Carrying on

On the day of the reshuffle the DWP put out its independent report into the way the bedroom tax is working.  It's a process known as burying bad news.  But it was noticed, particularly by the Liberal Democrats, who decided that it was just too bad to defend any longer.  And it's that, unfortunately, which has been the news story, rather than the contents of the report itself.  Let's skip the politics and look at the facts.
You can read it all here - "Evaluation of Removal of Spare Room Subsidy".  There's a lot of it, so you might like to copy most of the media and just look at the Key Findings from page 15.  Crucial is the fact that only 4.5% of affected claimants have moved "within the social sector" in the first 6 months of the reduction, with another 1.4% moving to the private rented sector.  There's nowhere to move to.  Most people said that they had done more to find work or better-paid work (well, they would, wouldn't they?) but hardly anybody had taken in a lodger.  41% of tenants have paid the full shortfall, 39% have paid some, and 20% have paid none.  Where have people got the money to pay the extra?  57% say they have had to cut back on essentials (like food) and 26% had had to borrow money.
And on it goes.  The RSRS (as the report calls it) is a massive failure, as everyone except IDS and Freud predicted, and all it has achieved is to plunge poor people into greater penury.  The BBC got a quote from Iain Duncan Smith: "This department is delivering some of the biggest welfare reforms in over 60 years, designed to return fairness to the system and we are on track to make the £6bn savings we had previously set out.  At the same time we are helping to make sure our housing benefit reforms have a transformative effect on the lives of those who in the past were faced with a system which trapped people into cycles of workless and welfare dependency.  The scaremongering by those opposed to our welfare reforms - in particular our housing benefit reforms - has been proven to be without substance, and we are already seeing the effects of people moving into work."  The risible DWP Press Office chaps tweeted desperately in similar vein.  But the Lib Dems decided that they couldn't defend it.

There was some barely-noticed news on the outsourcing front.   The contract for electronic tagging of offenders, previously held by G4S and Serco (both of which were found to have defrauded the taxpayer of millions) has gone to - wait for it - Capita!  Some asked why Capita; why does it always have to be these three?  But it's an inevitable part of the outsourcing business.  If you create huge contracts only the big firms can bid, and it was these three which were prepared to bid for everything.  
One lot of contracts of interest to many is Community Work Placements.  But CWP doesn't seem to be going well.  The Boycott Workfare team is doing a great job of publicising companies and organisations which agree to take part by taking free labour.  One was recently claimed by the government as a success, providing a photo-op for Osborne.  It quickly decided to withdraw when it discovered the trouble it was attracting.  It looks like the CWP contractors are targeting councils and housing associations for placements, if Seetec is anything to go by.  They say, "Examples of such projects include estate maintenance and local renovation, groundswork, horticulture, recycling as well as administration, customer service and sales, warehousing, distribution and cleaning services. The list of potential projects is almost endless."  Sadly, it will be tempting for cash-strapped councils to go for this.  Presumably they can adapt the hi-viz jackets they use for Community Payback offenders on similar projects.

Not accountable to anybody

A curious story popped up in my Google alerts the other day, from the Rotherham Business News website.  It reported on the new "Help to Work" programme, then went on to the fact that Rotherham Council had discussed a review into the Work Programme as it operated locally, with Serco and A4e.  The report was particularly concerned about sanctions.  Both companies were invited to take part in the review, in person or in writing, but declined, "with A4e taking the view – based on advice from their Department for Work and Pensions account manager - that it would be inappropriate to respond to the panel's questions."  I'm not entirely sure what a DWP account manager is.  But clearly A4e don't see themselves as accountable to anyone.
The DWP has shied away from investigating another provider, Seetec.  Private Eye broke the story some time ago.  Two whistle-blowers had reported fraud around Seetec's Work Choice contract.  The DWP has now "investigated" and exonerated the company.  But it didn't interview the whistle-blowers, and claimed that it had all the evidence needed in their emails - which contained no detail, just a short summary.  The Eye says that Margaret Hodge is on the case.
It's staggering that the value of outsourcing contracts has risen by 168% in the first quarter of 2014.  It's gone to £2.1bn.  In local government it's up by 60%.  And more than half the contracts are first-time outsourcing deals.  The government wants more.  Private Eye also reported in the latest issue on a meeting held by Francis Maude, the Cabinet Office minister, with bosses from G4S, Serco, Capita and Atos, to discuss "how to develop the government's commercial reforms".  Apparently they discussed "greater openness and trust between government and its suppliers".  But of course, you can't have openness when commercial firms are involved, unless you change the law.  And businesses are lobbying hard to avoid that.
There was an excellent, if chilling, article by Polly Toynbee in the Guardian last week.  Read it and weep.  Even if the Tories are rejected at the next election it will be too late to undo their sell-off of our public services.

CWP contractors - the full list

Thanks to a site called TWPSolutions, we have the full list of Community Work Placements providers, after the Financial Times gave us 4 of them.
There are 18 regions.  Of these, G4S have 6; Seetec 5; Pertemps and Interserve 2 each; and Learn Direct, Working Links and Rehab one each.
Did A4e put in a bid?  It would be very unusual if they didn't, and this must be a major blow for them.  All that's left in the pipeline are the Transforming Rehabilitation contracts, and the government wants to get on with them before the election, despite Labour's pleas to postpone the decision.

Help to Work - at least for G4S

At last, we know four of the companies which have won the contracts to deliver the inappropriately named "Help to Work" programme.  The Financial Times reveals that they are G4S, Seetec, Interserve and Pertemps.  Why it hasn't named the other two, I have no idea, but A4e hasn't said anything, and Serco has launched a rescue rights issue, so perhaps they both lost out.  The FT says that G4S is the biggest winner.  It also says: "It comes less than three weeks after the British government lifted a ban on G4S bidding for public sector work and suggests that Whitehall is taking a favourable view towards one of its largest contractors, despite insisting that the company remains under close scrutiny."
But hang on a minute.  The bidding must have taken place during the time in which that ban was supposed to be in place.  And the company was "cleared" just in time for the announcement of its success.  Who is the government trying to kid?

The whole "Help to Work" story today has been utterly depressing.  This morning, on Radio 4's Today programme, Evan Davies had the dubious pleasure of trying to interview the appalling Esther McVey.  I bet he didn't want to.  When he tried to pose questions to her boss, Iain Duncan Smith, recently he ended up being complained about by ignorant listeners.  McVey did the same trick this morning - spouting utter twaddle and not answering questions.  The reaction to the new scheme in the media has been predictable.  The Guardian and the Independent get it right, while the Express salivates at the prospect of bludgeoning the poor even harder.  The BBC interviewed Kirsty McHugh of the ERSA, who said what you would expect since she's paid by the outsourcing companies, and Richard Johnson who used to work for Serco and talked sense.
So let's spell it out.  This scheme is largely about IDS's temper at the failure of the Work Programme, which he interprets as the failure of the unemployed.  So they must be punished.  And it will have the advantage of taking loads of people out of the unemployment figures.  They will be sanctioned en masse, or driven into the black economy, or forced onto workfare and so counted as employed.  
Newsnight is doing something on the scheme.  I don't think I'll watch.

Workfare - the government must come clean

The DWP refused Freedom of Information requests to reveal the organisations which were using free labour under the various schemes dubbed "workfare".  The Information Commissioner said they had to.  The DWP refused again, on the grounds that it would cause "damage to commercial interests", and charities would suffer from the "adverse publicity".  Now a tribunal led by three judges has ruled that the DWP must comply and publish the list.  (See the Guardian)
While the Boycott Workfare group is justifiably triumphant, I don't think they should rejoice too soon.  This government doesn't regard such legal rulings as binding.  As the Guardian says, they could appeal to the high court or use a ministerial veto to ban publication.  My bet would be that the list never will be published.
The DWP seems to assume that if they have to reveal the organisations taking part in these schemes it will effectively bring them to an end.  And that means, they say, that the firms paid to organise them would have to sack staff and lose money.  Ingeus said it would lose £1m in revenue, and Seetec said they would have to sack 53 people.  (A4e don't seem to have been asked.)  So the taxpayer is paying millions to force people into working for their benefits.  Crazy, isn't it?  There's another interesting fact in the Guardian piece.  The current Chief Executive of Ingeus is Dean James, who is a former senior DWP civil servant.  How very cosy.

Libel and an appeal

If I was still a jobseeker (and thank God I'm not) I would be trying to instigate legal action against the Daily Express for libel. Yesterday they had to tone down a vicious piece about "workshy Britain". Today they've come back with two vile little pieces instead of one. One headed "4m Scrounging Families in Britain" reports the latest figures, with nothing whatever to justify the "scroungers" label. They quote their pals the Taxpayers' Alliance (which is simply a Tory-funded lobby group) on the subject of "over-generous benefits". Not content with that, there's an equally nasty piece headed "400 jobs up for grabs .... but nobody wants them". Apparently it's in Penzance. "A spokesman at the town’s Jobcentre blamed our soft-touch welfare state which has taken away the incentive to find work." This chap is not named, unsurprisingly. There's no analysis of what these vacancies are actually for - how many are not real jobs, for instance, or whether they require skills or experience which no one in the area has. No, it's just another way to traduce the unemployed. Just what is the editor's motive in this maniacal campaign?

I've been contacted by a Radio 4 journalist who is working on a programme about the government’s Work Programme, and wants to hear from people who are currently doing courses run by private providers such as A4E, Ingeus, Reed in Partnership, Seetec etc., or have recently been on FND. She would be interested to hear about the experiences of both clients and current or former staff of all the providers. Her email address is anna.meisel@bbc.co.uk and her telephone number is 07706154283. She assures me that all contacts will be treated in strict confidence.

Not entirely unrelated is a request from me to a few people who have posted comments on this blog in April, May and July this year which I have not published. Doncaster and Nottingham were mentioned. Please get in touch with me via a comment I will NOT publish.

ERSS Framework

The DWP has issued the list or organisations that have been selected as preferred suppliers for the Employment Related Support Services Framework. There are 11 "lots" or different areas of the country, and A4e is included in 7 of them. But there are between 9 and 17 organisations selected in each area. You can find the full list here. There's a useful description of what it all means on the Navca site. The DWP says that, "The Work Programme will be the first contract to be called off the Framework and the procurement exercise for this will commence shortly." It looks very much like contracts have been shared out amongst the main established companies; Serco, JHP, Working Links, Seetec and Reed all have 7, and Avanta has 6.

Work for your Benefit

"Work for your Benefit" is a pilot scheme cooked up by Yvette Cooper and the DWP aimed at people who have been out of work for two years. It's explained on the DWP website. It consists of "up to six months" of "intensive work experience which will help improve their employability." You may suspect that this is punitive, or pandering to the "make 'em work" brigade, but of course that's not how it's portrayed.

The two pilot areas are Greater Manchester and East Anglia, and the PQQ results have been published. Twelve providers have been successful at this stage in each area, and they include A4e as well as other companies like Serco and Seetec that we're becoming familiar with.

As the Indus Delta site says, "The future of WfYB is uncertain under a Conservative government, so shortlisted organisations will have to decide whether it's worthwhile bidding for the contracts." But even without a change of government, this scheme seems unlikely to survive. It's hard enough to find work placements for the recently unemployed, and any contract that depends on guaranteeing getting people into such placements is not very attractive.

ESF Phase 2 - nothing for A4e

The announcement of the successful bidders for ESF phase 2 has been made. (For some background on the European Social Fund see this website.)

Now, when the PQQ stage shortlist was announced, A4e had succeeded in 8 of the 12 areas in making the shortlist. But they haven't won a single contract. The biggest winner is Seetec, with 4 areas. Ingeus and Intraining each have 2, and ESG, Reed and Working Links have one each (Cornwall is still to be decided).

Interesting.

Work Choice

Work Choice is the new name for contracts to provide support into work to disabled people. It's a specialist area that some people will remember as Workstep. For the purposes of these contracts the country (including Scotland and Wales) is divided into 28 regions, and the shortlists have now been published of providers. A4e is shortlisted in 9 regions, including what might be considered their heartlands. The BASE website (a voice for supported employment) points out that "the majority of bidders have little or no experience of meeting the needs of these customer groups". A few specialist providers are shortlisted; The Pluss Organisation gets 9 mentions, Advance Housing gets 11. But it's the big-name generalists that loom largest. The Shaw Trust is shortlisted in 17 areas; Working Links in 16; Pinnacle People, a newcomer, gets 14; Work Directions gets 10; and Seetec gets 9. (Seetec's website proclaims, with no doubt conscious echoes of A4e, that it is "one of the UK’s leading providers of Employment, Training and IT services. Working in partnership with the Department of Work and Pensions, Jobcentre Plus, the Learning and Skills Council. employers and partners we are passionate about moving people into sustainable employment, increasing skills and changing lives for the better." )