New Deal Schemes: Contracts

Work and Pensions written question – answered on 21st April 2008.

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Photo of Mark Harper Mark Harper Shadow Minister (Work and Pensions)

To ask the Secretary of State for Work and Pensions pursuant to the written ministerial statement of 14 March 2008, Official Report, columns 30-31WS, on the flexible new deal,

(1) if he will place in the Library copies of the advertisements for organisations interested in bidding for phase one contracts;

(2) at what point final payment will be made to providers of phase one contracts; and what the payment process will be;

(3) whether the fees paid to providers will vary according to the type and length of activity.

Photo of Stephen Timms Stephen Timms Minister of State (Department for Work and Pensions) (Employment and Welfare Reform)

The commercial strategy for the flexible new deal reflects the principles set out in the Department for Work and Pensions Commissioning Strategy published in February 2008. We will be seeking bids which reflect proposals for both five and seven year contracts and will decide which of these terms to offer following the tender evaluation process, which will assess the option that provides the best overall value.

The funding model has a number of elements. Fifty per cent. of the contract price will be attributable to the achievement of intermediate employment outcomes and thirty per cent. to sustained employment outcomes of twenty-six weeks. Both of these will be paid on a unit price basis. There will also be a service fee, which will equate to twenty per cent. of the overall contract price, which will be paid in monthly instalments.

Copies of the original advertisements for organisations interested in bidding for Phase One contracts have been placed in the Library.

A written statement was laid before Parliament on 1 April. This announced that there are now to be two Wales-only flexible new deal contract areas: North Wales, Mid Wales and South East Wales; and South West Wales and South Wales Valleys.

Copies of the replacement advertisements, following this announcement, for organisations interested in bidding for Phase One contracts have also been placed in the Library.

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