The Department for Work and Pensions today published an impact assessment of the Mandatory Work Activity (MWA) programme. The analysis compares participants on the programme with "comparable" (as determined by sophisticated statistical techniques) non-participants. Briefly, what the analysis shows is that the programme as currently structured is not working. It has no impact on employment; it leads to a small and transitory reduction in benefit receipt; and worst of all, it may even lead to those on the programme moving from Jobseekers' Allowance to Employment and Support Allowance.

Sadly, the DWP's press release doesn't mention any of these key points. Nevertheless, one would naturally assume that as a consequence the programme would be redesigned to achieve better outcomes. However, in a Written Statement, the Minister for Employment said:

I am also pleased to announce the Government has decided to expand the Mandatory Work Activity scheme. The expansion will enable Jobcentre Plus to make between 60,000 and 70,000 referrals to Mandatory Work Activity each year, based on the current experience of the scheme, at a cost of an additional £5 million per annum. This decision has been taken as the result of careful consideration of the positive impacts demonstrated within the Impact Assessment.

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A team here at NIESR, led by Helen Bewley, and including me, performed a peer review of the analysis. As the DWP publication says:

"NIESR concluded that the methodology was sound, although the nature of the selection process for programme referrals means that it is very difficult to identify truly comparable individuals who were not referred. As a consequence, it is possible that impacts are underestimated. However, subject to this, the key conclusions - that MWA had a small and transitory impact on benefit receipt, and no impact on employment - appear reasonable.

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To conclude, it is highly commendable that the Department has undertaken and published this analysis. It would be even better if that hadn't been accompanied by a policy decision which seems to fly directly in the fact of the evidence. At at time of austerity, it is very difficult to see the justification for spending millions of pounds on a programme which isn't working.

http://notthetreasuryview.blogspot.co.uk/2012/06/dwp-analysis-shows-mandatory-work.html