Future Jobs Fund PostBid Briefing

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Future Jobs FundPost-Bid Briefing

• Tony Wilson, Employment Projects Division

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Agenda

• 1 Overview of event
• 2 The payment model
• 3 The referral process and delivery
• 4 Break
• 5 Grant terms and conditions
• 6 What data you will provide and how we will use
  it
• 7 Next steps the grant letter, planning and
  risk
• 8 Close

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Congratulations!

• Part of the biggest jobs programme for a
  generation
• 150,000 new jobs over two years
• 100,000 for young people as part of young
  persons guarantee
• 50,000 in areas of high unemployment
• You have committed to creating real jobs, that
  are additional and will benefit the community
• And youve set out in your bids how you will
  work together, support people on the job and help
  them move into sustainable employment
• Jobs that were successful in the 1st round are
  creating jobs from next month

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Purpose of today

• To set out our final position on
• Payment model
• Referrals and delivery
• Grant terms and conditions
• Reporting
• To enable you to plan in advance of grant letters
  being issued.
• Expect that initial grant will be for starts up
  to April 2010, with renegotiations/ extensions in
  New Year

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1. The payment model

• Three key principles
• Profile in line with costs where possible
  mitigate your cashflow risk
• Minimise risk of overpayments mitigate
  financial/ reputational risk
• One payment model for all bidders (with DWP
  paying lead bidders)
• The high level model 40 up front, 60 actuals
  in arrears
• CMCF based on number of weeks worked in reporting
  month and will be standard template/ ready
  reckoner
• We will need to pay promptly on receipt of CMCF
  aim to credit accounts before middle of that month

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1. The payment model

• For jobs not created, we would recover or net
  from future payments the amount paid up-front for
  that job i.e. 40 of the unit cost
• For jobs created but not filled, we would have
  power to claw back all or part of up-front
  payment
• Where individuals leave jobs early, you would
  stop claiming for that individual and payment
  would stop no clawback of up-front payment
• There will be some flexibility around starts so
  e.g. if jobs start a month later than profiled,
  you wont lose the up-front funding
• Exploring options to allow you to create more
  jobs by rolling up
• Actual surpluses that you accrue where payment
  exceeds costs and/ or
• Payments foregone where people have left early

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2. Quarterly Statement of Grant Usage

• The payment model is a generic mechanism which
  attempts to provide funding as required whilst
  managing financial risks to the Department.
• There will be instances where the amounts spent
  on eligible FJF costs are less than the Grant
  claimed.
• In this instance we will recover the difference
  at the end of the payment period, but we will
  require quarterly returns for our own records.

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3. Delivery Vacancy Taking

• You provide Jobcentre Plus with the details of
  each job as for a vacancy (e.g. employer,
  location, terms, selection process, whether for
  YP or hotspot etc)
• There will be a named contact in every JCP region
  that you will need to contact/ work with on
  vacancy handling
• Details would need to be notified at least 1 week
  before you expect referrals to start
• All jobs must be suitable for long-term
  unemployed 18-24 year olds
• Can only limit by geography if job is targeted at
  area of high unemployment (local authority or
  ward level)
• In partnership bids, expect that there will be
  one point of contact between Jobcentre Plus and
  the bidder

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3. Delivery Eligibility and Referral Process

• Jobcentre Plus will-
• identify customers eligible for FJF jobs,
• match them to the suitable opportunities
  available, and
• refer them to the employer for selection/
  interview
• Process will be in place for others to refer
  people to FJF jobs, but envisage that all
  referrals will be via Jobcentre Plus to check
  eligibility

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3. Delivery assumptions/ expectations

• Quick selection processes will be key suggest
  4 weeks max from referral to job start
• Relationship between lead bidders and Jobcentre
  Plus will be critical to success with process
  for resolving issues/ concerns
• You will need to have processes in place for
  acting on complaints/ concerns raised by
  employees
• Jobcentre Plus will have some contact with
  individual whilst in work
• As well as single point of contact in every JCP
  region, you will have an account manager/ support
  in DWP

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Break
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3. Grant terms and conditions

• You have seen generic/ blank letter. Will be one
  letter for all. Key terms and conditions
  include
• Responsibility to comply with all relevant
  legislation e.g. employment legislation
• For non-LAs, responsibility on you to comply with
  state aid organisation structure
• Reporting, accounting and audit requirements
  likely to be requirement for external audit
  during lifetime of grant
• Processes for resolving issues and dealing with
  breaches of terms (on either side)

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4. Reporting and monitoring

• 60 of grant based on monthly CMCF, we are likely
  to require
• Number of starters, leavers and individuals
  continuing employment
• An invoice based on the above
• Supporting information name, National Insurance
  No., Date of Birth
• We will check for consistency/ errors before
  authorising payment
• We will then validate data against our own
  Jobcentre Plus systems
• Where errors/ inconsistencies we will discuss
  with bidders and identify reasons why. In some
  instances may mean recovery of overpayment
• Where individuals return to benefit within six
  months, we will pick this up when they sign on
  and in all cases stop payment
• Holding and transfer of personal information will
  conform with relevant legislation

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5. Next steps

• If you have not returned your profiles, do so now
  with reasonable spread over Nov-Apr period
• Will then look to agree and to issue grant
  letters
• Will then begin making payments on receipt of
  signed grant letters
• If you are not developing formal plans, including
  key milestones, risks and mitigations, please do
  so we may ask to see these so that we can help
  you manage them
• Bear with us putting in place resources to
  support you

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Contact details

• Julia Sweeney, Programme Manager
• Julia.sweeney1_at_dwp.gsi.gov.uk
• Tony Wilson, Project Manager
• Tony.wilson_at_dwp.gsi.gov.uk
• James Whitley/ Dominic Finigan grants and
  payments
• James.whitley_at_dwp.gsi.gov.uk
• Dominic.finigan_at_dwp.gsi.gov.uk