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 the West Midlands Combined Authority, I have
read both 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 West Midlands
26 March 2018
Name (please print)
Position in organisation
Head of Governance
Principal contacts for West
16 Summer Lane,
16 Summer Lane,
Programme Lead for Skills,
Employment & Productivity
Section firstname.lastname@example.org Section email@example.com
Memorandum of Understanding between the Department for Work and
Pensions (DWP) (Labour Market Strategy and International Affairs Directorate)
and West Midlands Combined Authority for the Employment Support
1. The parties to this Memorandum of Understanding (“MoU”) are:
DWP (The Labour Market Strategy and International Affairs (LMSIA)
West Midlands 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 LMSIA 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 including the conditions required to be
met to release future grant awards;
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 MoU between DWP and West Midlands Combined Authority 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
circumstances, the Combined Authority will formally write to DWP setting out their
proposed extended timeline.
5. As part of the West Midlands Combined Authority Devolution Agreement, that the
West Midlands Combined Authority signed with government they were given the
opportunity to develop, for DWP Ministerial approval, a business case for an
innovative pilot to support those who are hardest to help.
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. The pilot will be initiated in June 2018 and run for 3 years.
This indicates an end date of June 2021. DWP can only commit to provision of
funding for the SR years covering 17-18, 18-19 and 19-20 so the deadline for final
funding contribution is March 2020.
7. Through this pilot LMSIA and the Combined Authority want to test a set of
interventions that have been 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
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;
Agreeing the localities in which the interventions will run and the pilot’s
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 employment outcomes as
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 is in place to promote swift
Work collaboratively with the Account Manager, reporting progress,
escalating any concerns, develop solutions to shared 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. The Combined Authority is expected to commit to designing a robust evaluation
of the pilot and it is a key objective for DWP that this objective is met. 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
11. An initial grant award of £1,321,008 inclusive of any non-recoverable VAT will be
paid to the Combined Authority in the 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:
£1,828,644 in 2018-19
£1,550,348 in 2019-20
13. 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 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:
Starts on Programme
Customers Embedded on Programme
Job Sustainment 13 weeks
Job Sustainment 26 weeks
Job Sustainment 52 weeks
15. A governance group will be established to monitor the progress of the pilot.
Terms of Reference for the group will be agreed between DWP and the
Combined Authority nearer the point of implementation. It is anticipated that the
group will meet and review MI on a quarterly basis and review the use of the
grant funding and the release of future grants.
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 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 under profile.
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 annual reconciliation process shall also include a complete
reconciliation for the entire period of the grant, with supporting management
information. The Combined Authority should, 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 should 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
23. DWP will conduct 6 monthly reviews with the Combined Authority to confirm the
performance indicators above are being met.
24. The Combined Authority will be given detailed feedback from DWP outlining the
rationale for either releasing or declining future grant payments.
THE PRINCIPLES OF COLLABORATIVE WORKING
25. LMSIA 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 for example around contracting and procurement;
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
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 to be
shared to other areas.
MANAGEMENT & GOVERNANCE
26. The Accountable Officer acting on behalf of the Combined Authority is Rachel
Egan. They will be accountable for the delivery of the outcomes of the pilot and
for the appropriate use of the initial and any subsequent grants, as set out in the
27. LMSIA 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 Accountable Officer and the
Innovation Pilot SRO.
28. Concerns raised within/by the Combined Authority should be escalated to LMSIA
through the following routes:
– Section 40
– Section 40
Innovation Pilot Senior Responsible Officer
– Section 40
29. Concerns raised within LMSIA will be escalated to the Combined Authority through
the following routes:
– Section 40
– Section 40
Director of Productivity & Skills
- Section 40
30. 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 party's confidential information to any other person
without the owner's prior written consent; and
The Combined Authority may only disclose DWP’s Confidential Information,
to West Midlands Combined Authority 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.
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
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.
31. 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
32. 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 or made in pursuance of them
and any associated legislation that arises in connection with the MoU.
FREEDOM OF INFORMATION AND INFORMATION LAW
33. The parties will act in accordance with the requirements of the Freedom of
Information Act 2000 (FOIA) and shall assist and cooperate with one another to
enable both organisations to comply with their Information disclosure obligations.
Account Managers will oversee and document this process in cooperation with the
34. 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.
35. The parties acknowledge they are required to answer subject access request
(SAR’s) made under data protection legislation and undertake to answer such
requests in accordance with their obligations under such legislation and their
36. The parties shall consult with each other before deciding whether to give any
publicity to the matters covered by this MoU.
INTELLECTUAL PROPERTY RIGHTS
37. 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.
38. Any other use of the logo or other intellectual property rights will require express
permission in writing from the owner.
39. 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
40. 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 West Midlands Combined Authority:
Position: Head of Governance
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 West Midlands Combined Authority to whom payment
should be sent