That the Cabinet Member for Economy and Growth approves and delegates to the Service Directors for Economy and Growth and Education, Skills and Learning:

a)    the procurement of the Connect to Work Individual Placement and Support (IPS) programme in Herefordshire; and

b)    the award of a contract to the successful bidder for a term of up to 3 years and 6 months, commencing in October 2026, with a contract value of up to £1.22 million; and

c)    Delegates operational responsibility for the delivery of the Connect to Work programme in Herefordshire.

1.     Option 1: Do not procure an Individual Placement and Support (IPS) provider and do not participate in the Connect to Work programme. The advantages of this would be that there would be no requirement for procurement activity or contract management. The disadvantages of this option are:

a)    Herefordshire residents with health conditions, disabilities and complex barriers to employment would not have access to the additional support and funded provision available through the Connect to Work programme.

b)    The council would lose the opportunity to secure significant external funding to support employment outcomes and economic inclusion.

c)     The council would be unable to contribute fully to national and local objectives relating to economic inactivity, employment and skills.

2.     This option is rejected as it would result in Herefordshire residents missing out on a nationally funded employment support programme and would not support the council's objectives to improve employment outcomes and inclusive growth.

3.     Option 2: Deliver the IPS service directly through the council without procuring an external specialist provider. The advantages of this would be that the council would have direct control over service delivery and performance and there would be a potential opportunity to align more closely with existing council services. The disadvantages of this option are:

a)          The council does not currently have the specialist IPS workforce, infrastructure, systems or experience required to deliver the service at the scale and pace required by the programme.

b)          Significant recruitment, training and operational setup costs would be incurred.

c)           Greater financial and delivery risk would rest with the council.

d)     Delivery timescales may be adversely impacted, risking achievement of programme milestones and outcomes.

4.     This option is rejected as procuring a specialist provider offers the most cost-effective and efficient route to mobilise delivery within required timescales while ensuring access to established IPS expertise and proven delivery models.

5.     The recommended option is to procure a specialist provider to deliver the IPS service. This option is recommended as it provides the best balance of value for money, delivery capability, compliance with programme requirements and achievement of employment outcomes for eligible residents. It enables the council to access specialist expertise, minimise delivery risks and maximise the benefits of external programme funding for Herefordshire residents.