Finian McGrath (Dublin North Central, Independent)
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111. To ask the Tánaiste and Minister for Social Protection her views on correspondence (details supplied) regarding JobPath; and if she will make a statement on the matter. [41310/15]

Joan Burton (Dublin West, Labour)
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Briefings on JobPath were provided by Department officials to Oireachtas members on 16 July 2015 and 29 September 2015 and copies of the briefing material were provided to all members.

JobPath is a new approach to employment activation that will support people who are long-term unemployed and those most at risk of becoming long-term unemployed to secure and sustain full-time, paid employment.

Following the completion of a rigorous public procurement process, two companies were selected to provide the JobPath service - Turas Nua Limited and Seetec Limited.

JobPath in Ireland is not the same as the Work Programme operated by the Department of Work and Pensions in the UK, referenced in the correspondence provided by the Deputy. JobPath was designed following an open consultation process (a number of open fora were attended by a wide range of participants), with input from labour market experts in Ireland and abroad and taking account of international experience. The Department was also advised by the Centre for Social and Economic Inclusion in the design of JobPath.

Participants on JobPath will receive intensive individual support to help them address barriers to employment and to assist them in finding jobs. They are also provided with a range of training and development supports including online modules, career advice, CV preparation and interview skills and where a need is identified, a client may be referred for further education and training opportunities provided by ETBs and others. These training and development supports may be accredited by FETAC or lead to an industry recognised certification.

JobPath providers are paid based on outcomes – they receive a fee for each thirteen week period of full time employment (30 hours per week) secured for a client. The fee is paid in arrears and a maximum of four fees are paid (i.e. 12 months employment). This fee structure ensures that the providers are incentivised to find sustained employment for JobPath clients and to work with JobPath clients to help them transition into, and remain in, employment.

Participants are selected by the Department – the companies have no say in the selection process. Jobseekers will spend a year on JobPath and if they are placed into a job they will continue to receive support from a Personal Advisor for at least three months and up to twelve months while in employment. Should a client lose a job while on JobPath, their Personal Advisor will continue to work with them to help them obtain further employment and the department’s Intreo Centres will expedite payment of their welfare entitlements.

JobPath is one of a range of activation supports, including schemes such as CE and TÚS, catering for long-term unemployed jobseekers. In general, and JobPath is not an exception, it is not possible for clients to participate in two separate schemes at the same time. In addition, given the need to manage the allocation of places effectively, the Department does not facilitate or encourage jobseekers to leave one scheme early in order to take up a place on another scheme. This approach is particularly relevant in the case of JobPath whereby providers are paid on the basis of outcomes; it is important that the service providers have the opportunity and the time to achieve the outcome – which is to help the jobseeker secure and sustain full-time employment. On completion of JobPath, participation in other schemes and programmes remains an option that will be assessed by the Department’s case officers.

It is important to note that all decisions regarding a person’s welfare entitlements while on JobPath will be taken only by Department officials and not by the JobPath companies. In addition the process for sanctioning clients, who do not engage with the JobPath activation process, is exactly the same as the process for clients who fail to engage with any of the Department’s other activation programmes. Again this process is operated by the Department’s own staff and not by the JobPath providers.

Significant safeguards have been built into JobPath. These include a service guarantee to ensure that all participants receive a baseline level of service as well as penalties for the companies if service performance or service quality does not meet set standards. JobPath is also structured such that the companies cannot recover their costs or make any profit unless and until they get people into sustainable jobs. The rates paid to contractors are also linked to performance in the wider economy. Automatic discounts apply if employment growth exceeds our medium term forecasts. In addition, both companies will be subject to regular on-site inspections and audits to ensure that JobPath is delivered in accordance with contractual obligations. Payments are also subject to the results of independent customer satisfaction surveys that will be commissioned by the Department.

Seetec was accused of fraudulent activity by former staff members in 2013. This alleged fraud related to claims that Seetec inflated employment outcomes for people with disabilities under the 'Work Choices' programme in the UK. The DWP has publicly refuted these claims and advised the UK’s Public Accounts Committee that it has investigated the claims and found no wrongdoing. The potential for inflating figures has been taken into consideration in the design of JobPath. The Department is satisfied that artificial inflation of employment outcomes will be controlled in Ireland though the use of data matching with Revenue Commencement of Employment records and the Department’s own welfare payment systems.

Turas Nua is a new joint venture between FRS recruitment, based in Roscrea, and Working Links, a not for profit UK service provider. It has been acknowledged by Working Links that some members of its staff incorrectly recorded employment and training placement for jobseekers under the 'New Deal', the precursor programme in the UK to the Work Programme. However the DWP has publicly stated that the errors occurred in 2008 as a consequence of its heavy reliance on paper-based transactions and that it is satisfied that these cases were investigated thoroughly by Working Links (the amount involved represented less than 0.05% of the payments at the time) and that appropriate actions were taken, with the associated amounts being repaid. DWP has subsequently awarded additional contracts to Working Links.

It is important to note, that neither of the above companies has been sanctioned by the DWP for any fraudulent activity.

JobPath is being rolled out in offices across the country and is expected to be fully implemented in the first quarter of 2016. The cost of JobPath will be determined by the number of jobseekers who are referred and the number who secure sustainable employment. Finally, Turas Nua has confirmed that the questions asked of clients regarding criminality are in the process of being removed from their diagnostic assessment.