Posts Tagged ‘CapGemini’

From 2012: Private Eye on Fraud by Workfare Company

January 21, 2015

This Sunday, 18th January, I reposted an article from Glynis Millward’s blog, reporting the trial and conviction of several A4E employees for fraud. They had been falsifying the numbers of unemployed people the company had helped back into work, in order to get money under the government’s ‘payment by results’ scheme. Although noteworthy, it wasn’t the first time a workfare company had committed such fraud. Johnny Void has also blogged about similar abuse of the system by the workfare companies. And three years ago, Private Eye reported a similar case of what may have been fraud by Working Links in their edition for the 18th -31st May 2012. The article ran:

Workfare
The Links Effect

“Benefit-busting contractor” contractor Working Links tried to claim government cash for helping people into work when the “clients” couldn’t be traced, were still receiving Jobseekers Allowance or were actually helped by rival “workfare” companies.

The company also made several duplicate claims, asking to be paid twice for helping the same person, according to internal papers passed to the Eye. The documents, which cover Working Links’ £5m-plus contract for work on the New Deal for Disabled People in 2007-8, were found in a disused desk on a rubbish tip.

Working Links, one of the UK’s largest “benefit-busters”, had contracts to encourage incapacity benefit claimants back into work through coaching, interview advice and other “job club” activities. It was paid around £300 for each unemployed “client” and received bonuses of more than £1,000 for each one getting a part-time job and nearly £3,000 if they found full-time work.

The files include monthly invoices from Working Links to the Department for Work and Pensions (DWP) ranging from £400,000 to £1m. The DWP rejected up to £20,000 a time on many invoices because of multiple errors. The DWP did not investigate the false claims nor treat them as fraud, and the files do not show these were deliberate errors. However, they do show that Working Links was more enthusiastic about claiming cash from the government than it was about keeping accurate records. Separately, DWP “compliance visits” have found systematic overclaiming in some Working Links offices. (See Eye 1311).

Overclaiming appears rife among workfare contractors. Emails between the DWP and the National Audit Office obtained under freedom of information by the Eye show that “benefit-busting” firms made more than 10,000 false claims on the “New Deal” employment scheme in 2010-11. In the emails, the DWP told the auditors about failures in checking that claimants the contractors claimed to have helped had actually signed off benefits. The DWP describes “30 percent failing the check and around 10 percent ultimately unvalidated”.

A third of claims by contractors are initially questioned. Most are cleared up, but the remaining 10 percent are false. The DWP found that of 104,767 invoices from New Deal contractors, 10,462 failed the off-benefit check and remain “unpaid”. This means that companies like Working Links and the giant A4E asked for to £30m they were not due. The DWP did not pay the cash, but the fact that it did not investigate the false claims further shows a liberal attitude to the contractors.

Working Links, part-owned by temp agency Manpower and consultant CapGemini, has many other government contracts, including £300m for running the new Work Programme in Wales, Scotland and the South West.

This is a shocking statistic, but it isn’t really surprising. I posted up another piece by Private Eye yesterday reporting on the conclusions of the NAO several years ago that the welfare-to-work scheme would fail, and would need bailing out. Moreover, as Johnny Void has repeatedly blogged, the workfare system is so flawed that you are far more likely to get a job through your own efforts than from one of the workfare companies.

The entire scheme is set up to encourage fraud, and based on the exploitation of the unpaid labour of the jobless themselves. It should be totally discontinued.

Advertisements

From 2011: Private Eye on the Failure of Working Links Workfare Firm to Find Jobs for Unemployed

April 13, 2014

workfare-isnt-working

This is from the Eye’s edition for the 25th November – 8 December 2011.

Workfare Update

Challenged in parliament over rising unemployment, David Cameron repeatedly offered the government’s Work Programme as the answer. But one of the main contractors running the welfare-to-work scheme has been deemed “inadequate” at helping the jobless find work, according to Ofsted inspectors.

Working Links, a partnership between Manpower and CapGemini, runs the Work Programme in Scotland, Wales and the South West. But according to an Ofsted report earlier this year: “The percentage of participants that progress iinto jobs is low”.

Ofsted marks services on a scale of one to four, from “Outstanding” to “Inadequate”. In Derbyshire the “outcomes for participants” – like jobs – got the worst mark. the inspectors also lamented that “the number of participants who joined the programme was significantly below the contract targets” and that “during this period only 13 percent of participants gained employment”.

The scheme is the brainchild of work and pensions secretary Iain Duncan Smith, who had hoped to create a body of “Fairy Jobmothers”. Alas, the Ofsted inspectors were not over-impressed by some Working Links staff. “The personal consultants do not always negotiate and set clear targets for the completion of different activities. Often, they do not monitor these activities sufficiently well,” said the inspectors.

In the North-East, meanwhile, Working Links operations in cities like Middlesbrough, Newcastle, Tyneside and Sunderland, admittedly unemployment black spots, were underwhelming . Though the number of people finding jobs had improved slightly, job rates “remain low”, the inspectors said.

Working Links’ antics have sometimes been questionable. As Private Eye revealed in April, a confidential government audit into the partnership’s Liverpool operation showed that it was even claiming government cash for jobseekers who had found work without its help. As well as running the Work Programme, Working Links is now also part of the Community Justice Partnership, bidding for probation contracts (see last Eye).

Workfare is little more than a 21st century form of forced labour. A number of bloggers, such as Johnny Void, and including myself, have pointed out its similarity to the totalitarian forced and compulsory voluntary labour systems of Stalinist Russia, Communist Yugoslavia and Nazi Germany, all of which had schemes in which those persecuted by the regime, including the unemployed, were forced to work for industry. Johnny Void and several others have also shown that these schemes are terrible at getting people into jobs. The statistics actually demonstrate that you’re more likely to gain work through your own initiative than through the government’s Work Programme. Not that this seems to bother the government, as it looks like the whole programme is designed to supply cheap labour to industry, rather than actually combat unemployment. This piece by Private Eye adds more information on how useless the Work Programme is.