The Department for Work and Pensions needed to be alive to the fact that changes in contracted employment programmes could lead to many small sub-contractors going out of business, MPs were warned today.
This comes after David Ainsworth from Third Sector reported that "charities subcontracted to place unemployed people in work under the Department for Work and Pensions' Flexible New Deal programme have seen a steep fall in the payments they receive from prime contractors".
Steve Wyler, chief executive of the Development Trusts Association, said "several of his members had reported reductions in the amount they had received for placing each unemployed person in work. In one case the amount had fallen from £1,700 to £1,100".