Published: 03 July 2009
No Lessons Learnt from the Individual Learning Accounts Debacle
The PCS union has called for a National Audit Office (NAO) inquiry and a halt to the outsourcing of the Flexible New Deal following reports on Channel 4 News of alleged fraud involving private companies contracted by the government to help people back to work.
The union expressed deep concern over the findings of the Channel 4 News report which highlighted how allegedly profits are being put before people and how allegedly the private sector is failing some of the most vulnerable in society.
The report highlighted allegations of fraud by private companies including Working Links, involving the fabrication of signatures & paperwork and A4e, which involved the placement of people into unsustainable jobs.
Pointing to the report the union warned that the contracting out of the Flexible New Deal and increased outsourcing of welfare delivery could lead to private sector staff being pressurised to act fraudulently as companies sought to maximise profits through payment by results.
Commenting, Mark Serwotka, PCS general secretary, said:
"The fraud uncovered is scandalous and is a stark example of what happens when profits rather than people are put at the heart of the welfare state.
Not only is the taxpayer being fleeced, but in some instances people’s lives are being toyed with.
Not only is the taxpayer being fleeced, but in some instances people’s lives are being toyed with.
Staff working for private companies in helping people back to work are trying to do a good job, but are under pressure to bend the rules to maximise profits.
There is a real danger that this will continue as the government extends the profit motive in the welfare state and outsources key areas and the Flexible New Deal.
We urge the government to halt outsourcing areas of the welfare state and for the National Audit Office to investigate what appears to be significant amounts of fraud."
Further information
The Channel 4 News report
PCS
Flexible New Deal
Individual Learning Accounts (ILAs) news item
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