Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Work and Health Programme

Benefit Assessors Capita in Financial ‘Problems’.

with 38 comments

Image result for Capita PIP


Some well-dodgy companies and ‘charities’ are set to run the Work and Health Programme,

Central England Shaw Trust January 2018
2 North East England Reed in Partnership January 2018
3 North West England Ingeus November 2017
4 Southern England Pluss January 2018
5 Home Counties Shaw Trust January 2018
6 Wales Remploy December 2017

This is how one DWP ‘contractor’ (PIP and ‘ DWP partnered with Capita Document & Information Services and Capita’s 10 enquiry lines on behalf of the Department for Work and Pensions (DWP)) is faring, despite siphoning off tonnes of public money.

Capita: more than £1bn wiped off value of UK government contractor

Grim state of outsourcing firm’s financial position emerges two weeks after collapse of Carillion.

More than £1bn was wiped off the stock market value of the government contractor Capita on Wednesday, sparking fears of job losses and forcing Downing Street to play down the threat of a collapse echoing the demise of rival Carillion.

Capita, whose major contracts range from collecting the BBC licence fee to electronic tagging of prisoners, saw its share price nearly halve in a day following a grim financial update that reignited concerns over the outsourcing industry and the stability of public services.

This is a major part of Capita’s Welfare ‘Business’.

Personal Independence Payment Assessments

Personal Independence Payment (PIP) is a non means tested benefit for people aged between 16 and 64 who have a long term health condition or impairment.

It replaced Disability Living Allowance (DLA) for people aged between 16 and 64. DLA recipients can use the DWP PIP Checker to see if and when they will be affected.

Capita carries out PIP assessments on behalf of the Department for Work and Pensions (DWP) in Wales, the West Midlands and the East Midlands (Independent Assessment Services, delivered by Atos covers the other parts of Great Britain). Assessments are focused on how an individual’s health conditions may impact on their daily life, rather than the health conditions themselves. You can read about the DWP’s entitlement conditions and assessment criteria in detail on the DWP website.

DWP accused of ‘rewarding failure’ over ‘extortionate’ benefit assessors payouts. 

April 2017

Labour accused the Department for Work and Pensions (DWP) of “rewarding failure” by Atos and Capita, which appear set to be paid more than £700 million for their five-year contracts.

This compares with an original estimate of £512 million for the contracts to carry out assessments for personal independence payments (PIP). The DWP said the assessment process for PIP is key to supporting claimants, and it has to balance effective support for the most vulnerable with getting the best value for the taxpayer.

Analysis by the Press Association shows Atos and Capita have already been paid £578 million in relation to PIP since it launched in 2013. This includes £257 million in 2016, the highest year so far, according to the department’s monthly spending data.

But the three original call-off contracts for this work totalled £512 million. This figure was supposed to cover a five-year period, according to the original contract documents.

The contracts are due to run out in December. With DWP having paid Atos and Capita an average of £19 million a month over the past two years, the companies are set to be paid in excess of £700 million by the time the contracts hit the five-year mark.

Shadow work and pensions secretary Debbie Abrahams said:

“It is beyond belief that this Tory Government is rewarding failure. “The PIP process is in disarray and these private companies are receiving huge payouts in a time of extreme austerity.

“It is clear that these costs are spiralling out of control.

“The Government needs to get an urgent grip on these extortionate payments to private companies, especially at a time when they are getting more and more assessments overturned in the courts.”

Watchdog orders DWP to publish secret reports on Atos and Capita PIP failings

22nd January 2018.

The information commissioner has ordered the Department for Work and Pensions (DWP) to release documents that are likely to expose the widespread failings of two of its disability benefit assessment contractors.

DWP has been attempting to prevent the documents being released since receiving a Freedom of Information Act request from campaigner John Slater in December 2016.

He said the documents – if and when they are eventually released – will reveal the truth about what DWP knows about Atos and Capita.

Last month, the two outsourcing companies, which are paid hundreds of millions of pounds to carry out personal independence payment (PIP) assessments, told members of the Commons work and pensions committee that they had never met contractual quality standards on the reports their staff write for DWP.

The documents Slater has been seeking could provide further evidence of such failings, and fuel campaigners’ fears that Atos and Capita have been told by DWP to find a certain proportion of claimants ineligible for PIP.

Under the terms of their contracts to assess claimants across England, Wales and Scotland for their eligibility for PIP, Atos and Capita must provide monthly reports to DWP that cover “all aspects of quality, including performance and complaints”.

The reports include detailed “management information”, including the number of complaints made against assessors, what proportion of assessments led to claimants meeting the PIP criteria, and the average length of time taken for face-to-face assessments.

Slater, who works in programme and project management when he is not campaigning on issues around freedom of information, had asked DWP to provide copies of these reports for every month of 2016.

He told Disability News Service that the reports would provide “raw data” on the companies’ performance, before DWP “has had a chance to massage it”.

He said: “I suspect what they will show is not only that the contractors are struggling but also how bad DWP is at managing contracts.”


News provided by John Pring at www.disabilitynewsservice.c

Latest news:

Capita PLC (LON:CPI) could be an “interesting recovery story” but it is too early to tell whether the new chief executive’s turnaround plan will bear fruit, according to analysts at Jefferies.

The outsourcing firm, which holds several contracts with the government, on Wednesday issued a profit warning and announced plans for a £700mln rights issue, to scrap its dividend and sell off non-core divisions.

The news sparked worries that it could face the same fate as collapsed contractor Carillion PLC (LON:CLLN).

Jonathan Lewis, who started as Capita’s chief executive two months ago, admitted that the company was “too complex” and “too widely spread across multiple markets and services”, making it challenging to maintain a competitive advantage in every business.

“Capita could be an interesting recovery story but it is too opaque to model with conviction, management guidance has been unreliable, and perpetual UK political turmoil continues to weigh on the revenue outlook,” said Jefferies.

The broker cut its rating on the stock to ‘hold’ from ‘buy’ and slashed its target price to 200p from 750p.

Capita now expects 2018 underlying pre-tax profits to be lower at around £270mln to £300mln, well below consensus forecasts of £380mln, due to contract delays, higher attrition, weak new sales and higher costs.

Revenue is expected to be flat compared to the previous year, which is ahead of consensus forecasts for a 204% decline.

“The new CEO may have kitchen-sinked expectations and front-end loaded investment costs but it’s difficult to prove at this juncture,” Jefferies said.

The view of RBC Capital Markets is that Lewis is “doing all the right things” but weaker trading and the “more precarious” balance sheet mean he has had to raise capital before completing a full strategic review.


Shares in Capita fell 3.2% to 176.30p in morning trading.

It’s a pitiful state of affairs when our public services are dependent on “morning trading” in shares.


Written by Andrew Coates

February 1, 2018 at 11:45 am

Work and Health Programme: After Universal Credit another Opportunity for Government Cock-up.

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 Image result for work and health programme

Work and Health Programme?

Providers announced for the Work and Health Programme (Thanks to contributors for flagging this up)

The Minister of State for Disabled People, Health and Work, Penny Mordaunt, has announced the 6 providers for the new Work and Health Programme.

Area Successful provider
Central England Shaw Trust
North East Reed In Partnership
North West Ingeus
Southern Pluss
Home Counties Shaw Trust
Wales Remploy

Local government partners in London and Greater Manchester have been given funding under devolution deals and are selecting their own providers.

In Scotland, funding for employment programmes for unemployed and disabled people was devolved in line with the Scotland Act.

The Work and Health Programme is not available in Northern Ireland.

As this Ipswich Unemployed Action I will concentrate on the Shaw Trust – which will provide services in ‘Home Counties’ East Anglia.

Past criticisms:

To be put on a 2 year Work Course is Compulsory, you have no choice, other words! My CV is sent, without my permission or any discussion with myself, to any Employers, whether I can do the job or not! Sometimes I will only get a few hours notice that an interview has been arranged for me! Plus I never get told what the hours are or the hourly rate, so I’m going into the interview ‘blind’. As I have a hernia, I was told not to tell the Employer.I had to lie just so I could get the job?
I will not lie, give false information that may be to my detriment, just so they can get rid of me! Despicable and underhand treatment of a human being!

More criticisms here

Example: May 2017

Terrible charity to work for bullying , harassment, under mining rife by management . Take my words of warning DO NOT WORK FOR THIS ORGANISATION YOU WOULD HAVE A NERVOUS BREAKDOWN.

Advice to Management

Stop the bullying and harassing culture that is rife in the organisation, absolutely disgusting that’s why I left….. . if DWP only knew how they treat their staff and how it would impact on the customers we support that they are paying us to do using taxpayers money. Get rid of the existing management team and directors and start again worst place I have worked in my entire LIFE!

(which to their credit the Shaw Trust registers and replies to).

Accounts up to 31st of March 2017,

The accounts reveal that the number of staff at the Wiltshire-based trust increased from 1,597 to 1,814 and the number of employees earning more than £60,000 increased from 46 to 56. The document says this “is substantially due to the conversion of three new schools into Shaw Education Trust during 2016-17”.

The highest salary paid during the year was in the £170,000 to £180,000 pay band. The recipient of this money is not identified in the accounts. 

Aspects of the new Programme:

Groups targeted:

Who is the eligible group for the Programme? (1)
It is expected that the Programme will support individuals from the following
participant groups:
• A person with a disability, as defined in the Equality Act 2010 can volunteer
to join the programme at any time including additional places for eligible and
suitable WRAG claimants
• Long Term Unemployed (LTU) – these will be claimants in the intensive work
search regime in Universal Credit or JSA claimants – who have not moved into
employment within 24 months of their claim


Programme participation
Participants will remain on the programme for up to 15 months of job finding
• If in that period they find a job they will stay on the programme until they
achieve a sustained Job Outcome
• If after 15 months support they do not find a job they return to the JCP offer
• Following a job start, the provider will be required to provide light touch inwork
support, for the participant if the provider and claimant agree it is
necessary in order for the claimant to remain in work.
• In-work support will continue until a sustained Job Outcome is achieved (not
indefinitely) and arrangements for continuation of support are in place if
necessary before the provider support ceases.
• The details and type of support will be set out by providers in their bids and
should complement other in work support.

Comment: One of the greatest concerns is shown by the head image.

Will this programme involve putting unemployed people into ‘therapy’?

More information on this programme welcome.

Written by Andrew Coates

November 4, 2017 at 10:49 am

Government shakeout of welfare to work: what will it mean for benefit claimants?

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Image result for work and health programme

What they didn’t mention on above…

Thousands of jobs to go in government shakeout of welfare to work sector The Guardian (just now).

“The sector is said to be preparing for a ‘bloodbath’.”

Funding to shrink by 75% from March when work programme is replaced by much smaller work and health programme.

Thousands of experienced employment coaches are expected to lose their jobs over the next few weeks as ministers trigger the first stage of a massive shakeout of the government-funded welfare to work sector that will see it shrink by 75%.

The employment services industry is preparing for what one insider called “a bloodbath” as the Department for Work and Pensions (DWP) moves to replace the work programme with the much smaller work and health programme.

Background (from here).

In the November 2015 spending review the government announced that the current work programme, due to end in March 2017, will be replaced by a ‘work and health’ programme.

Currently central government, through the Department for Work & Pensions, delivers the current work programme, which is a universal programme for the long-term unemployed. That has run for nearly five years and it will continue to run now until 31 March 2017.

The aim of the new Work and Health programme is to shift the focus from what might be termed “orthodox unemployment” to people with physical and psychological barriers to employment.  The work and health programme therefore will focus on the very long-term unemployed – two years-plus of unemployment – as one element of the client group and then another element, the health element, will be those citizens that have health barriers.

Localism, integration and devolution are significant factors in the development of the new Work & Health Programme. The government is specifically talking about co-design and co-commissioning with certain authorities: Manchester, London, Sheffield, Tees Valley, the North East, Liverpool and the West Midlands, relating to devolution deals.

Then (October)

DWP have today published more details about its commissioning model for its new Umbrella Agreement for the provision of Employment & Health Related Services (UAEHRS), the framework through which it will appoint providers for the new Work & Health Programme, as well as other potential DWP contracts.

The UAEHRS will account for £1.77 billion of DWP spend on contracted provision over 4 years, although it is not clear how much of this will be allocated to the Work & Health Programme. The UAEHRS will be divided into 7 Lot areas, based on Jobcentre Plus operational boundaries, namely: Central England, North East England, North West England, Southern England, Home Counties England, Wales, and a national England & Wales Lot. It is not clear from this whether or not the two co-commissioned Work & Health Programme areas, London and Manchester, are included under the UAERS arrangement. It is equally unclear whether or not the proposed Lot areas will also be applied as the final Contract Package Areas for the Work & Health Programme.

Only 5 providers will be accepted onto each regional UAEHRS Lot, although this may be extended if there is a tie-break for fifth place. Providers securing a place on two or more Lots will automatically be included within the national England & Wales Lot. The competition to select providers onto the UAEHRS will test providers against a number of criteria, including economic and financial standing, previous contract performance, supply chain management, service integration, implementation, delivery challenges, and stakeholder engagement. At the time of writing, the UAEHRS competition documents have not yet been released. This is, however, expected imminently, with a response deadline of the 9th November. Full details can be accessed at dwp.bravosolution.co.uk.

More details:

Documents seen by the Guardian reveal that seven of the 15 work programme prime contractors, including big private sector names such as Serco and Maximus, have not made it on to the initial shortlist for the new scheme.

The work and health programme shortlist, which is to be officially announced next week, begins a process in which the remaining eight work programme firms will compete with three new entrants for just six new regional contracts.

The final outcome, expected when contracts are awarded in late spring, could result in some firms being forced to abandon the market, or diversify into other contracted out public service areas, such as criminal justice or apprenticeships.

“This decimates the welfare to work industry. It represents the unravelling of nearly 20 years of unemployment support experience,” one industry insider told the Guardian.

Work coaches provide long-term unemployed clients with help to acquire a range of employment and life skills designed to increase their chances of finding work, such as CV writing, IT skills and literacy, as well as liaising with potential employers.

Thousands of work coach jobs are expected to be lost. “This means large job losses among really experienced frontline advisers, the majority of which are in charities,” said Kirsty McHugh, the chief executive of the Employment Related Services Association.

The work and health programme is expected to start in the autumn and aims to provide specialist support for long-term unemployed people, especially those with health conditions or a disability.

Funding will be about £100m a year over four years. This is about a quarter of the current annual spending on the work programme, which closes at the end of March, and work choice, which will continue for a few months longer.

This is the bit which we’re particularly interested in.

The work programme – which was launched in 2011 by the then secretary of state for work and pensions, Iain Duncan Smith – achieved mixed results and was fiercely criticised for the low numbers of disabled and chronically ill people it succeeded in supporting into work.

It was also dogged by controversy over alleged misconduct by work coaches, and the high salaries earned by top executives. Emma Harrison, the founder of A4E, was criticised for paying herself dividends of £8.6m in 2011, on top of a £365,000 annual salary.

Harrison, who had a brief spell as former prime minister David Cameron’s “families tsar” sold her personal stake in A4E to Staffline group in 2015 for a reported £20m. The relaunched company, PeoplePlus, is shortlisted in all six work and health programme areas.

Industry insiders expressed surprise that Maximus – which has gained notoriety as the provider of the DWP’s controversial “fit for work” tests – failed to make the shortlist as it had been seen as one of the best performing work programme providers in terms of getting long-term jobless people into sustainable jobs.

Much as we may weep at the fate of coachies and ‘providers’ we note an absence of information on what this latest scheme will mean for people who’ll be obliged to be on it.

Will there still be obligatory  ‘volunteering’, work ‘placements’ (free labour for  employers and the ‘voluntary sector’) and the rest of the rigmarole?

Will the usual ‘courses’ be on?

We have no idea whatsoever.