Margaret Hodge is "astonished" at the ineffectiveness of the Work Programme

The PAC chair releases a statement on the scheme.

Margaret Hodge, the Labour chair of the Public Accounts Committee, is "astonished" at the performance of the government's flagship Work Programme:

This first analysis of the Work Programme performance figures shows the extent to which the scheme is failing participants, and particularly the young and the harder-to-help. Against a contractual target of 5.5 per cent, the lowest performing provider did not manage to place a single person in the under 25 category into a job lasting six months. The Work Programme was specifically designed to incentivise providers to assist those furthest from the work place, but the appalling performance for ESA ex-incapacity claimants demonstrates how this experiment simply is not working. Between June 2011 and July 2012, of the some 9,500 ex-incapacity claimants referred to providers, I am astonished that only 20 people have been placed in a job that has lasted three months.

My committee will be taking evidence from the department next week when we shall expect a clear explanation for what action is underway to turn performance around and get the Work Programme working for participants and the taxpayer.

For background, the Work Programme is the workfare scheme which offers "tailored support" - which can be anything from CV writing classes to mandatory unpaid work - to people who have been out of work for a long time. When viewed against the best estimates of the background rate of "job outcomes" (an unemployed person getting a job and keeping it for six months) it turns out that the programme spent money to, in effect, destroy jobs:

The Work Programme is, so far, worse than nothing at ensuring "job outcomes" – that is, people in unsubsidised work six months after they leave the programme. In the first fourteen months, 3.5 per cent of participants achieved job outcomes, but for people not on the programme, 5 per cent were expected to get jobs, according to Labour's shadow minister Liam Byrne.

…In other words, the Work Programme did not cost £2,000 per job. Instead, for every £4,600 it spent, it destroyed one participant's chance of employment.

Margaret Hodge. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage