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.

Photo: Getty
Show Hide image

Theresa May takes early lead in the Conservative leadership race

The first poll of the Tory contest puts the Home Secretary well out in front

Theresa May, the Home Secretary is well ahead among Conservative members according to a new YouGov poll for the Times

She is both the preferred first choice of a plurality of members from an open field (she secures 37 per cent of the vote, with her nearest rival, Boris Johnson, 10 points behind) and roundly trounces Johnson with 55 per cent to 38 per cent. In all other head-to-heads, Johnson wins comfortably.

Although YouGov have a patchy recent record in national contests - they predicted the London mayoral victory but failed to foresee the Conservative majority or the Brexit vote - they are four for four as far as internal party contests are concerned, having accurately predicted both the result and the final vote share of the 2015 and 2010 Labour leadership contests and the 2005 and 2001 Conservative contests. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.