ERSA unveils Ten Point Plan for Supply Chains

The Employment Related Services Association (ERSA), the trade body for the welfare to work industry, today unveils its Work Programme Supply Chain Ten Point Plan aimed at providing constructive support for supply chain relationships.

ERSA recommendations include urgent action to increase Employment and Support Allowance (ESA) referrals that disproportionately go to voluntary sector organisations, better communication through supply chains about referral numbers, and support by voluntary sector representative bodies, in partnership with ERSA, for their membership to help them meet the stringent requirements of welfare to work commissioning.

Speaking at ERSA’s annual conference in London, attended by over 250 delegates, chief executive, Kirsty McHugh said: 

“There has been much coverage in recent weeks about how the voluntary sector is faring under the Work Programme. Our membership, half of which is from the voluntary sector, is telling us that this is a complicated issue and that there is also much good practice. Many concerns emanate from the speed and nature of the procurement process, which puts pressure on all parties, and more recently the lack of Employment Support Allowance (ESA) referrals to the Work Programme, a disproportionate number of which would normally go to voluntary sector suppliers because of their specialist skills.

“ERSA is working to ensure that the entire industry takes positive steps to strengthen and streamline supply chain processes and communication to jobseekers. This is why we are today unveiling our Supply Chain Ten Point Plan and calling on government, prime contractors and voluntary sector umbrella organisations to work with us to make this a reality.”

The Supply Chain Ten Point Plan was unveiled as part of an announcement of ERSA’s organisational priorities for 2012. These are:

1. To maintain the partnership with government to ensure that welfare to work services deliver for all jobseekers in the face of an increasingly difficult economic forecast. ERSA intends to work closely with the Department for Work and Pensions to ensure appropriate responses to emerging economic circumstances and any new initiatives to support people back into work.
2. To work with the industry to ensure that there are effective supply chain relationships. ERSA’s Ten Point Plan builds on the work of its Supply Chain Forum to provide constructive mechanisms to streamline processes and strengthen relationships.
3. To place standards at the heart of the industry. ERSA, as part of a wider industry collaboration, will be launching the Institute of Employability Professionals (IEP) by June 2012. The recruitment process for the IEP’s first director commences today. 

Commenting on ERSA’s organisational priorities, ERSA chairman, Matthew Lester, Director of Operations at the Papworth Trust, said:

 “ERSA has achieved a great deal over the last twelve months, fuelled by a new executive team, refreshed board, and a 40 percent membership growth. I am delighted that the organisation represents around 95% of the prime contractors for the Work Programme and Work Choice, along with a greater number of sub-contractors. 

 “2012 has the potential to be a very challenging year for the welfare to work industry, which means it is right that we focus our efforts on the main issues of importance to the sector.  The industry more than ever needs a strong voice to ensure that our customers get the best possible services commissioned under the most effective frameworks.”

ERSA’S TEN POINT PLAN FOR SUPPLY CHAINS

For government

1. Employment and Support Allowance (ESA) referrals need to rise to originally forecast levels to ensure that the specialist voluntary and community sector (VCS) organisations in particular, receive the business volumes for which they planned.  The government needs to provide regular progress updates on efforts to improve the Work Capability Assessment and unplug blockages within Jobcentre Plus.

2. TUPE requirements were a massive challenge for the entirety of the industry in 2011 and particularly for smaller VCS organisations. More proactive, timely and consistent guidance is asked from DWP in future about TUPE application. 

3. The Merlin Standard needs to be far better understood and the Merlin Portal publicised more widely.  At present there is limited understanding of how the standard operates and indications of widespread confusion about what may contravene the standard.

For prime contractors

4. Prime contractors need to ensure that there is regular and effective communication to their sub-contractors on key issues, including referral numbers and customer mix. 

5. Prime contractors should share performance information, including that of their own performance if delivering themselves, throughout the supply chain, to help inform and drive up performance. This is already best practice among many Work Programme prime contractors.

6. Prime contractors should support their supply chain over 2012 to introduce the new welfare to work qualification where appropriate and for staff to join the new Institute of Employability Professionals (IEP) when launched.

For representative bodies

7. More work needs to undertaken to ensure that smaller VCS providers, in particular, are able to meet the stringent requirements of welfare to work commissioning. This is likely to mean capacity building by voluntary sector umbrella bodies, potentially in partnership with ERSA, which brings specialist welfare to work knowledge. 

8. ERSA’s work to streamline procurement processes, led by its Supply Chain Forum, including the standardisation of the Expression of Interest form, should be completed and shared across the sector.  

9. Urgent clarification needs to be provided about the relationship of Work Programme customers to other voluntary sector funded provision, including the support available through volunteer centres.  The most effective support for customers needs collaboration between agencies at local level. 

10. Voluntary sector specific bodies should work with ERSA to identify and disseminate best practice in supply chain management. This should spotlight existing good practice that has already gone above and beyond adherence to the Merlin standard.

For further information visit the ERSA website.