Skip to content

New Work Programme too optimistic

Order this publication from TSO's Online Bookshop

Summary

'The Introduction of the Work Programme’ (HC 1701) concludes that the assumptions of the Programme, which replaces virtually all of the existing 'welfare to work' schemes, may be over-optimistic.

The National Audit Office (NAO) analysis suggests that 26% of the largest group of job seekers in the Programme will get jobs compared to the Department's estimate of 40%.

No alternatives to the Work Programme were considered, nor had it been tested through pilot schemes, and it has so far cost £63 million to cancel previous welfare-to-work contracts.

The IT project to support the Programme is not fully functional and it won't be until March 2012 at the earliest that the Department can check that people who find work have stopped claiming benefits.

Some clients categorised as 'harder-to-help' have been found to be 'fit for work' and it is taking the Department longer to process assessments and appeals.

The Department for Work and Pensions (DWP) estimates it will cost between £3 billion and £5 billion over the next five years and could help 3.3 million people.

Employment Minister Chris Grayling said payment by results was "a totally new approach" and its success could not "be assessed in the same old ways".

Found this story interesting?
Spread the news by clicking below to add it to your bookmarking service:

Law-Making Explained

This is a House of Commons paper (HC 1701, 2010-12). It is a report from the Health Committee.

Find out more about House of Commons papers.

How does it affect me?

If you are affected by the new Work Programme, or if you are intersted in employment issues in general, this may be of interest to you.

Further Reading

Secretary of State for Department of Work and Pensions (DWP)

Have your say on DWP policies

National Audit Office Reports on Welfare and Benefits

Public Accounts Committee on the new Work Programme

Find out how to have your say