ERSA PRESS RELEASE
Friday 28 September
Fraud in welfare to work programmes is virtually non-existent, says ERSA
ERSA has today (Friday 28 February) responded to the report put out by the Public Accounts Committee on fraud in the welfare to work sector.
On allegations of fraud, Kirsty McHugh, Chief Executive of ERSA, said:
“The Public Accounts Committee’s report seems to have ignored vital evidence from a recent National Audit Office investigation that shows that since 2006 there have been only 24 incidences of proven fraud. Whilst all fraud is completely unacceptable, these 24 incidences should be set against the many millions of people who have benefited from welfare to work schemes since 2006. Fraud in welfare to work programmes is virtually non-existent.”
On the DWP’s current auditing requirements for welfare to work programmes Kirsty continued:
“ERSA disagrees with the Public Accounts Committee’s suggestion that a ‘black box’ approach – i.e. allowing greater flexibility in delivering services – does not allow sufficient auditing to demonstrate value for money. The Work Programme is the most heavily audited employment programme there has ever been. Providers have rigorous systems in place to identify and address any instances of alleged fraudulent behaviour. These systems often go beyond the obligations placed on them by the DWP.
“Furthermore, the Work Programme is delivering real value for money to the taxpayer. We know that approximately 175,000 people have been helped into work by Work Programme providers to date – a considerable achievement given the economic backdrop.
On the need for transparency of data Kirsty said:
“ERSA rejects the Public Accounts Committee’s suggestion that ERSA’s release of partial data about Work Programme performance has heightened suspicion. It is better that there is some data in the public arena than no data and providers look forward to the full release of data from DWP in the autumn.”
ends
Press enquiries should be directed to Philip Curry on 07919 622 053.
Notes to Editors
- The Employment Related Services Association (ERSA) is the trade association for the welfare to work industry. Established in 2005, for the industry by the industry, it exists to help its members achieve their shared goal: to help people achieve and sustain employment.
- ERSA’s membership is as diverse as the welfare to work industry itself. Its members deliver a wide range of government-commissioned welfare to work programmes, including the Work Programme, Work Choice, Mandatory Work Activity and ESF Families, plus other employment-related services.
- It represents 95 percent of Work Programme and Work Choice prime contractors, plus a larger number of subcontractors. ERSA’s members are drawn almost equally from the private and voluntary sectors, with a small number of public sector organisations also in membership. It is the diversity of its membership that gives ERSA its strength to speak as the authoritative voice of the sector.
