£5bn work programme 'in jeopardy'
Providers under a government scheme to get people back into work are likely to miss performance targets, potentially jeopardising the £5 billion scheme, according to a think-tank.
The Social Market Foundation has forecast the likely performance of providers under the work programme, which is designed to help 2.4 million unemployed people back to work.
SMF, using performance of providers under the previous Labour government’s flexible new deal programme as a base, predicts providers will ‘significantly undershoot’ targets set by the Department for Work and Pensions.
It predicts the programme will get around one in four jobseekers into work within three years, missing the DWP target of one in three.
Under the scheme, contractors are paid according to results and can have their contracts terminated if they miss targets.
‘This implies widespread contract termination and threatens the viability of the entire scheme,’ the report said.
SMF is calling on the DWP to revise its minimum performance expectations.
Inside Housing revealed last week that homelessness charities have received fewer referrals under the scheme.