- Those over 25 on JSA will still not be referred until they've been unemployed for 12 months. So they will lose 10% of their housing benefit at the same time as going on the programme!
- There is a beefed-up role for the Jobcentres, including running "work clubs" and getting people to do voluntary work.
- "We will refer customers to the Work Programme contracts for a 5 year period. Providers will then work with customers for up to a further 2 years."
- 40 contracts at £10 - 50 million each.
- The claim that there would be payment only for outcomes was untrue. There's to be an "attachment fee ..... to assist with initial delivery costs." Sounds a bit like on-programme payments. Presumably the providers insisted on this.
- "Substantial" performance incentive payments for providers.
PS. The Financial Times has questioned Chris Grayling about the "attachment fees". He "insisted that the payments, understood to be in the low hundreds of pounds per client, would be paid only as people are taken on, not as a block payment in anticipation of the numbers likely to join the programme as happened under the existing Flexible New Deal scheme. Most recently, contractors have received 20-30 per cent of payments in advance." He goes on, “It is a recognition that in the early years, providers do have cash flow problems, and this is designed to make a contribution but one that will be phased out, becoming completely outcome-based payments, made in arrears, over the life of the contracts,” Mr Grayling said. He continued: “We never said the upfront payment would be zero – just as little as possible. But we will get to zero over the life of the contracts.”