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| Jobseekers: slump in numbers entering government 'back-to-work' scheme | Jobseekers: slump in numbers entering government 'back-to-work' scheme |
| (5 months later) | |
| Government plans to get jobless people into work are "grinding to a halt", Labour warned, after official figures revealed that the numbers being referred to the flagship employment scheme have slumped. | Government plans to get jobless people into work are "grinding to a halt", Labour warned, after official figures revealed that the numbers being referred to the flagship employment scheme have slumped. |
| Figures newly published show there were 878,000 referrals to the government's work programme up to the end of July 2012. However total monthly referrals fell to just half that of a year ago. | Figures newly published show there were 878,000 referrals to the government's work programme up to the end of July 2012. However total monthly referrals fell to just half that of a year ago. |
| In July last year almost 100,000 unemployed people were entering the work programme. By this July that had fallen to fewer than 49,000. | In July last year almost 100,000 unemployed people were entering the work programme. By this July that had fallen to fewer than 49,000. |
| The programme is supposed to link job centres to the companies that help unemployed people find work. The firms are paid for every jobless person who is found work. | The programme is supposed to link job centres to the companies that help unemployed people find work. The firms are paid for every jobless person who is found work. |
| The Employment Related Services Association (Ersa), the trade body for the welfare-to-work industry, warned that it was particularly concerned about the numbers of people being sent to the scheme who had been on incapacity benefit but, following a medical test, were judged fit to work. | The Employment Related Services Association (Ersa), the trade body for the welfare-to-work industry, warned that it was particularly concerned about the numbers of people being sent to the scheme who had been on incapacity benefit but, following a medical test, were judged fit to work. |
| Under the contract, companies, and the charities that work for them, can collect £13,550 for finding such claimants long-term work, double the money paid for getting an unemployed person a job. | Under the contract, companies, and the charities that work for them, can collect £13,550 for finding such claimants long-term work, double the money paid for getting an unemployed person a job. |
| Kirsty McHugh, Ersa's chief executive, said: "These latest figures continue to show a far lower level of referrals to the work programme of people on employment support allowance (ESA) than originally predicted by government … the lower level of referrals of jobseekers on ESA has a disproportionate impact on voluntary sector providers who tend to offer the expertise these jobseekers require." | Kirsty McHugh, Ersa's chief executive, said: "These latest figures continue to show a far lower level of referrals to the work programme of people on employment support allowance (ESA) than originally predicted by government … the lower level of referrals of jobseekers on ESA has a disproportionate impact on voluntary sector providers who tend to offer the expertise these jobseekers require." |
| The shadow welfare secretary, Liam Byrne, said that the fall in people sent to the work programme had come despite a 188,000 rise in the number of long-term claimants on the jobseekers allowance, between July 2011 and July 2012. | The shadow welfare secretary, Liam Byrne, said that the fall in people sent to the work programme had come despite a 188,000 rise in the number of long-term claimants on the jobseekers allowance, between July 2011 and July 2012. |
| "The government's flagship back-to-work scheme is now in total gridlock – just when we need it most. We were promised the biggest back-to-work programme ever, yet referrals have plunged to their lowest point since the scheme began. | "The government's flagship back-to-work scheme is now in total gridlock – just when we need it most. We were promised the biggest back-to-work programme ever, yet referrals have plunged to their lowest point since the scheme began. |
| "Long-term unemployment is through the roof but referrals are falling because job-centre staff seem to be losing faith in a scheme this government is making a mess of." | "Long-term unemployment is through the roof but referrals are falling because job-centre staff seem to be losing faith in a scheme this government is making a mess of." |
| However the government said that the number of referrals of claimants on jobseekers allowance "were always expected to drop after the first year". It stated: "In the first year there were extra referrals, for example as [Labour's] flexible new deal ended." | However the government said that the number of referrals of claimants on jobseekers allowance "were always expected to drop after the first year". It stated: "In the first year there were extra referrals, for example as [Labour's] flexible new deal ended." |
| The Department of Work and Pensions said that charities and voluntary groups were signing up to the work programme, contradicting the idea that they would lose out. | The Department of Work and Pensions said that charities and voluntary groups were signing up to the work programme, contradicting the idea that they would lose out. |
| Since January 20 further charities had signed up – but 15 had left. | Since January 20 further charities had signed up – but 15 had left. |
| A spokesperson for the DWP said: "More people [went] on to the work programme than expected when providers bid for contracts, and we're taking decisive action to allow providers to help more people on employment and support allowance take their first steps back towards work. | A spokesperson for the DWP said: "More people [went] on to the work programme than expected when providers bid for contracts, and we're taking decisive action to allow providers to help more people on employment and support allowance take their first steps back towards work. |
| "The work programme is designed to give jobseekers the help and support they need while delivering value for the taxpayer. The best way for providers to earn money through the programme is by getting more people into work and helping them to remain there. | "The work programme is designed to give jobseekers the help and support they need while delivering value for the taxpayer. The best way for providers to earn money through the programme is by getting more people into work and helping them to remain there. |
| "If Jobcentre Plus is successfully moving claimants into work before they need the extra help of the work programme this is good news for the economy, claimant and taxpayer." | "If Jobcentre Plus is successfully moving claimants into work before they need the extra help of the work programme this is good news for the economy, claimant and taxpayer." |
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