Title
Contents
The Author 6
Abbreviations 7
Summary 9
1. Introduction 14
1.1 Objectives of the review 15
1.2 Structure of the report 15
2. Differential access to employment programmes 16
2.1 Employment programmes and performance-based contracting 17
2.2 From measuring performance to rewarding outcomes 18
2.3 'Cream-skimming', 'creaming', 'parking' and differential pricing 19
3. The Australian Job Network and differential pricing 21
3.1 Job Network Services and Star Ratings 22
3.2 Job Network differential prices and the Jobseeker Classification Screening Instrument 23
3.3 The Personal Support Programme 26
3.4 Creaming and parking in the Job Network 27
3.5 'A Fresh Approach': The new Australian Employment Services model 27
3.6 Conclusion 28
4. The Dutch Reintegration Market and differential pricing 30
4.1 Profiling and reintegration services 31
4.2 The UWV reintegration market 32
4.3 Individual Reintegration Agreements (IROs) 34
4.4 The Netherlands 'purchase framework', pricing and the reintegration coach 35
4.5 Conclusion 36
5. US welfare to work services, employment programmes and differential pricing 37
5.1 Performance standards and welfare to work services 38
5.2 Pay-for-performance contracts in New York City 39
5.3 Milestone payments: the Oklahoma model 42
5.4/5.6 JTPA and WIA employment and training programmes and 'cream-skimming' 44
5.5/5.7 Performance-based outcomes and the most disadvantaged 46
6. Differential pricing in the British welfare market 47
6.1 The TEC funding system 47
6.2 TECs and contracted providers 50
6.3 The impact of output related funding 50
6.4 The demise of TECs 51
6.5 Employment Zones and differential pricing 52
7. Conclusion: policy implications 54
7.1 Creaming and parking in the Flexible New Deal 57
Appendix. Productivity commission modelling of incentive contracts that allow price variations 58
References 60
Table 3.1 Active Participation Model: service and placement fees, 2003-2006 25
Table 3.2 Personal Support Programme: Milestone and outcome payments 26
Table 3.3 Australian Employment Services: 2009-2012 28
Table 4.1 Service durations and fees in the UWV reintegration market 35
Table 5.1 NYC HRA back to work performance milestones 41
Table 5.2 HRA payments to WeCARE contractors for services 42
Table 5.3 Oklahoma Milestone Approach 43
Figure 6.1 Youth Training and Training for Work special needs endorsements 49
Box
Box 10.2 Incentive contracts that allow price variations 59