Deven Ghelani, Policy in Practice, is joined by Tony Wilson from the Learning and Work Institute and Anne Gregory from PublicCo in this webinar looking at how bidders for the new Work and Health programme contracts can stand out. The new Work and Health programme has the ambition to halve the disability employment gap, but at a much reduced budget. Successful organisations will need a clear and persuasive offer demonstrating how they will support more unemployed people into work. View these slides to learn: 1. What DWP are looking for 2. How to make your business case stack up 3. How to target support to help you help more people Critical to the success of the Work and Health programme will be the role of the frontline adviser. As well as needing an understanding of the changing welfare system and the different levels of in-work benefits, the adviser will also need to coach customers who may have barriers to work. Providers who can offer support that goes beyond what is routinely available to jobseekers will be more successful at winning and delivering the new contracts. Our webinar will show you how you can do this. In addition, Learning and Work Institute will launch their new financial model for the Work and Health Programme. The model will provide insight and enable providers to forecast income, expenditure and performance in different scenarios.

1. Policy in Practice
Webinar
Work and Health
Programme: How you can
stand out
Thursday 9 February 2017

2. Housekeeping
• Audio check
• Please ask questions throughout
• Poll and a survey
• Finish by 12:30

3. Agenda
• Introductions
• About Work and Health
• How to handle your performance offer
• Top tips for the supply chain
• Building a service around the frontline advisor
• Finish by 12:30

4. Speakers
Tony Wilson
Learning and Work Institute
Deven Ghelani
Policy in Practice
Anne Gregory
PublicCo

5. 555
Over to Tony
How to handle your performance offer

6. Work and Health Programme:
Learning & Work view
Tony Wilson, Director of Policy and Research
tony.wilson@learningandwork.org.uk
@LWtonywilson
9 February 2017

7. What is it?
• ‘National’ programme
– England and Wales
– Excluding Greater Manchester and London
– With seven ‘Devolution Deal Areas’ with input on design and bidder selection
(covers around one quarter of the country)
• To support out-of-work disabled people (voluntary), long-term
unemployed (mandatory) and non-disabled people referred for early
support (voluntary)
• £428 million budget – around one fifth of the programmes that it replaces
• Likely to be 186,000 participants over five years
– Funding per participant up to £2,300 per person
– Nearly double Work Programme (we estimate £1,281)
• DWP anticipate 75% ESA and disabled participants; 25% LTU and early
entry – so 27,000 plus 9,000

8. What DWP wants
• Tailored support
• High performance
• Local integration
• Added value

9. Which means?
• Tailored support
– Specialist advisers/ coaches, smaller caseloads, personalised support
– Supported Employment principles
– Focus on engagement and retention in-programme
• High performance
– Focus on results – meaning employment entry
– Measures of progress towards work, progression in work?
• Local integration
– Health and employment
• But services misaligned in objectives, delivery models and culture
• Where it works, co-ordination at management and operational
levels – underpinned by public service leadership, governance,
systems, ways of working
– With skills support, devo deals, housing, welfare…
• Added value
– Ability to align other funding, achieve better outcomes through
different ways of working

10. This will feel different to
previous DWP programmes
Housing
Local/ social
services
Health
Other
outreach
Eligibility
check
DWP
Gatekeeper
Yes/ No
Triage and
assessment
Programme delivery
Personalised and intensive
Employment focused
Integrated with local
services
Additional support
Health
Skills
Welfare, housing, debt,
drug/ alcohol etc
In work support
Retention
Training
Welfare, housing, debt,
drug/ alcohol etc
Employer support
Recruitment practices
Workplace adaptations
Accessing funding/ support
Partnership working – leadership, governance, management, delivery
DWP referrals
ESA WRAG/ UC LCW (v)
Early access disadvantaged (v)
JSA two years plus (m)

11. Effective management – at all levels –
will be key
• With DWP – for referrals, partnerships and contract management
• Local partners
• Outreach
• Caseload management
• Referral systems, processes and monitoring
• Employer – engagement, brokerage, support
• Financial – within and without supply chains
• Performance
• And many different models for how this can work:
Source: L&W evaluation of DWP USDL trials

12. As will evidence of effective,
evidenced, adviser support…
• One-to-one, regular and timely support
• Smaller caseloads and more frequent intervention associated with
better results
• Range of skills and capabilities matter
– Engagement, motivation, partnership working, job matching and
brokerage, caseload management
• Action planning, building self-belief, overcoming setbacks
• A focus on maintaining momentum and achieving outcomes
• Supporting out of work and in transition into work
• Linking with additional support, and focused on outcomes
No one adviser can do all of this! Implications for organisation, supply
chains, contract and customer journey management

13. And doing what works for disabled people
and those with health conditions
• Many of the key themes will be familiar:
• Effective adviser support – right level of (specialist) support,
tailored to needs, with smaller caseloads and enough time
• Whole person support – raising expectations, of participants
and their families, healthcare professionals, others
• Effective profiling – of aspirations, capabilities, needs
• Intervening at the right time – and often earlier
• Job matching – including job (re)design – and in-work support
• Effective employer engagement – ‘individual-based’ and
‘employment agency’ approaches
• Financial planning and incentives – RtWC, Permitted Work
But trade-offs: narrow and intensive
versus broad and shallow

14. The funding model –
still very (job) outcome based
• Delivery fee – 30% of contract value
– Good news – this is not an attachment fee
– Equivalent to £690 per participant
• 70% on outcomes
– Cf. Work Programme, which will end up more than 80%
– We think outcome payments in WP limited innovation and contributed
to selection/ parking risks
• Innovative ‘accelerator’ model
– Standard outcome payment for first 75% of performance offer that
achieve outcomes
– Higher outcome payment for everything above this
– Provides an antidote to parking risks?
– But sharpens performance risk – the losses from missing targets are
proportionately greater, will this inhibit innovation?

15. The shortlisted providers
Economic Solutions
G4S
Ingeus
PeoplePlus
Reed
PeoplePlus
Pluss
Remploy
Shaw Trust
Working Links
G4S
PeoplePlus
Pluss
Prospects
Shaw Trust
Working Links
APM
G4S
Ingeus
PeoplePlus
Shaw Trust
G4S
Ingeus
PeoplePlus
Reed
Shaw Trust
G4S
PeoplePlus
Reed
Shaw Trust
Working Links

16. Timetable – incredibly tight!
Activity Dates
WHP Bidders submit Initial Stage Responses 24th Feb 2017
Initial Stage Presentations 6th March – 24th
March 2017
DWP announces Shortlisted Bidders 3rd April 2017
Commercial Dialogue Stage sessions 8th May 2017 – 14th
July 2017
Shortlisted Bidders submit Final Offer 28th July 2017
Final Offers evaluated August 2017
DWP announces successful Bidders September 2017
WHP Contract Signature September 2017
Go-Live From November 2017

17. Work and Health Programme
modelling:
the L&W financial model
9 February 2017
Tony Wilson, Director of Policy and Research
e: tony.wilson@learningandwork.org.uk
t: 020 7840 8346 | m: 07504 054407
Lovedeep Vaid, Senior Statistician
e: lovedeep.vaid@learningandwork.org.uk
t. 020 7840 8335 | m. 07944 303893

18. Overview
• L&W are the leading independent experts on modelling employment
programmes – including a long track record of modelling Work Programme
CPAs for primes; and developing programme models for government
(including in Northern Ireland, the Republic of Ireland and Scotland)
• Our new Work and Health Programme model is a fully adjustable, excel-
based tool that enables users to model the finances of the WHP
• It incorporates all aspects of the WHP specification set out by DWP –
including the service period, outcome measure, payment model,
accelerator, unit costs, and CPA baseline performance and volumes
• The model enables providers to input their own assumptions on
performance, prices and costs – and from this generate forecasts of
income, cashflow and profit/ loss
• The model can be used either to build your performance offer, or to QA
your own internal modelling

19. Programme inputs
• The next three slides set out how the model treats
programme inputs
• In each case, the model uses the ITT assumptions as
starting points
• Providers can then fully customise these inputs,
including to incorporate their own assumptions on
performance, attachment rates, drop-outs and costs

20. The model sets out, and lets you customise:
• Volumes – DWP’s estimates are included for each CPA and Devo Area, and can be
selected from drop-down menus
• Performance – DWP’s baseline performance assumptions are also set out, CPA by CPA
• Users can then incorporate their own performance offer, and assumptions on take-up
and drop-out (a key point of difference to Work Programme modelling)
• This generates model estimates of starters and outcomes
• Finally users can incorporate a performance scenario – what happens when volumes
are above or below their ‘offer’
• All inputs are generated for each of the three client groups
Volumes, participation and
performance

21. programme costs
• The model includes an embedded ‘cost calculator’
• This enables users to vary their start-up, fixed and variable costs
over time and for different groups.
• This includes a ‘ready reckoner’ for estimating caseload sizes and
adviser volumes at different frequencies/ intensities of support
• Programme costs then pull through to the model summary, to
enable estimates of margin and cashflow

22. • The model fully incorporates the DWP payment structure
• So based on the performance offer and CPA, it
automatically calculates the standard and outcome
payments (i.e. the accelerator); the delivery fee per starter
and outcome payment per starter
• An illustration of this is set out below
The payment model

23. Programme outputs
• The next three slides set out the outputs that the
model can generate
• These are illustrative examples for the Central
England CPA, based on ITT inputs plus a set of
assumptions (broadly, a performance offer 5
percentage points above counterfactual and with a
profit margin of around 8%)

24. • The model uses payment and performance inputs
to generate forecasts of income over time
• These show sources of income – e.g. delivery
fees, outcome and sustainment payments
Programme income

25. Cashflow forecasts
• By incorporating the costs data, the model can
then forecast cashflow
• This is done both on a monthly basis and
cumulatively

26. • The model can also generate income and expenditure forecasts at
different levels of performance
• This assumes the same delivery model so in effect capture exogenous
risks/ benefits (e.g. a stronger or weaker economy and no change in
service)
• Costs increase at low performance and decrease at higher, due to a
different balance between working and non-working participants
Income, expenditure and profit margin
scenarios
0%
5%
10%
15%
20%
25%
30%
35%
40%
£M
£20M
£40M
£60M
£80M
£100M
£120M
£140M
Providermargin%
Providerpaymentsandcosts
Percentage point difference to performance
Provider payments Costs Provider margin

27. Next steps
• The model is available to framework providers for £7,500 plus
VAT
• For potential supply chain providers, the model is available for
£4,000 plus VAT
• This includes guidance and ongoing user support
• We would be delighted to demonstrate the model or to
provide any further information on its design and
specification
• For more information, please contact:
Lovedeep Vaid, Senior Statistician
e: lovedeep.vaid@learningandwork.org.uk
t. 020 7840 8335 | m. 07944 303893

28. Work and Health Programme:
Learning & Work view
Tony Wilson, Director of Policy and Research
tony.wilson@learningandwork.org.uk
@LWtonywilson
9 February 2017

29. 292929
Over to Anne
Top tips for the supply chain

30. PublicCo is a leading consultancy practice dedicated to driving the very highest standards in public service design
and delivery, globally. We are a joint venture with the Learning and Work Institute (L&W).
Some consulting firms treat business sectors as interchangeable, but at PublicCo, we know that this ‘one size fits
all’ philosophy is flawed. Our real-world understanding of ‘what works’ enables us to provide a highly specialist,
performance-focused approach to strategic and operational challenges.
30
© 2017 PublicCo Limited. All rights
reserved. This document is CONFIDENTIAL
About PublicCo and the team
Joel Featherman
CEO
07739 119783
Joel.Featherman@publicco.co.uk
Anne Gregory
Director
07975 502969
Anne.Gregory@publicco.co.uk

31. 31
© 2017 PublicCo Limited. All rights
reserved. This document is CONFIDENTIAL
Key drivers of change
LOCALISM
COHORT
FUNDING

32. 32
© 2017 PublicCo Limited. All rights
reserved. This document is CONFIDENTIAL
What do these drivers mean in terms of risk and things to get right?
WHP OPERATING
MODEL
ORGANISATIONAL
STRATEGY
WHP COMMERCIAL
MODEL
⁻ Vision/objectives and values
– at any cost?
⁻ Ongoing bid qualification
⁻ Your WHP USPs, strengths
and weaknesses
⁻ Service design linked to
cohort and the delivery of
the best outcome
⁻ Confidence on delivery of
performance measures
⁻ Co-design with Primes and
link with wider partners
⁻ Inputs ie. Pay / non pay /
performance assumptions)
⁻ Understand impact of likely
scenarios (risk and reward)
⁻ Balanced scorecard of offers
and compare with your ideal

33. 33
© 2017 PublicCo Limited. All rights
reserved. This document is CONFIDENTIAL
Some practical tips for WHP
Test your ideas
Evidence your performance
Assure your offerEmbrace co-design
Move at pace

34. ⁻ Establishing strategy and offer
⁻ Local design (what’s right in your geographical areas)
⁻ Regional tailored commercials (P&L, risk, scenarios etc)
⁻ Local assessment of Primes offer against balanced
scorecard
34
© 2017 PublicCo Limited. All rights
reserved. This document is CONFIDENTIAL
How PublicCo can help you
New to WHP?
Our enhanced offer provides
development of your operating model,
commercial assumptions and EOI
responses as well as all assurance and
critical review to ensure best in class
responses
Tailored offer support components
⁻ On hand support to respond to queries
⁻ EOI completion support & clarification management
⁻ Reporting and briefing on key movements (DWP and Prime)
⁻ Project co-ordination and reporting
⁻ Attendance at events and briefings
Further down the track in thinking for
WHP?
Our offer focuses on providing assurance
and critical review of the design,
commercial assumptions and offers
received by Prime providers.

35. Over to Deven
The role of the adviser

36. www.policyinpractice.co.uk
Policy
national impact
CONSULTANC
local impact
Software
individual impact
We were founded to
make the welfare
system simple to
understand, so that
people can make
the decisions that
are right for them.

38. Things you are great at!
• Energy, enthusiasm, passion
• A commitment to transform the lives
of programme participants
• Bringing together a wide range of
expertise
New national priorities
• Universal Credit
• Universal Support
• Digital inclusion
• Financial Inclusion
• Progression in work
New local priorities
• Discretionary housing payments
• Council tax support
• Hardship schemes and advice
• Health related interventions
What do the DWP expect?
“Any bid that doesn’t talk about
UC is missing a trick”
Patrick Hughes, Salient Works

39. “Advisors with more time,
working with customers who are
engaged and motivated to look
for work, will achieve better
outcomes.”
• People skills and empathy
• Action planning, overcoming
setbacks and build momentum
• Support the transition into work
and link to additional external
support
Advisers also expected to:
• Understand and explain a
complex and changing welfare
system
• Link in with local support
• Give the most effective support
No one advisor can do all of this!
What makes an adviser great?
WHP - like its predecessors - will
be built around the adviser

40. 404040
“I started my career in welfare to work
and saw how powerful a better off in
work calculator can be. Policy in
Practice has built the best calculator
on the market and that’s why I
invested in them.”
Sean Williams

41. Accurate and comprehensive
• Minimum requirement!
• See how a calculation was reached
• National and local policies
• Updated automatically
Fast, Simple
• 2 – 6 minutes – best in class!
• Dynamic question generation
• Save and retrieve cases
Engaging and outcome oriented
• Generates relevant actions
• Links into local support and jobmatch
• Beautiful UX and built in guidance
Tailored support – action oriented

42. We are more than a software
company.
We provide household level analytical
services to over forty local authorities,
helping them to identify, target and
engage household eligible for work
and health.
Security is built in, with UK based
servers, encrypted databases and
advanced user management.
Clear management information,
comparing your usage to your peers.
Self-service saves your advisors
time and upskilling your customers.
Built-in budgeting, customisation
guidance, integration all within one
tool.
Other benefits
There are six households eligible
for Work and Health around
Hanworth Park

43. “Any software is only as good as its
implementation.
The support we’ve had from the team
to bed in the new service has been a
massive benefit to us.”
Jemma Johnstone, Serco
www.policyinpractice.co.uk

44. 444444
Poll: What do you wish your current
Better Off Calculator could do?

45. 45
Questions

46. Next steps
Please complete the short feedback survey immediately after the webinar

47. www.policyinpractice.co.uk
Thank you
Tony Wilson, Learning and Work Institute
tony.wilson@learningandwork.org.uk
Anne Gregory, PublicCo
anne.gregory@publicco.co.uk
Deven Ghelani, Policy in Practice
deven@policyinpractice.co.uk