Inquiry into firm run by PM’s work adviser ‘at early stage’

The Government has been urged to consider suspending contracts for its flagship Work Programme scheme with Sheffield-based A4e after police visited the company’s Slough offices on Friday amid allegations it claimed Government cash for putting clients back to work for just one day on a previous back-to-work scheme.

The company revealed it discovered the incident in November 2010 and reported it to the Government. It said the incident relates to four employees, all of whom have now left the business, and had found “no further issues” after a full investigation.

Andrew Dutton, A4e Group chief executive, said the company had a “zero tolerance” stance on fraud. “We take our responsibility very seriously, and we are committed to using taxpayer’s money effectively and efficiently to deliver the best services to the public.”

Labour MP Margaret Hodge, chairwoman of the Public Accounts Committee, has said the Government should consider suspending its Work Programme contracts with A4e until the matter was resolved. She recently branded the company’s performance record as abysmal and was critical of its chairman Emma Harrison, who started the company in Sheffield, pocketing a dividend of more than £8m last year.

Ms Harrison was appointed by Prime Minister David Cameron in 2010 to help get troubled families into work.

The Government has stressed the allegations related to an old scheme rather than the Work Programme, a payment by results scheme to get the long-term unemployed back to work.

A Thames Valley Police spokesperson said its investigation was “at an early stage”.