Charity sub-contractors warn of flaws in Work Programme

The Work Programme is at risk of ‘systemic failure’ unless some significant issues are addressed, a group of over 100 charity sub-contractors is warning today.

Members of the special interest group, which is run by NCVO, are voicing concerns that the new welfare-to-work initiative in its current form could leave many voluntary sector providers feeling squeezed out and financially vulnerable. In a paper (PDF, 227KB) which has been sent to Employment Minister Chris Grayling, the group calls on the government to ensure that sector is involved fairly within the programme.

Key concerns centre around the effectiveness of the Merlin Standard, a code of conduct for ensuring that sub-contractors are treated fairly by their prime contractor partners. The group has raised concerns that the current timescale for prime contractors to obtain Merlin accreditation within one year of starting Work Programme contracts is too long, leaving voluntary sector providers vulnerable to mistreatment and financial risk in the meantime. 

Many sub-contractors have fed back that they have not yet received any Work Programme referrals or in some cases even received contracts from their prime. This reinforces concerns that some voluntary organisations have been used as ‘bid candy’ to make prime contractor supply chains look more attractive during the tendering stage.

The group recommends that Government should look at current funding arrangements to ensure that money passed on to sub-contractors is both fair and sufficient to carry out the work. This follows on from concerns that prime contractors may not pass on sufficient upfront fees to their supply chain partners, many of whom will be financially vulnerable ‘niche’ providers.

The paper also recommends monitoring sub-contracting arrangements to ensure that they avoid undue bureaucracy. One member of the group has reported signing a contact 140 pages long only to receive no referrals to date.

Sir Stuart Etherington, our Chief Executive, said:

‘The voluntary sector has vast knowledge and expertise which could be put to good use within the Work Programme, so it is crucial to ensure that the sector is involved properly and fairly. While the broad aims and direction of the Work Programme is right, the devil is in the detail, and we urge the Government to take these concerns seriously to ensure that the programme delivers good outcomes for all.’

If your organisation is a sub-contractor in the Work Programme, join our special interest group to share your experiences, gain information and advice, and help us feed your concerns to Government.

Read the full paper (PDF, 227KB) sent to Employment Minister, Chris Grayling, and find out more about our wider work on employment, skills and training services in England.