(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.
