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Workfare goes underground as Holland and Barrett pull out

DWP pitches for small businesses instead

Chris Grayling, Minister for Work and Pensions. Photograph: Getty Images

Holland and Barrett, one of the largest companies using unpaid workers from the government's various employment schemes, has pulled out, citing the bad press and in-store protests its participation prompted. It will now pay its workers on through government's apprenticeship program, guaranteeing them a wage of at least £2.60 per hour.

The company made the announcement on its Facebook page, writing that:

At Holland & Barrett, we take our responsibilities as a retailer and employer very seriously, and any possible compromise to the safety of our staff and customers from opponents of our work experience scheme is treated with great importance.

This factor, together with the planned introduction of a new full time, salaried apprentice scheme, means that the 60 people currently undertaking the work experience scheme will be the last to complete the eight week placement. After this time Holland & Barrett will not participate further in that scheme.

Speaking to Shiv Malik at the Guardian, Solidarity Federation (Sol Fed)'s Jim Clark, one of the organisers of the series of protests, responded:

Holland & Barrett's claim that pickets of stores could offer a possible compromise to the safety of staff and customers is completely baseless. On our pickets, the first people we spoke to were the staff, many of whom told us they agreed with the aim of our campaign and that overtime was no longer available in some stores as it was being done by unpaid workfare labour instead.

The workfare program has been a mess for the government since attention was first drawn to the compulsory nature of some of the unpaid work this spring. The Department for Work and Pensions was revealed to be telling claimants on one of the "voluntary" schemes that attendance was mandatory, and a number of high-profile companies stopped taking on workers under the schemes after a fraught meeting with Chris Graying, the minister in charge. And last month, the government's own research showed that mandatory work activity is "largely ineffective", according to NIESR's Jonathan Portes, who wrote:

Briefly, what the analysis shows is that the programme as currently structured is not working. It has no impact on employment; it leads to a small and transitory reduction in benefit receipt; and worst of all, it may even lead to those on the programme moving from Jobseekers' Allowance to Employment and Support Allowance.

Despite that, the government has decided to expand the MWA scheme; but it appears that the government is attempting to avoid the PR hits that has often come with businesses taking on workers from the scheme. Various small businesses have reported being offered participants directly, in a move which is seemingly an attempt to drive participation underground. If campaign groups like Boycott Workfare have to protest 60 businesses each with one worker, rather than one with 60, they will have their work cut out to effect a change.

That said, it is probably the case that if government is having to enact policy designed around making it difficult to protest, that is at least a symbolic win for the protestors. Gettin an actual win, however, will get a bit harder.