Deloitte and the Work Programme.
Solomon Hughes writes in the Morning Star today,
This week the Times had a gripping report about Deloitte, the accountants who are supposed to get everybody following the rules, apparently twisting the rules to stop people getting compensation.
Lloyds TSB tricked people into buying useless payment protection insurance on its loans. This is a vast scandal, with the bank cheating customers out of cash on an industrial scale.
So far Lloyds has paid £4.3 billion to 1.3 million customers it conned.
Lloyds hired Deloitte to run one of its PPI claims offices, processing letters from people who were tricked by the bank into buying useless insurance.
Deloitte added insult to injury by obstructing their compensation claims.
This was good journalism by Times journalist James Dean. But it has a wider significance because Deloitte doesn’t just bamboozle bank customers.
This is available from their own site,
Ingeus Deloitte joint venture
The Work Programme
From June 2011 the Department for Work and Pensions’ flagship Work Programme will replace many of the welfare-to-work programmes currently being delivered across the UK.
The Work Programme, based on a partnership between government and providers from across the public, private and third sectors, seeks to bring a new dynamic to welfare-to-work in the UK and aims to support more people to move from benefits into lasting employment.
A joint venture between leading welfare-to-work provider, Ingeus UK Limited, and professional services firm, Deloitte, has been selected as a ‘preferred supplier’ under the DWP’s Framework for the Provision of Employment Related Support Services. The joint venture has submitted tenders to deliver the Work Programme as a prime provider in seven regions across the UK.
The Ingeus and Deloitte joint venture is also developing services in other areas, such as education, skills and training, and health and wellbeing.
The joint venture combines Ingeus’ strong track record of delivering high-quality employability services with Deloitte’s expertise and capability in public service delivery, particularly with regard to supply chain management and large-scale programme implementation.
Solomon Hughes continues,
eloitte helps to run Iain Duncan Smith’s programme for the unemployed in partnership with an Australian company, trading as Ingeus.
Its Work Programme contracts are worth a staggering £773 million.
When the first Work Programme performance figures were published last November, every one of Deloitte’s benefit-busting contracts failed to meet “minimum performance levels.”
It couldn’t get 5 per cent of its unemployed clients into work.
The Department for Work and Pensions estimated that 5 per cent would find work without their help, so Deloitte’s Ingeus were literally worse than nothing.
This is no surprise. Deloitte’s Ingeus also got loads of work on benefit-busting contracts from the last Labour government.
They were inspected by Ofsted, which found “inadequate” outcomes in five out of six schemes.
Ofsted’s description of the schemes sounds a little like Dean’s description of the PPI sweatshop.
Ofsted said: “The delivery of information is over-reliant on trainer-led presentations and is often uninspiring.”
The jobless had “insufficient access to computers, which they regularly require for jobsearch activities. They often have to wait for long periods to access them.”
Staff were especially bad at helping unemployed folk with health problems.
Deloitte’s benefit-busters have responded to its Work Programme failure by punishing the unemployed. It has high rates of “sanctioning” – that is, it keeps telling the DWP to stop the benefits of claimants on its scheme.
So money flows from the taxpayer to Deloitte via Ingeus without ever helping the unemployed, who often lose benefits in the process.
Deloitte’s reliance on taxpayer cash is especially galling as it advises big corporations on how to avoid tax.
So how does Deloitte, a firm that seems to twist the rules it is supposed to uphold, thrive?
The answer is the same as for all the Unemployment Business.
In part it’s because it likes to give money to influential people. To widespread disgust, it gave former Revenue and Customs boss Dave Hartnett a job as an adviser.
Deloitte likes boasting about capturing politicians and officials. In 2009 it announced “the appointment of Lord Warner as a strategic adviser to its public-sector practice,” with particular focus on “health and social care.”
Norman Warner was a Labour health minister. Deloitte said: “Lord Warner’s wealth of experience in formulating and delivering successful health and social care policies will be invaluable to our clients.”
Under Warner, the Labour government mortgaged many hospitals under PFI schemes. This was disastrous for the NHS, but made millions for accountants like Deloitte.
Deloitte boasted that hiring Warner “follows a series of high-profile business appointments.”
They included hiring Nick Prior, the head of the Ministry of Defence private finance unit, where he too organised many accountant-enriching but poorly performing PFI contracts.
Deloitte also made friends by giving the Conservatives around £430,000 worth of staff help since 2009. This included a member of staff in Chris Grayling’s office when he helped to draw up the plans for the Work Programme.
You get the message…