Statutory guidance

NEA phase 2 memo 13: Temporary amendments to the provider guidance

Updated 13 January 2023

To	New Enterprise Allowance (NEA) Providers
From	Gordon Ross, Specialist Employment Provision Lead, Design, Change and Business Support, Contracted Health and Employment Services, Department for Work and Pensions (DWP)
Action	For PRIME provider information and action
Timing	Immediate

1. Providers will be aware that the NEA programme design has been adapted to take into account a number of temporary measures necessitated by the ongoing Coronavirus (COVID-19) pandemic.

2. You have received Letters of Change or Contract Variations and will have taken note of the responses which DWP has published in the COVID-19 provider question and answer log, to be found on Jaggaer.

3. An updated version of the NEA provider guidance will shortly be available, also via Jaggaer, which places all these various measures in the context of each chapter of NEA provider guidance.

4. You will find the temporary measures noted in highlighted text boxes placed above or below the paragraphs which are altered or affected. Unless indicated to the contrary by other communications, or in these text boxes, the rest of the guidance is unchanged.

5. These boxes will be removed as soon as normal service can be resumed.

Action

6. For your convenience, a list indicating the whereabouts and broad nature of the changes is included below. Please treat this list as signposting – you should read the guidance amendments in full before raising any query.

Amendments to the provider guidance

7. NEA provider guidance has been temporarily amended as shown in the following list.

Note: While some revisions are noted at various points in the guidance. For the purpose of this list, the revision will only be referenced once, when it first occurs, rather than at each point.

Section number 1 revisions

Included in this chapter:

• an introduction to the COVID-19 amendments is placed at the beginning, introducing the text boxes used throughout the guidance. As noted, we have attempted to address the main issues within each chapter of this guidance, but cannot guarantee that every scenario that may arise is covered
• information regarding eligibility for the Existing Self Employed Offer, and how, currently, no claimant can meet the eligibility conditions and that the eligibility criteria is currently under review
• reference to the European Social Fund (ESF) 2014 to 2020 guidance being updated and providers need to review that to ensure they are meeting current requirements
• change to Link Up Start Up (LUSU) – sharing information with the claimant electronically or by telephone and no specific LUSU referral. Only a referral to the Initial Assessment will be made
• change regarding the Initial Assessment – the provider will undertake an initial assessment of eligible individuals within 15 working days of the referral date and record the result in the Provider Referrals and Payments (PRaP) system within 20 working days of the referral
• ability to extend 12-week period of enhanced mentoring offer by a further 6 weeks, if needed. Beyond that must be agreed with the Performance Manager

Section number 2 revisions

Included in this chapter:

• confirmation that information and processes regarding NEA Provider Self Referrals, available as a temporary measure during the COVID-19 pandemic, will be shared with providers separately to this guidance
• during COVID-19 the warm handover may not be possible, so a referral will be made directly to the provider, who will then have to conduct the warm handover conversation with your potential participant yourself
• due to the Government’s social distancing guidelines, contracted provision participants should not be asked to attend any face-to-face appointments at any time until guidelines change. Providers will need to ensure latest government guidance is followed when deciding whether to re-open premises and offering face-to-face support
• where NEA provider guidance states there is a need to obtain a “wet” signature on a document, then the document can be annotated “due to COVID-19” in lieu of a signature. A signature must be sought, where possible, by the provider at the next appropriate opportunity. ESF 2014 to 2020 guidance still needs to be followed with regards to their requirements

Section number 3 revisions

Included in this chapter:

• a letter issued by DWPs Employment Account Director, on 27 March 2020 confirms that contact via alternative channels of communication, video calls and other similar platforms, can be used subject to guidelines outlined in the communication
• LUSU information shared ahead of Initial Assessment, to be discussed before assessment takes place (but can be part of same conversation and interaction if desired)
• no minimum length of time regarding LUSU
• record someone who decides not to proceed following receiving the LUSU information as a “Did Not Start”

Section number 4 revisions

COVID-19 text as previously described in this list.

Section number 5 revisions

Included in this chapter:

• Financial Planning Workshop and Marketing Workshop delivered in same way as LUSU, that is information issued to claimant. Whilst the 90 minutes timescale will not apply, claimants should still be able to discuss this with the provider
• when sharing information with the claimant digitally during the COVID-19 event, the provider will only be required to ensure they retain evidence showing the information has been shared, for example, a copy of an email containing the information that was sent to the claimant
• DWP are currently reviewing the processes regarding claiming the NEA weekly allowance (also known as a Trading Allowance) and updating them in light of the COVID-19 event. Claimants should still be advised to contact Jobcentre Plus to apply for this allowance

Section number 6 revisions

Included in this chapter:

• where participation in NEA is interrupted due to COVID-19 occurs, then balance of time can be added, up to a maximum of 13 weeks, without the need for participation to be ended and a new referral made
• for breaks longer than 13 weeks then the participant should be exited from the programme
• at this stage no change will be made to the overall allotted time, however this is being reviewed and you will be informed of any update to this
• for changes to the business idea, made during the start-up period, following Business Plan sign-off, or following the commencement of trading, the requirement for the participant to be recorded as completed provision and, where required, a new referral made should be suspended during the COVID-19 period
• for changes to the business idea, where there is a change of business idea the provider will need to update the Business Plan and their records to reflect the change, and include the term “due to COVID-19” to identify that new guidance was being followed. There is no need to seek or have JCP permission to make the change
• for changes to the business, the provider will still need to consider the suggested change to the business and whether you can offer support. You retain the option to continue working with the participant, using the recommended easements, or to end provision (as per paragraph 6.57), if the decision was that support could not be given

Section number 7 revisions

Included in this chapter:

• where applicable, the COVID-19 Monthly Payment (which DWP may make to the provider during the COVID-19 Relief Period from 1st April 2020), replaces the Delivery Fee Payments. Any under or over payments will be adjusted in the payment process
• providers will then move to a Cost Plus model which replaces all other payments including outcome fees. DWP and the provider can mutually agree to any amendment to the Relief Expiry Date

Section number 8 revisions

Included in this chapter:

• we are currently considering how best to recommence validation and review activities whilst continuing to support colleagues to deal with the current volume of claims for Universal Credit. We do expect to recommence validation, including the extrapolation of error rates and we will share further plans and timescales as soon as we are able. In the meantime, if you have any specific concerns, please direct them through your usual contacts

Section number 9 revisions

Included in this chapter:

• to confirm that electronic signatures, emails, scanned documents, texts etc. would all be acceptable to DWP, as part of any evidence you retain. This includes documentations where “due to COVID-19” has been used in lieu of a signature
• with regards to evidencing requirements the overriding principle remains that the provider needs have sufficient evidence to satisfy them that they can, for example, make a claim for commencement of trading and that it is reasonable to make the claim. This would include it being reasonable to show that the evidence is not something that could be easily produced by another party, so an email by itself may not be sufficient, but as part of a suite of evidence could be. Providers are reminded that having such evidence is not a guarantee that a claim will pass validation
• a reminder that when reviewing the evidence requirements in Table 1 that note should be taken of the COVID-19 easements contained within the guidance

Section number 10 revisions

COVID-19 text as previously described in this list.

Annex 1 to 13 revisions

COVID-19 text as previously described.

Further information and contact details in this list.

8. Providers will appreciate that the COVID-19 situation is highly mutable. We hope we have captured the principle impacts on NEA provider guidance, to date, but accept there may be further considerations or decisions yet to come.

9. If you have any queries about the NEA programme or this live running memo, please consult your Performance Manager in the first instance.

10. If your enquiry is of a commercial nature, or if you have any queries or concerns regarding Contract Variations or Letters of Change, please direct them to the Commercial Directorate inbox: employmentcategory.covid19@dwp.gov.uk.

11. Please ensure your supply chain is notified of this change and ensure all staff adheres to this updated guidance.