Yet More Jobs Lost Due To Work Programme as Welfare to Work Firm Goes Bust

14 people have lost their jobs after a sub-contracter involved with the Government’s shambolic Work Programme closed their doors this week.

Eco-Actif services went into receivership after banks refused to provide loans on the basis of the Work Programme contract as it was seen to be too high risk.  According to The Guardian, their involvement with fraud ridden A4e was also “a matter of great concern to potential investors”.

Eco-Actif were a community interest company established to work with ex-offenders, single parents and those with drug or alcohol problems.  In a major embarrassment for Employment Minister Chris Grayling they were based in Sutton, just next door from the Minister’s own constituency, leafy Epsom and Ewell.

The company had a contract with beleaguered Welfare to Work company A4e, with around 500 claimants attending as part of their Work Programme provision.  Whilst the firm claim to have had good results getting people into work, under new rules companies don’t receive pay outs until 18 months after delivering the service.

Homelessness charity St Mungos recently left the Work Programme for the same reason, leaving a major gap in provision for homeless people on the flagship and flagging Government scheme.   A spokesperson for 3SC who work in partnership with A4e claimed that alternative provision was being arranged for the 500 people who’ve received an unexpected temporary reprieve from the workfare and sanction ridden Work Programme.

It is unclear however where these people will end up.  Representing as they do some of the hardest people to place into employment, they are of little interest to Welfare to Work giants like A4e.  Ex-offenders, or people misusing substances, require staff trained in risk-assessments and other expensive stuff.  A4e have no intention of paying for anything like that.  If people, who let’s be frank may have a history of violence or chaotic substance misuse, are placed into mainstream provision without adequately trained staff then the next Work Programme farce to hit the headlines may be the most tragic yet.

We should be wary of cheering any job losses due to the Government’s bungling of Welfare to Work provision.  But Eco Actif -  like so many other charities who’ve happily inflicted sanctions and workfare on vulnerable people in the hope of wads of Government cash – only have themselves to blame.

Chief executive of the company, Amanda Palmer-Roye, had previously been a cheer leader of welfare reform.  Quoted in The Guardian today it appears the scale have fallen from her eyes: “I believed it when Cameron said all that ‘the third sector should be the first sector’ stuff. I really did believe all that crap.”

It is to the ‘third sector’s’ shame that they have allowed themselves to become involved with a scheme which can see unemployed people sent on six months workfare or disabled people having benefits sanctioned for missing a meeting.  They are now learning to their cost what most people know instinctively – you can’t trust a fucking Tory.

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18 responses to “Yet More Jobs Lost Due To Work Programme as Welfare to Work Firm Goes Bust

  1. So the banks think the WP is too high risk to invest in yet the government plough money into the pockets of the big name contractors. Another example of the ‘trickle down’ not working.

  2. Arbeitsscheu_UK

    Bound to trigger more A4e bonuses and further future contracts when #Grayling hails this as a another overwhelmingly positive indicator of #workfares success

  3. Good riddance, I hope all the work programme providers go bankrupt.

  4. How much thought went into placing single parents (many of whom have to take their children with them) on the same work programme as “people with a history of violence and chaotic substance abuse”

    • You are so right…..plenty of scope for serious litigation and massive payout from the dwp.
      Well,that’ll be one way of getting peopke off the claimant count!
      Sue the stupid tory cunts!

  5. Perhaps the unlucky 14 might be lucky enough to get sent on the WP themselves, and maybe workfare, to help improve their work ethic,etc, just think they could even be doing their old jobs just for their benefits now.

  6. This is how it feels to be on the receiving end of the predatory capitalist as he stabs his best mate in the back : “Nothing personal,mate,it’s just business.”
    Stupid tory cunts.

  7. Ra Bommur must’ve studied some philosophy:
    “With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public into giving the fascist and his group more money or more power.” – Henry A. Wallace

  8. Marie Antoinette

    Let them eat cake :-)

  9. Eco-Actif have NEVER ‘hapily sanctioned people’ Perhaps because we did our jobs properly and cared about our clients may have added to our problems? Perhaps some of you mean spirited people out there might think about talking to our clients bedore you make jusdgements

  10. It doesn’t really matter whether you sanctioned people happily or unhappily, the end result is still the same.

  11. Pingback: Disaster For Work Programme As Long Term Unemployment Continues To Rise | the void

  12. Heres a little bit of balance to your reporting:

    http://www.3sc.org/news/3sc-responds-guardians-article-about-eco-actif-and-work-programme

    Comments on here just show how warped the views of this blog and its cultish followers are.
    You are happy that people have lost their jobs because of thier asscociation to the work progrmme -all in the name of fairness and tolerance and support for people who have been stuck in a benefit trap -the same programme that many good organisations involved in are helping to turn peoples lives around.

    Its a good job yours is the tiny minority opinion and the majortiy in this country would consider your views unstable and ridiculous.
    You are the same as the BNP, small, warped, ignorant, obsolete and irrelevent.

    Go find something positive to do with your lives. Maybe help some else improve theirs. Now theres a thought.

    • Dear Grow Up ,i have thought of a simple solution that would have helped Eco-Actif stay in business .It goes like this ,the staff could have continued working at the company for their unemployment benefit and/or some minor additional perks like £2 lunch money and daily travel costs say.. up to the value of £2.50.. for such a good organisation as you say filled with such caring, supporting people the work itself should have been reward enough …but it wasn’t ..was it ….it would seem that they did not practice what they preach and their main interest in the work programme is their own greedy financial gain.

  13. Cali – You put forward a very childish argument. Suggest that you read up on work programme payment structures before you sprout nonsense about greed and financial gain. You are arguing from from an ignorant and judgemental platform which is as far from the truth as you can get. But that doesn’t matter because this intoleance and refusal to look outside your little world is so ingrained.

    I am sure that some of the ECO Actif staff will be continuing their work regardless, finding a way and solutions to keep their core going. Thats what organisations like theirs does. Keeps going. To help people.
    Take a leaf….

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