Employment and Skills

ERSA performance figures on Work Programme show relative improvement against challenging economic backdrop

ERSA performance figures on Work Programme show relative improvement against challenging economic backdrop

The Employment Related Services Association (ERSA), the trade association for the welfare to work industry, today releases the second tranche of performance data for the Work Programme.

Based on feedback from the majority of Work Programme prime contract providers, ERSA states that:

  • 22% of those who were joined the Work Programme between June and September 2011, and therefore have been on the programme for at least six months, have started employment. This means that approaching one in four customers have to date found a job.
  • Performance ranges between 18% and 26% across contract package areas.
  • The wage incentive element of the Youth Contract is beginning to have a positive effect by encouraging employers to take on young recruits.
  • It remains too early to draw firm conclusions about the likelihood of the industry meeting performance targets.

The Work Programme was commissioned by the government in 2011, at a time when the Office of Budget Responsibility was still forecasting UK economic growth of 2.6% compared to a forecast of 0.8% growth today in 2012. Work Programme providers’ performance in these early months of the programme therefore needs to be seen in the context of an increasingly difficult economic backdrop.

In addition, Work Programme providers continue to cope with the impact of far lower than expected referrals of jobseekers on Employment Support Allowance.  This has a triple effect. First, providers’ sensitive financial models are adversely affected by those jobseekers paid at a higher rate not being referred to the programme.  Secondly, charities in supply chains are not getting the work. Thirdly, the most vulnerable jobseekers are not receiving the support they require.

ERSA chief executive, Kirsty McHugh, said:

“These still relatively early Work Programme performance figures show that the welfare to work industry is pulling out all the stops to help jobseekers into employment.  However, the economic backdrop is very worrying as a lack of confidence by employers will delay recruitment decisions.

“The Work Programme is designed as a long term programme and therefore it is still too early to draw firm conclusions about the likelihood of meeting performance targets.  Clearly however the industry has been hit by a double whammy.  Not only is the economy a cause for concern, but the industry continues to cope with the serious implications of a lack of referrals of jobseekers on Employment and Support Allowance.

“On a positive note, however, there is early evidence that the wage incentive element of the government’s Youth Contract does appear to be encouraging employers to take on more young recruits.  The government may need to do more to incentivise employers to bring forward recruitment decisions.

“Going forward, ERSA will be closely tracking provider performance and working with the Department for Work and Pensions to ensure that the Work Programme is able to deliver for all customers.”

Leave a Reply

You must be logged in to post a comment.

twitter link Facebook link Linked in

Subscribe here

Archives

twitter link Facebook link

Featuring Recent Posts WordPress Widget development by YD