The Association of Learning Providers has called on the government to rethink the way it structures its Work Programme-related contracts, warning that the current system could put small firms out of business.
A week after a Select Committee inquiry heard evidence that the targets set for providers to help the unemployed get back into work were over-ambitious.
Paul Warner, (Association of Learning Providers), told the Chartered Institute of Personnel and Development’s in-house publication Peoplemanagement.co.uk that many of its members, were now reluctant to bid for government contracts because of the way they were drawn up.
The Work Programme contracts were based on a “high-risk financial model and unrealistic targets”, he warned. The problem was that, while the first part of the contracts offered providers a “workable cashflow”, support was drastically reduced in the second half. This meant that those providers that failed to meet the stringent targets could find themselves in severe financial difficulties.
“Providers have told us they are not keen to bid for Work Programme contracts because of the risks, but feel that they have to because it’s their business. Some of those that are bidding will breathe a sigh of relief if they don’t get the contracts,” Warner said.
