18 July 2008
The £40m spent by the Department for Work and Pensions every year in an attempt to close the employment gap between people from ethnic minorities and the general population is having almost no effect, MPs have said.
In a report published on July 17, the Public Accounts Committee found there was a persistent and significant gap of 14.2 percentage points to the disadvantage of people from ethnic minorities. The MPs estimated that the cost in benefits and lost tax revenue was £1.3bn annually, plus £7.3bn in lost output.
PAC chair Edward Leigh said: 'If things go on as they are, it could take more than 30 years to eliminate the gap.'
The DWP's 'stop-start approach, trying one short-term project after another' had undermined Jobcentre Plus's efforts to boost the employment of people from ethnic minorities, he added.
Leigh called for the DWP to set itself a challenging long-term target and to implement and monitor it effectively.
The report says Jobcentre Plus personal advisers are constrained by pressures that limit time spent with claimants and their ability to access training.
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