From 2012: Another Workfare Company Guilty of Fraud

I’ve posted up several pieces recently on fraud by the welfare-to-work companies, and the way the system is actually designed so that it is highly vulnerable to such crime. The National Audit Office was well aware that the system would almost certainly fail, and suggested ways in which it needed to be bailed out. An article from a previous issue of Private Eye that I posted up yesterday stated that five workfare companies had been reported to the police for fraud. The charges, however, were eventually dropped, either through sufficient evidence to secure a conviction, or because it was deemed ‘not in the public interest’. Private Eye in their issue for the 13th – 26th July 2012 published this article about fraud by yet another workfare company, the Real-Time Training Group.

The Real Steal

Yet another company has been using the government’s lucrative skills, training and workfare contracts as an easy way to gain large amounts of taxpayers’ money in return for, er, not delivering.

The latest to join the dubious ranks occupied by A4E, Working Links et al in cashing in at the expense of those seeking to improve skills or find work is the Real-Time Training Group (RTT). It has just gone into administration amid allegations of fraud and wrongdoing, leaving staff unpaid and apprentices and those on skills courses in limbo.

The Skills Funding Agency (SFA) declined to respond to reports that an RTT audit had found irregularities and that the agency was seeking to claw back money wrongly claimed for “successful” work and training placements. A spokeswoman would only confirm that it had terminated the company’s contract, believed to be in the region of £3m.

Castle Donington-based RTT, which names various members of the Barton family (John, Jennifer, Michael and James) as directors and company secretary, claims to have been delivering “world-class training and learning” thanks to contracts with the Department for Work and Pensions and funding the European Social Fund as well as the SFA.

One insider told the Eye that course have been run by people who have no qualification to do so; “learners” have been signed up for courses on the basis that they would obtain qualifications and licences to work, for example in the security business, when RTT was not entitled to provide them; that others had been incorrectly assessed for basic numeracy and literacy qualifications so that they take more courses than necessary; and that people who did not meet the usual criteria had been signed up to qualify for hard-to-employ enhanced payments of up to £1,000 per person.

He said he was instructed to forge papers for the “Train to Gain” programmes aimed at improve the skills of those in work, when those recruited were all job-seekers.

The Eye tried to put these allegations to RTT by email and by phone. But reply came there none.

Private Eye also posted up a piece, which I’ve also blogged, pointing out how poor the standards of companies like Working Links and A4E were in the educational courses offered to job-seekers. These were actually far below the standards of the vast majority of this country’s schools, as assessed by Ofsted. This is another piece of evidence showing that private industry does not lead automatically lead to higher standards, as well as showing the massive potential for fraud in the welfare-to-work sector.

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3 Responses to “From 2012: Another Workfare Company Guilty of Fraud”

  1. sdbast Says:

    Reblogged this on sdbast.

  2. Jeffery Davies Says:

    Its been nothing but fraud these companies only goal is profit
    yet on its goes day in day out its not the benefits claiment but
    the companies who took over the jcp roll it hasnt saved nowt but it did rid us of jobs yet they tell all whilst sliping those backhanders into their dodgy pockets jeff3

  3. A6er Says:

    Reblogged this on Britain Isn't Eating.

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