Work Programme to add £18bn value to UK economy
A new report published on Tuesday (2 September) shows that £18 billion of value will be delivered to the economy by the Work Programme.
The report, ‘The Economic Impact of the Work Programme’, by Europe Economics, is the first study to look at the economic benefits of the Work Programme and the added financial value it delivers to employers, employees and taxpayers. The report was commissioned by the Employment Related Services Association (ERSA), the representative body for the employment support sector, of which Prospects is a member. It marks the third anniversary of the Work Programme and the launch of a greater focus — ‘Proud to Work’ — on the employers and employees who have benefited from the Work Programme.
The Work Programme has been running since 2011, and provides employment support for the long term unemployed. Providers such as Prospects have freedom to decide how best to support Work Programme customers, while meeting minimum standards for delivering the service. Prospects is a prime contractor for the Work Programme in the South West, and a major subcontractor in Bristol and London. In the South West we have supported more than 20,000 jobseekers.
The figure of £18 billion refers to the value to the economy provided over the lifetime of the workers on the Work Programme who would not have otherwise found work. Of the £18 billion total:
• £7 billion will be delivered to workers
• £7 billion will be delivered to the government
• £4 billion will be delivered to employers
Around 300,000 workers have found sustainable employment after participating in the Work Programme. Europe Economics estimates that it is responsible for approximately 100,000 jobs for the long term unemployed.
Minister of State for Employment, Rt Hon Esther McVey MP, said: “Providers of employment support know they are making a real difference to people’s lives, and now we have the evidence to show that the Work Programme is delivering for the economy. It is giving the long term unemployed a chance in the workplace, saving taxpayer’s money and supporting growing businesses looking for new employees.”
Read the report here.