It is standard practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects, assessing their adherence to the standards set out in Managing Public Money. From April 2017, the government committed to providing Parliament with a summary of the key points from these assessments when involving a project within the government’s Major Projects Portfolio. This Accounting Officer Assessment considers the Connect to Work Programme, which is a Department for Work and Pensions (DWP) Labour Market initiative for which the DWP Permanent Secretary is the Accounting Officer. 

Background and Context 

Connect to Work is a new, voluntary employment Programme for inactive disabled people and those with health conditions and additional barriers to employment. The Connect to Work Programme offers up to 12 months of ‘place and train’ support from a dedicated keyworker, assisting participants in finding suitable jobs tailored to their needs.  

Funded across England and Wales, once in steady state, Connect to Work aims to support up to 100,000 people each year by providing grant funding to Accountable Bodies (ABs). The ABs are mostly the lead authority for a “cluster” of local authorities (LAs) who work together to deliver the Programme in return for the grant funding. In some cases, the AB is a formally constituted Combined Authority. 

Connect to Work’s Outline Business Case (OBC) was approved by the DWP Investment Committee on 23 May 2024 under its previous name of Universal Support. Shortly after this the Programme was put on hold due to the General Election. Subsequently, the Chancellor announced a Supported Employment Programme, Connect to Work, in the Autumn Budget on 30 October 2024. The Chief Secretary to the Treasury approved the Programme’s OBC on 15 October 2024. 

Following the election, Ministers asked the Programme to prioritise maintaining the Office of Budget Responsibility (OBR) scoring while also considering ways to provide local areas with more flexibility. The Programme will maintain the OBR scoring by ensuring the fundamentals of the supported employment approach are maintained and by having a clear approach to funding controls and performance. The fundamentals of the Programme’s OBC have not changed, but the expenditure profile has been amended to reflect the delay caused by the General Election. 

It was announced at the Budget that the funding for Connect to Work would be allocated in the Integrated Settlements for Greater Manchester and West Midlands Combined Authorities. Work is in train to align processes and outcomes between the Programme and the Combined Authorities. 

The Department is currently considering how to reconcile the need of ABs to have funding certainty over a longer period with its current Spending Review settlement which is limited to a single year. 

Assessment Against Accounting Officer Standards 

Regularity 

The Programme requires no new primary or secondary legislation to deliver its objectives. Legal advice confirms the Secretary of State has the authority to issue grants under section 2 of the Employment and Training Act 1973. The scheme is within the Department’s ambit. 

HM Treasury approval was granted in October 2024 allowing the grant guidance to be issued to Chief Executives. 

Due to the Programme pausing for the election, previously allocated funds, (ringfenced by HM Treasury) will need to be reprofiled, based on more realistic assumptions about the timing of expenditure. ABs have indicated they require assurance of funding for a minimum of 3 years to ensure contract viability and better VfM. DWP recognises this need and is considering how best to meet it. 

The Regularity test is met, subject to finding a way to provide assurance on future funding. 

Propriety 

The Programme will meet Parliament’s expectations by ensuring provision is in place across England and Wales, taking account of the devolution agenda and incorporating appropriate controls and procedures. Given the Programme is funded by taxpayers, there is an expectation that the provision will be available for eligible participants in all locations within reasonable timescales. Engagement indicates all ABs are keen to participate. Delivery of this scheme through ABs is in line with the government’s localism agenda. 

Although Connect to Work offers ABs considerable operational flexibility, the supported employment model framework requires their compliance with certain standards. The model is backed by analytical evidence and its employment impact has been scored by the OBR. The design includes controls, cost validation, and a performance management framework to ensure it is operated to the set standards. The Programme is developing a new digital solution to automate collecting and processing management information from ABs. 

The Programme is supporting ABs to be ready as quickly as possible. As early engagement suggests they will be ready to deliver at different times, the support includes adopting a phased rollout approach that will be informed by AB Delivery Plans.  This will also afford the opportunity to test and learn as the Programme progresses. Whilst a phased roll out will take longer to implement and will result in temporary geographical inconsistency until the Programme is fully implemented, I am confident a phased rollout based on local readiness is the proper way to proceed, especially as some other supported employment provision is in place. 

The propriety test is met. 

Value for money (VfM) 

The Return on Investment estimates in the OBC Economic Case are based on evidence from similar employment schemes, demonstrating that the supported employment model drives benefits. This evidence indicated a net present value (NPV) of approximately £730million over 9 years. 

The OBC modelled 3 participant scenarios, all demonstrating a positive NPV over the Programme’s lifetime and aligning with ministerial priorities on reducing inactivity and increasing workforce participation. The adopted scenario assumes a ratio of 85% out-of-work participants to 15% in-work participants. 

The central scenario showed a return of £1,045million. Sensitivity modelling was performed to analyse the Programme’s key risks which still showed a significant positive NPV demonstrating VfM for the Programme. For example, scenarios on a delayed rollout of 9 to 12 months (for example, for implementation or other delays) leading to lower volumes showed a return of £1,014million and the impact of failing to achieve full volume (50% reduction) showed a positive return of £621million.  

The programme will have an Evaluation Framework in place to provide evidence of VfM, and there is a requirement to record outcomes on DWP systems to ensure alignment with other Programmes. 

The value for money test is met. 

Feasibility 

The Programme faces several delivery risks, including safe implementation. 

The modelled participation volumes are based on previous initiatives, with over 1 million eligible individuals expressing interest in participating if their conditions allow. Analysis of trial data suggests that ABs, once in a steady state, can achieve these volumes, despite historical take-up rates of voluntary Programmes for people with disabilities and health conditions being sometimes lower than expected. 

Since the grant guidance was made available on 21 October 2024, ABs have started preparing delivery plans, and the Programme is addressing AB queries and preparing to review their submissions. Following approval of delivery plans, Grant Funding Agreements will be signed and issued by the Department, enabling ABs to implement delivery arrangements and start contracting with suppliers. DWP’s experience indicates that contracting may take 9 to 12 months although some ABs expect to be able to deliver to shorter timescales. To ensure VfM, ABs are expected to require multi-year supplier contracts of at least 3 years, therefore assurances for a minimum of 3 years funding for ABs is favourable. DWP recognises this need and is considering how best to meet it. 

Connect to Work delivery will commence next year; during the ramp-up period DWP will provide ongoing support, manage AB performance using ongoing MI and conduct cost validation exercises, ensuring payments align with the AB’s Cost Registers and monthly profiles. 

Digital changes for required management information are progressing on schedule and are expected to be completed in time for when the delivery plans are expected to be received. The Programme will manage timeline uncertainties, report progress, and escalate risks as necessary. 

The feasibility test is met, subject to finding a way to provide assurance on future funding. 

Conclusion 

In conclusion, I have prepared this summary to outline the key points informing my decision. My overall assessment is that the Connect to Work Programme satisfies the requirements of the 4 accounting officer tests: regularity, propriety, value for money, and feasibility, to proceed at this stage. This assessment is contingent on critical dependencies, including future funding. If these factors change materially during the Programme’s lifetime, I will reconsider my assessment. 

This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts. 

Sir Peter Schofield KCB