DWP urged to drop A4e following fraud probe

Published by Julien Tremblin for 24dash.com in Housing and also in Central Government

MPs are calling on the government to consider suspending all contracts with back-to-work firm A4e following a fraud investigation.

It is understood that Labour MP Margaret Hodge, chair of the Commons public accounts committee, has tabled a parliamentary question, asking if the Department for Work and Pensions (DWP) would drop any contracts with A4e until the inquiry is completed.

Thames & Valley police raided the company's offices at DWP’s request on Friday, regarding a fraud investigation.

The company, created by Emma Harrison, is one of the main contractors for the Government’s Work Programme - which notably sees housing associations working with private contractors to help the unemployed get back into work.

Attendance on a back-to-work course – such as those provided by A4e - is necessary for the long-term unemployed if they want to keep receiving benefits.

In a statement, A4e explained the investigation relates to an incident that occurred  two years ago and implicates four former employees – three of them were suspended once the allegations had been made while the other had already left the company.

According to the company, it was A4e itself that discovered the fraud and reported the incident to DWP.  

Andrew Dutton, A4e Group CEO, said: “A4e has zero tolerance towards fraud, and any instance of fraudulent or otherwise illegal activity is completely unacceptable. We take our responsibility very seriously, and we are committed to using taxpayer’s money effectively and efficiently to deliver the best services to the public.”

In its statement, the company explained the case was referred to Thames & Valley Police in May 2011, and the matter now rests with them.

A spokesperson for the Department for Work and Pensions (DWP) said: "Obviously we are unable to comment on any pending investigation but we understand these matters are not related to the Work Programme.”