Seanad debates
Tuesday, 21 March 2017
JobPath: Statements
2:30 pm
Ray Butler (Fine Gael) | Oireachtas source
I welcome the Minister to the House. The Programme for Government 2011-2016 contained a commitment to replace FÁS with a new national employment and entitlement service. In the subsequent service plan, published by the Department of Social Protection, it was stated that the Department would explore the potential to augment internal resources through the Department, outsourcing some of the elements of the service. What emerged was JobPath, a model of contracting the provision of employment services for those individuals who are long-term unemployed. The Pathways to Work, PTW, launched in 2012 signalled the potential of contracting with third party providers to complement and augment the existing capacity of the Department of Social Protection, which was already delivering under contract arrangements with local employment service providers to deliver employment services. The JobPath contract model was designed during a two year period, taking account of advice received from Irish and international experts on contracting of employment services and inputs following a number of public stakeholder consultation briefings.
The Department retained the services of the not for profit Centre of Economic and Social Inclusion, London to advise on the JobPath model and the procurement process. The key objectives of JobPath were to help people obtain paid employment to the quality of an outcome payment. The service providers must help jobseekers find jobs for at least 30 hours per week for a period of at least 13 weeks. Outcome payments, known as subsequent fees are paid out for each 13 week period of the employment for up to one year. JobPath is a payment by results model, which means the companies will not be able to fully recover their costs until they place sufficient numbers of job seekers in sustainable jobs, therefore the overall cost of the JobPath programme will be determined by the number of people who participate in the programme and the number who get sustainable jobs. Payments to the companies who organise JobPath amounted to €1.2 million in 2015, to €29 million in 2016 and it is estimated that in 2017 it will rise to €65 million. This increase in the expenditure profile reflects the phased roll out of the service and is the culmination of outcome fees over time. It is unlikely the expenditure will exceed €65 million in any given year. The contracts between the Department of Social Protection and the service providers are for a period of four years, with an additional two years run out period. This means that where a person commences engagement with a JobPath provider, at the end of the fourth year, the provider must provide the services for the next 52 weeks and if the person secures employment at the end of that 52 weeks, the provider may claim payments in respect of the provision of an employment support for up to 52 weeks thereafter. The Department at its sole discretion has reserved the right to extend the four year referral period for up to another two years.
The level of complaints about JobPath is very low. All complaints have been resolved or are in the process of being resolved. The response to JobPath has been quite positive relative to the number of clients referred to the service. A few concerns have been raised at this point, such as moving to community employment, CE schemes and this has been addressed. To date the number of complaints received represents just over a quarter of 1% of the 82,000 job seekers who have started their engagement period with the service. Most complaints were from people who were reluctant to engage with JobPath. Each participant gets a service statement at their initial engagement and it outlines the level of services they can expect. Each company has its own complaints process. If clients lodge a complaint directly to the Department of Social Protection, such complaints are referred to the company in the first instance for investigation in the line of contractual arrangements. Department inspectors visit provider premises both with and without notice to test compliance and contract terms. The Department recently commissioned customer satisfaction surveys to assess independently whether customers were satisfied with the level and quality of the service delivered. The results from the survey indicate that job seekers feel they are receiving a good service under JobPath, with a 76% to 81% satisfaction rating versus 5% to 8% dissatisfaction. On a personal note, I know that emotionally and especially mentally, without having a job or a reason to get up in the morning, things were very difficult during the recession. JobPath is a very positive experience, providing an opportunity for people which builds their confidence and provides a sense of self worth. I congratulate the Department for Social Protection and the Minister.
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