Government’s Work Programme not so ‘revolutionary’, say critics

The Government’s ‘revolutionary’ new plan to get one million people off benefits and back into the workplace has been heavily criticised by experts.

The Work Programme was launched on 10 June 2011 and has been described by Employment Minister Chris Grayling as “probably the biggest payment-by-results scheme in the World”. The scheme matches unemployed candidates with job providers, who are then paid in instalments depending on their success.

The providers have a certain amount of freedom to structure the scheme internally in order to create programmes that will work best both for the applicants and for them.

However, the critics fear that by leaving the details to the providers, the vulnerable candidates, many of whom will not have worked for years, will be left without the necessary supervision and support. There are also fears that they will be pressurised into taking unsuitable jobs to ensure the providers get the results necessary in order to be paid by the Government.

Mr Grayling compared the scheme to a “giant employment dating agency” but critics say it will actually lead to providers ‘cherry picking’ the applicants and areas that are most likely to give them results and ensure a return on their investment.

Neil Lee, a senior economist at The Work Foundation, said the scheme will not benefit the long-term unemployed who are from the most economically deprived areas.

In addition, there is widespread concern that the Government has given the contracts to the ‘same old, same old’ providers.

It has been reported that the top four providers will deal with over half of the applicants, despite 30 organisations submitting 177 bids for the 40 contracts available.

New providers, such as Price Waterhouse Coopers, were reportedly put off by the ‘public-sector bidding process’. Those who do not speak the ‘public-sector language’ did not stand much of a chance of winning a contract, say critics, and this has led to the usual suspects winning the bids.

In addition, several new players pulled out when they realised the scheme was not financially viable.

However, the Department for Work and Pensions defended the Work Programme, saying that the providers will create the best schemes for applicants in their areas and that it will prove to be value for money for the taxpayer.

So, what do you think? Do you think this is a useful initiative by the Government that will give many unemployed people the chance to get back into the workplace? Or do you think it will just be used by the providers as a money-making scheme without the proper support in place for applicants?

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