Ministry of Justice (2013), Pages 7-8 of Transforming Rehabilitation. A revolution in the way we manage offenders.

Transcription

1 Shaw Trust and Careers Development Group (CDG): Response to the Ministry of Justice s Transforming Rehabilitation- A revolution in the way we manage offenders Consultation February Executive Summary 1.1 Shaw Trust and CDG welcomes the Ministry of Justice s (MOJ) commitment to catalysing a revolution in rehabilitation services for ex-offenders, by re-focusing probation services in the community on services which tackle individuals barriers to turning their lives around. 1 As a charity with substantial delivery experience in working with exoffenders in the community, Shaw Trust and CDG offers a unique perspective to the MOJ regarding not only how offenders can transform their lives through rehabilitation, but also how the voluntary and community sector can be involved in the delivery of competed probation services Although Shaw Trust and CDG supports the MOJ s commitment to reducing reoffending rates through the rehabilitation of offenders, it is crucial that the MOJ also recognises the importance of implementing robust and transparent data management processes to enable the success of the proposed reforms. Without access to information from OASys, Virtual Campus and some data from the Police National Computer, competed services providers will have a limited ability to put in place immediate, intensive and integrated support for offenders on their release from custody. Data sharing protocols should also be tested prior to contract go-live, to avoid a situation where a paucity of data on each individual s circumstances occurs, as is currently the case for payment group nine customers on the Department for Work and Pensions (DWP) Work Programme Transparent data sharing will also create a more effective management of services for offenders who are released from the prison estate in a different geographic area to where they are resettling. Currently 50% of Shaw Trust and CDG s referrals to the London East Work Programme prime contract are from prison estates outside of London. However, the charity only receives information on an individual s custodial history in 14% of referral records. Improved data sharing protocols between prisons, competed services providers, public probation providers and other key stakeholders will not only improve service quality, but will reduce the risk of reoffending for each individual. 1 Ministry of Justice (2013), Pages 7-8 of Transforming Rehabilitation. A revolution in the way we manage offenders. page 1

2 1.4. As a prime contractor for flagship government contracts such as DWP s Work Programme and Work Choice schemes, Shaw Trust and CDG fully supports the principles of payment by results contracting. Through an appropriate balance of financial risk and reward, competed services providers can be incentivised to work with the most prolific offenders. However, getting this balance right is critical to the success of the proposed reforms, as there needs to be sufficient up-front funding in place to enable providers to invest in the services needed to tackle offenders multiple barriers to transforming their lives An appropriate level of up-front funding will also lead to increased supply chain diversity, by reducing the financial risk to delivery for both prime and subcontractors. It will also reduce the need for high levels of working capital. Although working capital is increasingly accessible through social financing, in Shaw Trust and CDG s experience, the high rate of return required by financiers can undermine the viability of delivery. By ensuring sufficient funding is available to invest in delivery up-front, an inclusive, high quality and high performing service can be delivered. 2. Introduction to Shaw Trust and CDG 2.1. Shaw Trust and CDG is a newly merged charity comprising leading employment services providers Shaw Trust and the Careers Development Group. Both charities have over thirty years of experience of supporting unemployed and disabled people to achieve employment, independent living and social inclusion. In 2011/2012 the combined organisation supported 46,595 customers from over 190 delivery centres nationally Shaw Trust and CDG have consistently supported ex-offenders into employment and other positive outcomes throughout the charity s history. Shaw Trust supported over 900 ex-offenders a year through the delivery of five bespoke DWP Progress to Work employability contracts up until More recently, the combined charity supports a growing number of ex-offenders via the payment group nine strand of the government s flagship back to work scheme - the Work Programme Shaw Trust and CDG is one of only two third sector prime contractors of the Work Programme in the UK. The charity delivers the Work Programme as a prime contractor in the London East Contract Package Area (CPA). The charity also operates as a subcontractor to a range of different prime contractors in the London West; Thames Valley, Hampshire and the Isle of Wight; Surrey, Sussex and Kent; Gloucestershire, Wiltshire and the West of England; Coventry, Warwickshire, Staffordshire and the Marches; and North Yorkshire and the Humber CPAs In addition, the charity delivers a diverse portfolio of other provision to support disadvantaged individuals to gain employment or move towards independent living. This includes the delivery of 17 DWP Work Choice contracts to support people with severe health problems or disabilities into work; the delivery of Skills Funding Agency contracts to support NEET young people including young ex-offenders in the surrounding areas of Liverpool - into education, training or employment opportunities; and the management of over 50 charity shops and social enterprises- which provide many disadvantaged individuals with their first stepping stone towards sustained employment or independence. page 2

3 2.5. Our robust track record in supporting disadvantaged individuals with multiple barriers to achieve positive outcomes, combined with our unique experience of delivering large-scale public service contracts as a successful national charity, ensures that Shaw Trust and CDG is well placed to respond to this MOJ consultation. Our response focuses on our experience of rehabilitating ex-offenders by supporting them into sustained employment, as well as our experience of managing the risk of payment by results contracting as a large charity. As such, we have only responded to the consultation questions which draw on this first hand delivery experience. 3. Response to Question B1: How can we maximise the results we get from our collective government and public sector resources? 3.1. Through the charity s extensive experience of supporting ex-offenders to transform their lives by entering sustained work, we know that ex-offenders often face multiple and simultaneously acting barriers to progression. On Shaw Trust and CDG s Work Programme prime contract in East London for example, the most common barriers to employment which ex-offenders face include a lack of work history, insecure housing, and substance misuse problems However, although we acknowledge the importance of focusing on the impact of rehabilitative measures, rather than solely on the probation process, it is critical that the importance of having robust referral and data sharing processes in place is recognised as essential to the proposed reforms. Without transparent data sharing arrangements being in place between courts, prisons, public sector probation providers, providers of competed services, and other key stakeholders such as Local Authorities and DWP Work Programme providers, the capability of competed services providers to put in place the right support for an ex-offender to transform their life will be hindered. Competed services providers will need details of any court orders, license restrictions, the offender s resettlement plan, accommodation arrangements, completed qualifications in prison and employment history at the very least, in addition to contact details of a member of the prison s resettlement team, Jobcentre Plus Employment and Benefits Advisor, and the Local Authority Housing team, if an effective rehabilitative service is to be provided to exoffenders as soon as they are released from custody By MOJ collaborating with partners across government now - to put in place legally robust data sharing agreements with the prison service, the public sector probation service and other key stakeholders - competed services providers should be assured of access to OASys, Police National Computer, CATs and the Virtual Campus at the very least. Access to information on these systems will enable providers to gain a thorough understanding of the individual s specific barriers to rehabilitation and the progress they have achieved to date on their journey to rehabilitation. For example, the Virtual Campus system records details of an offender s achieved qualifications while in custody, as well as the results of any assessments of an offender s personal circumstances and future employment aspirations. Access to the information recorded on systems like Virtual Campus will not only prevent service duplication, but will enable an effective package page 3

4 of wrap around support to be sourced and put in place through the competed services partnership from day one of an offender s release. Immediate access to this intensive and integrated support package could greatly reduce the likelihood of recidivism, regardless of which prisons an offender has served their sentence in In addition, it is imperative that MOJ test the data sharing protocols prior to the competed services provision going live. Despite data sharing protocols being put in place prior to the launch of day one support for ex-offender payment group nine (PG9) on the Work Programme, providers still do not routinely receive details of an offender s Jobcentre Plus Employment and Benefits Advisor prior to their release from custody. An analysis of the data received via DWP s Provider Referrals and Payments (PRaP) management information system for Shaw Trust and CDG s London East Work Programme prime contract showed that details of PG9 customers Employment and Benefits Advisor had been uploaded to PRaP on just 5% of customer records. Similarly, the details of the prison which a customer was being released from was recorded on only 14% of records, the learning an individual had undertaken in prison on 6% of records, and the customer s probation arrangements on just 8% of records The latter statistic is of greatest concern as customer records detailed the need for Shaw Trust and CDG to discuss the vacancies certain customers are applying for with probation teams, or to take into consideration the requirements of court orders. However, no contact details of the probation team were recorded in these instances, rendering it difficult for the charity s Employment Advisors to comprehensively support ex-offenders from programme commencement. Testing the effectiveness of data sharing protocols prior to implementation through a MTT (mobilisation, transition and transformation) process, and including basic information such as the contact details of key stakeholders in competed services providers referrals data, could mitigate against this paucity of data on future MOJ commissioned contracts. 4. Response to Question C2: What payment by results payment structure would offer the right balance between provider incentive and financial risk transfer? 4.1. As the fourth largest provider of contracted services to the Department for Work and Pensions and the largest third sector provider of such services Shaw Trust and CDG is fully committed to the principles of payments by results contracting. By placing a greater reward on achieving outcomes than contract delivery, providers are incentivised to deliver a high performing service to their beneficiaries. This not only ensures that only providers that perform are paid which delivers savings to tax payers but also encourages providers to work with every single beneficiary to ensure that outcomes are achieved. page 4

5 4.2. However, the structure of payments by results delivery is crucial for the principles of contracting to work. Although outcome achievement should be incentivised, it is critical that there should be enough funding available up-front for contractual delivery if a high quality and consequently high performing, service is to be delivered. This is essential especially for the ex-offender customer group, due to the level of disadvantage they face in turning their lives around. Published research highlights that 37% of ex-offenders do not have accommodation to live in when they leave prison 2, 70% of offenders suffer from at least two mental health problems, 3 and 45% of prisoners under the supervision of probation services are substance misusers. 4 Putting the support in place to tackle these barriers requires a sufficient level of finance to be available to fund the purchasing of external specialist barrier breaking services, or to build partnership links to organisations that can tackle these barriers as part of existing funding arrangements The range of barriers that ex-offenders face in transforming their lives can again be demonstrated through the experiences of PG9 customers on the Work Programme in London East. An analysis of a sample of customer data revealed that the most common barrier to work of PG9 customers was possessing no work history (20%). A lack of sustainable housing (14%), substance misuse (11%), and physical health problems (10%) were also significant barriers to working (please see figure one for further details). Many customers also possessed multiple barriers to work. 2 Ministry of Justice (2011) Breaking the Cycle Green Paper 3 Social Exclusion Unit (2002), Reducing Reoffending by ex-prisoners 4 Metcalfe et al (2001), Barriers to employment for offenders and ex-offenders, DWP (research report 155) Figure One: Barriers of PG9 customers on the London East Work Programme page 5

6 4.4. To overcome these barriers, Shaw Trust and CDG have built links to over 25 specialist partners, who offer 151 different packages of support. The support costs range from being free of charge up to 900 per customer per intervention, with some customers needing multiple interventions. Although it is difficult to evaluate what the exact financial structure of the competed services contracts should be without specific financial assumptions being provided, it is clear that from the experience of the Work Programme alone, there needs to be substantial funding available to pay for the support needed to tackle offenders multiple barriers. Appropriate levels of contractual funding will also ensure that the risk posed by potential reoffending activity is effectively managed A payment model which included distance travelled measures on the journey to achieving reduced reoffending rates could perhaps provide a balance between financial risk and reward. By incentivising providers to support the progress of ex-offenders, and by providing rewards for achieving distance travelled milestones, for example the achievement of a qualification or entering employment, more funding could be freed up in the system earlier in an ex-offender s journey. This would result in there being more money for providers to invest in barrier breaking support earlier on in contractual delivery. The inclusion of distance travelled outputs would ensure providers worked with the most prolific offenders, as there would be a greater financial incentive to tackle their deep seated barriers to rehabilitation. 5. Response to Question C5: We want to incentivise through the gate provision, but some prisoners will disperse to a different part of the country following release. How can we best account for that in contract design? 5.1. Shaw Trust and CDG s extensive experience of working with ex-offenders through five DWP Progress to Work contracts and through PG9 in six Work Programme contracts/ subcontracts has emphasised that many ex-offenders are geographically transient during the initial stages of their release from custody. Data from Shaw Trust and CDG s Work Programme London East prime contract highlights that to date we have supported PG9 customers that have transferred from prisons as far away as Perth and Lincoln into the London East CPA (please see figure two for more details). page 6

7 Figure Two: Distribution of Ex-offenders Name of Prison Number of Customers Type of Prison Prison Cluster Local Authority/ County Belmarsh 3% High Security High Security Bexley Brixton 2% Mixed Greater London Lambeth Holloway 6% Female Greater London Islington Pentonville 9% Category B/C Greater London Islington Highdown 2% Mixed Greater London Sutton Feltham 3% Young Offenders Institute/ Juvenile Greater London Hounslow Wandsworth 6% Category B Greater London Wandsworth Isis 18% Young Offenders Institute Greater London Bexley Rochester 2% Young Offenders Institute Kent, Surrey and Sussex Kent Isle of Wight 2% Category B South Central Isle of Wight Portland 2% Young Offenders Institute South West Dorset Dartmoor 2% Category C South West Devon Chelmsford 8% Category C East of England Essex Hollesley Bay 2% Category D and Young Offenders Institute East of England Suffolk Highpoint 24% Category C East of England Suffolk Peterborough 2% Category B (men), Female and female young offenders East of England Peterborough Lincoln 3% Category B East Midlands Lincolnshire Onley 2% Category C East Midlands Warwickshire Glen Parva 2% Young Offenders Institute East Midlands Leicestershire Stafford 2% Category C West Midlands Staffordshire Shrewsbury 2% Category B/C West Midlands Shropshire Perth 2% Long term offenders Scottish Prison Service Perth and Kinross 5.2. To build stronger referral links, and consequently to develop a package of seamless support for ex-offenders through the gate, Shaw Trust and CDG alongside the other London based Work Programme prime contractors have built strong relationships with prisons across London. Shaw Trust and CDG is responsible for managing the custodial relationship on behalf of all London prime contractors with HMP Wandsworth and HMP Downview. Shaw Trust and CDG is also a member of HMP Highpoint s Employer Forum. However, as figure two demonstrates, 50% of referrals to the Work Programme in London East are from prisons outside of London. It would be impractical for Shaw Trust and CDG and other London based Work Programme providers to build links to every prison in the country to facilitate a seamless referral onto the Work Programme Similarly, if any customer on the Work Programme leaves the Contract Package Area, providers either have to manage the support for each customer remotely, or establish a subcontracting arrangement with a provider in another area of the country to provide localised support to the customer. There is no mechanism in place to transfer customer between providers Shaw Trust and CDG recommends that the MOJ learns from the lessons of the Work Programme, and puts in place mechanisms prior to contract implementation for competed page 7

8 services providers to effectively manage customers who disperse around the country through the gate. Measures could include the transparent sharing of data between the prison service, public service probation providers, competed service probation providers and other key stakeholders, as per our response to question B1. They could also include an internal transfer mechanism of customer data, and the remaining funding for a customer between competed probation services providers. Access to transparent data combined with formal partnership structures would ensure that no customer becomes lost in bureaucracy if they move out of a probation area It is also crucial that the MOJ shares its monthly assumptions regarding the flow of offenders into and out of each of the 16 competed services lots at the tender development stage of the competition. This will ensure that providers can scope and put in place appropriate delivery structures to manage these referrals flows during contract implementation, rather than after contract commencement Finally, the MOJ should consider enabling competed services providers to commence their package of offender support prior to an offender leaving custody. This would enable providers to ensure offenders had stable accommodation in place, and do not breach court orders restricting their movements, from day one of their release from custody. The MOJ s proposed through the gate mentoring scheme is a welcome development in the provision of intensive and immediate support to offenders leaving custody. 6. Response to Question C7: What steps should we take to ensure that lead providers manage and maintain a truly diverse supply chain in a fair, sustainable and transparent manner? 6.1. As a lead provider of contracted services on behalf of DWP for both Work Choice and the Work Programme, Shaw Trust and CDG already manages a substantial supply chain of over 120 organisations in a fair, sustainable and transparent manner. Our expertise in collaborating with our supply chain partners has been acknowledged by DWP through the award of a good grade at our Merlin Standard inspection, and the inclusion of a case study of how we have reduced the financial risk for our charity subcontractors on the Work Programme in a supply chain best practice guide from the Employment Related Services Association. Shaw Trust and CDG also operates at the subcontractor level for many contracts, including DWP ESF Families, the Education Funding Agency s Youth Contract and the Work Programme. Our recommendations to the MOJ are informed both by our experience of being one of the only voluntary and community sector organisations working as a prime contractor in the country, as well as our experience of securing subcontracting work Transparent and sustainable supply chain management starts from the tender development stage. In the welfare to work sector, the introduction of the Merlin Standard page 8

9 has greatly increased the transparency of how supply chains are developed for bids. Prime contractors are now required to run their own mini-competitions to select their supply chain for tender rounds, and are required to openly evaluate each application for subcontracting work against transparent assessment criteria However, the completion of applications for supply chain work - or expression of interest forms often require the investment of significant financial and staffing resources from each organisation interested in subcontracting work. This is as each organisation needs to apply to each potential prime contract in each lot for subcontracting work during the tender phase. This often limits the diversity of supply chains, as many voluntary sector organisations or smaller organisations do not have the resources needed to invest in this activity As part of the Merlin Standard, lead assessor emqc are now developing a standard expression of interest form for DWP contracting, which supply chain partners only need to complete once if they are interested in subcontracting opportunities. This standard form would then be reviewed by each potential prime contractor. Although yet untested, the standard form has the potential to limit the time spent on bidding for subcontractors, and could open up subcontracting opportunities for a more diverse array of organisations. The MOJ could work with emqc to investigate how a similar form could be designed, implemented and enforced during the competed probation services competition, to facilitate the inclusion of a diversity of supply chain partners from the outset. Any lead contractor not following this process could be penalised during the bidding phase Similarly, the MOJ could set clear guidelines regarding how lead contractors should manage their supply chain from contract commencement. The MOJ could require lead organisations to review supply chain partners performance and payment terms at regular intervals, conduct best practice sharing sessions, and to involve their supply chain in partnership working with prisons and other stakeholders throughout contract delivery. A lead organisation could be assessed on their ability to meet this assessment criteria as part of their Merlin Standard evaluation. The setting of transparent criteria for supply chain management would facilitate the building of an inclusive supply chain, and would set the expectations for fair supply chain management from contract go-live Another way to ensure that selected supply chains remain diverse is to ensure that there is sufficient funding in the contract structure to support voluntary sector suppliers in particular to deliver a high quality service. As outlined in our response to C2, ex-offenders often have multiple barriers to transforming their lives. Interventions to tackle these barriers require up-front investment, so there needs to be sufficient funding available in the contract for organisations with limited access to high levels of working capital to invest in these necessary support services, without their financial viability being jeopardised. A balance between contractual risk and reward could also ensure that prime contractors do not draw down significant management fees to protect the financial viability of their contractual delivery and management. Reduced contractual risk can therefore not only lead to increased supply chain diversity, but also to more viable, and consequently, higher performing contracts overall. page 9

10 7. Response to Question C9: How can we ensure that the voluntary and community sector is able to participate in the new system in a fair and meaningful way? 7.1. As a registered charity, Shaw Trust and CDG actively demonstrates that the voluntary sector can participate in payments by results contracting at both the prime and subcontractor level. To ensure that more voluntary sector organisations are also to participate in payments by results contracting in the proposed probation system, the MOJ will need to invest in capacity building the sector. MOJ s announcement of a 500,000 capacity building fund for the transforming rehabilitation project is a welcome step in the right direction Supporting the voluntary sector to participate in procurement by reducing bureaucracy as outlined in our response to C7 in addition to enhancing the infrastructure of voluntary sector organisations, will be critical if they are to participate fairly in the new system. Although necessary as part of the security requirements of delivering government contracts, requiring organisations to become compliant with ISO27001 often pushes hidden costs onto subcontractors. Penetration testing, and updates to IT systems can cost all organisations significant amounts of time and money. To ensure that the voluntary and community sector is not prevented from contract delivery by such hidden costs, the MOJ could publish a list of the necessary accreditations, information security management systems and other quality requirements organisations will need to set aside funding for at the tender stage. Organisations can then openly and fairly assess the financial viability of contracts at this early stage Another barrier to the voluntary sector participating in payment by results contracts is access to working capital. Due to the level of risk involved in contracting, many commercial banks are reluctant to lend to organisations delivering payments by results contracts. Shaw Trust and CDG sought to overcome this challenge during Work Programme implementation by seeking working capital investment from social financing organisations. In our experience, although social financiers were willing to lend to a charity, they wanted a high rate of return on their investment to offset the risk of lending. This return on investment, in our particular circumstance, would have rendered contract delivery financially unviable. Although social financing has an important role to play in supporting the voluntary sector in payments by results contracting, and has been used in many successful pilots like the pilot in Peterborough prison it should not be seen as a funding panacea for payments by results contracts. As such, the MOJ should invest in the provision of an independent financial guide to increase the knowledge of the voluntary and community sector of the range of funding options available to support contractual delivery. February 2013 Careers Development Group, Carlton Plaza, 111 Upper Richmond Road, Putney, SW15 2TJ Registered Charity Number Shaw Trust, Shaw House, Epsom Square, White Horse Business Park, Trowbridge, BA14 0XJ Registered Charity Number page 10