Acceptance of Grant Offer and Effective Date
This grant funding agreement is effective from the date this annex is signed.
As the authorised representative of Liverpool City Region Combined Authority, I
have read the Grant Offer Letter dated 20th March 2018 and the Memorandum of
Understanding, attached as Annex B to that letter, and agree to comply with the
notified conditions of the grant on which the offer is made.
Signed by a person authorised to sign on behalf of Liverpool City Region
22 March 2018
Name (please print)
Position in organisation
Director, Corporate Services
Principal contact for
Liverpool City Region
1 Mann Island
Head of Employment
Section 40 @liverpoolcityregion- Section 40
Memorandum of Understanding between the Department for Work and
Pension (DWP) (Labour Market Strategy and International Affairs Directorate)
and Liverpool City Region Combined Authority for the Households into Work
1. The parties to this Memorandum of Understanding (“MoU”) are:
DWP (The Labour Market Strategy and International Affairs (LMSIA)
Liverpool City Region Combined Authority (the Combined Authority).
2. This MoU sets out how DWP and the Combined Authority will work together to
design and deliver an employment pilot based on the business case the
Combined Authority submitted to DWP on 24 February 2017. This MoU covers
the design, implementation and delivery of the pilot.
3. The MoU sets out:
The roles and responsibilities of the parties;
The anticipated funding of the pilot;
The Performance Monitoring and Reporting arrangements;
The principles of collaborative working;
Provisions for management and governance of the pilot; and
Confidentiality, Freedom of Information; Intellectual Property Rights,
and Termination Clauses.
PERIOD OF OPERATION
4. This MoU between DWP and the Liverpool City Region will be in place for three
financial years from 2017-18 to 2019-20. There may however be elements of
the pilot that will run beyond the 2019-20 financial year. In such circumstance the
Combined Authority will formally write to DWP setting out their proposed
5. As part of the Devolution Deal between government and the Combined Authority
there was an opportunity to develop, for DWP Ministerial approval, a business
case for an innovative pilot to support those who are hardest to help, through a
6. This pilot will involve a robust evaluation to test the individual and collective
impact of a household based approach to supporting residents into work,
including the impact on employment outcomes, the learning captured as part of
wider public service reform and spend within the local area. The pilot will be
initiated in March 2018 and run for 3 years.
7. Through this pilot DWP and the Combined Authority want to test a set of
interventions identified as having the potential to be more likely to deliver
improved employment outcomes. The Combined Authority will contract with an
external organisation for a full evaluation of the pilot to be carried out, as detailed
in their evaluation plan.
Roles and Responsibilities
8. DWP’s roles and responsibilities will be to provide ongoing support to the
Combined Authority in a timely manner which will include:
Appointment of an account manager who will be the primary point of
contact for the duration of the pilot and will provide personalised advice
and day to day support, access to expertise and monitor progress on
behalf of DWP;
Appointment of a programme manager who will have oversight of the
Provide a national support package which will include advice and
expertise on areas such as information governance, service design and
Access to and advice from, other Government Departments, as well as
DWP’s Senior Responsible Owner (SRO) (it will be the account
manager’s role to oversee this access and act as conduit between both
Contributing to the development of a service map setting out how
service users will be identified, enter and flow through the pilot;
Help identify key stakeholders and explain how they have been
previously engaged and the impact they have had;
Agreeing the localities in which the interventions will run and the pilots
target population (for example, in or out of work participants);
Agreeing a joint implementation and delivery plan, setting out roles and
responsibilities, a timetable for mobilisation and live-running and a plan
for risk management; and
Feedback on the cost benefit model the Combined Authority will use to
baseline the expected impact of the pilot.
9. The Combined Authority’s roles and responsibilities will be to:
Design a deliverable pilot that meets the objectives set out in the
business case to support households to be more likely to achieve
employment outcomes detailed in the business case and as set out in
the Performance Monitoring and Reporting section of this MoU;
Work across organisational boundaries engaging with a broad range of
local stakeholders, recognising the potential of the programme to
impact on a wider audience;
Ensure that appropriate resources are in place to meet the objectives
set out in the business case;
Ensure effective leadership and governance to promote swift decision-
Work collaboratively with the account manager, reporting progress,
escalating any concerns, develop solutions to share problems and
share learning throughout the pilot; and
Deploy the funding provided by DWP in a way that supports delivery of
the objectives of the pilot.
10. Designing a robust evaluation of the pilot is a core requirement for DWP and the
Combined Authority is expected to commit to this. In relation to evaluation the
Combined Authority should develop proposals on:
The objectives of the pilot and the progress measures and outcomes to
The methods used to evaluate the pilot (including impact, process and
The approach to capturing the learning from additional local integration
of services to inform wider public service reform; and
Develop a plan for baseline data collection (i.e. employment and other
characteristics of pilot participants, as well as intervention and
‘business as usual’ costs).
11. An initial grant award of £0.8m inclusive of VAT will be paid to the Combined
Authority in 2017-18 financial year following submission of their project plan,
resource plan and expected performance levels, for years 1, 2 and 3 of the pilot.
12. For the following financial years the payments are forecast as follows:
£1.15m in 2018-19
£1.5m in 2019-20.
13. This investment is for the sole purpose of delivering the objectives set out in the
business case and repeated below for the sake of clarity:-
1) Determine the extent to which a household based approach to employment
will improve employment prospects and job outcomes for customers;
2) Identify the learning from additional local integration of services to deliver
outcomes for customers;
3) Identify the impact of improved resilience to get and keep a job and the
extent to which this supports sustained job outcomes;
4) Identify systemic improvements which will improve the processes to support
customers into work; and
5) Capture learning from the innovative process to inform wider public service
14. This investment is for the sole purpose of delivering the pilot. Anticipated
outcomes are listed in the Performance monitoring section below. DWP
acknowledges that a percentage of the grant award will be used to pay for
overheads such as management and administration on the pilot.
15. It will be the Combined Authority’s responsibility to provide assurance to their
account manager that funding is accounted for and is only applied to pilot based
Performance Monitoring and Reporting
Performance Measures and Targets
(March 2019) (March
Number of households who have
started on the programme
Positive outcomes: number of
households where individuals have
completed at least one agreed
Making significant improvements /
moving closer to securing work:
(could be someone who completed
training course, NVQ, work
Moved into employment: proportion
of households where individual has
moved into work (taken to be
earnings equivalent to 16 hours per
week for 4 weeks)
(Figures are cumulative)
16. A governance group has been established to monitor the progress of the pilot.
Terms of Reference for the group will be agreed between DWP and the
Combined Authority. It is envisaged the group would meet and review MI on a
quarterly basis and review the use of the grant funding and the release of future
17. The amount of grant funding for 2018-19 and any subsequent years will be
determined in accordance with the principles set out below [paras 17 to 22].
DWP will take the final decision on the release of future grant payments and will
give the combined authority reasons for its decision.
18. For any identified underspend related to 2017-18, the Combined Authority will
carry-forward this amount in their balance sheet to the subsequent financial year.
This carry-forward will then be aggregated to the in-year grant allocation for
2018-19 and used to manage the contractual expenditure for that year. The
opportunity to carry-forward aggregated underspends will continue from financial
year to financial year subject to discussions between DWP and the Combined
19. DWP reserves the right to adjust future grant profiles or request its repayment by
the Combined Authority if it deems this aggregated carry-forward amount to be
significant in relation to foreseeable future liabilities arising. Adjustments to future
grant agreements will be by exception and only considered at a point where
performance achievement is considerably below profile.
20. The Combined Authority shall also provide performance and expenditure
forecasts going forward for the duration of the pilot to inform future grant
allocation planning. These forecasts are to be updated and provided by the
Combined Authority at the end of each Financial Year.
21. DWP grants made in respect of the pilot during 2019-20 financial year will be
subject to robust performance forecasts for the remainder of the pilot and
ongoing performance achievements.
22. The final annual reconciliation process shall also include a complete
reconciliation for the entire period of the grant, with supporting management
information. The Combined Authority must at that stage indicate if there are any
aggregate underspends against the total grant allocations, which must be
returned to DWP.
23. The Combined Authority shall include contract break clauses (where contracting
out services) or appropriate clauses in contracts when recruiting additional
personnel to allow for the potential of the pilot terminating ahead of the end-date.
THE PRINCIPLES OF COLLABORATIVE WORKING
24. DWP and the Combined Authority have a shared commitment to:
Work collaboratively in the spirit of partnership
– working jointly and
openly to ensure successful achievement of the objectives of the business
- communicate openly about major concerns, issues or
opportunities relating to the pilot;
Jointly solve problems
– work together to solve problems and unblock
barriers on common issues;
Work at pace
– recognise the time-critical nature of the pilot and work to
deliver in the expected timeframe;
Deploy appropriate resources
– ensure sufficient and appropriately
qualified resources are available and authorised to fulfil the
responsibilities set out in this MoU;
Adhere to statutory requirements and best practice
– comply with
applicable laws and standards including EU procurement rules,
competition law, data protection and freedom of information legislation;
– enable lessons on how to design a successful pilot
and best practice identified through the pilot to be shared with other areas.
MANAGEMENT & GOVERNANCE
25. The Accountable Manager acting on behalf of the Combined Authority will be
accountable for the delivery of the objectives of the pilot and for the appropriate
use of the initial and any subsequent grants.
26. DWP and the Combined Authority commit to put in place strong governance and
decision-making capability to enable problems to be escalated and solved
quickly. If necessary, problems should be escalated to the Programme Manager
and the Innovation Pilot SRO.
27. Concerns raised within/by the Combined Authority should be escalated to DWP
through the following routes:
– Section 40
– Section 40
Senior Responsible Officer
– Section 40
28. Concerns raised within DWP will be escalated to the Combined Authority
through the following routes:
– Section 40
– Section 40
Senior Responsible Officer
– Section 40
29. DWP and the Combined Authority will agree a separate Data Sharing Agreement
in respect of information DWP will share with the Combined Authority, it’s
Providers and Sub-contractors and information the Combined Authority will
share with DWP for the purpose of operating the innovation pilot to ensure that
access to relevant information (as set out in the Business Case proposal) is
30. DWP will designate the Combined Authority and its Providers as a Relevant
Authority under S.72 of the Welfare Reform and Pensions Act 1999 for the
purpose of the Households into Work innovation pilot.
31. Except to the extent set out in this clause or where disclosure is expressly
permitted elsewhere in this MoU, each party (DWP and the Combined Authority)
Treat the other parties’ Confidential Information1 (as defined below) as
confidential and safeguard it accordingly and as directed by the other
Not disclose the other parties’ confidential information to any other
person without the owner's prior written consent;
The Combined Authority may only disclose DWP’s Confidential
Information, to Liverpool City Region Combined Authority employees
and partners who are directly involved in the provision of the pilot and
1 “Confidential information” means all confidential or proprietary information relating to a party or its
business, operations or functions that is indirectly or directly disclosed or made available and shall include
internal correspondence between the two organisations, unpublished research reports, of either organisation
in relation to this programme, Ministerial correspondence and internal advice. This list is not exhaustive.
who need to know the information, and shall ensure that such
employees are aware of and shall comply with relevant obligations in
relation to confidentiality and the requirements of the Data Protection
Act 1998 (or legislation amending or replacing it ); and
DWP may only disclose the Combined Authority’s Confidential
Information, to DWP employees and partners who are directly involved
in the provision of the pilot and who need to know the information, and
shall ensure that such employees are aware of and shall comply with
relevant obligations in relation to confidentiality and the requirements of
the Data Protection Act 1998 (or legislation amending or replacing it),
32. All parties shall use all reasonable endeavours to ensure that any government
department, contracting authority, employee, third party or sub-contractor to
whom the other parties’ Confidential Information is disclosed pursuant to this
MoU, is made aware of the obligations of confidentiality that such each party
owes to the other.
33. The parties warrant that they shall comply with their obligations under the Data
Protection Act 1998, Directive 95/46/EC of the European Parliament and any
legislation and/or regulations implementing them, amending or replacing them as
a consequence of the General Data Protection Regulations or made in
pursuance of them and any associated legislation that arises in connection with
FREEDOM OF INFORMATION
34. The parties acknowledge that they are respectively subject to the requirements
of the Freedom of Information Act 2000 (FOIA) and the Environment Information
Regulation 2004 and shall assist and cooperate with each other to enable both
organisations to comply with their information disclosure obligations.
35. Both parties acknowledge that they will, in the normal course of events, advise
and consult the other party when they receive a request under the FOIA in
connection with the pilot in the Combined Authority.
36. Both parties agree that nothing in this MoU shall prevent the disclosure of
Confidential Information which a party may be obliged to disclose or make
available under any applicable rule of law or Government regulation.
SUBJECT ACCESS REQUESTS
37. The parties acknowledge they are required to answer subject access requests
(SAR’s) made under the Data Protection Act 1998 (or legislation amending or
replacing it), and undertake to answer such requests in accordance with their
obligations under the Act and their respective procedures.
38. The parties shall consult with each other before deciding whether to give any
publicity to the matters covered by this MoU.
INTELLECTUAL PROPERTY RIGHTS (IPR)
39. The parties may use each other’s and Departmental logos for the purposes of
delivering and promoting the services specified in the MoU provided such use is
in line with the owner’s guidelines.
40. Any other use of the logo or other intellectual property rights will require express
permission in writing from the owner.
41. The parties will have joint IPR ownership around the outputs and products of the
pilot. There will be no additional charge or restriction on DWP employing these
outputs and products on other programmes of work across government or the
42. This MoU may only be terminated before the expiration set out in paragraph 4 by
the written agreement of either party, or the failure to comply with the conditions
within the MoU.
Signed for and on behalf of DWP:
: Director of Labour Market Strategy and International Affairs
Signed for and on behalf of Liverpool City Region Combined Authority:
Position: Director of Corporate Services
Signature: Section 40
Bank account details
Information required by the Department to make payment of grant for the
activities stated in the offer letter.
Contact details for Liverpool City Region Combined Authority to whom
payment should be sent