04.10.12
Work Programme at risk of failure – charities
Almost half of the charities in the Government’s Work Programme face significant financial problems, with some warning they may go bust as a result of its payment-by-results methodology.
A survey by the National Council for Voluntary Organisations (NCVO) found that nearly 50% of charities had used their financial reserves to subsidise delivery of the scheme and seven out of ten had warned that they may have to pull out of the programme because it is not financially viable.
‘Hard to reach’ clients are referred to specialist charities, who are hired to prepare disabled people, long-term jobless and ex-offenders for employment.
Sir Stuart Etherington, chief executive of NCVO, said: “The sustainability of these contracts is a major cause for concern. This programme is clearly not working for many charities involved in its delivery. More worryingly, this will have a damaging knock-on effect to the many jobseekers who desperately need the specialist support that charities can deliver.
“We are calling on the government to investigate the current funding arrangements to determine why so many contracts under the Work Programme are at risk of failure and why some charities are subsidising this work.”
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