Mon, 21 May 2012

Nearly a quarter of people who joined the government’s Work Programme between June and September 2011 have started work, according to the Employment Related Services Association (ERSA), the trade association for the welfare to work industry.

Performance ranges between 18% and 26% across different areas and contract packages.

According to ERSA, the wage incentive element of the Youth Contract is beginning to have a positive affect by encouraging employers to take on young recruits.

Under the Youth Contract, which began in April, there will be 160,000 job subsidies available worth up to £2,275 each for businesses who take on an 18-24-year-old from the Work Programme.

However, ERSA says it is too early to draw firm conclusions about the likelihood of the welfare to work industry meeting its performance targets.  

ERSA chief executive Kirsty McHugh says in an analysis of the industry's performance released today: “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.”