The Restart Scheme for long-term unemployed people
Closed
What the inquiry looked at
“Restart is one of a range of measures introduced by the Department for Work & Pensions (DWP) to support people to get and keep a job in the wake of the impact of COVID-19 on the UK’s labour market. Restart went live in July 2021 and operates across England and Wales. It focuses on helping benefit claimants who are long-term unemployed by providing up to 12 months of “intensive and tailored support to over 1 million unemployed people”. Under the scheme, people who receive benefits and are long-term unemployed may be referred to employment support providers contracted to provide support in that area. The amount of money the contractors receive depends largely on their success in getting people into sustained work. So long as some contractual service standards are met, providers are able to choose how best to support the participants. The scheme will be open for three years and has budgeted funding of £2.9 billion, making it the largest of DWP’s employment programmes. The Committee will question senior officials at the DWP on value for money in the Restart Scheme, including: the extent to which Restart has been set up to meet the needs of long-term claimants; the rationale behind the commercial approach taken for Restart, and the relationship between DWP and the employment support providers; and performance of the scheme so far, including the evidence to date of the scheme’s initial impacts and the expected cost benefit analysis If you have evidence on any of these issues including the findings of the NAO report underlying this inquiry and call for evidence , please submit here by Sunday 3 December 18:00.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The Department for Work & Pensions (the Department) set up Restart to help move long-term unemployed Universal Credit claimants into work via the use of employment support ‘providers’ who have a more structured and intense approach to helping people into work than the Department. It was expected that the scheme would benefit society by £2.44 for every £1 spent on it. However, Restart has ended up costing significantly more per person than previous similar schemes.
At its inception, the Department reasonably expected a surge in people becoming long term unemployed in the wake of the COVID-19 pandemic but in reality, there was far less demand for the scheme than predicted. This was partly because the economy was stronger than expected, and also because the Department did not know enough about its claimants to predict how many would actually go onto the scheme. This led the Department to renegotiate the contracts with its providers and agree new terms to deal with the lower demand.
We are pleased that the Department took on board some of this committee’s previous recommendations around commercial capability and used ‘should cost modelling’
and ‘open book accounting’, which helped the Department to prepare well for the renegotiations. But its lack of initial planning for such low volumes and limited commercial leverage meant it could not make significant savings per participant. The Department needs to determine how it can deliver the best value for money from the market when it has to rapidly increase and decrease capacity in response to economic shocks.
Ultimately the success of Restart depends on how many additional people get into work because of the scheme. The Department expects Restart to achieve its estimated return on investment if only six in a hundred participants find work they would not otherwise have found. But a small change in this proportion would change the return significantly.
This makes evaluation and transparency about Restart crucial. While the early evidence shows Restart participants moving into work at a greater rate than the Department had expected, the Department does not yet know whether this is because of Restart or changes in the economy. We welcome the Department’s plans to evaluate Restart after the scheme has finished and assess how well it has helped participants move into work and delivered its expected benefits to the taxpayer. We urge the Department to make this evaluation available for peer and academic review, and to publish regular statistics about how Restart is performing while it is live.
What the government said
The government responded on 27 June 2023. The deadline was 22 May 2023.
The government states that it agrees with each of the Committee's recommendations on Restart, though in places it qualifies its position or says assessment or evaluation will follow.
- On transparency, the department says it is now publishing regular six-monthly statistics, started in June 2023, and that decisions on publishing the evaluation "will be made in due course".
- On capacity, the government "will further assess the standing capacity and capability of the market" as part of future Spending Review decisions and regular fiscal event updates, "in the event of significant forecast economic change".
- On visits to jobcentres, it gives a target implementation date of Spring 2024 and "intends to test reducing the current frequency of contact and review the impact".
- On aggregating claimant barriers data, the department says it is "unclear whether aggregation would make programmes such as the Restart Scheme any more efficient", and that it "will need to monitor use of this data".
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 31 October 2022 to its close on 27 June 2023. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 12 Dec 2022
- Report 22 Mar 2023
- Government response 27 Jun 2023
- Correspondence 23 Jan 2023
What it recommended 9 recommendations · 17 conclusions
2The Department has ended up paying more per Restart participant than for previous similar schemes,...
3The Department and providers are not working together and sharing information as effectively as they...
4The Department did not know enough about its claimants to understand what support they needed...
5The Department does not understand how well each of the individual 77 providers are delivering...
6Many claimants have complex barriers that prevent them from finding work, and some of these...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
7In the remaining 43% of instances a claimant was not referred, this is because the...
8Work coaches use their knowledge of claimants to decide what support a claimant might benefit...
9We asked the Department whether it could have had any better information or better data...
10Many of the complex barriers that claimants face, which can mean that somebody is less...
11Discussing mental health, the Department did tell us about a number of initiatives arising from...
12The Department also told us about some other cross government work it is involved in,...
13Restart participants continue to attend a jobcentre to meet their work coach every two weeks...
14Shortly after starting on the Restart scheme, participants undertake a ‘diagnostic assessment’ with providers, to...
15The Department acknowledged that while an IT system that allows information to be shared between...
16We have repeatedly recommended that the Department be more transparent and publish more information about...
17The Department used its experience of delivering and evaluating the Work Programme, a similar previous...
18So far more Restart participants have moved into sustained jobs than the Department had expected,...
19From 2010–11, when it was responding to the last economic crash, to 2020–21, the Department...
20However, shortly after launching Restart, the Department realised that had it had significantly overestimated the...
21The Department used the forecasts from the Office for Budget Responsibility to build its expectations...
22The Department explained to us that the reduction in volumes meant providers had prepared for...
23The Department set out in the Restart business case that it expected to pay around...
24Although the Department signed contracts with eight prime providers to deliver Restart across 12 contract...
25However, the Department’s routinely collected management information only shows the performance in each of the...
26Several of the Restart subcontractors work in multiple contract areas, and half of the prime...
Evidence
Oral evidence sessions 1
- 12 Dec 2022The Restart Scheme for long-term unemployed people4 witnesses, listed belowparliament.uk ↗
Who gave evidence 4 witnesses
- Angus GrayDirector and SRO for the Restart Scheme, Department for Work & Pensions
- Mark LeighCommercial Director, Department for Energy Security and Net Zero
- Peter SchofieldPermanent Secretary, Department for Work and Pensions
- Preeta RamachandranSouthern Area Director, Department for Work & Pensions