Labour MP Margaret Hodge has called on the Department for Work and Pensions to suspend all of A4e’s Work Programme contracts following the arrest of four of its former employees.

Employment firm A4e is a prime contractor on the DWP’s Work Programme, and counts a number of charities as sub-contractors, including Turning Point and the Prince’s Trust.

It has hit the press this week as a result of the arrest of four former employees in relation to allegations of fraud.

In response, Hodge (pictured), who chairs the public accounts select committee, has said: “There is a growing number of concerns which mean that the only common-sense thing would be for the government to suspend its contracts.”

An A4e spokeswoman said: “All four members of staff have now left the business. Three of the staff were suspended once the allegations had been made to allow for full investigation, and the other had already left the business.”

This situation was discovered by A4e in November 2010, through its internal systems. A4e reported the incident to DWP within 48 hours, following a local, internal investigation. The case was referred to Thames Valley Police in May 2011.

Andrew Dutton, A4e Group CEO, said:

“A4e has zero tolerance towards fraud, and any instance of fraudulent or otherwise illegal activity is completely unacceptable. We take our responsibility very seriously, and we are committed to using taxpayer’s money effectively and efficiently to deliver the best services to the public.”

A4e has Work Programme contracts in five areas across the UK, which have a combined value of £435m.