Welfare-to-Work Services

19 March 2009

Welfare to Work providers face a period of unprecedented change and expansion at a time when the world economy is in turmoil. December's welfare reform White Paper is explicit in turning to outside providers, in both the private and third sectors, to work with the most disadvantaged people in communities to get work. For the first time, this includes many of the 2.6 million people who are in receipt of incapacity benefit, a group which has traditionally been left by the state to its own devices.  The White Paper objective is to ensure that as many of those individuals as possible are placed securely in the world of work through a regime that is based on payment by long-term results.  Such a regime poses a series of challenges to the industry, in particular, the need for financial discipline and management effectiveness. This conference, organised by the financial specialists City and Financial, concentrates on the key structural and organisational issues that the industry must crack for successful implementation of the reforms.

Three issues are central. The industry needs to develop, as rapidly as possible, costed approaches that are effective in tackling the hardest to help. It needs to develop sophisticated consortia, combining both third sector specialists and private sector management expertise that are able to take on large, demanding, contracts. Already the third sector is working on the changes that will be necessary for it to play a full part in providing these services. The system of financial payments will be novel, requiring investment up-front and a return out of saved welfare payments. This will require full appreciation of the investment risk by participating banks.

If the UK is to prevent a generation from succumbing to long-term worklessness during this period of economic turbulence, it is vital that the provider industry develops robust programmes, consortia and systems at sufficient scale to help everyone back into the workplace.

David Freud
Nominated Shadow Lords Spokesman
on Welfare Reform 

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