The Work Programme and the Older Job Seeker

Chris Ball, Chief Executive of TAEN – The Age and Employment Network, responds to the proposals in the coalition's Work Programme

The mixed response of providers to Chris Grayling’s statement on the work programme last week reflects the inevitable uncertainties accompanying changes on this scale. One provider I spoke to was bubbling with excitement. Others seem far less sure.

So far as I can see, the sector has not yet decided whether the Coalition approach is good news or bad news, though I suspect their answers will be determined simply by size. This will be a story of the survival of the biggest.

The underlying philosophy which the Government is keen to follow was explained by Lord Freud at a conference organised by TAEN and the Social Market Foundation on the 8th March this year. Freud explained the Conservative Party’s programme as being, “Consolidation of all programmes into one, rather than having a special initiative here or there. We want a structure that encourages people to do it.”

The Conservative programme appears to have been adopted by the Coalition. Herein lies the essence, one programme rather than a series of niche programmes, a framework of possibilities and a market in provision that will involve the creation of incentives to do the right thing and penalties for getting it wrong.

The idea is that everyone will travel through the new structure though some may go through it more quickly. The emphasis will be on sustainability of jobs; proportions of fees will be paid after one, two and three years in the job – an idea meant to encourage providers to work much more closely with the employers in which clients have been placed. There will be downsides for providers compelled to wait for their money however.

The rationale is that a genuine saving of welfare payments will release funds to pay providers, but the rewards can’t be paid in expectation and hope of such outcomes. (Incidentally, Freud complains that he recommended this idea to the Labour Government but it was not taken up.)

Freud’s concept in March was that rewards to organisations for getting and keeping individuals in work will be structured around the particular challenges that individuals face. He reasoned that by this process one could expect to see specialist third sector organisations coming in to provide support services.

Another element in the Conservative Party’s planning was to dispense with the pilot approach that characterised much of the Labour Party’s thinking. With the pilot, a problem is identified; a pilot is set up and tested and after due analysis, implemented in a big way. Then the problem goes away. Freud argues that this is all too time consuming and that the emphasis in future will be on encouraging a more pragmatic, “what works” approach.

If all this is a tempting menu for entrepreneurs, there are downsides to be wary of. Clearly, the carrots and sticks of incentives and risks is a new ball game for many prime contractors. Organisations that take risks will have to learn how to measure them.

Secondly, the work programme raises a clear need for finance. Organisations that lack substantial risk capital will be put off getting into the programme. Once on board however, they may find that the potential gains are more lucrative if they can become effective with the more highly priced groups. These are likely to be the “hard to reach” categories, disabled people, long term unemployed, ex offenders, older workers and so on.

Much will hang on the structure of payments for different levels of disadvantage. Doubtless, the starting prices will attract media coverage and,  one might suppose, some controversy. Getting a good price for being of a certain demographic description will be important however. (One can imagine The Sun having fun discussing the value of a job for this or that category of person compared with another.)

Older workers who are currently finding it much harder than others to return to work after redundancy, may or may not be as financially attractive to support as others. One suspects we are in for a strange game of wait and see.

And will the market really and truly generate the proactive, targeted initiatives that experience has told us are needed to make a difference? The ND 50+ was a good initiative, but there is not likely to be a return to that in any shape or form.

My own organisation TAEN – The Age and Employment Network – takes a particular interest in older workers and job seekers – loosely the 50 plus. Specialist providers including some of TAEN’s 200 members may want to work with primes to help them become more effective. But they may be dissuaded if they are expected to wait for up to three years for payment for work costs substantially front loaded.

Freud seems to have identified self employment as one route for support of the 50 plus job seeker, but this is not everyone’s cup of tea.  The job club concept seems favoured and may well be supported, but again, if this is to be done on the basis of delayed payments for clients placed, the voluntary and community sector may be loathe to take the risks entailed. Again however, this is a generally productive approach for TAEN’s client group – the fifty plus job seeker.

At the end of the day, it will be down to the provider organisations and consortia to ensure effectiveness by fine tuning their services and developing their staff. The successful organisations will be those best able to do this. But there will be alternative business strategies which all can follow and choices will demand sniffing out market opportunities in niches and geographical areas.

Particular demographic groups will need to be not only good value for money but well supported with good practice techniques and training available to enhance the skills of provider staff.

TAEN is engaged in producing a good practice guide for providers of support to older job seekers. A programme of prototyping this web based guide is currently under way and a dissemination programme will commence after the guide has been launched on July 1st. For further information see www.taen.org.uk or contact info [at] taen [dot] org [dot] uk