William Eichler 02 December 2022

DWP urged to devolve employment support to councils

DWP urged to devolve employment support to councils image
Image: fizkes/Shutterstock.com.

Local authority leaders have called for all employment support to be devolved to councils rather than contracted out to large providers.

A new report from the National Audit Office (NAO) into the Government’s Restart scheme has revealed that the programme is costing the Government more per person than originally anticipated.

The Department for Work and Pensions (DWP) set up Restart to help people made unemployed by the COVID-19 pandemic. It was backed by £2.9bn of funding.

The scheme aimed to ‘provide intensive and tailored support to more than one million unemployed people and help them find work’ by providing up to 12 months of tailored support. It is delivered by eight contractors across 12 contract areas in England and Wales.

In a new report assessing Restart, the NAO has found that the DWP did not properly assess how many of its claimants would be suitable for the programme or plan for the possible scenario of significantly lower demand before it entered into contracts. This left it with fewer options to reduce the cost when demand was lower.

As a result, Restart is more expensive per person than originally intended. the average expected cost per participant has risen from £1,800 to £2,429. This is greater than comparable programmes such as the Work Programme (£1,760 per person) and the Work and Health programme (£1,560 per person).

Gareth Davies, the head of the NAO, said: ‘The Restart scheme is proving successful in tackling systemic barriers facing people who are long-term unemployed. Fewer people than expected have required support leading to a higher cost per person than previous comparable schemes. ‘For the future, DWP should look at how its contracts with employment support providers can be scaled up and down to respond to economic shocks, while controlling costs.’

In response to the NAO’s report, Mayor Marvin Rees, chair of the Local Government Association’s (LGA) City Regions Board, urged the DWP to give local authorities the power to deliver all contracted employment support.

‘Instead of large providers covering vast areas, which we know can lead to capability and capacity issues, all contracted employment support should be devolved to local government,’ he said.

‘This would lead to more integrated services, better targeting of investment, provision of wraparound support such as on housing, health, training and debt management and working with local and national partners, all of which can be done within a national framework.’

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Camden Learning
Competitive
Camden Learning is a pioneering schools-led partnership bringing together 57 schools. Camden, London (Greater)
Recuriter: Camden Learning

Key Worker - Young Carers

Essex County Council
£25959.0000 - £28621.0000 per annum
Key Worker - Young CarersFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Teaching Assistant

Durham County Council
£26,427 pro rata
Temporary from October 26 to August 27. Villa Real School is an all age 2 to 19 years Special School with pupils with SLD, PMLD and Autism. The Gove Consett
Recuriter: Durham County Council

Care Facilitator

Durham County Council
Grade 6 - £29,071 - £32,046
We are looking to appoint a temporary Care Facilitator to be responsible for negotiating and arranging appropriate packages of care for individual ser Spennymoor
Recuriter: Durham County Council

Senior Practitioner Access to Records

Durham County Council
Grade 12 - £45,529 - £49,817
Are you an experienced social worker looking to make a difference in a different way? Do you want to use your professional expertise, judgement and u Spennymoor
Recuriter: Durham County Council
Linkedin Banner