Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

New Deal fraud probe begins: A4e under investigation

with 26 comments

Ipswich Unemployed Action can report that the Department for Work and Pensions is investigating Action 4 Employment and 2 other undisclosed New Deal training providers for fraud.

This means that A4e could lose their Flexible New Deal contract if further investigations show widespread fraud.

One of the New Deal providers under investigation have entered a contract with a local temporary job recruitment agency to gain job outcome payments while the New Deal participants gained short lived agency work until the provider profited from the bonus.

This is a concern that Ipswich Unemployed Action has previously raised with the new Flexible New Deal course – we were NOT surprised to learn that at least one provider has already been using that with New Deal.

A group called New Deal Scandal which runs the New Deal Complaints site we recently displayed on this site aims for a full investigation of the £75 billion New Deal scheme and believes that the DWP investigation is just the tip of the iceberg. Jobcentre Plus hasn’t shown any concerns from complaints from New Deal participants.

It could be presumed that out of the few providers the Department for Work and Pensions have admitted to, only Action 4 Employment has been named, could be proof of guilt. A4e is the largest New Deal provider and would have taken legal action to protect their reputation should the claims not be true.

The Guardian reports that Action 4 Employment has to repay at least £15,000 and another provider to repay £48,000. We think this provider could be Pertemps.   The article also states that the investigation has been ongoing for over 13 months and criticises why A4e was allowed to bid and win Flexible New Deal contracts while being thoroughly investigated for fraud and been found guilty of at least 20 cases from the beginning – thus the continued investigation.

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Written by Universal Jobmatch

June 28, 2009 at 1:20 pm

26 Responses

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  1. Tonight’s Channel 4 News did a piece on fraud involving Working Links, who also run the New Deal and other taxpayer-funded programs. A former employee spilled the beans on what was going on in their Glasgow offices, And further investigation revealed their Brighton and North Wales offices were also involved in the fraud.

    Gerry Attric

    June 29, 2009 at 11:29 pm

    • That is very interesting: thanks Gerry. Working Links could be one of the other providers involved.

      The relevance specifically with A4e not only because they are the biggest New Deal contractor but in statutory legislation the Secretary of State has the full powers to exercise the law – this is delegated out to Employment Officers (people who sign you on, NDPA’s, Decision Makers etc.) and also to various companies such as, you guessed it…A4e!

      There has long been talk of contracting out the Jobcentres yet most people are unaware that actually a few organisations already have powers to apply the law as if they were employees of Jobcentre Plus.

  2. […] be no new referrals to New Deal. This could be due to implementing the Flexible New Deal or due to revelations of New Deal fraud we recently reported, as the Flexible New Deal (if contracts are signed on time) are not due to […]

  3. We’ve got the bastards on the run Dan.

    That Channel Four programme really showed what it’s all about.

    Oh and I got me dole, in full.

    Andrew Coates

    June 30, 2009 at 9:38 am

    • Yeah, the Working Links fraud is quite a painful blow to the Government as it is one third owned by Secretary of State for Work and Pensions (title rather than person) rather than simply being owned by the Crown.

    • I am yet to see the C4 programme in full but I think now the Flexible New Deal will have to be delayed.

      It is a shame that this is only coming out due to the new contracts – New Deal has been a long term employment-come-training course and there should have been a real investigation into it ages ago.

      I think it would be justified to disclose that one of the other 2 providers are Working Links.

      On this news Labour has decided to halt New Deal courses in half the country: http://newdealscandal.wordpress.com/2009/06/30/new-deal-ends-in-great-britain/

  4. Hi Guys,

    Hre’s the link to the Channel 4 News Fraud Video:http://link.brightcove.com/services/player/bcpid1564561919?bclid=1564555921&bctid=27983881001

    If the link (above)is not active, CLICK ON MY NAME and you will be taken to my blog – which has a link to the video – top of the page.

    Gerry Attric

    June 30, 2009 at 3:54 pm

  5. […] comes at a time where Action 4 Employment is under investigation for fraud and could lose their Flexible New Deal […]

  6. Hi Guys,
    This story (below)appeared on the Observer site – Sun 5 July 2009.

    The government is to examine claims that firms are abusing incentives designed to get people who are on incapacity benefit into work
    Click on my name to read the story.

    http://www.guardian.co.uk/politics/2009/jul/05/inquiry-observer-incapacity-benefit-lure

    Gerry Attric

    July 6, 2009 at 5:30 pm

    • Thanks Gerry.

      The Government are F***ing slow aren’t they?

      Pathways to Work, relatively a small affair – they don’t want a full audit fraud investigation for New Deal since it started.

      I had a quick glimpse through the article and not sure why police are named.

      This said, the Government has viewed the New Deal Scandal site and providers including A4e and Seetec have also seen the site.

  7. No need to click on my name, the link has appeared in my posting!

    Gerry Attric

    July 6, 2009 at 5:31 pm

  8. […] New Deal fraud probe begins: A4e under investigation […]

  9. I worked for working Links recently and I can confirm as well as other members of staff that are currently there that managers at the Birmingham office push the in work support team to place people into agency jobs just so they can claim the 13 week payout. In my time there I have seen this to be a regular subject to come up in briefings on how to get better sustained results in the monthly figures as well as managers shrug their shoulders when the agency work may only last a month or two as best, they only thing they cared about was how they got their payout.

    Beenthere Seenthat

    August 11, 2009 at 11:30 am

  10. I was on ND 13 week course last year at Wise Group and was moved to a different provider (MB) after they failed to find me a placement. While at MB i got a temp job, for which Wise Group claimed bonus.

    After my job finished i signed on again 3 months after signing off and had to do balance of time at Wise Group.

    I went back onto JSA in December and received a call from Wise Group in April, asking me if id got another job after i left ND.

    Chris

    August 19, 2009 at 2:11 am

    • Yes these things happen. They shouldn’t be storing your details for much longer than for the purpose of delivering the course.

      New Deal

      August 19, 2009 at 11:08 am

  11. […] comes at a time where Action 4 Employment is under investigation for fraud and could lose their Flexible New Deal […]

  12. Also, I’ve just started Gateway to Work this week. When they were doing CVs they said they would still have my details from last time i was there, almost 14 months ago.

    Surely thats illegal under The Data Protection Act?

    Chris

    September 3, 2009 at 11:40 pm

  13. I agree, fraud investigation is long overdue.

    Two years ago I raised my concerns re CDG (Careers Development Group). I went above local Job Centre, but still no action.

    http://www.indymedia.org.uk/en/2007/11/386689.html?c=on
    http://www.google.co.uk/search?hl=en&q=%22Careers+Development+Group%22+CDG+site%3Awww.indymedia.org.uk&btnG=Search&meta=

    Now, two years on, they are threatening me with loss of benefits if I refuse to return to CDG.

    http://www.indymedia.org.uk/en/2009/10/439070.html?c=on

    keithpp

    October 5, 2009 at 12:02 pm

  14. I agree, fraud investigation is long overdue.

    Two years ago I raised my concerns re CDG (Careers Development Group). I went above local Job Centre, but still no action.

    http://www.indymedia.org.uk/en/2007/11/386689.html?c=on
    http://www.google.co.uk/search?hl=en&q=%22Careers+Development+Group%22+CDG+site%3Awww.indymedia.org.uk&btnG=Search&meta=

    Now, two years on, they are threatening me with loss of benefits if I refuse to return to CDG.

    http://www.indymedia.org.uk/en/2009/10/439070.html?c=on

    It needs more people to lodhe complaints.

    I will ask DWP who is under investigation. Does this include CDG, if not, why not?

    keith

    October 5, 2009 at 2:47 pm

  15. Data retention ….

    This is something I must raise at Job Centre.

    keith

    October 5, 2009 at 2:48 pm

  16. just be careful with some recruitmet agencies because some of them are scammers too ~

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    PataSpeathy

    June 15, 2011 at 4:53 pm

  18. I was unemployed a few years a go then went to college when I returned to claverhouse training group in Dundee after failing to gain employment again after college they still had my details on file from 3 years a go

    chelle

    October 30, 2011 at 10:59 am


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