The Boston Consulting Group has produced a report pointing out that the DWP itself says that the "dead weight figure" - the proportion expected to get work if there was no WP - is 28%, and the assumption in the WP is that between a half and three quarters of the money paid out will be on those dead weight numbers, i.e. unnecessarily. Chris Grayling and the DWP say that this is a misunderstanding of the figures. Richard Johnson, who used to be with Serco and was involved in the contract negotiations, says that the model is wrong and is encoraging "creaming and parking", as so many said it would.So what of the clients, asked the reporter. Of the several clients who were interviewed six months ago, none have found work. One, an A4e client, has had two interviews but there were 170 applicants for one of the jobs. He said he had had no support from A4e, but the local office disputes this.
Back to the voluntary organisations, which the primes were obliged to include in their tender for the contracts. They were called "bid candy" by some, and there are those which were not even aware that they had been put into a bid document. Others have not signed a contract and have had no involvement with the WP. Grayling had said that he would crack down on this, but now says that he hasn't received a single complaint about it.
The Financial Times revealed the other day that the DWP has contingency plans in case A4e is stripped of its contracts.