Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Working Links’ £13m Flexible New Deal boost

with 5 comments

Royal Bank of Scotland has loaned Working Links £13 million via its Revolving Credit facility (designed to provide businesses with the working capital required) to help fund the initial working capital to deliver the £500 million 5-year Flexible New Deal contract allowing the employment of over 300 new employees at 40 new offices they intend to open across the UK.

Working Links

Working Links has the task of getting a target of 300,000 people on Jobseekers Allowance into sustainable employment within the 5 year contract.

The contract, worth more than £500m over the five years, covers Devon and Cornwall, Leicestershire, Northamptonshire and Nottinghamshire, North and East Yorkshire, Humber and Tees Valley, South Wales Valley and South West Wales.

Flexible New Deal

The questions raised are:

  1. After borrowing 2.6% of the total contract value up front will Working Links be successful in balancing the books into making a profit or more to the point breaking even?
  2. Working Links is 1/3 owned by the Government – will they receive different treatment than the other Flexible New Deal providers which the Government has no stake in?
  3. Working Links although their turnover has increased over the last few years they have pretty much had consistent profit of £1 million each year – profit margin decreasing with increasing turnover – Are Working Links really good enough for the Flexible New Deal contracts?
  4. Working Links (like other providers such as A4e) were caught up in Fraud allegations of the previous New Deal scheme – will they be any different with the Flexible New Deal?
  5. Taking into account of:a) the allegations of New Deal Fraud with Working Links
    b) the payment structure of Flexible New Deal and the £13m working capital loan; and
    c) The new powers that Flexible New Deal providers have of being able to directly go to a Decision Maker like an Employment Officer can (DWP employee) to give a Flexible New Deal participant an 6 month sanctionWill providers like Working Links abuse their new powers just to balance the books or undertake more fraudulent activities?

Written by Universal Jobmatch

October 19, 2009 at 9:11 am

5 Responses

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  1. Readers who have suffered under working links might like to sign the e petition on the 10 downing st website

    geoff twist

    October 29, 2009 at 11:08 am

  2. I will do so tommorow – time in Library just running out!

    Andrew Coates

    October 30, 2009 at 12:13 pm

  3. Could Geoff gvie a link – I can’t find one.

    Andrew Coates

    October 31, 2009 at 9:56 am

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