Charities highlight financial risk of Work Programme to MPs

Finance | Vibeka Mair | 9 Feb 2012

Baroness Stedman-Scott, chief executive of Tomorrow’s People, has said her charity, which is sub-contracted on the Work Programme is probably carrying more risks in delivering the programme than its prime contractor.

Stedman-Scott was speaking at a Public Accounts Committee hearing yesterday on the Work Programme, which also included A4e, a prime contractor on the Work Programme, and Community Links, a sub-contracted charity.

MPs asked if primes on the Work Programme were carrying as much risk as they should.

Stedman-Scott said that Tomorrow's People was probably carrying more risk than its prime, but she added that primes also had to face concerns about financial and reputational risk:

“I doubt primes will want things to go wrong,” she said. “I’ve had no experience of bad behaviour on the Work Programme. I’ve always had open dialogues.”

Earlier in the sesssion, Stedman-Scott said the risk in contracts for sub-contractors on the Work Programme was high, and that it was necessary to manage risk carefully.

Chief executive of Community Links Geraldine Blake said the Work Programme was one of its biggest financial risks at the meeting, but she was also positive about the Programme, saying that the organisation had a very good relationship with its prime contractor.

During the meeting MPs also rounded on A4e chief executive Andrew Dutton. Tory MP Stephen Barclay said prime contractors such as A4e were squeezing sub-contractors on the Work Programme.

Dutton said he disagreed, saying that A4e had one of the lowest management fees with its providers on the Work Programme.

Directory: Tomorrow's People

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