Welfare Reform Bill

I am grateful for the broad acknowledgement that using providers as envisaged has support in principle. I well understand the need for noble Lords to have detail and reassurances on some areas. The contracting out of the functions of the Secretary of State in Clauses 11, 13 and 14 is an important part of our strategy to help those with disabilities or health conditions back into work. Contracted providers have a wealth of experience and expertise in delivering employment support to this group of customers. In addition, contracted organisations may be able to reach customers with whom the Government have difficulty engaging. We also want to ensure that we deliver flexible and tailored support, and providers are well placed to adapt their provision to suit the needs of individual customers. These advantages apply to delivering mandatory elements of the ESA conditionality programme as well as to voluntary support, and we should take advantage of them. Having a single organisation responsible for the delivery of a majority of functions makes the programme simpler for the customer to understand and engage with, and helps him to build a better relationship with his adviser. It also makes clearer the connection between the support that we are making available, and the responsibility of the customer to engage with the process—a principle at the heart of these reforms. Of course, we need to ensure that standards are adhered to and that the legislation relating to work-focused interviews, action plans and directions will apply equally to contractors as to Jobcentre Plus. The same rights of appeal and review will apply. We will work closely with providers to ensure that they understand their responsibilities and that there is consistency in delivery. I am aware of concerns that outcome-based funding will result in those customers that may need more intensive help being left behind, or that providers will push people into employment or training that is simply not appropriate. I can assure noble Lords that we will do everything we can, as we are doing in the current Pathways to Work rollout, to ensure that that is not the case. In provider-led Pathways areas we are asking providers, as part of their bids for contracts, to detail how they will ensure support is in place for all customers. Bids will be assessed by procurement professionals, and an organisation that cannot deliver to the required standard will not be successful. In addition, after contracts have been awarded, Jobcentre Plus will work closely with providers to ensure that the services put in place are fit for purpose. We will put in place contract management processes to review periodically provider performance, and to ensure that they are delivering the support that we expect. Concentrating only on those customers that are closest to the labour market and easiest to help would clearly fall short of that and will be dealt with appropriately. By contracting out work-focused interviews, action plans and, later on, directions, we will ensure that these mandatory elements of ESA are fully integrated with the employment support that we offer. Most importantly, we will ensure that the considerable expertise found in public, private and voluntary sector organisations is utilised to the benefit of all customers. I will try to cover some of the specific questions asked. The noble Lord, Lord Oakeshott, asked for assurances that the Pathways contracts will be in the public domain. All current procurement documentation is in the public domain. We will continue to place it in the public domain wherever possible. The noble Lords, Lord Skelmersdale and Lord Oakeshott, asked whether the contracts encourage providers to help only those people with fewer support needs. I touched on this, but just to emphasise, bids for Pathways to Work contracts for potential providers should include details of the skills and experience which would enable them to address the specific needs and barriers of all customers. Bids will be assessed against that information. In any funding regime based on outcomes, there are risks that the providers will concentrate on the easiest to help. We need to be mindful of that. However, we intend to mitigate that risk as much as possible by reviewing for four months to ensure that that is not the case.