To ask the Secretary of State for Work and Pensions (1) what progress has been made on his plans for the implementation of the flexible New Deal; (255122)

The competition for contracts to deliver flexible new deal is under way. 124 bids were submitted and these are being evaluated.

We have notified providers of a short pause in the competition to enable us to jointly consider the impact and options to address the financial challenges in the initial phase of the contract.

The Department will retain a performance and payment regime based on outcomes, providing shortlisted bidders with the opportunity to develop innovative individually tailored solutions. Our expectation is to have a funding model based on 80 per cent. (outcome) and 20 per cent. (fee based) as originally tabled. However, in the initial phase of the contract (first 18 months), the Department will consider alternative models based on a higher service fee element.

We expect to notify bidders of results during April and contracts to be awarded by the end of May 2009.

The Government remain committed to bringing in the flexible new deal phase 1 from October 2009.

To ask the Secretary of State for Work and Pensions (1) whether any changes have been made to the original performance and funding expectations of the flexible New Deal; (255184)

[holding answer 9 February 2009]: The competition for contracts to deliver flexible new deal is under way. 124 bids were submitted and these are being evaluated.

We have notified providers of a short pause in the competition to enable us to jointly consider the impact and options to address the financial challenges in the initial phase of the contract.

The Department will retain a performance and payment regime based on outcomes, providing shortlisted bidders with the opportunity to develop innovative individually tailored solutions. Our expectation is to have a funding model based on 80 per cent. (outcome) and 20 per cent. (fee based) as originally tabled. However, in the initial phase of the contract (first 18-months), the Department will consider alternative models based on a higher service fee element.

We expect to notify bidders of results during April and contracts to be awarded by the end of May 2009.

The Government remains committed to bringing in the flexible new deal phase 1 from October 2009.

To ask the Secretary of State for Work and Pensions what deadline he has set for private sector provider bidders for the Flexible New Deal to revisit the assumptions made in their original bids, based on the revised estimate of the number of long-term unemployed. (260861)

[holding answer 5 March 2009]: Bidders should complete the revised financial schedules and provide a revised performance offer and supporting information in the form of a revised Part Six of the Invitation to Tender form. These revised documents must have been submitted by midday on Wednesday 4th March 2009.

The request for additional information will result in a change to our published timetable; we now expect to notify bidders of results during April and award contracts by the end of May 2009. We still aim to begin delivery from October although we recognise the challenge this would present to some bidders. When submitting the additional information, bidders have been asked to indicate whether these revised timings are likely to impact on their ability to begin delivery from October 2009.