Will the Work Programme work?

Some key background reading to understand the debate on welfare reform.

Liam Byrne, the shadow Secretary of State for Work and Pensions, has successfully created a bit of a stir with his intervention on welfare reform in Monday's Guardian. There is more planned, with speeches on the subject over the next few months. 2012, I'm told, is meant to be the year that Labour gets back into the conversation about welfare reform. Since the election, the terms of debate have been effectively set by the Tories. Public opinion remains steady in support of cuts to the benefits bill, with a widespread perception that the last government lost control of spending and was relaxed about people choosing to live on the dole. Iain Duncan Smith's popular promise to reform the system to "make work pay" has, senior Labour figures privately concede, effectively shut the opposition out.

Whether Ed Miliband can get back in is the subject of my column in this week's magazine. One key factor will be the question of whether the government's welfare plans will actually work. There is already a lot of disquiet around the Work Programme, the huge welfare-to-work scheme under which private and voluntary sector providers compete for contracts to place the long-term unemployed in work. The contractors are paid according to how effective they are in matching their "customers" with jobs. As I write in the column, the whole thing starts to break down if there simply aren't enough vacancies around to fill. The scheme was designed at a time when the Department for Work and Pensions expected the labour market to track optimistic growth forecasts from the Office for Budget Responsibility. The OBR turned out to be wrong, of course.

But even if vacancies are there for some of the people being transferred onto the Work Programme, there are serious doubts being raised in the welfare-to-work sector about whether some of the providers will be able to meet their targets. There is also a lot of suspicion around that some of the providers won their contracts with unrealistic estimates of how much it actually costs to train someone who has been out of work for a year and find them a job. There are some rumbling noises around about the Work Programme either collapsing or, more likely, needing to be bailed out by government.

For anyone interested in welfare-to-work policy detail, I recommend the following links:

Public Accounts Committee report on "Pathways to Work"

This is a parliamentary investigation into a pilot scheme set up under Labour to use the private sector to help claimants of incapacity benefit back into work. Mostly they failed to meet their performance targets and generally performed worse than the Job Centre. A number of organisations named as serious under-performers in the report won contracts under the Work Programme.

The Social Market Foundation report: Will the Work Programme Work?

The think tank that pioneered payment by results as a mechanism for improving delivery of welfare-to-work programmes questions whether its ideas have been implemented in a way that is likely to get the desired outcomes. (Answer: no.)

BBC Radio 4: The Report - The Work Programme

Almost everything you need to know about welfare-to-work schemes in one handy half-hour radio documentary.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.