Cuts in Workstep - 5% nationwide

For those who haven't heard of it, Workstep is the nearest thing the DWP's contracted employment division has to a supported employment programme, placing people with disabilities into work with intensive, long-term in-work support. SDEP is due to replace Workstep and a couple of other programmes in October 2010, so the Workstep contracts are being extended until then.

Dark clouds

However, as the final year of delivery approaches, all is not well in the land of Workstep providers. The DWP has made widespread cuts to the amount of people that providers can take on, shrinking provision across the country. According to one (possibly rather unguarded) DWP employee, the target was to cut the contract value across the country by an average of 5%.

In itself, this is unfortunate, and has raised concerns among providers that there is a lack of interest in helping those most in need. What's made providers more grumpy, though, is the way that this has been carried out.

The normal way to agree contract sizes for Workstep contracts is through a process of negotiation. This year, the negotiation consisted of a phone call informing them of the cuts being imposed. Attempts to start a discussion were dealt with differently between different providers. In one case the provider was informed that there was no appeal against the decision, when there is in fact a negotiation process built into contract terms and conditions.

Wheat and chaff?

Of course, there's a point behind this. The DWP were, after all, only cutting allowances for people who hadn't used them in the first place. This is much like the practice of cutting a department's budget if it doesn't use it all up in a year, and is arguably a perfectly fair thing to do. Some providers are arguing that they were penalised for progressing customers prior to the recession and now have no spare places to cope with the surge in people as the recession kicks in. Others are arguing that the places should be given to providers who have full occupancy on their programmes. Either way, it's clear that in the teeth of a recession, there's hardly cause to claim a lack of demand for Workstep.

Following initial protests by providers, there is now a meeting arranged for next week to discuss the way that the negotiations have been carried out. While this may not result in a lifting of the cuts, it should at least improve communications and prevent a repeat of the upset caused this time round.

Or, as a DWP spokesperson said:
"We are committed to ensuring disabled people get the support they need to take control of their lives. Some of our Workstep providers have been allocated more places than before, while others have received less, depending on their needs. Contract managers and DWP remain committed to working with providers to negotiate contracts."