Transparency data

Restart Programme Accounting Officer Assessment (March 2021)

Updated 21 October 2024

Applies to England, Scotland and Wales

It is normal practice for accounting officers to scrutinise significant policy proposals or plans to start or vary major projects, and then assess whether they measure up to the standards set out in Managing Public Money. From April 2017, the government has committed to making a summary of the key points from these assessments available to Parliament where it involves a project within the Government’s Major Projects Portfolio.

This Accounting Officer Assessment considers the Restart Programme which the Department for Work and Pensions are launching.

Background

The government announced the new £2.9 billon Restart Programme at the Spending Review on 25 November 2020. This will give Universal Credit claimants who have been out of work for at least 12 months enhanced support to find jobs in their local area.

Providers will work with employers, local government and other partners to deliver tailored support for individuals. Referrals will be made over a 3-year period and the Restart Programme is expected to benefit more than a million Universal Credit claimants who are expected to look for and be available for work but have no sustained earnings. The scheme will provide up to 12 months of tailored support for each participant.

The Restart Programme will be delivered across England and Wales in 12 different Contract Package Areas. The providers and their delivery partners, will complement the work of Jobcentre Plus with extra expertise, investment, innovation and additional capacity for intensive support.

The Programme will use a balanced Payment by Results model. Providers will be incentivised to help as many people as possible into sustained employment: the more people they move into sustained work the more outcome payments they will receive.

The commercial process commenced on 10 December 2020. DWP expects contracts to be awarded in Spring 2021, with go live in Summer 2021.

Assessment against Accounting Officer Standards

Regularity

DWP is uniquely placed to deliver the objectives of the Restart Programme. It has the necessary legal powers, and it is aligned to the Department’s ambit.

The commercial process will be subject to Cabinet Office and HM Treasury controls, as well as DWP Major Programme governance and assurance.

Subject to final Treasury approvals, the regularity test is met.

Propriety

In this test I must consider if a proposal would breach parliamentary control procedures or expectations.

The payment controls for the programme will build on the model developed for the Work and Health Programme.

Providers will be paid based on their results supporting programme participants into sustained employment. Payment by results incentivises providers to deliver results. As a payment by results programme, the cost will depend on the performance of the providers relative to their performance offers. If providers deliver more outcomes than in their tenders then the cost will be higher than expected, and if providers deliver fewer outcomes than in their tenders then the cost will be lower than expected. The risks associated with provider over and underperformance will be managed through the competitive commercial process.

The propriety test is met.

Value for money

The value for money calculations are based on evaluation of the Work Programme (published November 2020) and the baseline cost per start on the Restart Programme. To account for the differences between the Work Programme and the Restart Programme, the analysis has conservatively used the lower estimate observed for the Work Programme (98 additional days off benefit and 64 additional days in employment as a result of programme participation).

On this basis, the Restart Programme is expected to deliver a social benefit of more than £2 for every £1 spent. An impact evaluation will be undertaken to confirm the planned social benefit generated by the Restart Programme.

Based on the performance of similar programmes, the value for money test is met.

Feasibility

To meet the test on feasibility, I have considered whether there is a significant risk around safe implementation to the expected timetable.

DWP have worked at significant pace through the Restart Programme design and commercial processes to launch as quickly as possible. The plan includes limited contingency.

The key risk for successful programme delivery is the length of time between contract award and go-live. Through their initial responses, providers have indicated that they are confident in being able to deliver to the timescales set. This confidence will be tested through the commercial process.

The risk of a short implementation window has been mitigated by designing the volume of referrals to ramp up over the first six months.

Feasibility delivery confidence is medium because the mobilisation period is shorter than the best practice of four to six months. This is mitigated by the phased ramp up of referrals over the first 6 months of the programme.

Conclusion

In conclusion I have prepared this summary to set out the key points which informed my decision.

My overall assessment is that the Restart Programme meets the requirements of the 4 accounting officer tests of regularity, propriety, value for money and feasibility.

If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised summary, setting out my assessment of those factors.

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.

Peter Schofield
Permanent Secretary