Out of 878,000 unemployed people referred to the Work Programme in its first year, only 20,000 (around 2.3 per cent) stayed in their jobs for longer than the target of three or six months (depending on payment group), according to the first official statistics on the scheme. That was lower than the government’s 5.5 per cent target – and lower than the number of people who would probably have found jobs without any help.
The Work Programme was launched in Great Britain in June 2011. Outside contractors are expected to provide personalised work-focused support for people who are long-term unemployed or at risk of becoming so, and receive performance-related payments in return.
Bringing in the new universal credit system involves significant operational risks, according to a new study. The report looks at how the new system, due from October 2013 onwards, will affect the key objectives of improving work incentives, simplifying the benefits system and improving delivery for claimants.
Politicians should be more honest about success rates in moving unemployed people off benefits and should adopt a tougher approach, according to a report from the Policy Exchange think-tank. It also warns the situation will get worse under the government's new universal credit system.
Young unemployed people in London will be forced to do three months of unpaid full-time work or face having their benefits cut, under a new pilot scheme. The plan was unveiled in a joint announcement by the government and the Mayor of London.
Under the pilot, those aged 18–24 who had spent less than six months in employment since leaving education would have to work unpaid in order to qualify for their jobseeker’s allowance. They would do work experience placements in charities or social organisations such as care homes for 30 hours per week over a 13-week period. They would also have to spend 10 hours per week searching for a job.
The government said the purpose of the scheme is to help young Londoners to ‘improve their career prospects’ and ‘enable them to contribute to their communities’. The Mayor added that early intervention will reduce the ‘risks of benefit dependency’.
The High Court has ruled that two welfare-to-work schemes do not breach human rights law by requiring claimants to undertake unpaid work placements.
Two jobseeker’s allowance claimants challenged the legality of the Community Action Programme (providing mandatory community work for very long-term unemployed people) and the Sector-Based Work Academies scheme (providing work experience and training). Claimants can lose some benefits if they refuse to take part in the schemes.
The High Court ruled that requiring participation does not breach human rights – although it also said the Department for Work and Pensions should improve the clarity of letters warning claimants of potential sanctions for failing to complete the schemes without good reason.
Early results from the Work Programme show ‘promising signs’, the government claims. The Work Programme is the government’s key welfare-to-work scheme, relying heavily on private contractors paid according to results.
Newly published statistics describe the benefit circumstances of the first cohort of participants attached to the Work Programme in June 2011, who were tracked up to March 2012.
The government has reversed a central plank of its work experience scheme following criticisms from employers. It will drop benefit sanctions against young people on the scheme who withdraw early. Participants in the scheme, which offers 16–24 year-olds eight weeks of work experience, receive benefit while on the scheme. Under the previous rules, they would lose two weeks jobseeker’s allowance if they withdrew after a week. This change came after pressure from businesses participating in the scheme, with a number of companies withdrawing from the scheme.