via Cobweb Information
Several charities and social enterprises have closed as a result of their contracts with the government’s Work Programme, a BBC investigation has revealed. The welfare-to-work scheme only makes payments to subcontractors once long-term unemployed people have been placed in work for an extended period of time, often up to two years.
The BBC reported that at least four organisations recently collapsed, citing their Work Programme contract as the primary cause. The Department for Work and Pensions (DWP) said the payment-by-results model is “right and fair”, and organisations should not negotiate deals they cannot afford.
Read more on this story on the BBC news site
Hazel’s comment:
OK. Let me do some reading between the lines since I have experience of being “on the other side” and set up an entirely fictional scenario.
ADSET (why not use my own trading name?) is a small social enterprise based in Kettering that wants to do something to help the long-term unemployed in the area (believe you me, there are lots of them and many of them really do want to have some gainful employment).
There’s this government scheme that will pay to have people supported into employment.
Oooo, I can do that. ADSET has the expertise and the premises and can find partners to help.
We are close to signing up to the scheme but ...
Hang on a moment, I don't get paid until Miranda has been in her job TWO YEARS.
Excuse the language but ffs this is a girl/woman who didn't even stay in school for two years and you expect me to wait to get paid for my supporting her over that long a period at the end.
Count me out.
No-one is going to take on the Mirandas of this world unless there is at least enough money coming in on a regular basis to cover the cost of supporting this person. perhaps with a bonus payment at the end but not waiting for the whole amount.
ADSET, like most of the small social enterprises, lives on a day-to-day basis often supported by personal money.
OK, rant over.
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