– ERSA welcomes Work Programme announcement

ERSA welcomes Work Programme announcement but warns the finances will be tight

The government has today announced the successful bidders for the Work Programme.  Responding to the announcement, Kirsty McHugh, Chief Executive of the Employment Related Services Association (ERSA), the trade association for the welfare to work industry, said:

“ERSA welcomes the government’s early announcement of the successful Work Programme bidders and congratulates all those who have been successful in their bids.  This is the culmination of a rapid and demanding procurement process, which has tested the mettle of private and voluntary sector providers alike.

“The picture painted so far is of a diverse welfare to work market, with few multi area winners and a significant number of providers proving successful in a small number of areas.  The next stage will be for providers to confirm strong diverse supply chains, many of which are expected to feature a large number of third sector organisations.”

The Work Programme is a government initiative to help people on benefits into work. It will replace many of the existing welfare to work programmes with a single scheme which is predicted to work with around 2.5 million people from its launch in the summer of 2011.  For the purposes of the Work Programme, the country has been split into 18 areas where there will be two or three prime contractors who will manage a supply chain of subcontractors.  The supply chain will make use of the expertise of the private, voluntary and public sectors, who will deliver individually tailored support to individuals to help them overcome their barriers to sustainable employment.

Commenting on the model of the Work Programme, Kirsty McHugh said:

“ERSA warmly welcomes the scale and ambition of the Work Programme and its move to a payment by results regime.  However, the government needs to recognise the scale of risk being taken on by the industry – prime contractors and subcontractors alike.  The finances of the Work Programme will be tight and its overall viability may ultimately depend on the health of the economy and the availability of jobs.”

ENDS

Note to editors

1.       ERSA is the trade association for the welfare to work sector with nearly 70 members from the voluntary, private and public sectors. It represents both prime contractors and sub-contractors.

2.       The following organisations have  been successful in their bids:

–          Ingeus (7)

–          A4E (5)

–          Avanta (3)

–          G4S (3)

–          Seetec (3)

–          Working Links (3)

–          Rehab Jobfit (2) – voluntary sector provider

–          Maximus (2)

–          Serco (2)

–          Newcastle College Group (2)

–          Fourstar (1)

–          Reed in Partnership (1)

–          Careers Development Group (1) – voluntary sector provider

–          Prospects (1)

–          JHP Training (1)

–          Pertemps (1)

–          Business Employment Services Training (1)

–          ESG (1)

3.       For further information contact Philip Curry, Policy and Communications Manager, Philip.curry@ersa.org.uk, 020 7960 6317 / 07920 817 092.