Guidance

Chapter 7: IPES Funding Model

Updated 10 May 2023

Applies to England and Wales

Data Protection Legislation and Data Sharing

You must ensure that you follow the requirements around Data Protection Legislation and General Data Protection Regulation (GDPR) taking into account your Contract Terms and Conditions.

In relation to the sharing of data, providers should also adhere to all requirements as laid out in Generic Provider Guidance Chapter 8 – Information Security.

Background

7.01 The Intensive Personalised Employment Support (IPES) Funding Model is predominantly Payment by Results (PbR) to drive sustainable job outcomes.

7.02 There are 2 elements to the IPES Payment Model:

• the Service Fee
• the 2-stage Outcome Payment

The Service Fee

7.03 The Service Fee will be payable on a monthly basis in respect of each month in which referrals are made to support you in delivering your service to Participants. The Service Fee will be calculated as 30% of the estimated Total Contract Value (TCV).

7.04 A proportion of the Service Fee, up to a maximum of 15% of the TCV, will be agreed between you and DWP (prior to contract award) and will be paid over the first 12 months in which services are to be provided. This is to facilitate start-up costs and initial service delivery.

7.05 Payment of the remainder of the Service Fee will be paid in equal monthly payments throughout the period between the Contract Start Date and the Referral End Date.

7.06 Where due, the Service Fee will be paid monthly in arrears, at a date to be agreed, and without you needing to claim. Any part period for the first month at start-up will be paid on a pro-rata basis

7.07 DWP may defer Service Fee payments if formal performance improvement action is taken as a result of failing to meet service standards.

The 2-Stage Outcome Payment

7.08 There are 2 possible IPES Outcome Payments per Participant; the lower threshold outcome payment and the higher threshold outcome payment. Each Outcome Payment can be for either employed or self-employed work. There is no price differentiation for outcomes between those Participants who gain employment or those who follow the self-employed route.

7.09 A Provider can receive a lower threshold outcome payment for a Participant in respect of self-employment and a higher threshold outcome payment for the same Participant in respect of employment (and vice versa). However, only one lower threshold and one higher threshold payment per individual will be paid and each will need to meet the criteria for that job outcome.

7.10 Any one Outcome (lower or higher) cannot be a mix of self-employment and paid employment.

7.11 The funding available for Outcome Payments equates to 70% of Total Contract Value (TCV). This funding will be apportioned as follows:

• 20% of the total Outcome Payment (14% of TCV) for the lower threshold; and
• 80% of the total Outcome Payment (56% of TCV) for the higher threshold

Employed Outcome Payment

7.12 An Employed Outcome Payment will be triggered when a Participant achieves in the (456 + 182) day period from the Participant’s Start Date on IPES:

• earnings equivalent to 8 hours per week for 182 days, at the adult rate (aged 25 or over) of the National Living Wage (NLW). This currently stands at £2,167, (the ‘lower threshold outcome’) and will be uprated in line with NLW; and,

• at a higher threshold calculated at 16 hours per week for 182 days at the adult rate (aged 25 or over) of the NLW. This currently stands at £4,335 (the ‘higher threshold outcome’) and will be uprated in line with NLW

7.13 The lower threshold outcome takes into account that some Participants may fall out of employment due to fluctuating health conditions, or not be able to work for the same duration/hours.

7.14 An outcome will be achieved when earnings become equal to, or surpass the NLW adjusted threshold appropriate on the date of the payment which caused cumulative earnings to trigger the threshold. Cumulative earnings, below the threshold which are paid prior to threshold uprate will not be prorated towards the increased threshold – their value will remain and contribute towards the new threshold which will have to be met in full.

For example, cumulative earnings accrued up to 31 March meet the threshold at £3,257. Participant has cumulative earnings of £3,100, and an earnings payment of £200 due on 01 April will surpass the threshold by £43 and trigger the outcome payment. However, NLW is uprated to £3,500 on 01 April so the earnings payment on that day will now not be sufficient to equal or surpass the threshold, with a shortfall of £200. The cumulative earnings will continue to accrue until the uprated threshold of £3,500 is equalled or surpassed.

NB: The amounts in this example are illustrative figures only and do not represent actual or planned uprates to the NLW.

Self Employed Outcome Payment

7.15 For self-employed Participants, an entitlement to an outcome would be triggered when a Participant achieves and the Provider can robustly evidence to the satisfaction of DWP:

• a cumulative period of not less than 91 days’ self-employment (the “lower threshold outcome”)
• a cumulative period of not less than 182 days’ self-employment (the “higher threshold outcome”)

Please note: for validation purposes, a week is defined as a minimum of one day in any seven-day period which does not overlap with any other week of self-employment where the Participant was for that week also either off benefit (i.e. not claiming or receiving any unemployment related state benefit) or for Participants continuing to claim Universal Credit (UC), complying with relevant UC requirements for the self-employed.

7.16 Any period of self-employment can only be counted once regardless of whether the Participant has one or multiple self-employed occupations during that period.

The Job Outcome Payment Measure

Employed Outcomes

7.17 Earnings data will be provided by His Majesty’s Revenue and Customs (HMRC). You will not be required to make a claim for employed outcomes (with the exception of Special Customer Records [SCR] - further details can be found in the Further Information section within this guidance).

7.18 Participants moving into employed work will be identified by DWP solely using HMRC (PAYE) on-line data submitted each time an employee is paid by an employer, on or before their pay date. Outcomes achieved by IPES Providers will be based on this data. Please note: Tax refunds, payments in lieu of notice, Armed Forces Reservists and other retainer payments, and payments that are not related to employment generated whilst on IPES provision, can trigger an outcome therefore Providers must inform DWP when they are aware of these payments so that an outcome payment is not made. Please see 7.22 below.

7.19 DWP systems will interrogate the data supplied by HMRC to identify when an eligible IPES Participant, within the qualifying period, had cumulative earnings surpassing or equalling the minimum threshold set to constitute an outcome. To allow for data consolidation and ensure accuracy there will be a 61-day data settlement period between receipt of the data and notification to the Provider of an outcome.

Please note: to ensure system effectiveness, DWP may undertake tests, as necessary, of the automated payment system to confirm it is delivering the requirements. Where underpayments or overpayments are identified through these checks, remedial action will be undertaken where appropriate.

7.20 DWP will share the following information with you, relating to the validation of earning based outcomes:

• when a Participant’s earnings are first declared to HMRC, following a confirmed start on provision; and
• when each of the earnings thresholds is reached

7.21 Prior to starting the Participant on the programme, you must ensure the Participant is not in any form of employment or has received a job offer. The Jobcentre Work Coach will determine if a Participant is in any form of employment or has a job offer, prior to the referral and will not make the referral if it is identified the Participant is in any form of employment at that point in time.

Please note: between referral and starting the provision, there may be some Participants who move into employment or self-employment, or receive a job offer. If this is the case, you must enter either Did Not Attend (DNA) or Did Not Start (DNS) on PRaP and return the Participant to Jobcentre Plus. Please refer to Chapter 3 of this IPES Guidance for the exact action to take.

Pre-Programme Non-Qualifying Earnings

Required Actions

7.22 Any earnings that the Participant is owed prior to starting on the programme will not count towards an employed outcome so you should check to see if the Participant is expecting a final payment from any previous employer at the referral/start stage of the programme (for example, wages in lieu, holiday pay, Covid-19 Furlough payment) or if they are likely to receive a tax refund, etc.

7.23 You must notify DWP PRaP team of any of these payments using the Non-IPES Earnings Notification Form and send to the Department’s PRaP Operational Support Team Central Inbox: PRAP.SUPPORT@DWP.GOV.UK.

7.24 Further information on Non-qualifying Earnings that may contribute to accumulated threshold outcomes can be found at para 7.72-7.73.

Self-employed Outcomes

7.25 The data supplied by HMRC does not contain earnings from self-employment. Therefore, self-employed outcomes will be based on evidence of trading during the period of self-employment, as set out in paragraph 7.15 above.

7.26 Providers will track and claim self-employed outcomes themselves and submit the resultant claims through PRaP. You will therefore need to retain robust evidence to support those claims. Please also refer to Chapter 10: Validation.

7.27 There is no cap on the proportion of self-employed outcomes Providers can claim. Within 5 working days of a Participant informing a Provider that they have commenced self-employment, the Provider must update PRaP with the date the self-employment started.

7.28 You will be responsible for claiming self-employed outcomes correctly and within a maximum of 700 calendar days from the Participant’s start date and within 90 days of the date when the conditions for an outcome have been met. This date is confirmed in the Date 2 box of your PRaP claim.

If 90 days has been exceeded between Date 2 and the date the claim has been submitted, the claim will automatically go on hold, manual checks will be undertaken by DWP, and the claim may be classified as a Fail if the conditions for claiming have not been met.

7.29 Claims must be made via PRaP and you must provide DWP with sufficient and accurate information to allow a manual validation to independently verify the claim.

7.30 The DWP’s expectation is that those Participants that achieve the self-employed outcome/s will sustain that self-employment well beyond the end of IPES. DWP will undertake analysis of the self-employed outcomes being achieved by you.

Self Employed Gateway Interview

Please Note: The following sections detail the information that Jobcentre Plus will require when considering if a Universal Credit (UC) claimant can be considered as self-employed.

Providers should utilise these paragraphs for all IPES participants and not just those in receipt of UC, especially when considering the robust evidence required to satisfy yourself that there is a genuine Self-Employment claim, and as set out in Chapter 10 of this guidance

7.31 This section is to confirm what a Participant will need to do to meet the conditionality requirements of being self-employed whilst claiming UC.

7.32 Though it is the Participant’s responsibility to meet these requirements, it would be advantageous to you as provider to ensure the Participant is complying with the requirements for declaring as a UC self-employed Participant as DWP will access relevant data from within a Participant’s UC records to determine if the Participant is in self-employment for the duration claimed.

For meeting the IPES self-employed outcome definition and validation requirements, please see the relevant contractual clauses and the additional information contained within this chapter of IPES Guidance, as well as IPES Provider Guidance Chapter 10 – Payment and Validation.

7.33 When an IPES Participant claiming UC declares to Jobcentre Plus (JCP), or to you as a provider, that they have taken up self- employment, they are required to attend a Gateway Interview with a JCP Work Coach to confirm gainful self-employment.

7.34 The Participant will be required to take to the Gateway Interview a completed ‘Self Employment Declaration’ and as much supporting evidence as possible of their self-employed business.

7.35 For example:

• their unique tax reference
• details of customers, suppliers, invoices and receipts
• previous tax returns
• previous declarations of income for tax credits
• business account bank details and statements
• trading accounts from the previous year
• name, address and telephone number of their accountant
• business plans and/or marketing material

This list is not exhaustive and there is no requirement for the Participant to provide all of the evidence listed above.

Gainfully self-employed

7.36 For UC purposes, JCP Work Coaches will only be able to confirm gainful self-employment if the following criteria are satisfied:

• activity is carried out on a self-employed rather than an employed basis
• self-employment is the Participant’s main employment
• self-employment is regular, organised, developed and carried out in pursuit of profit

7.37 The JCP Work Coach will consider a person is probably self-employed if they meet some or all of the following:

• run their own business and take responsibility for its success or failure
• usually have several customers at the same time
• decide how, when, and where they do their work
• can hire, at their expense, people to do the work for them or help them do it
• provide the main items of equipment needed to do their work

7.38 The JCP Work Coach will also consider the following when considering whether gainful self-employment can be confirmed:

• whether the activity is undertaken for financial gain
• a record of hours spent each week working on the activity
• any business plan or steps taken to increase income and/or profit from the activity
• whether the Participant is actively marketing or advertising for work
• evidence of work generated including ‘jobs’ quoted for, and work or delivery of services undertaken or in the pipeline
• how HM Revenue and Customs (HMRC) regards the activity.

7.39 If the Participant’s earnings are derived from employment under a contract of service, or in an office, or in other ‘casual’ paid work, they are not self-employed.

7.40 At the end of the Gateway Interview, the JCP Work Coach will issue a decision letter to the Participant, stating whether they can be confirmed as gainfully self-employed.

Start-Up Period

7.41 To support Participants who have been assessed as gainfully self-employed whilst they build their business, they may be permitted a ‘Start-Up Period’. During this Start-Up Period, Participants can continue to claim UC without any requirement to seek alternative work.

7.42 A Start-Up Period will be available to self-employed Participants who fulfil the following criteria:

• they are gainfully self-employed for UC purposes
• they have not been undertaking the self-employed activity for more than 12 months before the start of the UC assessment period in which the Gateway Interview takes place
• they haven’t had a previous Start-Up Period in the last 5 years
• they are taking appropriate steps to increase their earnings with the aim of ultimately increasing earnings to the level of their conditionality earnings threshold

7.43 If eligible, the Start-Up Period runs from the beginning of the UC assessment period in which the Jobcentre Plus Work Coach agrees the Start-Up Period is applicable, and ends after one year (unless the Participant fails to continue to satisfy the criteria, at which point the Start-Up Period would end on the date the Participant becomes ineligible).

7.44 During the Start-Up Period, the Participant must attend quarterly interviews with a JCP Work Coach in order to meet their conditionality requirements. At these interviews, the Participant must show that they remain gainfully self-employed and that they have been taking steps to increase their earnings, with the ultimate aim of increasing earnings to the level of their individual conditionality earnings threshold.

7.45 The Participant will indicate the steps they plan to take at their Gateway Interview and subsequent quarterly interviews. Should the JCP Work Coach agree they are appropriate steps, they will be set out in the Participant’s UC claimant commitment.

Minimum Income Floor (MIF)

7.46 The MIF is applied to Participants who are assessed as gainfully self-employed and would otherwise fall in the Intensive Work Search regime, where the Start-Up Period is not applicable.

7.47 The MIF is an assumed level of net earnings for a self-employed Participant that matches the work expectations of any other Participant with similar circumstances.

7.48 The MIF is a monthly amount calculated on the basis of working up to a maximum of 35 hours per week multiplied by the National Minimum Wage for the Participant’s age group, minus tax and National Insurance Contributions.

7.49 If the Participant’s actual earnings are below the MIF, their UC award will be calculated using the MIF. If declared earnings exceed the MIF, actual earnings will be used to calculate the UC award.

7.50 Participants who have the MIF applied are placed in the ‘Working Enough’ regime.

The Validation of Job Outcomes

7.51 The validation of Job Outcomes will be determined by the type of employment. For further information, please refer to Chapter 10 of this IPES Guidance.

Qualifying Period

7.52 Any Outcome must be achieved within the period that a Participant is on the IPES programme. This can be up to 639 days after the Participant started on IPES depending on when a Participant becomes a Completer or Early Completer. Only Outcomes achieved in this qualifying period are eligible for Outcome Payments.

Claiming Payments

7.53 You do not have to claim an employed outcome (excluding SCR cases) as DWP will automatically pay you using data from the HMRC (PAYE) on-line data to identify Participant earnings.

7.54 As the data supplied by HMRC does not contain earnings from self-employment, these outcomes are based on duration of self-employment and you will be required to claim all self-employed outcomes. You must update PRaP with the date the self-employment started. For further information, please refer to Chapter 10 of this IPES Guidance.

7.55 For self-employed outcomes, you should maintain a robust system of internal controls which must include appropriate checks, monitoring arrangements and adequate records to demonstrate that you are entitled to make the self-employed claim. The records maintained need to be sufficient not only to support any self-employment claim payments but also to support your internal management checks and independent validation for example, by DWP and other external bodies. The records maintained should document how and when the information was obtained.

7.56 Providers will need to track and claim self-employed Outcomes themselves and submit claims through PRaP. Claims need to be submitted within a maximum of 700 calendar days from the Participant’s start date AND within 90 days of the date when the conditions for an outcome have been met.

This date is confirmed in the Date 2 box of your PRaP claim. If 90 days has been exceeded between Date 2 and the date the claim has been submitted, the claim will go on hold, manual checks will be undertaken by DWP, and the claim may be classified as a Fail if the conditions for claiming have not been met.

7.57 The date of achievement is the date the Participant has been in self-employment and off benefit, or meeting UC requirements, for the cumulative period being claimed for and the Provider can robustly evidence the self-employment for that period.

7.58 For self-employed Outcomes and for Outcomes in respect of SCR Participants, the overall final date that claims for payment can be accepted will be within a maximum of 700 calendar days from a Participant’s start on IPES provision and within 90 days of the date when the conditions for an outcome have been met. The 700-day figure is made up of the maximum 456 + 182 calendar days qualifying period in which Outcomes are achievable, and a 61-day period to claim the Outcome Payment. Claims need to be submitted up to a maximum of 90 days from the date the conditions for an outcome have been met, AND up to a maximum of the 700th calendar day from the date the Participant started provision.

7.59 Should you attempt to make a claim for a self-employed outcome after day 700, PRaP will not allow the claim to be input. Any clerical claims made after day 700 will also be rejected for being outside of the claim period.

7.60 Where a participant reaches the higher threshold outcome earlier than at day 639, Providers still have the maximum of 700 calendar days from the Participant’s start date in which to claim the outcome, as long as they claim the outcome within 90 days from the date on which the conditions for the outcome have been met

Payments to Providers

7.61 All payments made in respect of IPES provision will be triggered by PRaP and paid through a Single Operating Platform (SOP) in line with the amounts agreed in the contract payment schedules, which will form part of the terms and conditions. DWP can only make direct payments to United Kingdom (UK) bank accounts.

7.62 To allow for data consolidation and ensure optimum accuracy there will be a 61-day delay between receipt of the data and payment to the supplier for each Employed Job Outcome.

7.63 Further information regarding current PRaP payment action can be found in the DWP Generic Provider Guidance.

Participant moving Contract Package Area

7.64 Should a Participant move outside a Provider’s Contract Package Area, you are still entitled to any eligible outcome payment relating to that Participant within the eligible earnings window, provided earnings derive from within the UK.

Payment Control Measures (including Non-Qualifying Earnings)

7.65 To protect public funds and DWP’s reputation the Department has introduced additional controls to the Individual Personalised Employment Support Funding Model:

Employing Participants within a provider’s business or supply chain

7.66 Where you or supply chain partners employ IPES Participants, you will not be eligible to receive an Outcome Payment for anyone you or your supply chain partner(s) have employed directly or indirectly, or use/contract with on a self-employed basis. The earnings from any such periods of employment or self-employment with you or your supply chain partner(s) cannot count towards the achievement of an outcome for either payment or performance purposes.

Please note:

Providers may now, where necessary, find employment for IPES Participants within other branches of their business but only where that business is not related in any way to DWP Contracted Provision.

This also includes employment found within other non-DWP Government-funded contracts.

Evidence of the employment and how it meets the above criteria must be clearly recorded on the Participant records, in anticipation of Performance Compliance Officers (PCO) checks.

ILMs (Intermediate Labour Market opportunities) and other non-qualifying earnings

7.67 Providers will not be eligible to receive an Outcome Payment for ILM opportunities such as employment that is an additional economic activity intended to be a “bridge” into sustainable, genuine employment; undertaken on a temporary contract and where there is any contract or agreement or proposed contract or agreement between the Contractor their supply chain and/or any third party; or where IPES participants are ‘recycled’ through placements.

For clarity, such earnings are considered as “Non- Qualifying Earnings” as defined in the IPES Terms and Conditions. Also see the IPES Commercial Specification para 5.26.

Notifying DWP of Non-Qualifying Earnings

7.68 You must notify DWP at least 5 working days before first salary payment that you, a supply chain partner, or any third party with an ILM agreement, have employed an IPES Participant within a part of your business by completing an IPES Employment Business Customer Form. This is a vital requirement. You should complete all details on the form including date started and date of first earnings.

7.69 The completed IPES Employment Business Customer Form must be sent via unencrypted email, at least 5 working days before the first salary payment is made to the Department’s PRaP Operational Support Team (POST) Central Inbox: PRAP.SUPPORT@DWP.GOV.UK. You will receive a receipt notification.

7.70 You must complete Part 2 of the IPES Employment Business Customer Form and send via unencrypted email to the POST Central Inbox PRAP.SUPPORT@DWP.GOV.UK when the Participant leaves employment with you (or a member of your supply chain). This should be sent as soon as the information is available. This should include the date the employment ceased and date of last earnings.

The POST team will take action to ensure that subsequent valid and qualifying earnings can contribute towards the cumulative earnings thresholds.

Please note: Any forms received after the 639-calendar-day period from the date the Participant started on the programme will not be accepted

7.71 On receipt of the Employment Business Customer Form, the payment line will be suspended. DWP will review HMRC PAYE data (and any other information it deems appropriate), at the end of the validation period to establish if the outcome criteria have been achieved from employment or self-employment excluding the period of earnings from the non-qualifying period. If the outcome criteria are satisfied, the appropriate payment will be made.

7.72 If a Provider provides funding for equipment or training of a Participant, the equipment and/or training required must be detailed within the Employer Support Plan along with the funding being provided. This funding must only be used for the purpose set out within the Employer Support Plan. For more information on the Employer Support Plan please see Chapter 8 of this guidance.

Notifying DWP of non-IPES-Related Earnings paid during time on Programme

7.73 If, during time on programme, the Participant receives payments that are not IPES earnings-related, as detailed at 7.22, and these trigger an Outcome payment, you must notify the DWP PRaP team by completing the PRaP14 form. This should be sent with the Non-IPES Earnings Notification Form to PRAP.SUPPORT@DWP.GOV.UK, as at para 7.23.

The DWP PRaP team will investigate and back out the payment, where appropriate, and advise you when this has been done.

7.74 Where Non-qualifying earnings are paid on a regular basis through PAYE (for example, for ongoing expenses), you must notify the DWP PRaP team by sending the Non-IPES Earnings Notification Form. The form will be kept on file and taken into account when DWP review HMRC PAYE data at the end of the validation period. This will establish if the outcome criteria have been achieved from employment or self-employment, excluding the period of earnings from the non-qualifying period. If the outcome criteria are satisfied, the appropriate payment will be made.

Financial incentives

7.75 You must not provide any financial incentive (for example funding and/or payment) to support the employment of Participants. You may provide appropriate services and support to employers to help with the engagement and employment of Participants. A Participant in self-employment to whom you have provided, whether directly or indirectly, financial incentives other than any allowed working capital/ equipment payment, cannot qualify as a self-employed outcome or count towards a self-employed outcome payment.

7.76 For Participants in self-employment, where the Participant has a clear business plan which would benefit from financial support through either working capital and or equipment, the supplier may provide up to a maximum of £1,000 for working capital and/or equipment per Participant for the purpose of the self-employed business. The supplier must retain evidence of the Business Plan and any payments related to the working capital and/or equipment. A failure to do so could result in the outcome payment being disallowed for payment and performance purposes.

7.77 For the purpose of IPES, if the supplier decides to provide working capital and or equipment to an individual to support their self-employed business, the supplier should not consider this to be in any format a loan to the individual.

7.78 If an outcome payment has been made in the above circumstances and DWP later discovers this, DWP will seek to recover these funds.

VAT

7.79 Your VAT obligations are covered in the Terms and Conditions of the contract.

Additional VAT requirements for self-billing contracts

7.80 The following guidance should be read in conjunction with the HMRC guidance VAT Notice 700/62: Self-Billing. GOV.UK - VAT and Self Billing.

7.81 HMRC guidance states that under a self-billing contract both parties are responsible for ensuring that the VAT is charged correctly on invoices. As part of your bid, you were asked to provide the VAT rate(s) that should be charged for each part of the funding model (Service Fee or relevant Job Outcome Payment).

Important

7.82 You will be asked to confirm that the VAT rate(s) quoted as part of your bid are still correct prior to commencement date of the contract.

7.83 Please note that the onus is with you to provide the VAT rate for this contract as per HMRC guidelines. DWP will however, assist in this matter by providing an annual self-billing agreement and requesting confirmation of the VAT rate(s). If the self-billing agreement process is delayed for any reason, you are still responsible for notifying the VAT rate(s) to the Authority on an annual basis.

DWP’s responsibilities

7.84 DWP is responsible for ensuring that:

• VAT rates are sent to the supplier
• an annual self-billing agreement is in place and VAT rate(s) are changed on the PRaP system if you notify a change in VAT status

7.85 DWP will seek agreement from you to the self-billing arrangement on an annual basis and request that you confirm the VAT rate(s) to be applied to all aspects of the funding model.

Provider’s responsibilities

7.86 You are responsible for:

• providing a signed agreement promptly on an annual basis when requested by DWP
• ensuring that DWP is immediately notified of a change in the VAT rate(s) should they change during an agreement term
• ensuring that duplicate invoices are not sent to DWP for a supply which is self-billed
• ensuring that you fully understand and comply with VAT Notice 700/62

Provider Referral and Payment System (PRaP)

7.87 The DWP IT system enables secure, automated exchanges of information about Participants referred to provision, and payments from DWP to providers.

7.88 Providers access PRaP though the DWP authentication service TPAS and can download information to manage on their individual systems and update information about Participants progress into PRaP. Payment claims and calculations are generated automatically.

7.89 Provider security requirements can be found on the contract Terms and Conditions page at Terms and Conditions.

7.90 The PRaP system also provides DWP and Providers with transparent data about the cost and performance of Contracted Health and Employment Services (CHES) supporting contract and performance management.

7.91 You should also refer to PRaP on-line Guidance, and DWP Generic Provider Guidance Chapter 5.

Note: Full details on the action required to update PRaP can be found in the IPES-specific PRaP Guidance, available through PRaP (UPK).

Special Customer Records (clerical claim process)

7.92 The majority of claims for payment must be submitted via PRaP however, where you have a Participant who is granted SCR status (as determined by HMRC) due to the very sensitive nature of data to be held on the individual for example, witness protection, you are required to submit a claim in accordance with the SCR clerical claim process. Where DWP identifies that SCR status is not granted the claim will be rejected.

7.93 Where you have a SCR claim, you are required to print off the PRaP11 form and complete manually.

You must only submit claims on these forms on the rare occasions that SCR status is granted.

7.94 This clerical process mirrors the PRaP automated process however as the Department will be unable to monitor earnings on an on-going basis you will be required to track the individual’s earnings and then invoke the clerical claim process at the point the employed earnings threshold has been met. The Provider Payment Validation Team will conduct a clerical off-benefit check and validate employment with employers and/or Participants. Incomplete forms will not be acted upon and will be returned.

7.95 Where you have a SCR claim, you will need to follow a clerical process. If you receive an SCR2 clerical referral you must only submit claims on the PRaP11 forms after tracking a Participant’s employment and confirming an outcome has been achieved.

7.96 Guidance to assist you in the completion of the form can be found by opening the excel form and placing the cursor over the small red corners of the relevant cells.

7.97 For SCR employed outcomes where you submit a clerical claim, we will attempt manual validation of the claim. If the claim cannot be validated, it will become classed as Unable to Validate and therefore subjected to apportionment at the end of the 700 calendar days.

7.98 You should send your fully completed claim form to:

Provider Payment Validation Team (PPVT)
Department for Work and Pensions
Finance Group - Contracted Employment Provision Directorate
Floor 1
1 Hartshead Square
Sheffield
S1 2FD

7.99 All clerical documents carrying personal information should be retained securely in line with the Data Protection Act Principles, which can be found in Guide to data protection.