Disability Employment overhaul:Half to see some services end

[bear]

Disability employment services sector to be overhauled, with some providers shut down

Amanda Rishworth says poorly performing DES providers were given every opportunity to put measures in place to improve.

Eight providers of disability employment services are set to be effectively shut down by the federal government as part of wide-ranging overhaul of the sector.

Key points:

Half of the country's disability employment services will see some or all of their services end due to poor performance 

Eight will lose funding for all of their services

More than 15,000 people with a disability will be affected by the decision

From today, 52 of the 104 DES providers nationally will begin to be contacted and informed that some or all of their services will end due to poor performance.

While most will be able to continue offering some services, eight will lose funding for all of their services.

The dramatic steps follow a months-long review into the sector in the wake of the disability royal commission.

It heard evidence that many DES providers were not achieving long-term outcomes for clients, with job placements ending abruptly, or in some cases only lasting while subsidies were being paid.

Complaints were made of providers focusing on those clients most likely to find work, while "parking" more disadvantaged jobseekers and paying them little attention, or churning others through activities for little benefit.

More than 15,000 people with a disability will be affected, as six per cent of services operated by DES providers nationwide are shut down.

They will be moved to different providers nearby, and "mutual obligations" — any requirements for them to seek work to earn disability support payments — will be waived for two months as the transition occurs.

Social Services Minister Amanda Rishworth says the changes mean those people will be placed in better-run services, and will have more opportunity to find work.

"People living with disability deserve the best possible service in helping to find employment.

"Poorly performing DES providers were given every opportunity to put measures in place to improve and were aware of the formal review process," she said.

"It is vital that funding is directed to organisations who have proven they are delivering the best support to participants."

Providers with hundreds of clients finding handfuls of jobs

The review began in March under the former Morrison government, after it was first flagged towards the end of last year.

Providers subject to the review due to ongoing poor performance were notified in writing.

One provider with roughly 650 clients received close to $900,000 in government funding throughout 2021, but placed just six people in jobs that lasted half a year or longer, and only one that lasted more than a year.

All of its services are being ended.

Ms Rishworth said the moves are necessary to give people with a disability who need support the best chance to get into employment.

"We are taking action to ensure people living with disability and who want to work get every opportunity to do so in a meaningful way," Ms Rishworth said.

"Everyone deserves the opportunity and dignity of work, including people living with disability."

www.abc.net.au/news/2022-08-21/disability-employment-services-sector-to-be-overhauled-with-some/101354428?utm_campaign=abc_news_web&utm_content=facebook&utm_medium=content_shared&utm_source=abc_news_web

[bear]

Job agency criticised for disability barista program loses contracts in shake-up

AimBig one of 52 providers to lose market share in $1bn a year Disability Employment Services program

A job agency that came under fire at the disability royal commission for a questionable barista course is among several providers stripped of contracts under a shake-up of Disability Employment Services (Des).

AimBig Employment is one of 52 for-profit and charity-run employment services providers that have lost market share in the $1bn-a-year program following a performance review.

The company was criticised at the royal commission in February, after the inquiry heard it claimed more than $1m in government payments for its “BusyBeans” barista program for people with disability. The program was said to have lacked basic equipment in one case, despite being also funded by a $300,000 government grant.

According to documents published by the government on Wednesday, AimBig will lose about 18% of the 106 Des job agency sites it has been running, making it the second-hardest hit provider. The changes are the result of this periodic review, not the royal commission.

The worst-hit job agency is AtWork, which will have 19% of its 123 sites closed. It has faced criticism from jobseekers during the rollout of the separate mainstream job services scheme, Workforce Australia.

Joblife Employment, Status Employment Services, About2Work, which lost all of its eight sites, and Matchworks were the others to lose the most in market share.

Other affected companies to lose a small number of sites included major players Max Employment, the Salvation Army Employment Plus and Sarina Russo.

The largest provider, APM, was not affected by the overhaul.

About 15,000 jobseekers will be referred to a new provider following the changes, which were first announced at the weekend by the social services minister, Amanda Rishworth, ahead of the government’s jobs summit.

The list of affected providers was published on Wednesday and includes eight small providers who have been stripped of all their Des sites.

Rishworth said about 6% of disability employment services were “just not up to scratch”.

“We don’t think people with a disability deserve that,” she told ABC Radio on Wednesday. “Now I will make the point that there are a lot of good providers that are doing a great job with people with a disability, but it’s not good enough for their reputation to be damaged by poor-quality services.”

Because the scheme relies on outsourced providers, most of the $1bn a year allocated in the federal budget to the program is paid to for-profit and charity-run job agencies.

They receive service fees for each jobseeker on their books and “outcome” payments for placing people into employment or education.

Guardian Australia has reported extensively on how the complex, privatised job services model – and the accompanying mutual obligations that underpin the system – can see jobseekers forced through tick-a-box activities, while major providers can profit even when individuals find their own jobs.

A secret report commissioned by the former Coalition government and revealed by Guardian Australia showed the cost of the Des scheme had blown out significantly. This had padded the bottom line of providers but the quality of service was poor, the report said.

The “reallocation” of the business share of each Des job agency happens periodically and is based on a series of indicators, known as “star ratings”.

Both the employment services industry and welfare advocates have previously criticised the “star ratings” model, with some experts and former consultants saying the ratings can incentivise perverse outcomes, such as funnelling jobseekers into unnecessary education courses.

The Des scheme is currently under review by the government, as the contracts are set to conclude next year.

www.theguardian.com/australia-news/2022/aug/24/job-agency-criticised-for-disability-barista-program-loses-contracts-in-shake-up