Youth Contract vs Work Programme

Bob E emailed me the following question:

... some of the £1 billion set aside for the Youth Contract is there to provide a subsidy to employers to take on someone for six months in order to both earn and learn.

The question is, given the enthusiasm amongst some employers for this, having someone on their workforce for six months and being given the money to pay that persons wages; is "are the employers going to be, as it were, recruiting to fill these placements directly, or is some of that £1 billion 'ring-fenced' for handing over to those bodies running the Work Programme who will be able to claim their "bonus payments" for having "directed" someone on their books as part of the WP into a "job" which is actually just a taxpayer funded YC place?"

And then provided his own answer. Written evidence submitted by A4E and published at rom www.parliament.uk:

7.1 For Work Programme providers, there is not sufficient information on how moving Youth Contract participants onto subsidised placements will interact with the established payments system for Work Programme outcomes.

7.2 We expect that providers will pay a role in brokering job/placement outcomes through identifying suitable Work Programme candidates and supporting in their transition to work, but it is unclear whether the priority of the Youth Contract is to give customers a continuous 6 month employment experience, or to retain the objective to move people to full-time employment as soon as possible.

7.3 Work Programme providers are accustomed to supporting customers taking their first steps in a new role, and then tackling any problems which might jeopardise their continued employment, but under the Youth Contract, would investment of this resource attract the same sustainment fees associated with an unsupported job?

7.4 Youth Contract employees who are not successful in achieving employment will also need to return to Work Programme support which maintains the momentum achieved from their taste of work experience, with additional resource implications for providers.

7.5 A4e Recommendation:-

The role of Work Programme providers in the Youth Contract and the interaction between the two schemes is unclear. More information needs to be provided to clarify this.

How the Youth Contract will be coordinated between Government departments, local authorities and agencies , including DWP, DfE, BIS, National Apprenticeship Service, Young People’s Learning Agency and Skills Funding Agency.

Yup, what that boils down is that A4E and other such vultures are expecting to be paid all over again for simply shuffling people from non-jobs into subsidised semi-jobs.