A Government scheme designed to help the long term unemployed back into work is under the spotlight following the withdrawal of commercial property retailer Boots. This is the second of the Government’s flagship welfare schemes to run into trouble in a week. Only days ago the Department for Work and Pensions (DWP) was forced into a u-turn over plans to withdraw benefits from young job seekers declining offers of unpaid work experience. This followed the withdrawal of several high profile companies amid criticism that the scheme was little more than slave labour.
Boots says it will be offering no more placements on the programme for the long term unemployed because of the element of compulsion involved. Under DWP rules job seekers can have their benefits cut if they refuse to participate in the scheme. Boots isn’t the first company to withdraw from this programme but joins Burger King, Tesco and other commercial properties in disassociating itself from Government welfare policy.
In a statement Boots said it had previously offered placements in its commercial properties but it was company policy never to participate in schemes that compel people to work. As a result “It would no longer be offering any new placements,” the statement concluded. A Spokesperson for the Employment Related Services Association (ERSA), which delivers the programme on behalf of the Government, expressed disappointment in Boots decision, saying; “I think it’s a real shame. I think it’s a bit of an over-reaction from Boots.”
The latest blow to the Government comes amid growing controversy over its Welfare to Work programme. The Guardian recently uncovered that AVANTA, a provider of serviced offices and a major Government contractor, has compelled job seekers to clean its offices under the programme. The evidence also suggests that some companies have been cutting overtime and replacing temporary staff with unpaid job seekers. The Guardian also alleges that another participant, A4E, had forced the unemployed to work in its own offices.
The programme for the long term unemployed was launched in June 2011 and job seekers are referred to the agency by Job Centre Plus. Recent statistics from the DWP point to the number of referrals being higher than anticipated although some participating businesses claim not to have received a single referral.
Following the controversy surrounding its scheme for 18-24 year olds, the danger for the Government is that this programme also becomes discredited. If the public perception is that the scheme is designed to punish the unemployed and provide free labour to business, other commercial properties could follow Boots in withdrawing their participation. This would seriously undermine the government’s welfare policy and prove embarrassing to the Prime Minister who has publicly supported the programme.
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