DWP revises financial incentives in Work Choice

The trade association for supported employment providers (BASE) has published a DWP paper confirming the results of successful lobbying by specialist providers.

DWP originally planned a partial end to the financial incentives available to LAs. They have now changed their selective regime of payments per participants which varied according to LA and provider.

DWP has modified its proposals so that the "taper" will apply over 4 years to local authorities regardless of who the provider is. The new proposal will cap all financial incentives within the following upper limits:

* Year 1 - a cap of £4,800 per participant
* Year 2 - a cap of £1,000
* Year 3 - a cap of £600
* Year 4 onwards - no incentive payment to local authorities