The Australian Funding System. A model for the UK.

The Australian Funding System.

A model for the UK.

Presented by:

Donna Shaw

[Castle Personnel, Australia]

Changing Government Requirements

Accreditation (organisation/individuals)

Regulations / standards of conformance

Funding (bulk grants v’s results base funding)

Concentrated Structure of industry & funding

Accountability Performance reporting [KPI’s , progression, etc.] Benchmarking

FLOOR PLAN NEW HEAD OFFICE

Australia/UK Comparisons

21 million people

Workforce 10.7mil

People on DSP 714,000

Expenditure $8.6bil

$12,117 per person

61 million people

Workforce 30.4mil

PWD looking for work 1.2mil

Expenditure £3.6bil

£5,048 per person

Australia U.K.

Australia/UK Comparisons

Aust Federal Gov’t

8 States/Territories

676 Councils

0 Councils providing disability Employment services

47% tax rate

UK Central Gov’t

3 “Devolved” Regions

500 Councils

Numerous Councils providing disability employment services

40% tax rate

Australia U.K.

Legislation

Disability Discrimination Act

Disability Services Act

Disability Services Standards

Disability Discrimination Act

Disability Discrimination Code of Practice

Australia U.K.

Disability Services StandardsEstablished 12 mandatory Disability Services Standards and

Key Performance Indicators.

Std 1. Service access Std 7.Complaints and disputes

Std 2. Individual needs Std 8. Service management

Std 3. Decision making & choice Std 9. Employment conditions

Std 4. Privacy, dignity & Std 10.Service recipient

confidentiality training & support

Std 5. Participation & integration Std 11. Staff recruitment,

employment & training

Std 6. Valued status Std 12.Protection of human rights

& freedom from abuse

Welfare to Work Reform

Reduction in Unemployment 4.3%

Experiencing a strong economy

Welfare to Work Reforms

Mutual Obligation

Participation Requirements

New DSP Eligibility

Government Funded Employment Agencies

[DEEWR & DFACSIA] Centrelink (Jobcentre Plus)

Job Network (Mainstream employment service)

Vocational Rehabilitation Services (CRS & NGO)

Disability Employment Network ( Award wage open employment)

Business Services (Employ people with disabilities who are deemed unable to enter open employment)

Australia/UK Comparisons

DEN provide a “One Stop Shop” for jobseekers with a disability

VRS provide a more clinical approach for injured workers returning to the workforce.

Job Introduction Scheme

Work Preparation

Workstep

Access to Work

New Deal

Pathways to Work

Australia U.K.

“DEN” EXPERIENCED SIGNIFICANT CHANGES IN

PAST 4 YEARS

MOVE to CASE BASED FUNDING

NEW UNCAPPED STREAM

INTRODUNCTION of EA3000

NATIONAL CONTRACT MANAGEMENT FRAMEWORK

INTRODUCTION OF STAR RATINGS

Move to Cased Based Funding:

2 years of trailing and evaluation (2003 – 2004)

1st July 2005 move to a Case Based Funding model (Capped service stream).

Coincided with the move from one Government portfolio DFACS to another DEEWR.

New Uncapped Funding Stream

105 Organisations successfully tendered to deliver the new “Uncapped Stream”.

19 organisations were new entrants to the Disability Employment sector.

Contracts commenced 1st July 2006 for a 3 year period

Existing “Capped” stream contracts were rolled over for the same period.

DEN contracts in line with the Job Network (mainstream employment services) contracts.

Introduction of EA3000

EA3000 (DEEWR) IT system

DEN providers now required to enter data on a national database

Entry of employment details, activity agreements, appointments and participation requirements

Most DEN’s are now operating two databases

Administrative burden is an issue for discussion during the forthcoming consultative process.

National Contract Management Framework

The key business framework that provides a common approach to the day to day management of all employment contracts.

There are five principles that underpin the NCMF:

Increasing performance Improving quality Integrity and compliance Relationships and openness Consistency

Practical strategies used include reviewing administrative data (‘desk-top’ monitoring), undertaking site visits and conducting risk assessments.

DEEWR employs three strategies to enhance compliance: Prevention and Deterrence, Detection and Correction.

Star Rating System

Organisations rated from 1 to 5 stars The first star ratings where released July 07,

only capped services where rated and results where not publicly available.

The second ratings where released April 08 both capped and uncapped service streams rated, results publicly available.

Client Assessment ProcessCentrelink

(JSCI) Job Network

Job Capacity Assessor

Capped Uncapped

DEN Agency[DPI - Assessment/Funding Level]

Capped V’s Uncapped Capped Clients - People with eight or more

hours work capacity who require long term support in the workplace or people unable to work at award wages.

Uncapped Clients - People with a work

capacity of 15 to 29 hours per week and an ability to become independent in the workplace within two years.

Intake Fee (All Clients) £114  

Assessment fee (All Clients) £230  

Payment Level1 Level 2 Level 3 Level 4

Employment Assistance Fee £93 £158 £245 £380

4 week Employment Milestone Fee £208 £324 £463 £699

13 week Employment Milestone Fee £208 £324 £463 £694

26 week Employment Milestone Fee £416 £648 £927 £1,389

Employment Maintenance Fee £135 £201 £297 £405

Capped Program Stream Fees

Uncapped Program Stream Fees

THE RESULTS ACHIEVED

WHERE TO FROM HERE

DEN Services as at 30 June 08

49,000 Current DEN participants 36,000 capped stream 13,000 uncapped stream

Over 30,000 commencements 2007-08 20,500 capped stream 12,400 uncapped stream

DECLINE IN SERVICE PROVIDERS As a result of the new initiatives consortiums where

established and mergers occurred.

2004 -05 228 organisations delivered DEN from 322 outlets.

2005 -06 227 organisations delivered DEN from 322 outlets

2006 -07 208 organisations delivered capped services from 325 sites, 106 delivered uncapped services from 529 sites. A total of 227 organisations including the 19 new entrants, across 726 sites.

June 2008 total 224 organisations across 700 sites.

These figures show a 10% decline in service providers since June 2005. The largest decline occurred 2006 when contracts where reissued and performance monitoring commenced.

CBF EVALUATION REPORT

An increase in outcomes achieved for job seekers with a disability.

A rise in the number of clients becoming independent (progressing to unsupported employment) and moving off Income support.

The Governments “Case Based Funding Model Evaluation Report” indicates significant benefit for jobseekers under the CBF model.

http://www.workplace.gov.au/workplace/Publications/ProgrammeEvaluation/DisabilityEmploymentNetworkCaseBasedFundingModelEvaluationReport.htm

Block Grant v’s Cased Based

Outcome indicator for the BGF model is the % of clients who achieved 13 weeks of employment for at least 8 hours per week within 2 years of commencing. 25% outcome rate was achieved.

The 13 week outcome rate for the CBF model over 18 months was 43.2% substantially higher then the BGF 2 year outcome rate.

Source: Disability Employment Network Case Based Funding Model Evaluation Report

Source: DEEWR Presentation NDS Employment Forum 2008

CBF OUTCOMES Outcome rate declined as DPI level increased

Level 1 – 45.4% outcome rate Level 2 – 32.6% outcome rate (highest number of clients at this funding level) Level 3 – 25.5% outcome rate Level 4 increased to 27.8% outcome rate, this may be attributed to the small number

of clients within this cohort

35% moved off income support

76% continued in employment maintenance

13% exited as independent workers

Source: Disability Employment Network Case Based Funding Model Evaluation Report

Client / Provider Characteristics

Clients with a psychiatric disability had the lowest outcome rate of 29.2%. There was very little variation in the outcome rates for other disability types.

The outcome rate was higher for teenagers, lower for clients over 60 and also well below average for the 25-29 year olds.

The outcome rate was lower for clients from Non-English speaking backgrounds and indigenous origin.

On average the lower the client-to-staff ratio the higher the outcome rate

Source: Disability Employment Network Case Based Funding Model Evaluation Report

Employer Incentive Subsidy

Source: Disability Employment Network Case Based Funding Model Evaluation Report

Costs Associated with Outcome

Overall average Govt expenditure per outcome = $21,381 (£10,140)

Level 1 = $10,372 (£4,920) Level 2 = $19,773 (£9.380) Level 3 = $33,948 (£16,097) Level 4 = $46,350 (£21,978)

Most of the losses in efficiency can be attributed to clients who did not achieve an employment milestone or an outcome.

Source: Disability Employment Network Case Based Funding Model Evaluation Report

STAR RATINGS

High rating 4 to 5 stars - provider performing at a level that is better than the majority of others.

Good rating 3 stars - provider that is performing around the average

Low rating 1 or 2 - stars provider that is performing at a level that is substantially below average

Each DEN Member is given a star rating based on their performance relative to that of other DEN providers.

DEN HEALTH CHECKS

How the Star Ratings Work

Performance ratings are nationally comparable

The rating model employs logistic regression to quantify and control the impact of client characteristics and local economic conditions

Three main KPI’s - Efficiency, Effectiveness and Quality

Each KPI is weighted to reflect the relative importance of each to overall performance

Star Rating KPI’s

and

Weighting

Source: DEEWR Presentation NDS Employment Forum 2008

publicly available www.workplace.gov.au

STAR RATING RESULTS DEC 2007

Organisational Mergers / ExpansionStar Ratings Achieved

Organisation A: 7 Sites 2 high, 1 good and 4 low

Organisation B: 6 Sites 2 good and 4 low

Organisation C: 10 Sites 1 high, 3 good, 6 low

Questions to be Answered

Is bigger better? Does rapid expansion lead to a decrease in service

quality?

Does sound knowledge of a geographical area and its labour market play a large part in success?

Are mergers, takeovers, joint adventures and consortiums a viable option?

Issues to be Considered

What type of partnership are you entering into Service delivery and performance history Staff profile, experience and competency Premises, resources and infrastructure Local knowledge and established working relations Management and continuous improvement structure Ethos, vision and mission Financially stable Is the payment scale acceptable

THE FUTURE

Significant change for Mainstream Employment Services

DEN Contracts extended to Feb 2010

National Mental Health and Disability Employment Strategy

CBF report findings and recommendations

Government review of disability employment services

Review of DEN Services

“DEN services will remain separate” Building on the strengths of existing approaches Creating a less complex system Simplify the fee structure and number of

assessments required A stronger focus on education and training Promoting available resources to employers Reduce contract management and other quality

assurance programs Simplify performance management