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Government's welfare to work scheme launched | Government's welfare to work scheme launched |
(about 2 hours later) | |
The government's new work scheme has begun, with ministers hoping to get a million people off benefits and into employment over the next two years. | The government's new work scheme has begun, with ministers hoping to get a million people off benefits and into employment over the next two years. |
Under the scheme, approved providers, mostly private companies, will try to find work for claimants in the UK. | Under the scheme, approved providers, mostly private companies, will try to find work for claimants in the UK. |
Seven-year contracts have been agreed and are on a payment by results basis. | Seven-year contracts have been agreed and are on a payment by results basis. |
The Work Foundation said there was a danger private contractors will focus on investing in places where they are more likely to get people into work. | The Work Foundation said there was a danger private contractors will focus on investing in places where they are more likely to get people into work. |
BBC home affairs editor Mark Easton said the Work Programme has been described as the centrepiece of the most sweeping welfare reform for 60 years. | BBC home affairs editor Mark Easton said the Work Programme has been described as the centrepiece of the most sweeping welfare reform for 60 years. |
"The government is investing billions in a programme they claim won't cost the taxpayer a penny," he said. | "The government is investing billions in a programme they claim won't cost the taxpayer a penny," he said. |
"The money is effectively being borrowed from the Treasury's benefits budget in the belief that getting people off welfare and into work will save money in the long run." | "The money is effectively being borrowed from the Treasury's benefits budget in the belief that getting people off welfare and into work will save money in the long run." |
He added that the payment by results aspect had led some to speculate that suppliers might pressurise vulnerable people into unsuitable jobs or ignore those who need the most support. | He added that the payment by results aspect had led some to speculate that suppliers might pressurise vulnerable people into unsuitable jobs or ignore those who need the most support. |
'Revolutionary' | 'Revolutionary' |
Seven-year contracts have been agreed to largely private sector companies, including outsourcing giants Serco and G4S. The total value over the contracts is likely to be between £3bn and £5bn. | Seven-year contracts have been agreed to largely private sector companies, including outsourcing giants Serco and G4S. The total value over the contracts is likely to be between £3bn and £5bn. |
Voluntary sector groups are also involved in delivering the programme, including Mencap, the Citizens Advice Bureau, the Prince's Trust and Action for Blind People. | Voluntary sector groups are also involved in delivering the programme, including Mencap, the Citizens Advice Bureau, the Prince's Trust and Action for Blind People. |
Ministers said that under the Work Programme, providers would be free to design support, based on the needs of jobseekers and local labour markets. | Ministers said that under the Work Programme, providers would be free to design support, based on the needs of jobseekers and local labour markets. |
Employment Minister Chris Grayling said: "The Work Programme will tackle the endemic worklessness that has blighted so many of the country's communities for decades. | Employment Minister Chris Grayling said: "The Work Programme will tackle the endemic worklessness that has blighted so many of the country's communities for decades. |
"It is revolutionary in the way it tailors support to jobseekers' individual needs and pays organisations primarily for getting people into sustained employment." | "It is revolutionary in the way it tailors support to jobseekers' individual needs and pays organisations primarily for getting people into sustained employment." |
Mr Grayling said providers will be paid for supporting people into employment and helping them stay there for longer than ever before, with higher payments for supporting the hardest to help. | Mr Grayling said providers will be paid for supporting people into employment and helping them stay there for longer than ever before, with higher payments for supporting the hardest to help. |
The scheme replaces employment support currently on offer including the New Deals, Employment Zones and Pathways to Work. | The scheme replaces employment support currently on offer including the New Deals, Employment Zones and Pathways to Work. |
The Work Foundation research group has warned the programme would do little to improve job prospects for people living in economically weaker areas of the UK. | The Work Foundation research group has warned the programme would do little to improve job prospects for people living in economically weaker areas of the UK. |
Neil Lee, the group's senior economist, said: "As the Work Programme is based on payment by results, contractors carry the initial risk. | Neil Lee, the group's senior economist, said: "As the Work Programme is based on payment by results, contractors carry the initial risk. |
"There is therefore the danger that private contractors will focus on investing in places where they are more likely to get people into work to secure a return on investment." | "There is therefore the danger that private contractors will focus on investing in places where they are more likely to get people into work to secure a return on investment." |
Shadow work and pensions secretary Liam Byrne said Labour supported the principles of the Work Programme but it was vital the government revealed how many people the scheme would help. | Shadow work and pensions secretary Liam Byrne said Labour supported the principles of the Work Programme but it was vital the government revealed how many people the scheme would help. |
According to the latest statistics, UK unemployment fell by 36,000 in the three months to the end of March to 2.46 million. | According to the latest statistics, UK unemployment fell by 36,000 in the three months to the end of March to 2.46 million. |
Are you unemployed? Will you be taking part in the scheme? Send us your comments using the form below. |