2013 Report details for project: Youth Contract

Project name: Youth Contract - there are 2 reports for this project: 2013, 2014
Google search: Google search on project name (opens in new window) opens in new window
Organisation: DWP (D10) - see all reports for this organisation
Report year: 2013 (data is from Sept 2012)
Category: Transformation - see all reports for this category
Description: The Youth Contract was a response to unacceptably high levels of youth unemployment. The offer made through the Youth Contract is a substantial addition to the range of support already available for unemployed young people through jobcentre Plus and the Work Programme. Taken as a whole, the Youth Contract will ensure that every unemployed young person who needs support to gain and keep employment will get it. The Youth Contract is worth almost £1 billion over the next 3 years (April 2012 - March 2015). At the core of the Youth Contract is: 1) 160,000 wage incentives worth £2,275 each, for employers who recruit an 18-24 year-old from the Work Programme into sustainable work (in July 2012 eligibility was extended to those 18-24 year olds residing in one of 20 LAAs [youth unemployment hotspots] who reach 6 months on benefit. 2) An extra 250,000 Work Experience or Sector-Based Work Academy places over the next three years, ensuring that there is an offer of a Work Experience place for every 18 to 24 year-old who wants one, before they enter the Work Programme. 3) At least 20,000 extra incentive payments worth £1500 each for employers to take on young people as apprentices (a Department for Business, Innovation and Skills-led element). 4) Extra support through Jobcentre Plus for all 18-24 year olds, consisting of weekly, rather than fortnightly signing, extra advisor time to provide more back to work support and a careers interview from the National Careers Service. The Government is also making extra funding available for the Department for Education to support the most vulnerable NEET 16 and 17 year olds into learning, an apprenticeship or job with training - this provision began in September 2012. The Department has worked with Work Programme providers, employers and key stakeholders to ensure the successful introduction of the Youth Contract from 2 April 2012, and this work will continue to maximise the take up of the additional support.
DCA (RAG): Green
DCA text: The Project went live in April 2012, and all DWP elements were implemented to agreed timescales. 7 of the 8 MPA recommendations have been acted upon. For example, key indicators of success and management information requirements were agreed and are discussed monthly between officials from DWP, the Implementation Unit, HMT and the Office of the Deputy Prime Minister. The recomendation to appoint a Joint Senior Responsible Officer for Other Government Departments was rejected but DWP have adopted a joined-up approach with colleagues across government, highlighted by these monthly meetings.
Start date: 2012-01-19
End date: 2012-06-21
Schedule text: Following an aggressive timetable the Project went live in April 12, as planned, with all DWP elements implemented to agreed timescales: we engaged employers, their representatives and Work Programme providers to design a simple claims process for wage incentives and continued to engage these stakeholders into live-running; additional advisers were recruited to facilitate a focus on young people and provide additional support to 18-24 year-olds in Jobcentres; and employers were engaged by Jobcentre Plus at both local and national levels to ensure work experience and sector-based work academy places were available on an ongoing basis. We also continued to engage with stakeholders across government in DfE, BIS, HMT and the Office of the Deputy Prime Minister into live-running.
Baseline: £139.97m
Forecast: £182.04m
Variance: 30.06%
Variance text: Variance is due to re-profiling. The new profiling takes into account the time lag between participants starting on the Work Programme (the basis for the original profile), and participants entering and remaining in work for 26 weeks (the basis for the new profile). As of November 2012, the overall project forecast remained within 5% of overall budget. Actual spend depends to an extent on employer appetite for wage incentives - and in the early days, ability to deliver on the Wage Incentive was dependent on forms being distributed by Work Programme prime and sub contractors. Since bringing distribution in house via Jobcentre Plus, delivery of the Wage Incentive has improved and thus spend increased. In the event of an eventual underspend, the Department is ensuring that funding remains directed to supporting employment for young people.
Whole Life Cost: £741.93m
WLCost text: Since project went live, timing and schedule of payments to employers has changed slightly from original budget plans, but project is within 5% variance of overall budget (as of November 2012).
Notes1:
Notes2:
Sourcefile: DWP_2013.csv

Home Selection Search All Reports All Projects (+dates) All Projects (+costs) All Organisations All Years All Categories


Acknowledgement: GMPP data has been re-used under the Open Government Licence.