Work Programme will not help poor areas, critics claim

10 Jun 11
The government launched its national back-to-work initiative today amid accusations that it will not help poorer parts of the country.
By Richard Johnstone | 10 June 2011

The government launched its national back-to-work initiative today amid accusations that it will not help poorer parts of the country.

The Work Programme, which aims to get 2.5 million people in the UK into jobs, will pay private and voluntary sector organisations on the basis of their success in finding people jobs.

The Department for Work and Pensions says that giving providers incentives to get people into work addresses the needs of the long-term unemployed.

However, there were warnings that this ‘payment by results’ method would not work in parts of the country with low economic growth.

Across the UK, 18 lead providers will be paid based on their success, with higher payments for supporting those deemed hardest to help. The programme will cost a maximum of £5bn over the seven-year contracts, paid in part by the DWP using some of the expected savings on benefits.

Launching the programme, employment minister Chris Grayling said it would ‘tackle the endemic worklessness that has blighted so many of the country’s communities for decades’.

He added: ‘It is revolutionary in the way it tailors support to jobseekers’ individual needs and pays organisations primarily for getting people into sustained employment. We want to establish a deal, where we will do our bit and get people ready for work and in exchange we will expect people to take up the work that is available.’

However, the Work Foundation think-tank warned that the national payment structure would not take into account regional differences in the job market.

Neil Lee, senior economist at the foundation, said it would be difficult for contractors to make a profit on the programme in certain parts of Scotland, Wales and London, which would lead to less activity in these areas.

‘There is the danger that private contractors will focus on places where they are more likely to get people into work,’ he said.

Grayling said that the scheme was also a boost to the government’s Big Society policy, as 508 voluntary sector groups will be involved. However, only two of the 18 lead contractors are voluntary organisations.

Ralph Michell, head of policy at the Association of Chief Executives of Voluntary Organisations, said that the government has made ‘a real effort’ to get the voluntary sector involved, including as sub contractors.

‘The government have made it pretty clear that the success of Work Programme will depend on the potential of the third sector, particularly with those people furthest from the labour market. We will see how it works in practice.’

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