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New Deal Schemes

Volume 490: debated on Monday 30 March 2009

To ask the Secretary of State for Work and Pensions what the service fee element of the Flexible New Deal contracts will be (a) for the first 18 months and (b) over the full term of the contract. (262842)

[holding answer 11 March 2009]: DWP will retain a performance and payment regime based largely on outcomes, providing shortlisted bidders with the opportunity to develop innovative, individually tailored solutions. DWP’s expectation is to have a funding model based on 80 per cent. (outcome) and 20 per cent. (fee based) as originally announced. However, in the initial phase of the contract (first 18 months), DWP will consider alternative models based on a higher service fee element. After the initial phase of the contract we anticipate returning to the funding model as originally announced.