Overview

The Work Programme was introduced in June 2011 to help long term unemployed people move off benefits and into sustained employment. It is estimated to cost between GBP3 billion and GBP5 billion over five years. The Programme's performance for its first 14 months of operation - from June 2011 to July 2012 - fell well short of the Department's expectations. Overall, only 3.6% of claimants on the Programme moved off benefit and into sustained employment, less than a third of the 11.9% the Department expected to achieve, and well below the Department's own estimate. Individual Work Programme providers' performance in helping claimants into employment varies widely, but not one of the 18 providers has met their contractual targets. The difference between actual and expected performance is greatest for those claimants considered the hardest to help. The Department's own evaluation suggests that these claimants have been receiving a poor service. Creaming and parking are clear policy concerns. Despite assurances, the Department has not provided the further analysis on such matters. Given the poor performance across providers, there is a high risk that one or more will fail - either they will go out of business or the Department will cancel their contracts. The Committee is concerned about the Department's approach to publishing performance statistics. The Department did not make clear what level of performance it had expected or say why performance was lower than planned. Yet it did publish unvalidated information on performance produced by a trade body.

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