Charities delivering on the Work Programme may face financial risk
The National Council for Voluntary Organisations (NCVO) has published research warning that charities delivering on the government’s welfare-to-work programme may be exposed to financial risk.
The research shows that more than half of charities delivering said their prime contractors had not protected them from financial risk; 39 of 72 charities surveyed said they have not been shielded by their prime contractor from risk and a further 14 said their prime had only done so to a small extent. Just 2 reported being protected “extensively”.
Under the Work Programme, charities are required to fund the work themselves and are only paid by the Department for Work and Pensions once a person placed in work has completed six months.
Sir Stuart Etherington, chief executive of NCVO, said: “The prime contractor model is supposed to safeguard small providers from financial risk, but these findings suggest it is currently falling far short of expectations. The Government must take these concerns on board and ensure that no bad practice is allowed to slip through the net.”
Read the full NCVO Work Programme Special Interest Group Survey
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