The introduction of the Work programme - Department for Work and Pensions (Paperback)

The Work Programme was introduced quickly, in just over a year, and this has had benefits, but the speed with which it was launched has also increased risks. The Programme, which replaces virtually all of the existing 'welfare to work' schemes, has a number of innovative design features that address weaknesses in previous schemes. Providers are paid primarily for the results they achieve in supporting people into employment so what the provider earns is tied to performance. However, assumptions about the feasibility of the Programme might be over-optimistic. The NAO's analysis suggests that 26 per cent of the largest group of job seekers in the Programme will get jobs, compared to the Department's estimate of 40 per cent. Some contractors in areas of high unemployment may struggle to meet nationally set targets. Neither were alternatives to the Programme considered as part of the business case, nor was it piloted to test assumptions. It has so far cost GBP63 million to terminate existing welfare to work contracts, including contracts with ten providers that went on to win contracts for the Programme. Two former contractors have not yet agreed settlements. The IT project to support the Programme is not fully functional and the Department will not be able, until March 2012 at the earliest, to carry out automatic checks to confirm that people who find work have stopped claiming benefits. Fewer clients than expected are being referred onto the Programme as part of the 'harder-to-help' category. Some have been found to be 'fit for work' and switched into other categories and it is taking the Department longer to process assessments and appeals