MINISTERS hit back yesterday at criticism that their multi-billion pound back-towork scheme is a Big Society flop in the region.
They released a list of ten voluntary groups that have been awarded contracts to help deliver the flagship Work Programme in the North- East, replacing all existing job schemes from yesterday.
The move followed criticism that large multi-national firms had won the contracts – despite claims the scheme would boost the Big Society.
The voluntary groups that will help deliver skills courses include the Five Lamps organisation, in Stockton, which helps jobless people write action plans, prepare for interviews and obtain training grants.
Organisations in Sunder- By Rob Merrick Political Correspondent rob.merrick@nne.co.uk land, South Tyneside and Newcastle will also be involved, but half are nationwide groups – including Action for Blind People, the British Trust for Conservation Volunteers and the Citizens Advice Bureau.
The list includes nine private companies that will be sub-contractors to the two main contractors – G4S, the former Group 4 Securicor, and the Newcastle College Group.
Only those two contractors will join a performance-related payment system offering rewards of up to £14,000 per claimant returning to work.
Work Minister Chris Grayling described the programme as the biggest in the world, given the task of finding jobs for 500,000 people a year. He said: “The best way of describing it is almost like a giant employment dating agency, trying to motivate the long-term unemployed and match them to a job in which they have a good chance of staying.”
Over 25-year-olds will join the Work Programme when they have been out of work for 12 months and under-25s after nine months. It will be compulsory for those on employment support allowance and lone parents with children over five.
Mr Grayling said providers would be paid in instalments – giving them an incentive to keep people in secure work.
But the Work Foundation research group said it would do little to improve job prospects for people living in employment blackspots such as the North-East.
Neil Lee, the group’s senior economist, said: “There is the danger that private contractors will focus on investing in places where they are more likely to get people into work, to secure a return on investment.”
Up to two-thirds of the North-East’s 100,000-plus incapacity benefit claimants are expected to join the scheme.
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