Figures released today show that the Tory-led Government’s Work Programme has got only 2.3 per cent, or two in every hundred, applicants into jobs.
Ed Miliband MP, Leader of the Labour Party, said:
“Today we’ve learnt that the Work Programme turns out to be a miserable failure. It’s just not working.
“It’s not working because over the first year of the Work Programme just over two in every hundred people have been getting a job.
“And estimates are that if the Work Programme didn’t exist five in every hundred would be getting a job.
“Why isn’t the Work Programme working? Because to reform welfare, which is what everyone wants to see, you’ve got to have government and people playing their respective roles, shouldering their responsibilities. A One Nation approach.
“We’ve said in relation to young people, we shouldn’t be letting then languish out of work, we should be getting them jobs.
“We should be working with employers and saying government will pay the wages, if you pay the training and mobilise business across this country to get our young people working again.
“That’s the way we can really reform welfare, pulling together as One Nation and each taking and delivering on our responsibilities.
“What we’ve seen from this Government today is a failure to reform welfare. Welfare bills are going up not down, not because of generosity in relation to welfare from this Government, but because their plans aren’t working.”
Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, said:
“Today’s figures reveal the Work Programme is comprehensively failing. We were promised a welfare revolution and what we’ve got has been exposed as worse than doing nothing.
“Welfare bills are over £20 billion higher than expected because this Government has failed to get Britain back to work and now George Osborne has been forced to take £14 billion off tax credits to help foot the bill. Now we know why. The recovery has been throttled, the Government’s welfare revolution has failed and Britain’s strivers are being asked to foot the bill.
“This is deeply, deeply disappointing news. On the DWP’s own benchmarks, just 2.3 per cent have found a ‘job outcome’. That is under half the rate the DWP said could be achieved by doing nothing. Meanwhile long term unemployment has soared by over 200,000.
“George Osborne must now take the big steps we propose to drive down unemployment and start with a big plan to get our young people into work.”
Ends
Editor’s notes:
1) The Work Programme is getting only two in every hundred people into jobs – 2.3 per cent.
Today’s statistics are from the period from June 2011 to July 2012 – a period of 14 months. But according to the Government’s own Invitation to Tender for the Work Programme, performance levels should be assessed on a 12 month basis.
“The Key Performance Measure: 3.13 Performance will be measured by comparing job outcomes achieved in the previous 12 months to referrals in the same period. In years six and seven there are no referrals and performance will be measured by jobs outcomes achieved in the previous 12 months divided by year five referrals.”
Department for Work and Pensions, The Work Programme, Invitation to Tender, Specification and Supporting Information, p.13
http://www.dwp.gov.uk/docs/work-prog-itt.pdf
In the first 12 months of the Work Programme, 785,360 have been referred to the Work Programme and only 18,270 thousand have found a job. This means that the Work Programme has managed to get 2.3 per cent of people referred to it into jobs.
2) The Work Programme is performing at half of its Government’s minimum performance level.
“Minimum performance standard will apply to payment groups 1, 2 and 6. It will be defined as non-intervention performance level plus 10 per cent.”
Given that the non-intervention performance level is 5 per cent, the minimum performance standard is 5.5 per cent. Groups 1, 2 and 6 are 18-24 year old JSA claimants, 25+ year old JSA claimants and new claimants ESA.
Department for Work and Pensions, The Work Programme, Invitation to Tender, Specification and Supporting Information, p.13 and p.14
http://www.dwp.gov.uk/docs/work-prog-itt.pdf
In the first 12 months of the Work Programme, 554,290 of people in these groups have been referred to the Work Programme and only 11,640 have found a job. This means that the Work Programme is performing at 2.1 per cent for these groups – under half of the Government’s minimum performance level of 5.5 per cent.
3) The Work Programme is getting fewer people into jobs than if the Government did nothing at all.
“DWP will set a non-intervention performance for payment groups 1, 2 and 6 reflecting the number of job outcomes that would be expected to occur in the absence of the Work Programme. This is calculated by DWP based on analysis of historical job entry rates.”
The table on page 13 of the Invitation to Tender sets this out as being 5 per cent.
Department for Work and Pensions, The Work Programme, Invitation to Tender, Specification and Supporting Information, p.13
http://www.dwp.gov.uk/docs/work-prog-itt.pdf
Given that it has managed to get 2.1 per cent of people in these groups into jobs, it is performing at less than half the level it would perform at if the Work Programme did not exist