31 March 2016

Yet again, DWP have no idea if workfare costs jobs

(Original 15/09/15)

The Jobcentre has several schemes whereby claimants are obliged to "work for their benefits". Typically these schemes require 30 hours work for a weekly benefit payment of  £73.10 (less if you're under 25). This is just under £2.44/hour. It's alleged that this tempts employers to get work done under this scheme rather than pay an ordinary worker the National Minimum Wage of £6.70/hour.

So does "workfare" cost jobs in this way? The DWP doesn't know - I've asked them 3 times for information on how they check this isn't happening and they still say they don't know

Words literally fail me.

Update 31/03/16: They still don't know, see here however, new referrals to the schemes end today.

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