As set out in the Secretary of State’s Direction of 8 May and in the response to 275187, it was concluded, on this occasion, that it was reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services. We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

Of the ten permitted subcontractors that the Authority agreed to make payments to as per the Ministerial Direction of 8 May, nine have been paid to date. The invoice from the remaining permitted subcontractor is currently being reviewed as part of our due diligence process.

Contractors outside of the permitted subcontractor list should continue to pursue any financial claims through the Administrator. The Authority can assist in this process if required.

DWP Commercial have had discussions with MOJ colleagues to clarify the MOJ Ministerial direction correspondence published on 8 May 2019.

The MOJ are making payments to a small number of Permitted Sub Contractors on the basis of a) the unique nature of their services (statutory services) and b) the structure of their current market in the context of the transformation announced on 16 May 2019.

The Department considered the impact on stakeholders and sub-contractors, based on the Administrator’s statement of affairs at the point of Working Links going into administration, and has worked with both the Administrator and Fedcap, who have taken over a number of Working Links contracts, to minimise the impact on those supply chain partners owed monies by Working Links at the point of administration.

We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

Details for the contract Transforming Rehabilitation contracts with Working Links in Wales are published on Contracts Finder;

https://www.contractsfinder.service.gov.uk/Notice/933013f7-cfc2-4880-8e84-0bdb84d7e94f?p=@FQxUlRRPT0=NjJNT08=U

The Department refers to the responses to 2 previous PQs (254799 and 257591) which addressed this question on 17^th May and 28^th May respectively. This answer confirms those responses.

The MOJ are making payments to a small number of Permitted Sub Contractors on the basis of a) the unique nature of their services (statutory services) and b) the structure of their current market in the context of the transformation announced on 16^th May 2019.

There is no defined term within DWP contracts for Permitted Subcontractors.

The Department considered the impact on stakeholders and sub-contractors, based on the Administrator’s statement of affairs at the point of Working Links going into administration, and has worked with both the Administrator and Fedcap, who have taken over a number of Working Links contracts, to minimise the impact on those supply chain partners owed monies by Working Links at the point of administration.

The Department has met all of its obligations in regard to the contracts, including payments, leading up to and as a consequence of the administration.

All Working Links subcontractors delivering DWP services were issued a letter from the Department providing them with details of the Administrator advising direct contact should there be monies owed to them by Working Links. The Department has met all of its obligations in regard to the contracts, including payments, leading up to and as a consequence of the administration.

The Department considered the impact on stakeholders and sub-contractors, based on the Administrator’s statement of affairs at the point of Working Links going into administration, and has worked with both the Administrator and Fedcap, who have taken over a number of Working Links contracts, to minimise the impact on those supply chain partners owed monies by Working Links at the point of administration.

The DWP Employment Category team undertake due diligence on companies in or entering the UK employment provision market. We do not undertake due diligence on individual employees of companies, although our processes seeks to ensure that persons are not disqualified to act as a Director. Our understanding is that Mr Brian Bell is not a Director, according to Companies House and therefore his ability to undertake a role in Fedcap is a matter for that Company.

DWP commercial policy is to advertise opportunities early and to engage with all appropriate sectors of the market, through pre-procurement market engagement events, to encourage wide participation and create the best competitive environment.

All Working Links subcontractors delivering Departmental services have been issued a letter from the Department advising them to contact the Administrator should there be monies owed to them by Working Links.

DWP is currently implementing two change programmes – the Contract Management Capability Programme and Strategic Supplier Relationship Management - to support further improvements in commercial and contract management capability across the department.

DWP continues to use the Merlin service to provide assurance of suppliers and supply chains in the Employment and Health Categories.

All Working Links subcontractors delivering Departmental services have been issued a letter from the Department advising them to contact the Administrator should there be monies owed to them by Working Links.

The Department considered the impact on stakeholders and sub-contractors, based on the Administrator’s statement of affairs at the point of Working Links going into administration, and has worked with both the Administrator and Fedcap, who have taken over a number of Working Links contracts, to minimise the impact on those supply chain partners owed monies by Working Links at the point of administration.

DWP Commercial have had discussions recently with MOJ colleagues to clarify the MOJ Ministerial direction correspondence published on 8 May 2019.

The MOJ are making payments to a small number of Permitted Sub Contractors on the basis of a) the unique nature of their services (statutory services) and b) the structure of their current market in the context of the transformation announced yesterday.

The Department considered the impact on stakeholders and sub-contractors, based on the Administrator’s statement of affairs at the point of Working Links going into administration, and has worked with both the Administrator and Fedcap, who have taken over a number of Working Links contracts, to minimise the impact on those supply chain partners owed monies by Working Links at the point of administration.

As set out in the Secretary of State’s Direction of 8 May, it has been concluded, on this occasion, that it is reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services.

Further to the Direction, we are now working through a process with the Permitted Subcontractors to understand the extent to which they had monies owed to them by the Working Links’ CRCs at the point of Administration for the delivery of frontline probation services, that can be satisfactorily evidenced and validated. Until this process is completed, it is not possible to accurately answer the Rt Hon Member’s questions.

We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

As set out in the Secretary of State’s Direction of 8 May, it has been concluded, on this occasion, that it is reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services.

Further to the Direction, we are now working through a process with the Permitted Subcontractors to understand the extent to which they had monies owed to them by the Working Links’ CRCs at the point of Administration for the delivery of frontline probation services, that can be satisfactorily evidenced and validated. Until this process is completed, it is not possible to accurately answer the Rt Hon Member’s questions.

We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

As set out in the Secretary of State’s Direction of 8 May, it has been concluded, on this occasion, that it is reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services.

Further to the Direction, we are now working through a process with the Permitted Subcontractors to understand the extent to which they had monies owed to them by the Working Links’ CRCs at the point of Administration for the delivery of frontline probation services, that can be satisfactorily evidenced and validated. Until this process is completed, it is not possible to accurately answer the Rt Hon Member’s questions.

We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

As set out in the Secretary of State’s Direction of 8 May, it has been concluded, on this occasion, that it is reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services.

Further to the Direction, we are now working through a process with the Permitted Subcontractors to understand the extent to which they had monies owed to them by the Working Links’ CRCs at the point of Administration for the delivery of frontline probation services, that can be satisfactorily evidenced and validated. Until this process is completed, it is not possible to accurately answer the Rt Hon Member’s questions.

We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

The DWP will not be undertaking a public enquiry into the failure of Working Links or the issues that this has caused to their supply chain partners. Ultimately, the failure of Working Links was caused by its subsidiary companies and their Community Rehabilitation Contracts. The DWP’s commercial Employment Category will seek to learn lessons and consider them when developing future commercial strategies.

The DWP Employment Category team undertook initial due diligence on the Fedcap Group in August 2018 when Fedcap first entered the UK market. Since then they have kept that due diligence up to date and impacted the changes arising from the Working Links takeover in February 2019.

The Department has taken part (a) of the question to be in relation to The Work Programme provision let in 2011, there is no Work Programme Leavers programme.

The Department has taken part (b) of the question to be in relation to the ESF Links to Work Provision let in 2016.

The Department complies with Public Procurement rules and Procurement Regulations in all sourcing activity. Internal governance, departmental assessment against Government Commercial Office Standards and Internal Audit reports monitor compliance.

The Administrator has statutory duties and obligations in relation to the management of a company and its property/assets during the period of any administration – these are covered by the Insolvency Act 1986. Any appropriate safeguards or commercial changes which DWP introduces will be subject to the normal application of insolvency law and procedure. DWP will seek to learn lessons as a result of the Working Links administration, and will implement appropriate commercial changes where appropriate.

Working links held 3 Work Programme contracts, 5 Work Choice contracts, 6 European Social Fund contracts and were on the low value Dynamic Purchasing System.

Work Programme and Work Choice were in exit mode, following cessation of referrals in March 2017 and November 2018 respectively, at the point of administration.

Copies of the contract and contract values are accessible on the following site. https://www.contractsfinder.service.gov.uk/Search

In accordance with the Government transparency commitment I can confirm that the DWP publishes a list of all financial transactions over £500 and £25,000

For spend over £25,000 follow the below link:-

https://data.gov.uk/dataset/ccdc397a-3984-453b-a9d7-e285074bba4d/spend-over-25-000-in-the-department-for-work-and-pensions

Explanatory notes on your findings on spend over £25000 can be found by following the below link:-

https://www.gov.uk/government/publications/dwp-monthly-payments-explanatory-notes

For spend over £500 follow the below link:

https://www.gov.uk/government/collections/what-dwp-spends

Explanatory notes on your findings on spend over £500 can be found by following the below link:-

https://www.gov.uk/government/publications/dwp-government-procurement-card-monthly-payments-explanatory-notes

Departmental contracts held by Working Links were on a payment by results basis and, therefore, actual spend will not align to the contract value as the latter is based on 100% performance.