Guidance

COVID-19 Chapter 13: Funding model

Updated 15 December 2021

This guidance was withdrawn on 14 April 2022

This guidance is no longer current and is not being updated. Find the latest Work and Health Programme (including JETS) provider guidance’

Applies to England and Wales

This is Work and Health Programme Coronavirus (COVID-19) specific guidance, including Job Entry Targeted Support (JETS).

Due to measures and restrictions imposed during the Coronavirus (COVID-19) period, some elements of the Work and Health Programme have been varied. These variations also reflect the contract variations CV01, CV04 and CV05 & CV06.

The following temporary guidance is for use only during this COVID-19 period, as defined by the period contract variations are in place. Procedures and guidance will revert to pre-COVID-19 versions as these variations are revised or revoked. A full version of the original Work and Health Programme guidance remains in publication for reference.

Self-employed outcome definition (WHP Core & WHP JETS)

1. Self-Employed outcomes (The Work and Health Programme Core) will be measured through duration in self-employment. You will be expected to keep evidence of all Participant self-employment and claim appropriately after the required period has been achieved.

2. For the self-employed an entitlement to an outcome would be triggered when a Participant achieves a cumulative period of not less than 182 days (26 weeks) self-employment. Any period of self-employment can only be counted once regardless of whether the Participant has one or multiple occupations during that period.

3. Self-Employed outcomes (WHP JETS) will be measured through duration in self-employment. You will be expected to keep evidence of all Participant self-employment and claim appropriately after the required period has been achieved.

4. If a participant is in receipt of the ‘Self-Employment Income Support Scheme’ grant which they received to enable them to continue the self-employment that the Participant started whilst on provision, the duration may count as evidence towards the self-employed outcome, provided the participant is unable to trade (temporarily due to coronavirus) or trading for a minimum of one day a week and all other Self-employed job outcome criteria are met.

5. For the self-employed an entitlement to an outcome would be triggered when a Participant achieves a cumulative period of not less than 56 days (eight weeks) self-employment achieved within 238 days from Participant’s programme start date. Any period of self-employment can only be counted once regardless of whether the Participant has one or multiple occupations during that period.

Please note - only one outcome can be achieved per Participant and must be wholly achieved in either employment or self-employment. Self-employed earnings cannot be combined with direct employment earnings for the purpose of achieving an outcome.

The first job outcome to be successfully achieved will be reflected in DWP MI. Also, for self-employment validation purposes, a week is defined as a seven-day period where a minimum of one day meets the criteria

The Job Outcome Definition (WHP Core & WHP JETS)

6. Participants moving into employed work whilst on The Work and Health Programme Core and WHP JETS 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. No separate evidence will be accepted.

7. For The Work and Health Programme Core, DWP will monitor Participant earnings via HMRC (PAYE) on-line data from the first ‘payment date’ for a maximum period of 639 calendar days from (and including) the Start Date. We will continue to look for earnings received within the 639 calendar days.

8. For WHP JETS, DWP will monitor Participant earnings via HMRC (PAYE) on-line data from the first ‘payment date’ for a maximum period of 238 calendar days from (and including) the start date. We will continue to look for earnings received within the 238 calendar days.

9. The HMRC PAYE information will feed into our Provider Referral and Payment (PRaP) system and will automatically reflect an outcome in the DWP MI Pack. Please note, to ensure system effectiveness, DWP may undertake tests as necessary of the automated payment system to confirm it is delivering the requirements. Remedial action may be undertaken where appropriate.

10. Prior to starting the Participant on the programme, you must ensure the Participant is not in any form of employment or has had a job offer.

The Jobcentre Plus Work Coach or Prime Provider will determine if a Participant is in employment or has a job offer, prior to the referral/self-referral (WHP core only). DWP will not make a 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 programme there may be some Participants who move into employment/self-employment, or have had a job offer. If this is the case, you must enter a Did Not Attend (DNA) on PRaP.

Further information can be found in COVID-19 Work and Health Programme including Job Entry: Target Support (JETS) Provider Guidance Chapter 3b – Acknowledging Referrals, Initial Participant Engagement and Registering a Start and or, in COVID-19 Work and Health Programme in Provider Guidance Chapter 3 – Acknowledging Referrals, Initial Participant Engagement and Registering a Start

11. Any earnings that the Participant has accumulated prior to starting on the programme will not count towards an employed outcome for both WHP Jets and WHP core.

12. Any earnings from furloughed employment (for employment which started whilst on provision) will count towards outcomes as participants are in contracted employment. Participants furloughed will still be in contracted employment and will receive income whilst on the Coronavirus Job Retention Scheme via their employer. These earnings will count towards Real Time Earnings/Real Time Information (RTE/RTI) Job Outcome performance.

13. DWP will share the following information with you for WHP core, related to the validation of earning based outcomes:

• when a Participant’s earnings are first declared to HMRC, following a confirmed start on the programme

• when a Participant on The Work and Health Programme Core has achieved income milestones of £1,000 and £2,000 during their employment

• an automatic outcome payment once the earning threshold is reached

14. DWP will share the following information with you for WHP JETS:

• when a Participant on WHP JETS has achieved income milestones of £1,000 during their employment
• when a Participant’s earnings are first declared to HMRC, following a confirmed start on the programme

Qualifying Period (WHP Core)

15. A qualifying period of 182 calendar days exists immediately after the maximum time on The Work and Health Programme. Therefore, an eligible employment or self -employment outcome may start within the period on programme or during the following 182 calendar day period.

Any outcome must be achieved within the total 639 calendar days qualifying period to be included in the DWP MI Pack. (Please note this is not applicable to WHP JETS)

Qualifying Period (WHP JETS)

16. A qualifying period of 56 calendar days exists immediately after the maximum time on WHP JETS (182 days from starting on the programme). Therefore, an eligible employment or self-employment outcome must start within the period on programme (182 days).

Any outcome must be achieved within the total 238 calendar days (182 days plus the 56 days) qualifying period to be included in the DWP MI Pack. The provider has a further 61 days in which to notify the performance outcome.

Participant moving Contract Package Area (WHP Core & WHP JETS)

17. Where a Participant moves outside a provider contract delivery area, you are still entitled to any eligible outcome relating to that Participant within the eligible earnings window, provided these earnings derive from within the UK.

Further information relating to Participants moving to another geographical area can be found in COVID-19 Work and Health Programme Provider Guidance Chapter 10 – Change of Circumstances and Notifications.

Payments to Suppliers (WHP Core & WHP JETS)

18. All payments will be made through the appropriate IT System/PRAP in line with the amounts set out in variation CV04 & CV06. Please note that DWP can only make direct payments to United Kingdom (UK) bank accounts.

Payment Control Measures (WHP Core & WHP JETS)

19. To protect public funds and DWP’s reputation the Department has introduced additional controls to the Work and Health Programme Funding Model.

Providers and Supply Chains Employing WHP Participants (WHP Core & WHP JETS)

20. Where you or your supply chain partners employ WHP Participants within a part of your employment business directly relating to DWP employment contracts, any income during the earnings period relating to this employment will not contribute to the cumulative calculation of earnings for the purposes of paying an outcome. We refer to this as a non-qualifying period.

Where the employment is on a self-employed basis, this period of employment will not contribute to the achievement of a self-employment outcome or self-employment performance for JETS.

21. You must notify DWP at least five working days before first salary payment that you or a supply chain partner have employed a WHP Participant within a part of your business directly relating to DWP employment contracts by completing a Work and Health Programme Provider Guidance WHP 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.

22. The completed WHP Employment Business Customer Form must be sent via unencrypted email, at least five working days before first salary payment is made to the Department’s PRaP Operational Support Team (POST) Central Inbox at prap.support@dwp.gov.uk You will receive a receipt notification.

23. You must complete Part 2 of the WHP Employment Business Customer Form and send via unencrypted email to the PRaP Operational Support Team (POST) Central Inbox 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.

Any forms received after the 639 calendar day period from the date the Participant started on The Work and Health Programme will not be accepted.

Any forms received after the 299 calendar day period from the date the Participant started on WHP JETS will not be accepted.

Please note – To submit a self-employed outcome for WHP JETs and WHP core, where the Participant has been contracted to work for you or a supply chain partner on a self-employed basis, DWP will require you to complete a clerical – PRaP11.

For WHP JETS you should annotate the form “WHP JETS” and send to The Department’s Provider Payment Validation Team (PPVT) Central Inbox by unencrypted email at ppvt.leeds@dwp.gov.uk

24. On receipt of the WHP 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 criteria has been achieved from employment or self-employment excluding the period of earnings from the non-qualifying period. If the criteria are satisfied, the outcome will be included in the DWP MI Pack.

Financial Incentives (WHP Core & WHP JETS)

25. 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.

26. 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, you 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.

You must retain evidence of the Business Plan and any payments related to the working capital and or equipment.

27. If you decide to provide working capital and or equipment to the Participant to support their self-employed business, this cannot be in the form of a loan to the Participant.

ESF Compliance and Evidence Retention Requirements (WHP Core & WHP JETS)

28. As this programme is ESF match funded, it will be subject to stringent audit by DWP and EC Auditors. They may require evidence that the programme is being delivered in accordance with the contract and all payments are clearly and appropriately evidenced.

Failure to meet these audit requirements can result in financial penalties or withdrawal of funding.

29. You must keep sufficient, relevant evidence and key documentation in support of programme delivery and payments. It is your responsibility to ensure that documents and data can be relied on for possible ESF audit purposes.

You must have robust systems in place to ensure that documentation (paper or electronic) is securely held and is easily retrievable and accessible throughout the retention period.

30. Further information regarding ESF requirements can be found in the COVID-19 Generic Provider Guidance Chapter 11b – ESF requirements 2014 – 2020 (England Only) and also in the appropriate Work and Health Programme Provider Guidance Chapter.

VAT (WHP Core & WHP JETS)

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

Additional VAT requirements for self-billing contracts (WHP Core & WHP JETS)

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

33. 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 the funding model (CV06 payments).

Important

34. 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.

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 contract 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 (WHP Core & WHP JETS)

35.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

36. 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 (WHP Core & WHP JETS)

37. You are responsible for:

• providing a signed self-billing 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 Referrals and Payments (WHP Core & WHP JETS)

38. The PRaP system enables secure, automated exchanges of information about Participants referred to programme and payments from DWP to Providers.

39. Providers access PRaP via DWP Authenticate; providers can download information to manage on their individual systems and update information about Participants progress into PRaP; payment claims and calculations are generated automatically.

Provider security requirements can be found on the contract Terms and Conditions page. This functionality is currently suspended under cost.

40. The PRaP system also provides DWP and Providers with transparent data about the cost and performance of Contracted Employment Programmes (CEP), supporting contract and performance management.

41. You should also refer to UPK/Tutor PRaP on-line Guidance, and COVID-19 DWP Generic Provider Guidance Chapter 5.

42. For further information about PRaP, please see our PRaP Questions and Answers.

43. More information on the PRaP system can be found at Provider Referrals and Payments (PRaP) system for DWP.

Should you require a copy of any of the forms mentioned in this chapter, please email: whp.enquiries@dwp.gov.uk.