Work programme - improved performance not delivered
2 July 2014
A statement from The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts:
"The Work Programme is absolutely critical to getting people, especially some of the most vulnerable in society, into work and helping to keep them there in the longer term.
The Department for Work & Pensions has not delivered the much needed improved performance on the Work Programme since my committee last examined it in late 2012 and it is very clear to me that it still has a mountain to climb if it is to help those most in need.
I am angry that the Department has failed the vast majority of those referred to the Work Programme from Employment Support Allowance, one of the ‘hard to help groups’- with 89% completing the programme without finding and staying in work. It is completely unacceptable that contractors are on average now spending only £630 per person supporting this group, compared to an original £1360. The fact the Department cannot force contractors to spend more highlights a considerable weakness in its governance of the programme.
It beggars belief that the Department expects to pay at least £31 million in bonuses to all of its contractors despite their poor performance - even the Newcastle College Group whose contract has been terminated will receive a bonus.
At a cost of £11 million to the taxpayer already, the Department’s inability to fully understand contractors’ performance means it is paying for outcomes that may not be achieved. The Department needs to address this urgently as it is at risk of wasting a further £25 million before the Work Programme concludes.
I look forward to discussing these matters further with departmental officials when they appear before us on 14 July."