Welfare to Work

– Cash crisis for providers

Cash crisis looms for welfare to work providers

‘My big concern about the transition period in terms of organisations being starved of funding is they are then not fit for purpose when the Work Programme starts,’

Rob Murdoch, chair of the Employment Related Services Association

Social enterprises delivering welfare to work will be facing a cash crisis in the spring as the three-month gap between current contracts ending and the Work Programme starting comes into effect.

Evidence came out in a Work and Pensions Committee hearing  that some organisations were already giving staff 90 days notice in case the organisation.

…… ERSA CEO Kirsty McHugh called the gap a ‘huge problem’ and head of fundraising at the Prince’s Trust Caroline Taunt told the group of MPs ‘small organisations don’t have the cash flow to sustain services’.

Work and Pensions Committee chair Anne Begg said: ‘There is obviously an issue about this transition and the committee recognises the urgency of that.’

The transition issue could be just one of the many possible problems facing social enterprises as the Work Programme contracts come into effect.


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