Agenda item

To deliver the Restart employment programme in Sandwell, a national employment programme commissioned by the Department for Work and Pensions (DWP) to support long-term unemployed people back into work.

Approval was sought for the Council to enter into a contract with Serco to deliver Restart, a national employment programme commissioned by the Department for Work and Pensions (DWP) to support long-term unemployed people back into work.

Unemployment had more than doubled in Sandwell since the start of the Coronavirus pandemic and the number of people unemployed for longer than 6 months had increased by 28%. 

As supply chain partner to Serco, Sandwell Council brought local expertise to Restart participants including knowledge of the local labour market, knowledge of local complimentary provision and an understanding of the unique challenges residents face in each of the 6 towns of the borough.

The Restart programme complemented existing Employment and Skills services and provided an opportunity to expand our offer.  It also provided the Council the opportunity to generate income and establish a track record of successfully delivering DWP employment programmes that could lead to future income generation for the Council.

A project appraisal has been undertaken by Strategic Finance and action points raised as a result of the appraisal would be actioned to mitigate any risk to the Council.

Reason for Decision

The Covid-19 pandemic had seen employment rates plummet and the extension of the furlough scheme meant that it was still not clear how many furloughed workers were at risk of future redundancy.

To tackle this, the Department for Work and Pensions had commissioned a new national flagship employment programme called Restart.  The Restart programme would support 12-18 month Universal Credit claimants back into work, with participants receiving tailored support from an employment coach for up to one year.

The programme had been commissioned in England and Wales to large national companies across 12 Contract Package Areas, with Serco winning the contract for the West Central region, which incorporated Sandwell.

Delivering Restart as supply chain partner to Serco would allow the Council to expand the employment offer to residents and generate income for the Council.

Alternative Options Considered

The Council could act as a strategic partner for Serco and provide no programme delivery.  This would reduce the risk to the Council but would not generate any income.

                           Agreed:-

(1)          that approval be given for the Executive Director of Children’s Services to deliver the Restart employment programme in Sandwell as part of Serco’s supply chain;

(2)          that the Executive Director of Children’s Services be authorised to enter into a contract with Serco Group Plc (Serco) to deliver the Restart employment programme with effect from 1 July 2021;

(3)          that the Director of Law and Governance and Monitoring Officer be authorised to execute any documentation necessary to enable the course of action referred to in Resolution (1) and (2) above;

(4)          that in connection with Resolution (1) and (2) above, the following action points identified within the financial appraisal of the funding application by Strategic Finance, be implemented to reduce any risk to the Council:

·               that sensitivity analysis and stringent monitoring is undertaken on delivery targets to enable timely corrective action to be taken in the event of under-performance;

·               that additional staff are employed on 1-year fixed term contracts to allow flexibility in programme delivery;

·               that contingency plans are reviewed to ensure proposals to manage under-performance will not breach Serco’s delivery standards;

·               that a funding source is identified from within existing resources to be used in the event of under-recovery, severance payments or financial penalties incurred in programme delivery;

·               that should the STORM system be utilised by Sandwell MBC, the total cost be reflected in net income projections for the programme;

·               that VAT/tax advice is sought from the Council’s Tax Accountant.