Department for Work and Pensions online consultation on the Work Programme

The Coalition Government has announced plans for reform of the welfare to work system and the implementation of the Government's Work Programme. The Department for Work and Pensions (DWP) launched an informal call for evidence on the Programme in July 2010.  Amongst the questions was one asking how DWP can best support providers to give people the support they need rather than prescribing one-size-fits-all programmes.  SEC's response, which can be found on DWP's website, is reproduced below:

The Social Enterprise Coalition supports the aspiration of providing greater freedom for suppliers to give people the support they need in accessing the jobs market. Social enterprises are experienced at providing innovative, targeted and supportive interventions to tackle issues around unemployment. They provide tailored solutions that are commissioned and which drive economic development at a local level.

DWP can best support social enterprise providers to deliver support that people need by:

• Allowing smaller organisations to act flexibly and respond to local circumstances. Social enterprises are deeply connected with their communities and have a strong track record getting long-term unemployed, disaffected youth and those with mental health issues or disabilities into meaningful employment.
• Creating mechanisms through which bespoke solutions can be scaled up, replicated or learned from.
• Issuing contracts that reward steps towards achieving job outcomes, not just the outcomes themselves and avoiding being prescriptive about how to achieve these outcomes.
• Supporting social enterprise solutions to employment and welfare issues that prioritise particular groups that would otherwise be excluded from the working world. These solutions, such as those provided by Social Firms, can have profound implications for government welfare policy, often providing alternatives to dependence on benefits and having wider benefits in terms of social cohesion.
• Encouraging social enterprise through the commissioning strategy and reviewing procurement processes under the prime contractor model which currently favours larger delivery partners.
• Implementing a payment scheme that is a continuum with many gradations to avoid the ‘creaming and parking’ of clients, and prime contractors simply working with those closest to the labour market and referring others to sub-contractors. Those people who are furthest from the job market may need long-term support to move them towards employment over sustained periods. In order to reward progress towards the labour market for long-term unemployed and the most disadvantaged groups, a measure of improved employability that is widely agreed upon would be needed and DWP could usefully support the development of this.

New Department of Health White Paper

The Secretary of State for Health Andrew Lansley has set out the Government's plans to reform the NHS during this Parliament and for the long-term.

The paper, Equity and Excellence: Liberating the NHS, proposed a radical set of plans for the NHS, many of which will have considerable implications on social enterprises operating in the health fields or hoping to move into this space.

The underlying theme of the White Paper is the devolution of power from Whitehall to patients and professionals with more choices for patients, increased focus on outcomes, and greater autonomy for staff and service users.  These are principles that social enterprises are wholly committed to.

One of the key changes will be to have consortia of GPs take charge of commissioning all local services.  These will be overseen by NHS Commissioning Boards.  There will be also be greater focus on more joined up services, supported by a new role for Local Authorities to support integration across health and social care.  Strategic Health Authorities and Primary Care Trusts will be phased out and Foundation Trusts (FTs) will be given increased powers, with a commitment to create the largest social enterprise sector in the world.  

The paper is not high on detail on what the practical implications of many of these changes will be, but there is little doubt that they will radically change the healthcare landscape.

Placing commissioning under the control of GPs could in theory create a market that encourages more locally tailored, patient-focused social enterprise solutions. However, this will require a considerable shift in the capacity of GPs as commissioners – without this there is a real danger that the market will be dominated by large providers that will stifle innovation, limit choice and squeeze out smaller, local providers who may be best placed to deliver the improved health outcomes the Government wishes to see.
 
There are, however, concerns regarding the proposal for all NHS trusts to become employee-led social enterprises as there seems to be considerable confusion in the document over the differences between FTs and social enterprises.  In particular, under the proposals FTs will not be fully autonomous.  

SEC will be working with the Department of Health to develop these ideas and help them to realise their ambitions for social enterprises to help improve the future of healthcare in England.

SEC’s response to the White Paper can be found here.  For more information on the proposals, visit the Department of Health’s website or email ceri.jones@socialenterprise.org.uk.

Social Enterprise Bill

New Conservative MP for Warwick and Leamington, Chris White, has tabled a Private Members Bill on Social Enterprise. Whereas most primary legislation passed by Parliament originates from bills introduced by the Government, Private Members Bills are an opportunity for MPs with no government responsibilities to propose legislation.  In order to table a Private Members Bill, MPs enter into a ballot, with priority given according to the order in which the names drawn.  Having been drawn 3rd in the ballot, Chris White MP will have the opportunity for his bill to be fully debated in Parliament.

The title of the legislation proposed by Mr White is “Public Services (Social Enterprise And Social Value) Bill” and it will propose that “public sector contracts include provisions relating to social outcomes and social value” as well as requiring “the Secretary of State and local authorities to publish strategies in connection with promoting social enterprise”.

The bill will next be read and debated in the Commons on Friday 19 November 2010.  SEC will be working hard to support Mr White and ensure that we make the most of this important opportunity for the movement.  For further details contact Olof Jonsdottir olof.jonsdottir@socialenterprise.org.uk .

The new Government Work Programme

Employment Minister Chris Grayling announced a series of reforms to the welfare system in June 2010. The new Work Programme will replace the current back to work schemes and provide a package of support for people out of work. The Government is inviting expressions of interest from the private, public and voluntary sectors to help deliver this.

The Department for Work and Pensions expect to appoint between three and eight organisations to each of 11 Lots based on regions. The indicative overall value of contracts to be let through this framework agreement is likely to be between £0.3 billion - £3 billion per year. Individual contract values will vary, but in the main are likely to be between £10-50 million per year. The framework agreement will be for up to four years. The expectation is that many contracts let under the framework agreement will be long term and may be up to seven years.

The Social Enterprise Coalition has expressed a concern that, as the Work Programme will be delivered through a prime contractor model, only larger organisations will be able to win these contracts.  Social enterprises, even as consortia, will have a difficult time competing at that level.  The complex needs of the unemployed will be more difficult to deliver by social enterprise sub-contractors if they are shoe-horned into structures under large-scale private operations.  Additionally, in implementing a payments-by-results model, there is a danger that the Government could inadvertently prevent participation of social enterprises, especially those working with people furthest from the jobs market, because of resulting cash flow issues.

If you have any comments or case studies in relation to involvement of social enterprises in government employment programmes, please contact jon.woolfson@socialenterprise.org.uk.

Members Feedback on the Emergency Budget - Impact on SEC Members

 The Emergency Budget was described by the Chancellor as “unavoidable” and “tough but fair.” However the Rt Hon Harriet Harman MP, Acting Leader of the Labour Party, called the Budget "reckless" and said it would lead to thousands losing their jobs.

What do you think?

We recognise that these are difficult times for our members and we are keen to find out the policy changes you want prioritised that would most help your organisation. Please e-mail policy@socialenterprise.org.uk with your thoughts and suggestions.

‘No More Business as Usual - a Social Enterprise Manifesto'  

The Social Enterprise Coalition has urged the next government to support social enterprise to increase its contribution to the economy threefold by 2020.

The ambitious target forms the central plank of ‘No More Business as Usual - a Social Enterprise Manifesto' which was released on the 16th February.  

The manifesto aims to raise the profile of social enterprise in the run up to a general election and show how social enterprise can meet public demands for a more ethical approach to business.

Written by the Social Enterprise Coalition, the UK's national body for social enterprise, the manifesto was developed in collaboration with social enterprises across the UK, and it details ways in which certain key policy changes could help social enterprise maximise its impact.  Read it in full here.

Joint manifesto for the Third Sector launched

A joint manifesto by the Social Enterprise Coalition, Community Alliance, and ACEVO was launched on Wednesday 16 March. The Time is Now outlines the case for an expanded role for the third sector and calls on government to get four things right in order to support a thriving civil society 

The manifesto includes case studies of third sector organisations which are already playing a key role in delivering vital services to the most vulnerable members of society. The examples also demonstrate how if scaled up their added value could be key to the government delivering innovative and enhanced public services that deliver value for money. The case studies include the work of Kiveton Park & Wales Community Development Trust (KPWCDT), Addaction, Age Concern South Staffordshire and Shiney Advice and Resource Project (ShARP). Read it in full here.