How David Cameron"s 5bn jobs scheme CUT the number finding work

How PM's 5bn jobs scheme CUT the number finding work: More people would have found employment if ministers had done nothing
The Work Programme pays companies and charities if they get long-term unemployed into a jobOfficials thought 5% of people would find work on their own – more than the 3.5% helped by the scheme200,000 have been found some work but many last just a few weeks before going back on benefits

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UPDATED:

08:14 GMT, 28 November 2012

Data for the first 12 months of the
Work Programme showed the 5billion initiative secured lasting
employment for just one in every 50 people referred, at a cost of
14,000 a job.

The
scheme – personally championed by the Prime Minister – pays private
sector firms such as A4e and G4S to find jobs for the long-term
unemployed.

But of the
785,360 people referred to the Work Programme in its first year, just
18,270 were found a lasting job – equal to just 2.3 per cent.

Champion: The back-to-work scheme is a flagship programme for the PM

Employment minister Mark Hoban insisted it was still early days for the 5billion Work Programme

Champion: The back-to-work scheme is a flagship programme for the
PM while Employment Minister Mark Hoban insisted it was still early days for
the 5billion scheme

Officials
at the Department for Work and Pensions had estimated that 5 per cent
would find jobs on their own if the scheme did not exist, and firms were
set a minimum target of getting 5.5 per cent of ‘clients’ into work in
the first year.

Employment
minister Mark Hoban said last night it was ‘early days’, and pointed
out that the targets were set when economic growth forecasts were
better.

He added that
more than 200,000 people had been found work of some sort, although in
many cases this lasted only a few weeks or months.

He said it was ‘clearly ridiculous’ to suggest that more people would have found jobs if the Work Programme had not existed.

Only 3.5 per cent of people referred to the Work Programme in its first year stayed off benefits and in a job

Only 3.5 per cent of people referred to the Work Programme in its first year stayed off benefits and in a job

Spending
on the programme so far totals 435million. Providers can earn between
3,700 and 13,700 per person, depending how hard it is to help them,
with an initial payment of 400-600.

The
main payments are only made after someone has been in work for six
months – the Government’s definition of sustained employment.

The figures reveal wide
variations in the performance of the companies involved, but Mr Hoban
said the worst had been warned they could be stripped of their contracts
unless they upped their game by next April.

Labour
branded the scheme a ‘miserable failure’, and shadow work and pensions
secretary Liam /11/27/article-2239501-163DD55F000005DC-574_634x685.jpg” width=”634″ height=”685″ alt=”Over 50s are forced to become their own boss” class=”blkBorder” />

Over 50s are forced to become their own boss

Margaret Hodge, chairman of the Commons
public accounts committee, said the initiative was falling ‘woefully
short of expectations’.

Woefully short of expectation: Chairman of the Commons public accounts committee, Margaret Hodge criticised the scheme

Woefully short of expectation: Chairman of the Commons public accounts committee, Margaret Hodge criticised the scheme

She added: ‘The success of this
programme will be measured on getting people off unemployment benefit
and into sustainable jobs who without the programme would not have found
work.

‘There is little value to the taxpayer or society in having people sitting on a scheme for over two years.’

Individuals
are placed on the programme for two years, meaning a full assessment of
it will not be possible for another 12 months.

Officials
said the most recent figures, covering the scheme’s first 14 months,
suggested it was starting to take off, with the jobs rate improving
slightly to 3.5 per cent.

Public
concern over the programme erupted earlier this year when it emerged
that A4e boss Emma Harrison had paid herself 8.6million last year,
despite claims that the firm’s record in finding jobs for the unemployed
was ‘abysmal’.

It also emerged that the firm was being investigated by the police over allegations of fraud.

Mrs
Harrison was forced to resign as the company’s chairman and quit her
role as Mr Cameron’s ‘back to work’ tsar in the resulting row, although
she remains the main shareholder in A4e.

Two in three workers over 50 plan to work beyond the state pension age – most of them women, a report reveals today.
The majority say they cannot afford to retire and on average expect to work an extra six years.
The
report found 6.5million of the 9.9million workers over 50 do not plan
to retire at the state pension age. Of these, 4.1million are women,
compared with 2.4million men.
The
study, by the retirement specialist LV, highlights the social impact of
the pensions crisis as gold-plated schemes, which guarantee a
comfortable retirement, have all but vanished.