BRIEFING DOCUMENT:
In relation to the decision by the City and County of Swansea to terminate its contract with WISE Ltd. to provide a supported employment service.
Background:
In March 2008 the City and County of Swansea decided to terminate its contractual relationship with WISE to support adults with a learning disability into employment. This decision was made without any prior notice or discussion with WISE. The City and County of Swansea assert that this decision was made for performance reasons. WISE believes that this is untrue. The real reason is budget cuts and a disturbing change in policy affecting adults with learning disabilities.
Services provided by WISE are based on principles defined by The Association for Supported Employment: "…real work in an integrated setting with ongoing support provided by an agency with expertise in finding employment for people with disabilities" – a principle that Chris Maggs (Interim Director of Social Services) recently described as “evangelical” and something that the CCS were “intending to move away from”.
WISE believes that this decision has been made based upon inaccurate information and without any proper regard for its consequences, for the clients served by WISE, the staff employed by WISE and the true financial implications for the City and County of Swansea. This document will explain the history of the relationship between WISE and City and County of Swansea, analyse and dismantle the decision making process and explain the consequences of it.
Summary:
WISE is a charity that provides supported employment services for adults with a learning disability in south west Wales.
WISE is a recognised leader in the field of learning disability services, having provided advice to other supported employment agencies both nationally and internationally. The last ESTYN review of WISE stated that “WISE provides very good and sometimes outstanding care guidance and support for clients”.
WISE has maintained a working contract with the City and County of Swansea (CCS), and previously West Glamorgan County Council, for 23 years.
Over the past 7 years WISE has supported adults with a learning disability into over 100 paid jobs.
WISE has achieved 108% and 154% of the two key output targets of supporting clients into paid or voluntary work, as specified in the contract with CCS. This has been achieved at an hourly rate that is 24% less than equivalent services contracted by the Department for Work and Pensions.
On 17th March 2008 a decision to terminate the contract was communicated to WISE by CCS stating that “WISE were clearly not effective and the targets specified in the contract had not been met”.
WISE vigorously rejects this assessment of its performance and is concerned about the effect this decision may have on its reputation as a provider of supported employment services.
Above all else however, WISE is extremely concerned that the removal of the contract, without any apparent alternative provision by CCS, represents a cut in support for some of the most vulnerable citizens of the county.
WISE:
WISE is a registered charity, a company limited by guarantee and a community co-
Services provided by WISE are based on principles defined by The Association for Supported Employment: "…real work in an integrated setting with ongoing support provided by an agency with expertise in finding employment for people with disabilities" – a principle that Chris Maggs (Interim Director of Social Services) recently described as “evangelical” and something that the CCS were “intending to move away from”.
In its “Learning Disability Strategy” the Welsh Assembly Government (WAG) states:
“Service models such as supported employment, which obtain jobs for people and then
train them on site have been shown to be more effective for people with more severe
learning disabilities and those with complex or more challenging needs than more
traditional employment training. Supported employment requires well-
Each jobseeker has different needs therefore a WISE Employment Consultant will provide vocational guidance and agree a plan of action with the jobseeker. Once an employer has been found, a job trainer will learn the job and will then train the jobseeker one to one until independent performance of the job is achieved. The Job trainer will reduce the input of training and support gradually, with the agreement from the jobseeker and the employer. Jobseekers can also be given training to travel to and from the workplace.
WISE has successfully supported adults with a learning disability into a variety of jobs including retail, care work, catering, gardening, domestic work, office administration, garage work and cleaning services, with local, national and international employers
The training service is available at any time, even after the employee has been in
post for several years. If a problem should arise, including any difficulties with
welfare benefits, or a new element is introduced into a job, the WISE job trainer
will return to the workplace to re-
Recognition:
In its last ESTYN review, WISE was awarded an overall Grade 2, and a Grade 1 in the specific area of quality of guidance and support provided to its clients. Within the report it is stated that:
“WISE provides very good and sometimes outstanding care guidance and support for clients”.
WISE has achieved the required standard for “Investors in People” for the past 9 years. The latest award being gained in May 2008.
WISE was one of only two Supported Employment Agencies invited by WAG to provide evidence on transition of young disabled people from education to citizenship.
WISE has provided advice to supported employment agencies from several other European countries.
In the past financial year WISE has received requests for expert advice, training or support from, amongst others:
MENCAP Cymru, Coleg Elidyr (Rhandirmwyn), Neath Port Talbot College, Minority Ethnic Women’s Network (Swansea), Carmarthenshire County Council, South Wales Police, DVLA.
WISE is a Trustee on the Board of Learning Disability Wales, representing employment and the Director of WISE is Chair of Wales Association of Supported Employment Agencies.
Funding:
WISE is funded through contracts held with the Social Services departments of the City and County of Swansea and the County Borough of Neath Port Talbot.
WISE also operates several contracts with the Employment Service, and the European Social Fund and Children in Need. The Big Lottery has also provided funding for additional projects.
Performance relating to City and County of Swansea contract:
WISE has maintained a working relationship with the City and County of Swansea, and its forerunner West Glamorgan County Council, for 23 years.
As an indication of recent performance, WISE has, in the past 7 years, successfully supported adults with learning disability into 109 jobs (at an average of 15.6/year), and 37 voluntary work opportunities (at an average of 5.3/year)
In many cases client support also included travel training and benefits advice.
CCS decision to terminate contract:
The decision to terminate WISE’s contract was made at a meeting on 6th March 2008. In handwritten notes (obtained by WISE under the Freedom of Information Act) of that meeting, between Carol Rea (Principal Officer Care Management), Alison Cooper (Contract Officer for Social Services) and Ainslie Aldron (Contract Monitoring Officer), it is claimed that…”Achievement for 2007/08 has not been in line with contract targets”. It is also calculated that the 2008 contract equates to a cost of £7.96 for each hour worked by a service user. This was deemed a poor overall cost benefit ratio.
The decision to terminate the contract was first communicated to WISE by Carol Rea in a meeting on 17th March 2008 between representatives from the Council and from WISE.
The representatives from the Council stated that:
“…the cost benefit ratio of hours worked and annual price of City and County of Swansea’s contract with WISE were clearly not effective and the targets specified in the contract had not been met. In light of this City and County of Swansea would not be renegotiating the current contract.”
In a following letter dated 18th March 2008, signed by Alison Cooper, it is stated that:
‘…it is with regret that the City and County of Swansea will not be renegotiating the current contract with WISE…we have a responsibility to ensure that commissioned services deliver good outcomes for service users and are cost effective, addressing both limited resources and future priorities…’
The decision to terminate WISE’s contract was therefore made a minimum of one month before the contract was due to expire. This does not sit happily with the attempt by the City and County of Swansea to characterise this as a performance based decision.
In relation to the assessment by CC Swansea that an average cost to £7.96 per hour worked by WISE clients is a poor “cost benefit ratio”:
WISE does not accept that it provides poor value for money in relation to providing a supported employment service for the following reasons:
1. WISE does not accept the validity of employing “ratio of hours worked and annual price” as an appropriate methodology for assessing the cost benefit of a supported employment service.
2. WISE suggests that a more appropriate assessment is made by looking at:
a) efficacy -
b) value -
3. WISE has achieved 108% and 154% of the two key output targets specified by CCS in its contract with WISE over the past 7 years (see next point for details)
4. WISE provided 8,273 hours of service in support of the 2007/2008 CCS contract, at a cost per hour of £14.14
5. Locally, the Department of Work and Pensions (Access to Work) pay an hourly rate of £18.50 for supported employment services (in England the rate is higher).
6. WAG suggests an hourly rate for providing Work Based Learning (additional learning support) of £23.50.
In relation to the statement that “WISE were clearly not effective and the targets specified in the contract had not been met”:
WISE does not accept that the service it provides is not effective or that it has failed to meet specified targets.
Over the past 7 years WISE has achieved:
1. An annual average of 15.6 supported job placements vs. an average target of 14.4 = 108% achievement
2. An annual average of 5.3 voluntary work experiences vs. an average target of 3.4 = 154% achievement
3. In 2007/2008 WISE supported 16 job placements vs. a target of 17 = 94% achievement.
WISE would also like the following points to be noted:
In an internal briefing document to the council, Chris Maggs (Interim Director of Social Services) states that in relation to the contract CCS have with WISE that:
“There have been issues in respect of delivery against the contract for some time,
and the local authority has sought to address these issues in partnership with WISE”:
1. At no stage during the past 23 years, before November 2007, has CCS communicated any dissatisfaction with performance vs. targets stipulated in the contract.
2. CCS has had observers present (including on occasion Chris Maggs) at WISE Management Committee Meetings for the past 12 years (over 40 meetings). At no point has the issue of underperformance vs. target been raised as an issue during these meetings.
3. Cost per hour worked by client has never been communicated to WISE by CCS as assessment criterion of its performance.
In an internal briefing note for Councillors by Chris Maggs, it is stated that:
“The local authority have a statutory responsibility to support adults with a learning disability to access employment opportunities and the finance made available will be utilised to address this responsibility. Enhancements will be made to the NEAT project, an existing work development project for adults”.
WISE is concerned that:
1. There is no direct supported employment service being provided by CCS in 2008/2009
rather there will be concentration on project work.
2. We are not aware of any uplift of funding relating to supported employment or
work experience opportunities for adults with learning disability in 2008/2009, equivalent
to the budget allocated to the WISE contract in 2007/2008.
3. From data provided by CCS, we believe that only 2 adults involved in CCS work
opportunities gained employment in 2007/2008, independently of WISE support.
4. There are no additional work experience opportunities being offered by CCS for adults
with a learning disability in 2008/2009 vs. 2007/2008.
In conclusion, the removal of the contract represents a cut in support for some of the most vulnerable citizens of the county and a significant failure by CCS to meet its “statutory responsibility to support adults with a learning disability to access employment opportunities”.
As a consequence of this decision 4 members of WISE’s staff will transfer as a matter of law to the City and County of Swansea. The cost to the City and County of Swansea in direct salary cost alone of this decision will be in excess of £115,000. The payment to WISE by the City and County of Swansea in the last financial year was £117,000.
This decision therefore makes no sense from a service perspective or from a financial
one. It smacks of other, more personal issues, and is at the very least ill-
Breaking news!
In a letter to WISE, dated 22nd July 2008, from Chris Maggs, asserts that TUPE does not apply.
WISE does not accept this assertion as many of the training elements being provided by CCS are of the same character as those having been provided by WISE.
What is of a particular concern however is the statement by Chris Maggs that:
“…the City and County of Swansea is not currently undertaking the work which WISE was previously contracted to provide.”
We believe that this written statement, together with the verbal statement, that the council was “moving away” from the principle of supporting real jobs for adults with learning disabilities, indicates a retrograde change in policy perpetrated by the officers and not properly placed in front of the council for scrutiny and ratification – the decision having been erroneously characterised as a “performance related” issue.