Oral Answers to Questions

Sheila Gilmore Excerpts

Tuesday 11th December 2012 Commons Chamber

[Mr Gauke]

I will be interested to know whether the hon. Gentleman will support the benefits uprating Bill. He is shaking his head, so I take it that we have finally got an answer on the Labour party’s position.

[Sheila Gilmore (Edinburgh East) (Lab)]

6. What assessment he has made of the effectiveness of the funding arrangements which he agreed with the Secretary of State for Work and Pensions for the Work Programme.

[The Chief Secretary to the Treasury (Danny Alexander)]

The Work programme is the biggest single payment-by-results programme Great Britain has ever seen. The funding arrangements I agreed with the Secretary of State for Work and Pensions ensure that providers are paid to find sustained job outcomes for those who are or are at risk of being long term unemployed. For the very first time, providers are paid in part through the benefit savings that they generate.

[Sheila Gilmore]

The Chief Secretary wants us to look at the cheapness of the scheme to providers, but buying cheap can be a false economy if the product does not work. The price here is being paid by people staying in long-term unemployment, not getting jobs and still being on benefit. Is not the Work programme a failure?

[Danny Alexander]

No, I do not believe it is. The hon. Lady refers to costs, and she will know that the flexible new deal, which the Work programme replaced, cost £7,495 per job outcome; that compares with costs of about £2,000 under the Work programme. It is a great deal more cost-effective. The hon. Lady will also be aware that 56% of those first Work programme starters have come off benefits and that up to September this year, there have been 200,000 job entries, as reported by providers, so there is a sense of progress in the Work programme, too.