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 Tees Valley Combined Authority, I have read
the Grant Offer Letter dated 19 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 Tees Valley
Name (please print)
Position in organisation
Principal contact for Tees
Valley Combined Authority
Tees Valley Combined
House, Stockton on Tees
Head of Skills, Education
Head of Skills, Education
Memorandum of Understanding between the Department for Work and
Pensions (DWP) (Labour Market Strategy and International Affairs Directorate)
and Tees Valley Combined Authority for the Hardest to Help (H2H)
1. The parties to this Memorandum of Understanding (“MoU”) are:
DWP (The Labour Market Strategy and International Affairs (LMSIA)
Tees Valley Combined Authority (the Combined Authority).
2. This MoU, which is not legally binding, 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
PERIOD OF OPERATION
4. This pilot is intended to run from March 2018 to April 2021. There may however
be elements of the pilot that will run beyond April 2021 subject to further
agreement between the Parties. In such circumstance the Combined Authority
will formally write to DWP setting out their proposed extended timeline.
5. It has been agreed by the Minister for Disabled People and Department for
Housing, Communities and Local Government and Treasury Ministers that there
is a strong labour market policy rationale in inviting Tees Valley Combined
Authority to develop, for DWP Ministerial approval, a business case for an
innovative pilot to support those who are hardest to help into employment.
6. This pilot will involve a robust evaluation to test the individual and collective
impact of new interventions, including the impact on employment outcomes and
spend within the local area.
7. Through this pilot DWP and the Combined Authority want to test a set of
interventions identified as having the potential 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 ;
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 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 these outcomes;
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;
Develop and implement interventions across Tees Valley based upon
demand and the pilots target population requirements for both in or out of
Produce a detailed implementation and delivery plan, setting out roles and
responsibilities, a timetable for mobilisation and live-running and a plan for
10. Designing a robust evaluation of the pilot is, for DWP and the Combined
Authority, a key element of the pilot. In relation to evaluation the Combined
Authority should develop proposals on:
The objectives of the pilot and the outcomes to be measured;
The methods used to evaluate the pilot (including impact, process and
economic evaluation); 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. The first grant award of £1.5m inclusive of non-recoverable 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:
£2m in 2018/19
£2.5m in 2019/20.
13. This investment is for the sole purpose of delivering the pilot. Anticipated
outcomes are listed in the Performance Monitoring and Reporting section below
and in Annex D containing the customer journey. DWP acknowledges that a
percentage of the grant award will be used to pay for overheads such as
management and administration of the pilot.
14. 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
Participating in the programme
Making positive outcomes
Making significant improvements / moving
closer to securing work.
Moved into employment
15. A steering group will be established to monitor the progress of the pilot. Terms of
Reference for the group will be agreed, and DWP will be a member of this group.
It is envisaged the group would meet and review MI on a quarterly basis and
review the use of the grant funding.
16. 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.
17. 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
18. DWP reserves the right to adjust future grant profiles or request the repayment
of underspend carried forward from the previous financial year by the Combined
Authority if it deems this aggregated carry-forward amount to be significant in
relation to foreseeable future liabilities arising. Adjustments to lowering future
grant agreements will be by exception and only considered at a point where
performance achievement is considerably below profile and an improvement
plan has not been agreed by both parties.
19. 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.
20. 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.
21. The final 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.
22. The Combined Authority shall include appropriate clauses in contracts when
recruiting additional personnel or contracting out services, to allow for the
potential of the pilot terminating ahead of the end date.
THE PRINCIPLES OF COLLABORATIVE WORKING
23. DWP and the Combined Authority have a shared commitment to:
Work collaboratively in the spirit of partnership – working jointly and
openly to ensure successful outcomes;
Be open - 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;
Spread learning – enable lessons on how to design a successful pilot and
best practice identified through the pilot to be shared with other areas.
MANAGEMENT & GOVERNANCE
24. The Accountable Manager employed by the Combined Authority will be
accountable for the delivery of the outcomes of the pilot and for the appropriate
use of the initial and any subsequent grants.
25. 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 DWP Programme
Manager and the Innovation Pilot SRO.
26. 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
27. Concerns raised within DWP will be escalated to the Combined Authority
through the following routes:
– Section 40
– Section 40
Senior Responsible Officer –
28. 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 party;
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 Tees Valley Combined Authority employees and partners who are directly
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.
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 data
protection legislation; 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 data protection legislation.
29. 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 each such party
owes to the other.
30. 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 or
made in pursuance of them and any associated legislation that arises in
connection with the MoU.
FREEDOM OF INFORMATION AND INFORMATION LAW
31. The parties acknowledge that they are respectively subject to the requirements
of the Freedom of Information Act 2000 (FOIA) and shall assist and cooperate
with each other to enable both organisations to comply with their information
32. 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.
33. The parties acknowledge they are required to answer subject access requests
(SAR’s) made under data protection legislation and undertake to answer such
requests in accordance with their obligations under such legislation and their
34. 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)
35. 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.
36. Any other use of the logo or other intellectual property rights will require express
permission in writing from the owner.
37. 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
38. 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 Tees Valley Combined Authority:
Position: Managing Director
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 Tees Valley Combined Authority to whom payment
should be sent
Tees Valley Routes to Work Pilot- Typical Customer Journey - Pre-Work Stages (Up to 2 years)
Further In-Work support
offered for up to 12 months
Customer Eligibility (Voluntary)
Pre-Engagement activities for all
Customer returns after initial
Ongoing support and
Undertake work related
“Moved Into Work” – defined
referrals from a variety of
meeting and is now
Output indicator= ‘
as when someone
sources including DWP
considered to be 'Engaged'
moves into paid work of at least
In-Work Support for
significant improvements /
moving closer to securing
16 hrs per week
Employee /Employer on offer
average of this over a 4-week
In all cases the customer must be aged 30 or over, not be in
Initial meeting/ contact from
Re-visit /complete full
Provide wrap around
Work related experience
Continued links with the customer
work and either:
individual e.g. via community
Action Plan to address
support from holistic Key
Evidence of employment
volunteering (ensuring JCP
disengaged from the benefits system or:
Work Coach / informed.)
Completion of referral
Multi agency involvement/
Respond to individual needs
Complete training courses
Informal assessment of need
Link with other existing
with Flexible Fund – e.g.
/activities needed to become
plus fall within any of 1-4 below:
Sort out any new problems
ready for the labour market
Long term (2yrs +) unemployed /inactive benefits.
that arise or old ones that re-
First steps activity /appointment
Take up support offer e.g.
through agreed data sharing
These people are ready for
Claim to Employment and Support Allowance (ESA) rejected.
Helping people to secure
Action plan started
Supported transition to
more sustainable jobs /longer
Refer to existing mainstream
In the ESA support group (health/disability).
hours, if appropriate
Agrees and shows willing to
provision where appropriate
Provide Skills support
Social fund type
including literacy/ numeracy/
Access Nat Careers
Have been out of work for min 13 weeks and be unlikely to find
specific training which is
Ask about Benefits position and
Service support offer
work in the next 12 months, due to having significant or
essential to employment but
Ongoing support - talk to the
if receiving any benefits inform
Continue ongoing dialogue
multiple barriers to work
. This could include:
which can’t be met from any
employer if needed.
with DWP Work Coach
Help with any issues that might
Health/MH or disability
Our initial working assumption is a
Brokerage/ employer support
arise - brokerage?
‘three to one’ referral to start ratio (for
'Access to work'
Special Educational Needs / Disabilities
Record sustainability up to 52
stage 1 contacts to be converted into
Special needs or equipment
Stage 2 full engagement) is to be
Funding – discuss with JCP
expected. This will be continuously
local (SM) to agree share of
Sustainability is achieved when
monitored throughout live running.
certain costs on a TV wide
Returners to the labour market
the individual has been in paid
basis (rather than ad-hoc)
work for ‘any 13 weeks out of a
Full MI to be kept for all referrals to
RTW -Some part funded
26 week period’.
understand who was referred and
short term positions for
why they have not engaged.
those who are difficult to
place and lack recent
NB: to include those who are
required to be registered self-
RTW-possible partial wage
employed as normal practice
incentive to help with
within their industry (e.g.
additional costs to employer
individual contractors, healthcare
However for ‘business start-up’
cases, this should be for a
continuous 13wk period, as with
the New Enterprise Allowance
Team will monitor for up to 52
weeks -aiming for ‘any 26 out of
52 weeks in work’
Estimate up to 7500 referrals
Define point when target reached
defined as where
“Making positive outcomes” –
“Moved Into Work” –
- when the
customer has shown to have
defined as where customers
improvements / moving closer
individual has been in work for
continued to attend after first
have now completed one
– defined as someone
moves into paid work of at least
any 13 out of 26 weeks
meeting and agreed to take part
agreed activity or started
who has completed activities/
16 hrs per week (or an average
in some sort of progression
another. (e.g. as per list
training and is now ready to apply
of this over a 4-week period)
supplied by SM DWP)
for work / work experience