"The Department for Work and Pensions has made a
concerted effort to reduce the number of people claiming incapacity
benefits and deserves credit for grappling with a problem often
seen as intractable.
"However, the Pathways to Work programme has turned out
to provide poor value for money and it is therefore important that
the Department learns from the experience. In the future it should
base its programme decisions on a robust and clear evidence base,
follow best contracting practice and establish a measurement regime
which allows it to understand better what happens to those whom
they may have helped."
Amyas Morse, head of the National Audit Office, 28 May
2010
A Department for Work and Pensions programme to reduce the
number of people claiming incapacity benefits and help them into
work has had a limited impact and, while a serious attempt to
tackle an intractable issue, has turned out to provide poor value
for money, according to a report published today by the National
Audit Office.
The report gives credit to the Department for trying to tackle
the problem but, whilst the number of people claiming incapacity
benefits has fallen slightly in recent years, the volume of
claimants has remained in excess of 2.5 million for over a decade.
The precise contribution of the Pathways to Work programme to a
reduction of 125,000 in the number of people claiming incapacity
benefits is not clear, but is likely to be limited. The reduction
is likely to be due to the earlier medical assessment to determine
benefit entitlement. Other elements of Pathways employment support
- at an estimated cost of £94 million in 2008-09 - appear to have
had no impact on claimants, with new claimants just as likely to
move into employment without Pathways support as they are with
it.
Pathways is led by Jobcentre Plus in some areas but is
contracted out to third sector and private organisations in over 60
per cent of the country. The National Audit Office found that there
is no evidence that the programme is performing better or costing
significantly less in contracted out areas than in those run by
Jobcentre Plus.
Contractors have universally underperformed against targets set
by the Department, the NAO points out, and the Department has had
to make concessions as part of contractual renegotiations to
support the continuation of businesses and services. The NAO also
found that the Department lacked adequate information on the
Pathways supply chain. With a third of contracts making a financial
loss, the programme's contracted out delivery does not appear to be
sustainable. Looking forward, however, the Employment and Support
Allowance looks likely to be a key instrument in reducing the
number of incapacity benefit claimants.
Publication details:
HC: 21, 2010-2011
ISBN: 9780102965223