Guidance

Chapter 16: Performance Management, Assurance and Compliance Monitoring

Updated 4 April 2024

ESF Requirement Changes

1. When referring to ESF Requirements within this chapter please note the following changes to ESF Requirements effective from 24 July 2023 (England)

• providers no longer need to submit or process ESF 14-20 Initial or ESF 14-20 End forms for Participants
• products can be updated to remove ESF logos. Changes to existing products and any new marketing and publicity materials should be sent to WHP.ENQUIRIES@DWP.GOV.UK for approval.
• providers should continue to use the current template for Good News Stories, until notified of amendment.
• participants you have already submitted ESF 14-20 Initial and ESF 14-20 End forms for over the lifetime of your WHP contract continue to be subject to ESF obligations. This includes Audit requirements and the ESF Document Retention Policy which at present is expected to be 2034.

In addition to the above, ESF requirements do not apply to participants started on or after 1 November 2022.

Please note: Please follow the processes outlined for WHP Core for WHP Pioneer. Elements that are exempt from this can be found in Chapter 2b WHP Pioneer eligibility and entry points.

Performance Management and Intervention Regime (PMIR)

2. DWP operates a robust performance management regime to hold providers to account for performance offers within their contract This Performance Management and Intervention Regime (PMIR) has been developed to support the delivery of Provision and underpin each contract respectively.

3. The aim is to support you and ensure you meet the performance levels and customer service standards (CSSs) stipulated in each contract.

4. DWP will manage your performance at the headline Contract Package Area (CPA) level, the headline Devolution Deal Area (DDA) level, at individual customer group level (disability, long term unemployed (LTU) and early access (EA) in the CPA. For WHP only we will also monitor the performance of the individual WHP Participant groups within the DDA in order to inform progress towards an outcome. DWP Performance Managers will consider progress of specific cohorts, to understand how participants starting on programme in specific months are progressing towards sustained employment. These will be included in the regime as Performance Indicators (PIs).

5. There are four levels of this regime:

• Level 1: Standard Action – PM Led
• Level 2: Enhanced Action – PM/SPM Led
• Level 3: Informal action – Led by Provision Lead
• Level 4: Formal action – Led by Provision Lead

6. All levels of the PMIR can run independently or concurrently. DWP will with reasonable discretion be able to take action at any level at any time.

7. Generally, all contracts must have a Provider Action Plan in place submitted by the Contract Operational Lead to the PM. Subject to the agreement of DWP Provision Lead, Providers with a Contract at Level 1 will be advised when a Provider Action Plan is not required. Unless advised otherwise, the Provider Action Plan is required to be in place immediately following the contract implementation period and reviewed at each Contract Performance Review (CPR) meeting.

8. An example of the Provider Action Plan to be used is included at Annex A. You may use your own version if preferred, as long as it includes all areas covered in the example Provider Action Plan at Annex A.

9. The Provider Action Plan should include any improvement activity, how and over what timescale you expect to achieve/exceed minimum performance levels. All actions in the plan should be Specific, Measurable, Achievable, Realistic and Timebound (SMART) and longer-term actions should incorporate SMART milestone targets.

10. Providers should send their updated monthly Provider Action Plan to their PM 5 working days prior to the CPR.

11. A Flightpath must accompany your Provider Action Plan. For WHP contract three flightpaths are required. One should forecast performance against participant cohorts referred on programme pre-1 November 2022 one for extension cohorts (from 1 November 2022). An additional flightpath should be supplied to forecast WHP Pioneer performance from 13 September 2023. The flightpath(s) should be submitted monthly and provide a forecast of your performance across all measures on a rolling 6-month basis. You should also supply a summary breakdown of current performance for all direct delivery sites and Supply Chain partners (if applicable) in a format to be agreed with your DWP Performance Manager. This should be included as annex to the plan and updated each month. DWP reserves the right to ask for additional forecasting beyond a rolling 6-month period.

12. PMIR intervention levels will not necessarily be applied sequentially. For example, if appropriate, DWP may decide to move from PMIR Intervention Level 1 directly to PMIR Intervention Level 3, without applying Level 2.

Level 1: Standard Action – PM Led

13. May include actions such as:

• DWP holding regular Contract Performance Review (CPR) meetings with you which will focus on achieving contractual performance levels and Customer Service Standards (CSSs). For WHP contract this will be for both pre and post-extension cohorts, including but not limited to, on an in-month, rolling three months, rolling 12 month, cumulative and relative performance basis, in line with the Contract from Day One, CV04, CV06 and the current contract variation. The CPR will also cover performance against WHP Pioneer measures introduced from 13 September 2023. Your Provider Action Plan will be reviewed as part of the CPR. These meetings may be face to face, virtual, delivered through compatible on-line meeting platforms or via telephone conference facilities. Your PM will discuss and confirm arrangements with you:

• Performance Management on both the quantitative and qualitative aspects of each contract. Other staff, including those representing Jobcentre Plus, may also attend these meetings. You will be required to provide monthly Management Information five working days prior to the CPR.

Level 2: Enhanced Action – PM/SPM Led

14. Whilst at Level 1, if it is determined that you may not achieve the performance levels or CSSs, your PM may undertake informal action to escalate you to Level 2. You will be notified of this in writing. You will be required to enhance your Provider Action Plan, to capture all agreed actions for performance improvement. You will also be required to provide a flightpath including incremental performance and pipeline data that may lead to outcomes to improve the achievement of the performance levels and CSSs in line with the Contract. Formats to be agreed with your PM.

Level 3: Informal Action – Led by Provision Lead

15. If the remedial actions at Level 1 or 2 were unable to lift your performance in order to meet the performance levels and CSSs in the respective Contract, the DWP Senior Performance Manager (SPM) can propose escalation to Level 3.

16. You will be invited to a meeting to discuss your performance with Senior Managers and receive a management letter to request that your performance improves. At this stage you will be informed that formal action could be taken in the event that performance doesn’t improve.

Level 4: Formal Action – Led by Provision Lead

17. If you fail to meet the required standards at Level 1,2 or 3, DWP Employment Account Division (EAD) and Commercial Directorate will take formal action to address the performance issues, considering and applying, where applicable, all the remedies available to DWP under the contract.

Performance Indicators

18. DWP will manage your performance against Performance Indicators (PI). These will include the individual Participant groups within the DDA (for WHP only), and progress towards an outcome as informed by Real Time Earnings (RTE) commencement, and the £1,000 and, for WHP and WHP pioneer only, £2,000 milestones. Where a PI potentially indicates a future failure of the Minimum Performance Levels (MPL) in your contract, DWP may require you to develop an improvement plan to remedy this by issuing a Performance Indicator Course of Action Notice.

19. Subsequent failure of the improvements stated within your Provider Action Plan and/or MPL does not remove or impact the rights and remedies available to the authority.

Relative Performance

20. Ranking tables will be used to monitor performance against other providers and provision based benchmarks. Cohort Profiles and Management Information

21. For WHP and WHP Pioneer contracts DWP will measure your performance using cohort measures based on the information you provided as part of your tender (for the pre-extension cohorts) and what has been incorporated into each contract for the post-extension and WHP Pioneer cohorts.

22. The outcome definition for both employed and self-employed must have been met at or before 639 days (for WHP and WHP Pioneer) from the Start Date. For self-employed outcomes, DWP will allow you until 700 days (WHP and WHP Pioneer) from the Start Date to submit a claim.

23. A Self-Employed Outcome for WHP or WHP Pioneer will be achieved when the Participant has been in business on a self-employed basis for a cumulative period of 182 days (26 weeks) within their 639-day period (made up of a maximum 456 calendar days on programme, and 182 days qualifying period). As part of making a successful claim for performance, you will need to identify and submit Self-Employed Outcome claims within 90 days of the Self-Employed outcome being achieved.

24. Performance will be measured using HMRC data, the Provider Referral and Payment system (PRaP) and, in the case of self-employed Participants, from outcome claims submitted by you.

25. DWP produces MI Packs on a monthly basis. The MI packs will contain the data input to PRaP regarding your participants, cohort profiles performance against the performance levels and in the Contract.

26. This will allow the Department to monitor your performance across various time periods including but not limited to cohort, rolling three months, rolling 12 months, cumulative from day one of the contract and from day 1 of the extension for the WHP contract extension cohorts and from day one of WHP Pioneer.

27. You will be required to provide a performance return containing key data that drives the performance of the Contract including schedule 20 and CSSs.

28. This template will be provided to the Contracting Body on the 15th day of the following calendar month. If the 15th day happens to be a non-Working Day, then the deadline will move to the next Working Day.

Local Engagement Meeting (LEM) – applicable to WHP and WHP Pioneer

29. LEMS will be made up of DWP representatives from current and/or future DDAs as they are created within the CPA, representatives from the DDA authority and local area stakeholders, including Jobcentre Plus. This will provide a forum in which we can discuss and support performance improvement, service delivery and service integration across the CPA and the DDA. At the sole discretion of DWP you may be invited to discuss performance at these meetings.

30. The agenda will include a discussion of your performance in the DDA, particularly relating to your integration with local services. The LEM is also an opportunity to discuss future direction and impact any changes affecting delivery of the provision.

31. The LEM will provide an opportunity to ensure that the Programme is helping the appropriate claimants into work, and to address areas of concern. This may include discussion on referrals to you from Jobcentre Plus as well as the Participants being signposted to Jobcentre Plus from external organisations. It will enable a collaborative approach to be taken between all stakeholders to contribute to the successful delivery of the programme.

32. The frequency and format of LEMs may be subject to change about which your Performance Manager will keep you informed.

Contract Performance Review (CPR)

33. The purpose of the Contract Performance Review (CPR) is to formally examine each contract performance including your Supply Chain’s performance (if applicable). All relevant aspects of performance and compliance will be assessed against contractual requirements, milestones and customer service standards (CSS).

34. The usual frequency of CPRs is monthly, however, this can be reviewed as advised by DWP at its absolute discretion.

Content of the CPR meeting

35. The CPR will focus on the ongoing achievement of performance levels and CSSs. Depending on priority issues for each meeting, the CPR is likely to cover some/all of the following areas:

• Performance including relative performance
• Expected future performance based on information available (e.g. earning commencements and current performance levels)
• Review of Provider Action Plan – including improvement expectations agreed at the last meeting
• Sub-contractor (end to end performance) and Supply Chain performance – where applicable
• Employer engagement
• Collaborative working (including Operational Process Updates)
• Decision Making and Appeals (DMA), where appropriate
• Participant experience/Customer Insight
• Assurance and Compliance Monitoring
• Performance Manager checks
• Exit feedback/CV/references
• DWP policy changes – latest DWP memos
• Providers to supply a minimum of one good news story per CPR

This list is not exhaustive.

Good News Stories

36. You are expected to continue to complete and share Good News Stories with your Performance Manager as part of your contract with DWP. You should use the Good News Stories template provided to you by DWP.

Performance Requirements – WHP Pre-extension Cohorts

37. The Performance levels you are required to deliver for WHP are set out in schedule 2 of each contract and the CSSs are detailed in schedule 6 of your CV04 variation or current extension variation.

38. DWP will actively monitor the service you deliver against these performance levels and CSSs. This will be done using a combination of IT based management information, provider MI submission, Assurance and Compliance checks conducted via a range of mediums.

39. The following tables and paragraphs show the categories under which performance will be measured and managed and the standards which relate to the delivery of customer service.

40. The tender Minimum Performance Levels (tMPLs) for WHP are:

tMPL 1: CPA level tMPL

This is the headline performance target; a CPA-level % conversion rate taken from your tender offers for each of the separate customer groups. Performance will be measured and managed on a cohort profile basis.

tMPL 2: CPA level Disability Customer Group tMPL

This is the performance target for persons who have a disability attending WHP on a voluntary basis, taken from your tender offer. Performance will be measured and managed on a cohort profile basis.

tMPL 3: CPA level Early Entry Customer Group tMPL

This is the performance target for the Early Entry disadvantaged groups attending WHP on a voluntary basis, taken from your tender offer. Performance will be measured and managed on a cohort profile basis.

tMPL 4: CPA level LTU Customer Group tMPL

Applicable only to WHP participants referred on or before 31st October 2022. This is the performance target for the LTU group attending WHP on a mandatory basis, taken from your tender offer. Performance will be measured and managed on a cohort profile basis.

This is the performance target for the LTU group attending WHP on a mandatory basis, taken from your tender offer. Performance will be measured and managed on a cohort profile basis.

tMPL 5: DDA level tMPL

The tMPL for the DDA will be measured both distinctly from and as part of the tMPL for the CPA (tMPL1). Performance will be measured and managed on a cohort profile basis.

This is an aggregate of the performance against performance targets for each of the separate customer groups at DDA level; a DDA-level % conversion rate.

41. Please see the table at Annex B for more detail (WHP).

Performance Requirements for core WHP referrals from 1 November 2022 and WHP Pioneer Participants from 13 September 2023

42. Referrals for all customer groups (as detailed above) from 1 November 2022 will have a minimum performance target and will be measured and managed on a cohort profile basis. WHP Pioneer Participants of all customer groups will also be measured against a minimum performance target on a cohort profile basis from 13 September 2023.

Customer Service Standards – WHP and WHP Pioneer

43. The Customer Service Standards and tendered Customer Service Standards as detailed in Schedule 2, paragraph 2 of the WHP Core contract are not applicable and are replaced with the Customer Service Standards as set out below and may be further clarified/amended from time to time as required.

1. The Contractor must acknowledge 99.5% of referrals on the Provider Referral and Payment (PRaP) system within 2 (two) working days of receipt of the referral. This will be monitored through PRaP system.

2. The Contractor will attempt to contact a potential Participant within 2 (two) Working Days of receiving a Referral. This will be done with a view to setting up an initial appointment between the Contractor and the potential Participant.

3. The Contractor and the potential Participant will undertake the initial appointment within 15 (fifteen) Working Days of the Contractor receiving the Referral. The Contractor must also update PRaP with a start or did not attend by the 15th (fifteen) working day for 99% of referrals. This will be monitored through PRaP.

4. No more than 4% of referrals will be in backlog. Backlog means an accumulation of uncompleted work or matters needing to be dealt with in relation to CSS1 or 3 above. This will be monitored through PRaP.

5. No single referral will be in backlog for more than 25 working days of receiving the referral. This will be monitored through PRaP.

6. The Contractor will provide the Participant with a copy of the Customer Service Standards within 1 (one) Working Day of becoming a Participant. The Customer Service Standards referred to here are details on the support that the Contractor can provide to the Participant.

7. The Contractor will work with the Participant to explore the Participant’s ambitions, goals, priorities, and personal needs. This will help formulate an Action Plan. This Action Plan must be finalised within 20 (twenty) Working Days of receipt of the Referral.

8. The Contractor will meet with/contact the Participant (either face to face or by telephone/video conference or any other method permitted by the Contract) every 10 (ten) Working Days as a minimum, to discuss the Participant’s wellbeing, Action Plan and job goals (“Booked Meeting”). The frequency and medium of the Booked Meetings can be amended if the Participant prefers a different arrangement.

9. For all participants, the Contractor will fully review and update the participant’s ambitions, goals, priorities and personal needs captured in their Action Plan no less frequently than every 4 weeks (either face-to-face or telephone/video conference or any other method permitted by the Contract).

10. If the Participant misses a Booked Meeting and the Contractor is not contacted by the Participant with an explanation as to why, the Contractor will attempt to contact the Participant within1 (one) Working Days with a view to resolving any issues.

11. Ahead of the Participant commencing employment or self-employment, the Contractor will attempt to discuss with the Participant and provide support with the initial in-work support needs that exist

12. Whilst the Participant is in employment or self-employment, the Contractor will attempt to contact (via telephone/video conference or any other manner permitted by the Contract) the Participant every 10 (ten) Working Days to offer any necessary support that the Participant may require in employment or self- employment. The frequency of the contact can be amended if the Participant prefers a different arrangement.

13. Applicable only to WHP participants referred on or before 31st October 2022. If the Participant is not in employment or self-employment at the point, they cease to be a Participant, the Contractor will produce an exit report pack. This will include a summary of the Participant’s time on WHP, along with details of additional support that can be accessed to support them going forward (“Exit Report Pack”). The Exit Report Pack will be provided to Participants within the last 10 (ten) Working Days of the Participant being a Participant.

When a Participant’s employment ends during the in-work support period and they return to Jobcentre Plus for support, an exit report pack must be provided to the Participant within 10 (ten) working days of the date the Contractor establishes that the Participant is no longer in employment. The Contractor will also maintain a copy of the Exit Report Pack securely, which must be sent to the Contracting Body upon request from the Contracting Body.

14. The Contractor will be required to obtain information from Participants/Customers on the usefulness of the programme by contacting 100% of Participants/Customers as a minimum once every 3 calendar months. The Contractor will collate Participant responses split by customer groups in the template to be provided by the Contracting Body. The Contractor will send the completed template to the Contracting Body by the 15th day of the following calendar month. If the 15th day happens to be a non- Working Day, then the deadline shall move to the next Working Day.

Question: “Thinking about your overall experience of the services provided, how satisfied are you with the WHP programme?

• very satisfied
• fairly satisfied
• fairly dissatisfied
• very dissatisfied.

Please can you tell us more about why you chose your response? Please be as detailed and specific as possible

Assurance and Compliance Monitoring

44. DWP PMs and/or Performance Compliance Officers (PCO’s) may perform evidence-based checks to identify if providers are adhering to the delivery models set out in their contracts. These checks may incorporate the use and quality of Participant Action Plans; Participant engagement; DMA activity (where appropriate); delivery of the CSSs and to seek assurance that you are addressing the Participants barriers to employment.

45. If there is a performance concern or an area of weakness identified, PMs or PCO’s may undertake ‘Go-Look-See’ visits and/or ‘Deep Dive’ activity. These may be undertaken remotely. PMs will discuss fully the objective of these visits and how they will be undertaken. PMs may also ask to attend sub-contractor end-to-end delivery and supply chain meetings.

46. In England only, adherence to the ESF Regulatory Requirements, in terms of Marketing and Publicity; Sustainable Development; Equality and Diversity and Document Retention will be checked. Further information regarding ESF requirements can be found in the Generic Provider Guidance Chapter 11b – ESF requirements 2014 – 2020 (England Only).

47. Any issues arising from PCO/PM checks will be reported to you and relevant DWP stakeholders and discussed at CPRs

48. DWP reserves the right to carry out physical/remote checks on documentation as part of this process.

Evaluation and Reporting

49. Independent evaluation will be an important element of your Provision and you will be asked to co-operate in a range of evaluations commissioned by the DWP and the European Commission.

50. Other interested parties and Government Departments as part of wider cross-government agendas may commission further evaluations and your assistance will be expected when required.

51. As part of this evaluation work, researchers may wish to visit and interview you and your sub-contractors and supply chain, Participants and employers involved in your Provision. You may be asked to provide the relevant contact details and, in order to facilitate this process; you should seek advance agreement from Participants to take part in evaluations.

52. Advance notice will be given where your co-operation is required.

53. An end of project evaluation report will also be required, highlighting innovative delivery practices and achievements against the cross cutting themes.

Provider Assurance Team

54. The primary purpose of the Contract Management and Partner Delivery (CMPD) Provider Assurance Team (PAT) is to provide the DWP CMPD Director with an assurance that Prime Provider systems of internal control are such that payments made to Prime Providers are in accordance with DWP and Treasury requirements.

55. PAT reviews and tests Prime Providers’ systems of internal control to establish how effective they are at managing risk to DWP in relation to CMPD expenditure, and service delivery including the arrangements you have in place for your supply chain.

56. This work is carried out by the PAT by reviewing your internal control systems to assess your ability to manage risk across three key areas:

• Governance Arrangements – covering the Provider’s governance arrangements, systems for tracking and reporting performance and their anti-fraud measures. This section also covers management of the supply chain.
• Service Delivery – includes the Provider’s systems for starting, ending and moving Participants through Provision and generally looks to ensure that DWP is getting the service it is paying for.
• Claim Procedures and Payments – looks to ensure that Prime Providers have in place effective systems to support their claims for payment, including appropriate segregation of duties

57. The PAT operates at a national level, enabling it to present CMPD Providers operating across regions with a single view of the effectiveness of their systems; each Prime Provider will have a nominated Senior Assurance Manager as a single point of contact within DWP for management of assurance related issues/concerns.

58. On completion of each review, providers are awarded an assurance rating from the following four categories – weak, limited, reasonable and strong. Providers will also receive a formal report detailing the review findings including key strengths and areas for improvement. Where weaknesses have been identified providers are asked to complete an Action Plan setting out appropriate steps for improvement. This is followed up until PAT is satisfied that all actions have been undertaken. The timescale for reviews is determined by risk.

59. Findings from each review are routinely reported to the relevant Provision Leads and other DWP stakeholders. Remedial actions may be taken in the following circumstances:

• if, following a Weak or Limited Assurance level from the Provider Assurance Team, the Prime Providers subsequent assurance level is the same or worse for the same reasons, or the Prime Provider is awarded a consecutive third weak or limited assurance, regardless of the reasons
• following a review, if you fail to submit and/or implement the action plan within the agreed timescale; or
• where there are suspicions that you may be acting inappropriately, the team will refer to Counter Fraud and Investigations as the experts trained in the legalities and techniques required to carry out formal investigations.

60. DWP will periodically publish Prime Provider assurance levels and names (note - this will not include reports or supporting information).

61. PAT will work with you to ensure that you understand what is expected. For further information on PAT please see DWP Generic Provider Guidance, Chapter 6, Provider Assurance.

Please note: Nothing in this Chapter shall amend any rights or remedies or obligations available to the Authority under the contract.

Should you require a copy of any of the forms mentioned in this chapter, please email: WHP.ENQUIRIES@DWP.GOV.UK

Annex A: Provider Action Plan

See PDF attachment Chapter 16: Provider Action Plan

Annex B: tMPL Diagrams