Purpose

The Connect to Work programme,
supports the Executive Mayor Business Plan priority to
“support the local economy and residents to upskill and
access job opportunities.” As part of the Government’s
‘Get Britain Working’ strategy, the programme focuses
on helping economically inactive residents—including those
with disabilities, long-term health conditions, or complex
barriers—enter and stay in employment.
 
It also aims to prevent job
loss among at-risk workers. Following cabinet approval for Croydon
to act as lead accountable body on behalf of the South London
Partnership, this report seeks delegated approval from the
Corporate Director of Sustainable Communities, Regeneration and
Economic Recovery to commence delivery of the programme.
 
Draft
Recommendation:
 
1)   
Enter into a grant agreement with the Department for
Work and Pensions (DWP) to fully fund the Connect to Work
programme.
 
2)   
Enter into delivery agreements with SLP partners
(the London Boroughs of Kingston upon Thames, Merton, and
Sutton).
 
3)   
Enter into a separate agreement with the London
Borough of Richmond upon Thames to cover its direct delivery
arrangements.
 
4)   
Award a five-year contract (with a two-year
extension option) to the selected provider, with an estimated total
contract value of £29.1 million.
 

Content

For the reasons set out in the
report and its Part B report, the Corporate Director of Sustainable
Communities, Regeneration and Economic Recovery AGREED
to:
 
1.1        
Approve the award of the contract for the Connect to
Work Employment Support Programme – South London Partnership
for a period of 5 years with an optional 2-year extension from
September 2025 until 31st March 2030 to Bidder A and for
the  total value as set out in the Part
B report.
 
1.2        
Note that the name of the successful bidder will be
released following the award decision.
 

Reasons for the decision

The Connect to Work programme
is a cornerstone of the SLP’s strategy to reduce economic
inactivity and support residents with disabilities, long-term
health conditions, and other barriers to employment. The programme
is fully funded by DWP and involves no direct cost to Council
budgets.
 
The procurement process
followed an open procedure under the Public Contracts Regulations
2015 (PCR 2015). The tender was issued prior to the Procurement Act
2023 (PA 23) going live; hence, PCR 2015 rather than PA 23 applies.
It was designed to ensure value for money, compliance with national
procurement rules, and the selection of a provider capable of
delivering this complex, locally tailored service.
 
Bidder A submitted the most
economically advantageous tender, demonstrating a high-quality
delivery approach that aligns with both national DWP requirements
and local priorities across the SLP boroughs.
 
Awarding this contract will
enable Croydon, as the accountable body, to enter into a Grant
Funding Agreement with DWP and meet its obligations to manage and
oversee delivery across the SLP area.
 

Alternative options considered

Option Summary

Pro’s

Con’s

Option 1 – Direct
Delivery by Croydon and SLP Boroughs
 
(not recommended)

The main advantage of this
option is that it would give the boroughs full control over the
programme’s design and delivery, allowing for strong
alignment with local needs and priorities. It would enable a more
integrated approach with existing services and support structures,
as well as foster greater accountability and responsiveness. Having
direct oversight of performance and staffing could enhance the
consistency and quality of delivery across boroughs.

This option presents
significant challenges. It would require the recruitment of
dedicated staff, the creation of delivery infrastructure, and the
procurement of additional systems—particularly databases for
tracking participant progress. These demands would place a
substantial financial and logistical burden on each borough. Given
current capacity constraints and budget pressures, the direct
delivery model would be difficult to implement at pace and is
therefore considered less feasible.

Option 2 – Declining the
Connect to Work Contract
 
(not recommended)

By choosing not to participate,
the Council would avoid operational responsibilities involved in
delivering or managing the programme. This would reduce pressure on
internal resources and staffing at a time when local authorities
are facing competing priorities. It would also eliminate the risk
of underperformance or delivery failure that could affect the
Council’s reputation.

This approach would result in a
missed opportunity to provide targeted, locally influenced
employment support for Croydon residents. Without participating in
the programme, the Council would lose the ability to shape service
design or adapt provision to meet specific community needs. It
could also lead to a significant gap in support for residents who
are furthest from the labour market, and damage Croydon’s
leadership role within the SLP partnership. The reputational and
social costs of opting out are likely to outweigh the
administrative benefits.

Option 3 – Commissioning
an External Provider via Competitive Procurement
 
(recommended)

This option would give the
Council access to a broader pool of specialist providers,
potentially bringing in innovation, best practice, and established
delivery frameworks. Competitive tendering may also help
demonstrate value for money and relieve internal teams of
day-to-day programme responsibilities. Outsourcing delivery could
allow the Council to focus on oversight and strategic outcomes
rather than operational management.

A full procurement exercise
required, followed by a mobilisation period. This is more resource
intensive and creates a risk of delay, however the pros are
considered to outweigh the cons and careful management of the
timetable will mitigate the risk of delays.