Work Programme ‘overly optimistic’, say auditors

24 Jan 12
The government’s ambitions for its flagship Work Programme might be over-optimistic, the National Audit Office warned today.

By Vivienne Russell | 24 January 2012

The government’s ambitions for its flagship Work Programme might be over-optimistic, the National Audit Office warned today.

It estimates that only 26% of the largest group of jobseekers will be found work compared with the Department for Work and Pensions’ plan of 40%.

The Work Programme, introduced last year, replaces all previous welfare-to-work schemes. It operates on a payment-by-results model, with participating contractors rewarded according to the number of unemployed people they find jobs for. The biggest target group is Jobseeker’s Allowance claimants aged over 25.

Contractors operating in areas of high unemployment could struggle to meet the government’s targets, the NAO adds, while one or more could find themselves in ‘serious financial difficulty’.

NAO head Amyas Morse said it was too early to determine whether the Work Programme would succeed as that would depend on the number of people who were found jobs.

‘The department has set providers stretching performance targets and it needs to ensure that they do not cut corners to stay in profit, such as targeting easy-to-reach people, reducing service levels or treating sub-contractors unfairly,’ he said.

The report also notes that it has so far cost £63m to terminate existing welfare-to-work contracts, including contracts with ten providers who have gone on to win contracts under the Work Programme.

In addition, the IT project meant to be supporting the Work Programme will not be ready until March this year at the earliest, the auditors say. It will provide automatic checks to ensure people who have found work have stopped claiming benefits.

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