New Deal fraud probe begins: A4e under investigation

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.