The Current Environment for

Employability Mentoring Projects

Martin CreweDirector, Barnardos Scotland

Barnardo’s WorksEngages young people,

aged 16-24, furthest from the labour market

Trains them in industry relevant, in-demand skills through a 26 week programme

Qualifies them to work independently in their chosen area

Employs their skills in a real job with real prospects

Delivery Areas

• Renfrewshire• Dundee City• Highlands &

Islands• Edinburgh City• Glasgow City• Cairngorm

Business Partners Scottish & Southern

Energy Turiff Contractors Scottish Water AJG Parcels Farmer’s Autocare NHS Inverness College Apex Hotels RAS Crockett & Partners Halfords Distribution Unlimited Portobello Beauty Studio Astra Sheepdog &

Breeding Centre

Outcomes for Young People• 83% in sustained

independent employment

• 98% achieve accredited qualifications

• 100% report reduction in risky behaviour

• 85% make the transition from state benefit to waged employment

Employer Benefits• Increased productivity – additional committed team

member• Cost effective and risk free recruitment• 6 months financially supported – 3 months at no cost,

3 months at 50% wages• Specific skill training tailored to the company• Flexible support from Barnardo’s Works team that fits

around business hours (i.e. early mornings)• Staff within company engaged as mentors• Compliments company Corporate Social Responsibility

programmes and raises company profile in the community

The Work Programme• Replaces all current

welfare to work programmes

• Larger contracts (£10m-£50m)

• Longer periods (7 years)

• Payment by results• DWP will establish

Framework of preferred suppliers and Work Programme will be first contracts issued under the Framework

DWP Guidance on Work Programme

All bidders for Framework must:• have ability to deliver across whole of a geographical lot

(11 lots covering England, Wales and Scotland)• have ability to deliver call-off services for DWP through

combination of direct delivery and sub-contracting (including sub-contracting of the entire provision to other organisations)

• have the financial capacity to deliver large scale contracts• be able to manage cashflow of outcome funding (for

‘medium’ contract of £30m estimated peak cash required about £9.5m and break even not reached for almost 3 years)

DWP Guidance on Work Programme

“Given the scale and size of the Framework, smaller organisations with a turnover of less than £1m (and indeed higher than this) are unlikely to have sufficient financial and organisational capacity to become a prime contractor and would therefore be better placed as subcontractors or as members of a special purpose vehicle/consortium.”

Bidders to Framework for Provision of Employment Related Support Services (Lot 10 Scotland)

• 26 Bidders• 17 Private Sector: Serco, Capgemini, A4e,

Remploy, Reed in Partnership, Ingeus …• 9 Voluntary Sector: Barnardo’s, Catch 22, Shaw

Trust, Wise Group, SCVO, SCVO Consortium …• DWP expects to appoint 3 to 8 organisations to

each lot (indicative range only)• Successful bidders due to be notified 30 November• Only organisations on Framework can be Prime

Contractors for the Work Programme

Work Programme Options• Prime Contractor• Tier 2 Contractor

(manage a partnership within supply chain of a Prime)

• Subcontractor• Specialist Support

Services (often spot purchased)

Scale / Financial Risk / Income / Predictability of Demand

Implications for Barnardo’s Works• Ensure operating model fits

with the Work Programme• Need multi-year contracted

income• Maintain quality of service

Conclusions:• Tier 2 Contractor option

looks most attractive• Move from individual

services to regional delivery model

• Overall Employment Services Manager

The Current Environment for

Employability Mentoring Projects

Martin CreweDirector, Barnardos Scotland