William Eichler 02 December 2022

DWP urged to devolve employment support to councils

DWP urged to devolve employment support to councils image
Image: fizkes/Shutterstock.com.

Local authority leaders have called for all employment support to be devolved to councils rather than contracted out to large providers.

A new report from the National Audit Office (NAO) into the Government’s Restart scheme has revealed that the programme is costing the Government more per person than originally anticipated.

The Department for Work and Pensions (DWP) set up Restart to help people made unemployed by the COVID-19 pandemic. It was backed by £2.9bn of funding.

The scheme aimed to ‘provide intensive and tailored support to more than one million unemployed people and help them find work’ by providing up to 12 months of tailored support. It is delivered by eight contractors across 12 contract areas in England and Wales.

In a new report assessing Restart, the NAO has found that the DWP did not properly assess how many of its claimants would be suitable for the programme or plan for the possible scenario of significantly lower demand before it entered into contracts. This left it with fewer options to reduce the cost when demand was lower.

As a result, Restart is more expensive per person than originally intended. the average expected cost per participant has risen from £1,800 to £2,429. This is greater than comparable programmes such as the Work Programme (£1,760 per person) and the Work and Health programme (£1,560 per person).

Gareth Davies, the head of the NAO, said: ‘The Restart scheme is proving successful in tackling systemic barriers facing people who are long-term unemployed. Fewer people than expected have required support leading to a higher cost per person than previous comparable schemes. ‘For the future, DWP should look at how its contracts with employment support providers can be scaled up and down to respond to economic shocks, while controlling costs.’

In response to the NAO’s report, Mayor Marvin Rees, chair of the Local Government Association’s (LGA) City Regions Board, urged the DWP to give local authorities the power to deliver all contracted employment support.

‘Instead of large providers covering vast areas, which we know can lead to capability and capacity issues, all contracted employment support should be devolved to local government,’ he said.

‘This would lead to more integrated services, better targeting of investment, provision of wraparound support such as on housing, health, training and debt management and working with local and national partners, all of which can be done within a national framework.’

SIGN UP
For your free daily news bulletin
Highways jobs

Governance Lawyer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£59,058 - £74,568
Governance Lawyer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Tenancy Sustainment Officer

Durham County Council
Grade 9 £36,581 - £40,444
This is a rewarding opportunity to make a real difference to the lives of individuals and families with multiple and complex needs who have experience Spennymoor
Recuriter: Durham County Council

Strategic Housing and Commissioning Team Leader

Durham County Council
Grade 13 £48,738 - £53,051
Lead the strategic development and commissioning of housing and support services that prevent homelessness, reduce rough sleeping and improve outcomes Seaham
Recuriter: Durham County Council

Cleaner

Durham County Council
£25,614 Pro Rata
Cleaner Grade 1- £25,614  (pro rata) Permanent - Part time, 12.5 hours per week Currently 3.30pm to 6pm Monday to Friday (subject to change depending Durham
Recuriter: Durham County Council

Environmental Health Practitioner

Durham County Council
Career Graded 11-12 - G11 £42,123 - £46,579 / G12 £45,529 - £49,817
We are recruiting two Environmental Health Practitioners to join our Community Protection Service. Working within our Nuisance Action or Environmental Durham
Recuriter: Durham County Council
Linkedin Banner