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The Department explained to us that the reduction in volumes meant providers had prepared for...

Conclusion
The Department explained to us that the reduction in volumes meant providers had prepared for a “different scale of service”, and had committed to costs such as staff and building leases that reflected the scale of the programme they had originally been asked to deliver, but now did not need.43 This, coupled with a desire to maintain an uninterrupted service and a lack of flexibility in the contracts to manage such a low volume scenario, meant that the Department had little leverage in the contract renegotiations.44 In the end, 35 C&AG’s Report, para 3.2 36 Q 1 37 C&AG’s Report, para 3.4 38 Q 43 39 Qq 1–3, C&AG’s Report, para 2.8 40 Q 10; C&AG’s Report, para 13, 22 41 Q 51 42 Q 9 43 Q 61 44 Qq 55–56; C&AG’s Report, para 3.20 The Restart Scheme for long-term unemployed people 15 the Department could make only limited savings beyond those already achieved through the reduced number of ‘job outcome’ fees it would have to pay to providers, arising from the lower volumes.45
Government Response

A response document is linked to this report, dated 27 June 2023. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 3.5 yrs
Report published 22 Mar 2023