1

CPA 10 Scotland

CPA 11 Wales Indicative Volumes

Ayrshire, Dumfries, Galloway and Inverclyde, Edinburgh, Lothian and Borders, Forth Valley, Fife and Tayside Glasgow, Highlands, Islands, Clyde Coast and Grampian Lanarkshire and East Dunbartonshire North and Mid Wales, South West Wales, South Wales Valleys, South East Wales

A1.02 We set out below in table 2 the budget and indicative volumes by CPA. Providers should note that DWP does not guarantee volumes. These are total volumes per CPA based on a maximum of 800.00 per customer start. Contract Package Area CPA 1 South East CPA 2 South West CPA 3 London CPA 4 East of England CPA 5 East Midlands CPA 6 West Midlands CPA 7 North West CPA 8 Yorkshire and Humber CPA 9 North East CPA 10 Scotland CPA 11 Wales Budget Minimum Places Provider will have available per year 830 480 1,650 710 690 1,250 1,340 1,020 610 920 500

664,000 384,000 1,320,000 568,000 552,000 1,000,000 1,072,000 816,000 488,000 736,000 400,000

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Annex 2 OVERVIEW OF MANDATORY WORK ACTIVITY CUSTOMER GROUP A2.01 The customer group are those claiming JSA, including JSA lone parents, partners and carers. JSA is a benefit for people who are unemployed and capable of work and to be eligible the customer must be actively seeking and available for work. Customers in this group are assessed as ready to look for and take up work immediately. A2.02 Customers who are part of joint claims to JSA will be eligible for MWA provision. Referrals will be made on an individual basis based on the suitability of the customer. Both members of a joint claim could be referred to MWA if suitable however this would be treated as two referrals in the same way as if two separate individuals were referred. A2.03 From October 2010, DWP started a process of reassessing Incapacity Benefit (IB) customers. Those found fit for work will move to JSA and thus become eligible for MWA. A2.04 From early 2012, Lone Parents with children over the age of five will be required to claim JSA or ESA if appropriate. A2.05 From 2012, customers making new claims to JSA who do not have children under five will not be able to make partner claims. Instead, they will make joint claims to JSA and will be subject to normal JSA conditionality. CUSTOMER JOURNEY A2.06 MWA is for Jobseekers Allowance (JSA) customers and will be mandatory for those referred. JCP Advisers will be able to refer a customer to MWA at any point in their claim, provided that the individual is not currently undertaking contracted provision (e.g. the Work Programme). Customers will not be able to volunteer to participate in MWA. Customer referral from JCP to MWA Provider A2.07 JCP advisers will refer suitable customers to providers via PRaP. Information sent as part of the referral will include: full name (including title); National Insurance Number; address and contact telephone number; notification if a customer has informed JCP that they have a disability; the customers signing arrangements and pattern of attendance;

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notification if a customer has had an incident recorded whilst working with JCP or any other provider; if the customer has childcare/caring requirements; details of any employment restrictions a JSA customer may have on their availability, which has been agreed by JCP; and details of customer qualifications.

NB: this list is not exhaustive and further details will be included in the Provider Guidance. Engagement Activity A2.08 Providers will have up to 10 working days from referral to start a customer on the MWA placement A2.09 Between the referral to start period the Provider must conduct engagement activity to ensure the customer has a clear understanding of their responsibilities whilst participating on the provision and the consequence of failure to start, attend, or complete MWA. This must include a formal notification to the customer to attend MWA. DWP will supply the notification template for the Provider to issue. Mandatory Work Activity Placement A2.10 Each customer is expected to participate fully in a placement which will last four weeks, for 30 hours per week, over a seven day period (unless restrictions have been agreed in the customers JSAg). A2.11 Once a customer has started the placement, the provider should notify JCP through PRaP within 24 hours. A2.12 The provider is contracted to supply MWA placement for a period of four weeks for each customer. A2.13 The placements delivered through MWA should deliver activity that provides direct or indirect benefit to the local community. The provider should be able to clearly describe to DWP the community benefits the placement is delivering. A2.14 The days and hours of the placement are not prescriptive but they should adhere to the EU Working Time Directive (2003/88/EC). In cases where the customer has a work easement agreed in their Jobseekers Agreement (e.g. they may only be required to be available for work for 20 hours a week) then the placement should reflect this. Any limitations/easements will be part of the information that is sent to the provider through PRaP and providers will need to take this into account when setting up the placement. Time spent travelling to and from placements should not be included in the hours of attendance. A2.15 The Provider is responsible for ensuring the customer attends the placement as instructed to do so making it clear the consequences of a customer failing to participate. Providers must not give any incentive payments or rewards to the
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customer for participation in MWA. Evidence that can support delivery of the provision as specified within this document must be kept by the Provider. As a minimum DWP would expect to see evidence of the customers hours spent on the work placement including the date, the start/end times, the placement organisation name and contact details. Participation during the placement period A2.16 Whilst on MWA, the customer remains on JSA and therefore will be required to attend the Jobcentre for Fortnightly Job Search Reviews and confirm they are continuing to meet JSA conditionality (actively seeking and available for work). JCP will arrange a suitable time (wherever possible) to ensure that this attendance does not impact negatively on the customers MWA placement. Where it is not possible to make such an arrangement, we expect that the Provider will work with JCP to come to an agreement. We also expect Providers to be flexible where a customer has an interview for a job which will take them off benefit. Customer fails to comply or doubts in entitlement are raised A2.17 Participation in MWA is mandatory for all customers referred to this provision. Providers are required to inform JCP, within 24 hours, by completing the DMA referral form for any customer who fails to comply, and to keep supporting evidence, which includes information regarding: failure to participate in or complete MWA; refusing a place on MWA when notified of the requirement to attend by JCP, demonstrated by a failure to attend the first day; failure to attend or participate in any meeting or activity, having been notified of the requirement to attend by the scheme provider without the previous agreement of the provider; and losing a place on a MWA through misconduct.

To note: The sanction regime for MWA is a 13 week sanction for the first offence followed by a further 26 week sanction for a second offence within 12 months. The sanction will remain in place even if the customer re-engages with MWA. Balance of Time (BoT) A2.18 Some customers who have left MWA before completing their Allotted Time may be required to complete the remaining weeks. Customers will only be re-referred to complete full weeks. JCP will advise Providers of the BoT period upon re-referral. (see A3.11) A2.19 Providers will not be paid a further Start Fee for these customers. Completing MWA A2.20 Providers are required to give feedback on the customers participation during the placement, so that the Jobcentre can take forward and build on any progress made
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during MWA. A Feedback Form completed by the provider, following liaison with the employer, should be sent to JCP each time the customer leaves MWA. The Feedback Form should: document how the customer has performed during the placement; verify the customers attendance; and be returned to JCP within 10 working days of the customer leaving MWA.

A2.21 The customer will then return to JCP for further activity and support.

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Mandatory Work Activity High Level Customer Journey

Customer starts MWA placement within 10 working days of JCP referral

1. JCP identifies suitable customer for MWA

2.. JCP PA makes referral/balance of time referral to MWA via LMS

3. MWA Provider accesses referral via PRaP and acknowledges referral (within 24 hours)

4. Provider conducts engagement activity with customer and issues notification letter

to box 6

5. Customer fails to start MWA placement. Provider informs JCP via PRaP and DMA referral stencil

to box 10

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from box 4

6. Customer participates in MWA placement (30 hours per week for 4 weeks). Provider notifies JCP via PRaP of start. Start Payment made to Provider.

7. Provider notifies JCP of MWA completion via PRaP. Provider sends feedback form to JCP

8. Customer returns to JCP for further activity and support

9. Customer FTA/loses a place on MWA placement. Provider informs JCP via PRaP and DMA referral stencil

10. JCP conducts DMA action

from box 5

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Annex 3 THE PAYMENT MODEL Mandatory Work Activity Definitions This section sets out how the payment model will work. Referral A3.01 The date JCP records a referral to the MWA Provider on a DWP prescribed IT or clerical system. Engagement Activity A3.02 The Engagement Activity is the initial engagement between the customer and the MWA Provider which must include issuing a notification letter to the customer. This may be by any manner and media they deem appropriate and must take place prior to the MWA Placement start date. Allotted Time A3.03 The MWA Allotted Time is 4 weeks from and including the date the customer starts a MWA placement. Allotted Time Start A3.04 A customer is defined as starting Allotted Time on MWA from and including the date the MWA placement starts. MWA Placement Start Date A3.05 The date the Customers starts the MWA placement. This date must be recorded on a DWP prescribed IT or clerical system by the Provider. Start Fee A3.06 A Start Fee will be paid, upon recording of the MWA Placement Start Date on a DWP prescribed IT or clerical system with the Provider declaring all activities at paragraph 3.03 of this document have been completed and are available for evidencing should they be requested by DWP. A3.07 Only one Start Fee will be payable for each customer per period of Allotted Time. Completer A3.08 A completer is a customer who has reached the end of the Allotted Time

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Leaver A3.09 A Leaver is a customer who has not completed their Allotted Time. Leavers are customers who have: ceased to claim JSA; or had a MWA sanction doubt raised.

Did not engage A3.10 A customer who has failed to start their Allotted Time, where an MWA Placement Start Date has not been recorded on a DWP prescribed IT or clerical system. Customers referred for Balance of Time A3.11 A customer who has previously started their Allotted Time and subsequently been defined as a Leaver.

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Annex 4 SERVICE DELIVERY STANDARDS A4.01 The success of MWA will be measured against a series of delivery standards to ensure that the Policy intent of the programme is delivered. A4.02 Delivery against respective responsibilities will be monitored through a combination of existing performance management practices, local Provider Engagement Meetings and a range of service delivery standards. Standards A4.03 Providers are expected to actively manage the provision to ensure appropriate action takes place. These actions are: the customer starts and completes provision; or a sanction doubt is raised; or the customer leaves benefit.

A4.04 When the JCP PA decides a referral to MWA is appropriate it is important that momentum is maintained and the customer starts a placement at the earliest opportunity. The measures to identify that timely access to provision, appropriate communication channels and robust processes are in place will include: start and/or end dates input onto PRaP within 24 hours of the customer starting or leaving their MWA placement; at the point of referral the Personal Adviser will contact the Provider by telephone to inform the Provider a referral to MWA is being made. It is expected JCP will be able to get through first time in at least 80% of instances; providers ensuring that in every case the customer starts their MWA placement within 10 working days from the date of referral; a contact landline telephone number should be supplied by the Provider for the customer to use to contact the Provider while they are on their MWA placement; when a customer fails to comply, the Provider will be expected to raise a sanction doubt to JCP within 24 hours, so that JCP can consider if a sanction is appropriate; completion and return of the customer feedback form within 10 working days of the customer leaving MWA; Providers are required to keep documentation to support the placement start date and future attendance - DWP can request this documentation at any time; and ensuring that the environment is conducive with achieving the desired outcomes for the customer and providers should ensure minimum H & S standards, as laid down in legislation, are met at all times.

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Assurance Processes A4.05 It is essential that we can provide assurance to the taxpayer that publicly funded provision is delivering a quality service and value for money has been obtained. This will be measured using the following methods: provider representation at local performance meetings as agreed with DWP at post-tender negotiations; provider procedures to handle customer complaints, which must be available to DWP and ICE upon request; Providers annual Selfassessment Report; Quality Assurance Questionnaire and Action Plan that shows how the Provider will address areas for improvement and build on strengths; and performance management process as outlined in section 5 of this document.

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Annex 5 ADDITIONAL INFORMATION Travel, Additional Costs and Additional Support A5.01 Customers should not be worse off by virtue of attending Mandatory Work Activity. Providers are responsible for travel and additional support costs while the customer is on MWA. The following paragraphs provide the guidelines used by JCP when determining financial support in these areas.

Travel expenses A5.02 The Provider is responsible for funding the customers travel costs during their time on the placement and attendance at any Engagement Activity if deemed appropriate. The Customer is responsible for meeting their travel costs for attending their FJRs. Childcare for attendance should only be funded for time on the placement and attendance at any Engagement Activity if deemed appropriate. Child care must be provided by: carers registered with Ofsted (Office for Standards in Education), the Scottish Commission for the Regulation of Care or Welsh equivalent; a carer accredited under the Childcare Approval Scheme, run on school premises out of school hours or as an out of hours club by a Local Authority; or schools or establishments exempted from registration under the Childrens Act 1989 or operated on Crown property.

Childcare A5.03

The parent can make alternative arrangements. However, payment cannot be authorised unless the arrangements are in one of the above categories. A5.04 A5.05 The child/children must satisfy the age requirement (in paragraph 5.06) and be a dependant of and residing with the customer. Jobcentre Plus currently sets its costs for childcare up to the Tax Credit limits. Providers should consider the following limits when developing and pricing their proposals: help with childcare costs can be paid up to, but not including, the first Tuesday in the September following the childs 15th birthday; parents requiring childcare for five days a week can claim up to a maximum of 175 per week for one child and 300 per week for two or more children; if the customer is attending an approved activity of less than five days a week, they can claim up to the maximum daily rates of 35 per day for one child and 60 per day for two or more children.

A5.06

Providers must not recommend particular childcare facilities to customers. This is to ensure that DWP/Jobcentre Plus and/or the Provider do not take on the liability
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for the safety of children. It is the parents responsibility to decide with whom they entrust the care of their children. A5.07 Providers may choose to arrange for a crche facility to be on their premises. However, they must ensure it is the parents choice whether their child uses the facility. Providers should also ensure that any crche facilities adhere to current legislation.

Additional Support A5.08 Additional support is defined as any support that allows a customer who needs extra help to attend and participate fully in provision (e.g. clothing and specialist equipment). Providers must, as part of their obligations under the duties in the Equality Act 2010 take the necessary steps to obtain and provide special aids or services that might be needed for participation. Providers must include these costs within the financial part of their proposal.

Partnerships A5 .09 Providers are encouraged to work with local partners to ensure that their proposals reflect the specific needs of customers in each CPA and take into account local strategies and services. Providers should aim to improve performance and customer service across the piece, reduce duplication wherever possible and improving the holistic use of public funds in a locality/area. Local Partners may include, but are not limited to: DWP/JCP; Regional ESF partners; Employers; Local Authorities; Local Health Services; Voluntary and Community sector and specialist organisations; Statutory partners named in the Child Poverty Act; and Sub-Regional Partnerships, including Multi Area Agreement, City Strategy, City Region and emerging Local Enterprise Partnerships.

A5.10

Data Protection A5.11 In order to protect Departmental information appropriately, our Providers must put in to effect and maintain the security measures and safeguards appropriate to the nature and use of the information throughout their supply chain. All Providers of services to the Department for Work and Pensions must comply, and be able to demonstrate compliance, with the Departments relevant policies and standards including the DWP Information Systems Security Standards. The Standards are based on and follow the same format as International Standard 27001, but with specific reference to the Departments use. Departmental information must not be Processed outside the United Kingdom without the
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express written permission of DWP in line with the DWP Security Policy For Contractors and DWP call off T&C's. A5.12 Security assurance for Providers and their supply chain is through completing a security plan. Providers submitted their draft security plans as part of the Framework competition and were expected to maintain this. This set out the security measures to be implemented and maintained by the prime Provider throughout the entire supply chain in relation to all aspects of the service, including processes associated with delivery. Providers must send an updated Outline Security Plan as part of their bid for MWA by completing and returning the template. Further information is available in the Instructions to Bidders. Data security is one of the areas risk assessed by the Provider Assurance Team (PAT) (see paragraphs 5.10 to 5.12). In addition data security will remain subject to spot checks by the Supply Chain Information Assurance Team (SCIAT). Furthermore, the Head of Compliance will continue to regularly report the number and outcomes of data security checks carried out during the previous quarter to the DWP Permanent Secretary. In the event of any breach of information security resulting in an investigation by the Information Commissioners Office (ICO), DWP will consider whether a major breach of contract has occurred within the T&Cs of the contract. Providers will be responsible for paying any fine levied on DWP following an investigation by the ICO.

A5.13

A5.14

Legislation and Principal Regulations A5.15 As outlined in the Framework competition, Providers must ensure that they remain compliant with current and future changes in the law and DWP Policy. For example: ensuring the MWA supports the DWPs Public Sector Equality Duty as outlined in the Equality Act 2010; providing appropriate services to ensure compatibility with the Equalities Act for example, to enable communication with customers who do not speak English as a first language or who are deaf, hearing impaired or have a speech impediment; where the Provider is operating in an area with a high minority ethnic population, materials in the appropriate ethnic minority language must be made available on request; and where the Provider is delivering in Wales, materials must both be displayed and made available as per the requirements of the Welsh Language Act 1993.

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Annex 6 FLEXIBILITY DURING THE LIFE OF THE CONTRACTS Change Management A6.01 Contracts will need to have some flexibility to handle the changes that might occur during their lifetime because of funding changes or changes in policy. Variations will be subject to discussion at the appropriate time. Potential changes fall into two broad categories: change necessitated by economic change or by change in anticipated volumes; and changes resultant on known or likely policy change. This information is provided to Providers to help them in developing their bid. The changes listed below should not be seen as exhaustive and DWP may approach Providers to discuss further changes as appropriate.

A6.02

A6.03

Volume and economic changes: A6.04 Volume: DWP reserves the right to adjust the available budgets (as outlined in Annex 1) in order to alter the number of available placements Economic: DWP reserves the right to review contracts for changes in economic conditions.

Changes resultant on known/ likely policy change: A6.05 The Government is currently considering a range of different welfare reforms. For example these may include: Universal Credit A6.06 As set out in the White Paper Universal Credit: welfare that works, published on 11 November 2010, Universal Credit is due to be introduced from 2013. Some changes may be necessary to the MWA contracts as a result of this and will be subject to discussion as the development of Universal Credit progresses. The full document can be found at: http://www.dwp.gov.uk/policy/welfare-reform/legislationand-key-documents/universal-credit/ Potential changes to the MWA contracts as a result of the introduction of Universal Credit may include: changes to customer grouping. Main customer groups are likely to be similar under Universal Credit (i.e. long term and disadvantaged unemployed customers and those with health conditions or disabilities) but there may be some other changes to customer groups to reflect the new benefit structure and Ministers associated policy aims; and other consequential changes may be required.
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A6.07

A6.08

In light of the introduction of Universal Credit, DWP will review the systems and processes which Providers use in connection with delivery of MWA to ensure that these systems and processes align, and are compatible, with any changes arising as a consequence of the introduction of universal credit. Arising out of this review, DWP will require Providers to make changes to their systems and processes.

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Annex 7 DEFINING COMMUNITY BENEFIT PRINCIPLES OF A MANDATORY WORK ACTIVITY PLACEMENT A7.01 A Community Benefit Placement must be of benefit to the community over and above the benefit of providing a placement to the individual. This means the role can include: working directly towards the community benefit goal of the host organisation. In this case the duties of the participant would contribute directly towards the benefit to the community. An example of this would be the employee working with the public on a community project; working indirectly towards the community benefit goal of the host organisation. In this case the duties of the participant would contribute indirectly towards the benefit to the community, as the duties of the participant would be contributing towards the work of the organisation which delivers community benefit. An example of this could be the employee working behind the scenes on the organisation of a community project; and working towards the profit of the host organisation, providing that the majority of the role is dedicated towards delivery of benefit to the community.

A7.02 Additionally the provider should consider whether there is an economic profit to the placement organisation are their objectives to deliver community benefit or whether their profit be used for community benefit. A7.03 Examples of organisation types that come under this definition include; Local Authorities and Councils; Government Departments and Agencies; Charities and third sector organisations; Social Enterprises; and Environmental Agencies.

Please note this list is not exhaustive.

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Annex 8 LABOUR MARKET INFORMATION SOURCES A8.01 Providers will be expected to conduct research on the labour market and demographics of the customer base in the CPAs they are bidding in. A8.02 On 17th November 2010, DWP published Analysis of the DWP Working Age Customer Base: http://statistics.dwp.gov.uk/asd/asd1/wacb/wacb_nov2010.pdf. A8.03 This analysis supports the commitment by DWP to understand its customers better by creating a consolidated view of DWP working age customers from the wealth of information held in Departmental systems. The analysis draws upon well established principles to create ten segments based on shared characteristics, such as length of time on benefits, demographics and situation, mainly drawn from DWP administrative data and supplemented by external socio-demographic profiling information. Providers may find this information useful when considering their service delivery model. A8.04 Detailed analysis, down to CPA and JCP District can be found by accessing the above link. A8.05 Local partners may have a range of data about localities which may help but some other sources of further information on proportions of key customer groups are: Census Output Area Data on Workless Benefit Customers: http://campaigns.dwp.gov.uk/asd/asd1/tabtools/census_output_area_data/index. php?page=census_output_area_data

NOMIS Official Labour Market Statistics: https://www.nomisweb.co.uk/Default.asp NOMIS provides a history of information on benefit counts and flows. It is possible to breakdown by geographical areas, certain characteristics, claim durations, occupation sought and recorded destination on leaving benefit. The Office for National Statistics: www.ons.gov.uk produces independent information to improve our understanding of the UK's economy and society.

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Annex 9 SOURCES OF ADDITIONAL INFORMATION Further background information can be found in the following: Census Output Area Data on Workless Benefit Customers: http://campaigns.dwp.gov.uk/asd/asd1/tabtools/census_output_area_data/index.php? page=census_output_area_data Corporate Publications: http://www.dwp.gov.uk/resourcecentre/corporatepublications.asp Data Protection Act 1998, Chapter 29: http://www.opsi.gov.uk/acts/acts1998/ukpga_19980029_en_1 Development of a Customer Experience Metric for Contracted Employment Provision: http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep655.pdf) Disability Equality Duty (DED): http://www.dotheduty.org/ DWP Information Directorate Statistical Tab Tool: http://research.dwp.gov.uk/asd/index.php?page=tabtool DWP Policy Publications: http://www.dwp.gov.uk/resourcecentre/policypublications.asp DWP Provider Guidance: http://www.dwp.gov.uk/supplyingdwp/what_we_buy/Provider_guidance.asp DWP Structural Reform Plan: http://www.dwp.gov.uk/publications/corporatepublications/structural-reform-plan.shtml Employability in Scotland: http://www.employabilityinscotland.com/workforceplus_3.aspx Employer Helpdesk: 01256 846414 and email: employerhelpdesk@cabinetoffice.x.gsi.gov.uk Employment and Support Allowance Help if you are ill or disabled: http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/esa/index.htm Employment protection during business transfers and takeovers: http://www.direct.gov.uk/en/Employment/Employees/BusinessTransfersandtakeovers/ DG_10026691 Employment, Retention and Advancement: http://www.psi.org.uk/research/project.asp?project_id=134 Independent Safeguarding Authority: http://www.isa-gov.org.uk/ Information on Civil Service Pensions: http://www.civilservicepensions.gov.uk/Menu.asp JSA Help while you look for work: http://www.direct.gov.uk/en/Employment/Jobseekers/index.htm JSA Regulations 1996: http://www.opsi.gov.uk/SI/si1996/Uksi_19960207_en_1.htm Merlin Standard: http://www.dwp.gov.uk/docs/merlin-standard.pdf Merlin Standard: draft guidance: http://www.dwp.gov.uk/docs/sub-contracting-merlinguidance.pdf More Choices, More Chances: A Strategy to Reduce the Proportion of Young People not in Education, Employment or Training in Scotland: http://www.scotland.gov.uk/Publications/2006/06/13100205/0 NOMIS Official Labour Market Statistics: https://www.nomisweb.co.uk/Default.asp
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Office of public sector information - UK legislation: http://www.opsi.gov.uk/legislation/uk.htm Office for National Statistics at www.statistics.gov.uk or www.ons.gov.uk Race Relations Amendment Act (2000): http://www.opsi.gov.uk/acts/acts2000/ukpga_20000034_en_1 The Law Relating to Social Security: http://www.dwp.gov.uk/advisers/docs/lawvols/bluevol/ The Scottish Parliament: http://www.scotland.gov.uk/ Staff Transfers in the Public Sector Statement of Practice, Annex A: http://www.hmtreasury.gov.uk/media/D/C/staff_transfers_145.pdf Welsh Assembly Government : http://new.wales.gov.uk/;jsessionid=V8tgMTPQ4dYTv1ST4m2PypxVDYzqPMyjm70LG1cB yqwrn9GGV6pQ!-1351106478?lang=en Welsh Language Act 1993: http://www.opsi.gov.uk/acts/acts1993/Ukpga_19930038_en_1.htm

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Annex 10 GLOSSARY OF TERMS Action Plan Contract Package Area A document that specifies each element of mandatory activity.

Successful Providers will be offered contracts to deliver in specific areas. Contract Package Area (CPA) is the term used to describe the geographic area of the contract within the Framework Lot. A CPA can be a whole lot or specific areas within the Lot. Critical Success The factors (i.e. the positive outcomes or benefits) against Factors which the success of a programme will be judged in order to justify the investment. Customer An individual of working age who uses JCP services for the purposes of preparing for work, returning to work or claiming benefits. Fortnightly Job These supplement more in depth advisory interviews. Job search Review search is discussed, customers sign to declare they remain (FJR) entitled to benefit and they are matched and submitted to jobs. The intervention is also used to input evidence to ensure benefit is paid accurately and on time. Framework Framework for the Supply of Employment Related Services. The framework is an umbrella agreement setting out the terms and conditions for subsequent call-offs, but which places no obligations, in itself, on the contracting authority to purchase any services. A call off is a contract draw from the Framework Agreement to deliver a specific purchase or contract service. Due to the nature of the Employment Related Services Framework this will be through a mini-competition between Framework Providers. Invitation to A package of documentation issued to Providers as part of a Tender (ItT) procurement exercise. Jobcentre Plus Part of DWP, JCP provides an integrated service to people of working age. It offers help to people looking to move into work and support for people who cannot. JCP also provides services to employers wishing to fill vacancies. JCP District A specified area of England, Scotland or Wales within which to deliver services to JCP customers. Jobseekers JSA An allowance payable to customers who are out of work, Allowance or work less than 16 hours a week on average, are below (JSA) pension age and are available, activly seeking and capable of work. Jobseekers JSAg An agreement between the JCP Adviser and the Allowance customer outlining the steps the customer will take to look for Agreement employment. (JSAg) Lots The Framework will be divided into geographical Lots. Organisations will only be able to bid in Lots where they have
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been successful in the Framework competition. The eleven Framework Lots are based on the current Government Office Regions. Mandatory Providers will work with local employers and organisations to Work Activity deliver placements that are suitable for customers, add benefit Placement to the local or wider community. These placements will give extra support to a small number of people to help them reengage with the system, refocus their job search and gain valuable work related skills and disciplines. Prime Provider An organisation that delivers a service directly and/or via a network of sub-contractors or a combination of both. Procurement The process of purchasing goods and/or service: identification to payment. Provider(s) The generic term used to describe Providers of employment support. This includes all subcontractors involved in service delivery under the prime contractor procurement model. Provider Detailed guidance and information (including processes) which Guidance is provided by DWP/JCP to the successful Providers to use when delivering the contracted service. Provision A term used to describe the services offered to a customer when they are participating in a government programme. These can be services provided in-house, for example, by JCP, or by organisations from the private and voluntary sector. Sanction A sanction reduces or extinguishes benefit even when there in underlying entitlement. Sanctions are imposed by a JCP Decision Maker for a fixed period because of, for example, failure to participate in a mandatory activity. Universal Credit Universal Credit will be introduced from 2013 and will be an integrated working-age credit that will provide a basic allowance with additional elements for children, disability, housing and caring. It will support people both in and out of work, replacing Working Tax credit, Child Tax credit, Housing Benefit, Income Support, income-based JSA and income-related Employment and Support Allowance.

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Annex 11 LIST OF ABBREVIATIONS CPA DED DWP ESA EU FJR IB ICE ICO ItT JCP PA JSA JSAg MWA MI Ofsted PAT PEM PIF PMD PRaP SCIAT T&Cs UC UK WP Contract Package Area Disability Equality Duty Department for Work and Pensions Employment and Support Allowance European Union Fortnightly Jobsearch Review Incapacity Benefits Independent Case Examiner Information Commissioners Office Invitation to Tender JCP Personal Adviser Jobseekers Allowance Jobseekers Agreement Mandatory Work Activity Management Information Office for Standards in Education Provider Assurance Team Provider Engagement Meetings Performance Improvement Framework Provision Management Division Provider Referral and Payment system Supply Chain Information Assurance Team Terms & Conditions Universal Credit United Kingdom Work Programme

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