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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) - PowerPoint PPT Presentation
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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
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