Disability Employment Service star ratings error prompts investigation

The Government has launched an investigation into the Disability Employment Services (DES) Star Ratings system after it discovered a coding error has impacted the ratings awarded to some providers.

DES providers are graded on a scale from 0-5 based on their success in providing employment outcomes for participants, with the ratings impacted by external factors such as economic and labour market conditions.

To ensure they remain accurate, only two years worth of data is used for assessment by the Department of Social Services.

But a coding error meant historical data outside of that time period was used and inaccurate ratings were given to approximately 50 DES providers.

Roughly two percent of the impacted providers had services incorrectly dumped from the scheme as a result of the mistake, while an unknown number of providers escaped necessary performance reviews conducted on poorly performing operators.

Minister for Social Services, Amanda Rishworth, expressed her concerns and says immediate action will take place to rectify the incorrect ratings.

“The Star Ratings are an important part of monitoring [the] performance of DES providers. I have been clear that broad reform to the DES program is required,” says Minister Rishworth.

“That is why in the recent Budget I announced immediate adjustments will be made to the DES program to improve quality, while the Government conducts the detailed reform work to implement a new system.

“The Government is committed to a DES program that provides improved outcomes for both participants and taxpayers.”

Two immediate actions have been announced to fix the Star Ratings error, with Department of Social Services Secretary, Ray Griggs, tasked with establishing an external investigation into the error and application of the system.

Meanwhile, Formal Performance Assessments of DES providers based on Star Ratings, and the publication of Star Ratings, have been suspended until the coding error is fixed.

Minister Rishworth is also reassuring DES participants that any immediate action is not going to impact their services.

Disability employment has been a recurring topic in the second half of 2022; Dylan Alcott urged employers to hire more people with disability at the Jobs and Skills Summit in September.

A new Government trial was announced for 2023 that will directly connect National Disability Insurance Scheme (NDIS) job seekers with a DES provider, while the Federal Budget allocated nearly $20 million to extend the DES for two more years.

It was a move that coincides with a delayed introduction of new DES reforms for another two years so the Government can further conduct consultations.

Minister Rishworth says additional discussions with people with disability are an important step to ensure the new DES Quality Framework provides stronger employment opportunities.

“I am very keen to see what we can do to boost quality of these services and lift up the whole system to provide better outcomes for people living with disability,” says Minister Rishworth.

“We need a more rich, highly specialised employment service to deliver good outcomes.”