Government axes A4e jobs contract

Training company A4e has been stripped of its welfare-to-work contract in the South East of England. The firm’s Mandatory Work Activity (MWA) contract was axed after a review by the Department for Work and Pensions uncovered “significant weaknesses” in the company’s internal controls. Employment minister Chris Grayling said no instances of fraud had been found at the company. But the National Audit Office (NAO) criticised the Government for not requesting vital evidence in risk assessments at A4e. It said “glaring holes” in fraud controls had seen the DWP fail to look at internal audit reports, including one which highlighted nine cases of possible fraud and seven of improper practice by staff.

A4e, which was set up to help jobseeker’s allowance claimants complete work experience placements, holds Government contracts worth more than £70 million a year. It will retain its other contracts, including those under the Work Programme which aims to tackle long-term unemployment. The MWA contract, which was designed to help up to 1,000 people in the South East find work, is thought to have been worth less than £1 million.

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email employment@ibblaw.co.uk.