MP claims new jobs programme won't work
LABOUR MP Chris Bryant last night criticised the coalition Government's new plan for getting people off benefits and into work, saying it would do little to help the long-term unemployed.
The programme, launched yesterday by Employment Minister Chris Grayling, will rely on private providers to help people into work, paying them for results.
It comes as latest figures from the Department for Work and Pensions found more than 77,000 people in Wales have been on unemployment benefits for 10 years or more.
The data, compiled by the Office for National Statistics, include more than 75,000 people on incapacity benefit or income support, with the rest claiming either Jobseeker's Allowance or benefits available to lone parents or carers.
Rhondda MP Mr Bryant warned the new programme would encourage agencies to "cherry-pick" people based on how likely they are to find work, saying those living in areas with little or no employment would have little hope of help.
Claiming the Government was simply privatising the job centre, he said: "If you were running a company you would try and find jobs for the people who have just left jobs, not those who have been out of work for five years or who are more difficult to place. It doesn't address the real problems, the vicious circle many people face.
"If, for example, you are living at the top of the Rhondda Valley you probably own your own home, because most people do, so you want to stay put, but there aren't any jobs locally.
"If you travel all the way down to Cardiff for a job that is on minimum wage that is going to be very expensive."
Across the UK more than 500 voluntary sector groups will be involved in the programme's delivery, including Mencap, the Citizens Advice Bureau, the Prince's Trust and Action for Blind People.
Mr Grayling insisted the plan was "revolutionary".
"Thousands of people in Wales have been left to languish on benefits over the years, without the support they need and deserve," he said.
"They may feel they have little to offer and the only option is to remain on benefits, but I know many of them want to return to work and now they will have the help they need to do so. This is a massive new initiative to tackle long-term benefit dependency by offering local support to suit individual needs."
Over the course of the seven years the contracts will run, the total value is likely to be between £3bn and £5bn.
However, the Work Foundation research group warned the programme would do little to improve job prospects for people living in economically weaker areas of the UK, including some areas of Wales.
Neil Lee, the group's senior economist, said: "The Work Programme is based on a national payment structure and does not take into account local and regional variations in labour demand. Economic growth is faltering and parts of the country – still dealing with the fallout from the recession – are facing significant public sector job losses."