More on that £300k contract

Private Eye has pointed out that the £300k contract for A4e is about more than just investigating the effectiveness of SIBs. It's "to design the kind of contracts for which it will itself bid". The government is "putting its main welfare contractor in charge of designing welfare contracts". The Eye likens this to the PFI shambles. The contract documents can be found on the Contracts Finder website. They include A4e's proposal, and there are some interesting bits in that. "We were pioneers in implementing PBR (payment by results) contracts to deliver employment outcomes in Israel, and used what we learnt to influence UK government thinking in the development of both the flexible New Deal and the Work Programme." (That was the Israel contract which was so controversial because the British government was supposed to be against involvement in the occupied territories but helped A4e get the business.) The document goes on to boast about their " experience and expertise acquired over many years" and their investment in "specialist expertise to support whole-family based intervention at local level, through Families Unlimited." Other documentation shows that A4e will be involved in "knowledge transfer", and they will “organise a seminar to discuss lessons learnt with lead officials in Central Government” and prepare a “how-to guide to be used by future commissioners". Could a company get closer to government than that? Worth being excluded from the ESF contracts, perhaps. They will probably, though not certainly, be excluded from bidding on the 4 contracts they are currently helping to design, in Birmingham, Leicestershire, Hammersmith and Westminster, but when it's rolled out, it will all be up for grabs.

Meanwhile Roy Newey has been at a "Global Skills Summit" in India, where "A4e India has been working closely with the Government of India for delivering globally benchmarked skills for the bottom of pyramid clients on a pan-India basis. A4e India aims to create a Credible, collaborative, competency based and transparent skills training system with the government, private and third sector organisation partnerships." Also taking part was "Rt. Hon. David Blunkett, Member of Parliament, UK and A4e advisor".

A £300k contract

We mentioned an A4e company, "A4e Insight", first in November 2009. This "research and consultancy arm" of A4e had provided consultancy on two projects, money guidance and "train to gain", in which it had a large financial interest. In February 2010 we wrote about another Insight consultancy project in which it had provided "due diligence" research on a competitor training and skills company. This curious task of selling consultancy on things in which you have, or may soon have, a vested interest continued when, in February this year, A4e was named as a mentor to start-up public sector mutuals. Now we have a report of another contract for A4e Insight. It's getting £300,000 from the Office for Civil Society to investigate the effectiveness of social impact bonds in four pilot areas. (See the Third Sector website)

This is Big Society stuff, the OCS first describing the project in August this year. We were told then that "The OCS is not funding the projects, but has made up to £300,000 available to offer technical support to the councils in order to design the new tender documents." Is this the same £300k going to A4e? Mark Lovell has written enthusiastically about SIBs. Does this compromise the objectivity of the research?

More stuff in more places

A "national celebration of enterprise" has been held in Sheffield, with Peter Jones of "Dragons' Den" as the chief attraction. It's a big annual event apparently. There were government ministers there and - you guessed it - A4e's Emma Harrison, who "was introduced by Sheffield MP David Blunkett, the former Home Secretary". She "told the audience about her schooldays as 'the naughty girl' who failed her A-levels She set an ambition to become the world’s largest organisation that improves people’s lives with a business plan focusing on scope and geography – or 'more stuff in more places'. This year, her company is set to turn over £250m." (Yorkshire Post) I'm sure it was inspiring.

Most of the Work Programme prime contractors have, in the past, been content to let A4e do all the publicity-seeking. But it's a competitive business, and some of them are now honing their own PR. Ingeus (Australian) isn't shy. And now we have Maximus (American) putting out PR stuff about how they got the best results in Flexible New Deal. They were "top-ranked provider" - but nowhere in the piece are there any figures. I suspect that the figures for FND were so bad all round that no one wants to boast about them.

Emma Harrison once said that she had wanted to convert A4e into a mutual organisation but had found that the obstacles were too great. Perhaps she should talk to the people from Prospects, which has been doing welfare-to-work and similar stuff for 16 years and now has a WP contract. It started out as a company limited by guarantee (no shareholders) and has now turned itself into an employee-owned mutual.

In the run-up to the WP contracts, CDG was arguing, and organising conferences, for an army of volunteers to mentor the unemployed. It's now a sub-contractor of Maximus in West London, and is advertising for a "volunteer co-ordinator". It will be interesting to see how volunteers will be enticed to help make profits for business.

No news, good news and questions

It's all quiet at the moment. As always, a subject is in the news for a while then drops out as if it had never been. G4S is advertising for an ESF Project Manager for the new contracts and has published its plans for the different regions. They don't seem to include Families Unlimited. Meanwhile the Working Families Everywhere website carries news, dated 13 September, of the Advisory Board meeting on 6 September, and promises to publish the minutes of the meeting when they're available. Should be interesting. But are we to assume that Emma Harrison's pet project will go ahead even when the ESF contracts are awarded? Will it just be volunteers, the paid people having been sacked or sent over to the contractors; and where will those volunteers stand in relation to the contractors?

A4e's Roy Newey has been getting excited about business prospects in Saudi Arabia and Latvia. But back in Britain the Radio 4 "Report" on the Work Programme brought out the fact that we can have no figures and no real idea of what's going on. It seems that the contractors are being deluged with clients and don't have time to do anything constructive with them. But they can still earn money. Some of those clients will get jobs - what Chris Grayling called the dead weight figure - owing nothing whatever to the private companies, but those companies will still get the payment.

Feedback wanted

Perhaps my regular readers would care to check out my new website, Getting a job. I've put a link to it on the right as well. Let me know (politely, please) what I've missed out or got wrong, or whether it's a complete waste of time. You can comment through the contact form on the site or here.

"The Report" on the Work Programme

Radio 4's "The Report" tonight on the Work Programme had a straightforward thesis: it is unlikely to succeed when it is being delivered by the same private companies which have failed on all previous welfare-to-work schemes.

They homed in on the Pathways to Work programme which failed so dismally for those companies. A4e and Reed, you remember, were interrogated by the Public Accounts Committee on why they had performed so much worse than Jobcentre Plus. Now, A4e's Nigel Lemmon ( Executive Director A4e Welfare) says that they did better in some areas than in others; but the programme pointed out that this was only on their own measures of performance. (Lemmon later on said that all the criticism of A4e was unfair.) Dan Finn, who is a professor of social inclusion, said that JCP did better because they had been doing the work for years - er, yes - and because they were in competition with the private sector. (No evidence was given for this, because there is no evidence.)

Then we got Hayley Taylor. But what she said was actually true; people are not realistic and the government has no comprehension of people's lives. A report from the DWP says that half the people on benefits are not looking for work. I haven't seen the report, so I don't know what that figure includes. There was an interview with Colin in Leeds, a graphics designer unemployed for 3 years, who described the poor facilities and lowest-common-denominator approach he has experienced on New Deal and FND. Then Hayley Taylor openly criticised her old employer, A4e, for the first time. She knew it was hopeless when she was faced with an 18-year-old who didn't want to work and a redundant 55-year-old who was desperate for a job and was expected to deliver the same lesson to them in the same class. The impression was given that this was the reason she left A4e, whereas she seems to have left to star in her own show. Anyway, the programme pointed out that much of the criticism they had heard was about A4e, which seemed to have an unenviable reputation. Yet it got the second-largest share of the WP contracts. We heard from Martin who is with A4e for the second time; he was shattered to hear them telling him that his CV was no good, when it had been done by the same A4e people the first time around. He said he felt he was serving a prison sentence.

The presenter said that they had spoken to numerous people on the WP who feel that they are being ignored because there are too many people on the programme. They also complained about assumptions that every client was illiterate, innumerate and stupid. One commentator said that the big companies had all bid for the WP because that was all there was, and they all assumed that the government will have to step in and renegotiate when it goes wrong. Chris Grayling said that won't happen. The CE of the WISE Group complained that they had lost out on the contracts and had to lay off 40% of their staff. The presenter then said that they had a confidential document which shows that Ingeus offered a 60% discount for part of the contract, and they were not the only providers which had done this. Grayling denied that the government was putting price before quality. It was pointed out that only half the promised 40% of the work went to small companies and voluntary sector, and there were fears that the primes would cherry-pick the easiest customers and pass the hardest on to their sub-contractors. Finally, and significantly, the presenter said that everyone they had spbout oken to in their research wanted a job. All in all, this was a worthy attempt to present a serious programme about the Work Programme.

Here's the document about A4e's "Families Unlimited" project to get sub-contracts for the new workless families contracts. There's an American organisation with the same name. Perhaps they didn't know.

I'm thinking of setting up a website with practical advice for the unemployed; jobsearch, application forms, CVs, interviews etc. What do you think?

Business as usual

Anyone who thought that A4e's embarrassment over the workless families contracts would prove a turning point in the company's fortunes is probably guilty of wishful thinking. It's business as usual. Roy Newey is in India with a trade delegation of training organisations, including some FE colleges, and he is quoted as saying, "eastern India provides exciting opportunities to further strengthen India-UK cooperation in skills and education sector." Mark Lovell has been in the US. I suspect that Emma Harrison will not be giving interviews for a while; but there's a piece in the Sun, (dated 1 September) which is straightforward PR for her; and the Sun, sadly, has a bigger circulation than the Guardian. And now the BBC is running an item about research into "problem families" which reminds us that Cameron "appointed Emma Harrison as a 'family champion' to lead a drive to get workless families back into employment" with not even a nod to the Guardian revelations. We won't get to know whether Harrison's cosy relationship with MPs has been damaged, but it won't affect the company's ability to win contracts in the future.

The Financial Times previews the Radio 4 programme on the Work Programme (Thursday 15 September, 8.00 pm). Chris Grayling denies that there will be any renegotiation of the contracts, although "providers now say privately that they intend to make cost savings if they are unable to meet targets, raising the spectre that very little will be spent on helping those going through the scheme." And with the sort of irony which leaves one shaking one's head in disbelief, the programme quotes Hayley Taylor as saying that the WP is "crude and often ineffective". " “Grouping people together is just not going to work because what someone who has been long term unemployed needs and what someone who has been newly made redundant needs are two totally different things,' she said." If that's the level of insight of the programme, with all those staff and clients whose views were solicited ignored, then it won't be worth listening to.