Is the Work Programme working? No, say MPs

Scheme accused of "extremely poor" performance after just 3.6 per cent of claimants are moved off benefits and into sustained employment.

MPs on the Public Accounts Committee have released their report on the Work Programme and their verdict? It's not working. In the first 14 months of the £3bn scheme's existence (June 2011-July 2012), only 3.6 per cent of claimants were moved off benefits and into sustained employment (six months or more), a performance that Margaret Hodge, the chair of the PAC, describes as "extremely poor". The success rate was less than a third of the DWP target of 11.9 per cent and even below the official estimate of what would have happened if the programme had never existed, prompting Labour to claim that it was "worse than doing nothing". Not one of the 18 providers, such as A4e, Ingeus, REED and G4S, managed to meet its minimum performance targets, with the best provider moving five per cent of claimants into work and the worst moving just two per cent. 

And it's those most in the need of help who are failing to get it. As Hodges says, "It is shocking that of the 9,500 former incapacity benefit claimants referred to providers, only 20 people have been placed in a job that has lasted three months, while the poorest performing provider did not manage to place a single person in the under 25 category into a job lasting six months." Given the extent of the failure, the MPs warn that there is a high risk of one or more of the providers going bust, or having its contract cancelled. "The Department must identify cases where a provider is at risk of failing and ensure there are specific plans in place to deal with this". 

The government has responded by insisting that it's "still early days" and that there are signs of improvement. It points out that the orginal performance targets were set when growth was expected to be significantly higher than it is now. But given that the IMF, the National Institute of Economic and Social Research and others argue that the excessive pace of austerity is at least partly to blame for this, it's not clear why the coalition regards this a legitimate excuse. 

The next set of performance data will be released in March and with unemployment continuing to fall, even as the economy continues to shrink, ministers are confident that it will be more positive. But with expectations now so low, it will be important for MPs to maintain scrutiny. If the government continues to revise its definition of "success", it will deserve little credibility. 

Work and Pensions Secretary Iain Duncan Smith exits a vehicle in London on February 11, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Beware, hard Brexiteers - Ruth Davidson is coming for you

The Scottish Conservative leader is well-positioned to fight. 

Wanted: Charismatic leader with working-class roots and a populist touch who can take on the Brexiteers, including some in the government, and do so convincingly.

Enter Ruth Davidson. 

While many Tory MPs quietly share her opposition to a hard Brexit, those who dare to be loud tend to be backbenchers like Anna Soubry and Nicky Morgan. 

By contrast, the Scottish Conservative leader already has huge credibility for rebuilding her party north of the border. Her appearances in the last days of the EU referendum campaign made her a star in the south as well. And she has no qualms about making a joke at Boris Johnson’s expense

Speaking at the Institute of Directors on Monday, Davidson said Brexiteers like Nigel Farage should stop “needling” European leaders.

“I say to the Ukip politicians, when they chuckle and bray about the result in June, grow up,” she declared. “Let us show a bit more respect for these European neighbours and allies.”

Davidson is particularly concerned that Brexiteers underestimate the deeply emotional and political response of other EU nations. 

The negotiations will be 27 to 1, she pointed out: “I would suggest that macho, beer swilling, posturing at the golf club bar isn’t going to get us anywhere.”

At a time when free trade is increasingly a dirty word, Davidson is also striking in her defence of the single market. As a child, she recalls, every plate of food on the table was there because her father, a self-made businessman, had "made stuff and sold it abroad". 

She attacked the Daily Mail for its front cover branding the judges who ruled against the government’s bid to trigger Article 50 “enemies of the people”. 

When the headline was published, Theresa May and Cabinet ministers stressed the freedom of the press. By contrast, Davidson, a former journalist, said that to undermine “the guardians of our democracy” in this way was “an utter disgrace”. 

Davidson might have chosen Ukip and the Daily Mail to skewer, but her attacks could apply to certain Brexiteers in her party as well. 

When The Staggers enquired whether this included the Italy-baiting Foreign Secretary Johnson, she launched a somewhat muted defence.

Saying she was “surprised by the way Boris has taken to the job”, she added: “To be honest, when you have got such a big thing happening and when you have a team in place that has been doing the preparatory work, it doesn’t make sense to reshuffle the benches."

Nevertheless, despite her outsider role, the team matters to Davidson. Part of her electoral success in Scotland is down the way she has capitalised on the anti-independence feeling after the Scottish referendum. If the UK heads for a hard Brexit, she too will have to fend off accusations that her party is the party of division. 

Indeed, for all her jibes at the Brexiteers, Davidson has a serious message. Since the EU referendum, she is “beginning to see embryos of where Scotland has gone post-referendum”. And, she warned: “I do not think we want that division.”

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.