Companies are offered cash to get jobless off benefits

The Government has revealed it expects 244,000 people across the region to be put onto the payment-by-results Work Programme over the next five years as Ministers seek to stop people being allowed to “languish on benefits”.

Companies and charities which manage to get them into jobs and keep them there for two years will be paid between £4,000 and £14,000 for each individual – paving the way for them to earn tens of millions of pounds.

Employment Minister Chris Grayling officially launched the “revolutionary” scheme yesterday, replacing other back-to-work initiatives, such as the New Deal.

Dozens of organisations will be involved in delivering the programme in the region, including charities like Barnados and the Salvation Army and private companies like Pertemps and Hays Specialist Recruitment.

The companies and charities will train, support and find the jobless work according to their individual needs, but will only be paid the full amount if the individual stays in the job for two years. Payments will range from £4,000 for an average Job Seekers’ Allowance claimant to £14,000 for the most difficult cases.

Mr Grayling said: “Thousands of people in Yorkshire and the Humber have been left to languish on benefits over the years, without the support they need and deserve.

“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.”

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 has said it would be difficult for private contractors to deliver the programme at a profit in certain parts of Wales, Scotland and London.