The New Deal Scandal: Flexible New Deal blog (http://www.newdealscandal.co.uk/flexiblenewdeal/) is a part of the Flexible New Deal Scandal Network.

New Deal fraud: the techniques used to rip off the taxpayer

Many New Deal providers are using a whole range of fraudulent techniques to receive money unlawfully from the Government. The Government generally isn’t interested in knowing about these techniques, they only recognise the fraud that is forging employer signatures. Read more on New Deal Scandal »

A4e fraud and the company switch

New Deal Scandal network can announce that Action 4 Employment has two main companies which they swapped names of. We do not suggest that this act was an act of fraudulent company trading however we felt the suspicions of which is significant to match the allegations of widespread fraud in the organisation. Read more on New Deal Scandal »

a4e New Deal: Finance Director resigned

We can reveal that on the 20th April 2009, Mr Neil Watson the Finance Director for Action 4 Employment resigned from a4e Ltd as a director. Read more on New Deal Scandal »

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Guardian admits mistake: New Deal Fraud NOT Flexible New Deal

The Guardian newspaper has updated an article on their website which stated the fraud was for Flexible New Deal when in fact it was for the current New Deal system. Read more on New Deal Scandal »

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1,869 fraud tip offs in the first half of New Deal

New Deal Scandal can reveal that there were 1,869 allegations of fraud made against New Deal providers within the first 5 years – 15% of these allegations (or roughly 1 in 6) resulted in full fraud investigations being carried out. Read more on New Deal Scandal »

New Deal Fraud: Over 278 full fraud investigations

Evidence from 2003 has been uncovered showing information on fraud investigations of New Deal in the first 5 years of New Deal. You may have heard about cases regarding companies such as A4e, Maatwerk and Working Links being investigated for fraud, however, official Parliament documents show that up until winter 2002 there was over 278 in depth fraud investigations against New Deal providers, almost 2000 allegations of fraud committed by New Deal prime contractors and the rate of cases year on year seems to be on the increase. Read on for more! Read more on New Deal Scandal »

New Deal fraud: Concerns rise as news spreads

The New Deal Scandal blog unique hits yesterday were still rising (at 22%) as concerns increase over Action 4 Employment and Working Links, the entire New Deal scheme which is very vulnerable to fraud and the Flexible New Deal. Read more on New Deal Scandal »

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New Deal fraud: A4e employee jailed for fraud

Former Action 4 Employment (A4e) employee Elizabeth Orsman has been jailed for fraud with a total value of £15,833. Read more on New Deal Scandal »

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New Deal Fraud: A4e and Working Links response

Both Action 4 Employment and Working Links publicly release a statement on the Channel 4 News report broadcast on the 30th June 2009, dated 28/06/2009 (A4e) and 29/06/2009 (Working Links) up to 2 days before the public were aware of their fraudulent activities. Read more on New Deal Scandal »

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a4e fraud: Emma Harrison speaks on scams

Action for Employment founder and chairperson Emma Harrison discussion regarding scams: with video! Read more on New Deal Scandal »

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New Deal fraud technique: “leeching”

The illegal act of:

  1. Forcing the New Deal participant to sign a disclaimer giving them permission to contact any future employers, by threatening dismissal if they decline (see “exiting” fraud technique)
  2. Contacting the participant’s New Deal Personal Adviser enquiring if they have found employment and with what employer. (NDPA’s are only too happy to disclose such information even when the term of your New Deal course has far been exceeded – i.e. Data Protection Act 1998 violation)
  3. Approaching the employer and making them fill in the paperwork required
  4. Claiming Job Outcome bonuses, intended as an incentive to find New Deal participants work, NOT to be abused like in this manner where work was found by the ex-New Deal participant after the course ended.

… is known as “leeching“. Read more on New Deal Scandal »

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New Deal fraud technique: “misrepresentation”

The illegal act of:

  1. Bidding for a contract to a high specification in order to win the contract (this becomes part of the New Deal contract outlined in Part 3 (“The services”), Section 3 (“Provider obligations”) subsections 3.1.1 and 3.1.5, Schedule 2 (and applicable Annexes) and other applicable sections), Or
  2. Failing to follow Provider Guidance (breach of subsection 3.1.3 of New Deal contract)

    and

  3. Deliberately providing the service different to that promised at tender stage, where the standard is less, where financial cut backs are made to the delivery, understaffed, under resourced and overcrowded premises.

… is known as “misrepresentation“. Read more on New Deal Scandal »

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New Deal fraud technique: “exiting”

The illegal act of:

  1. Acknowledging that regardless of the actual period of time the New Deal participant spends on the course they will get the full amount for the entire 13 weeks, unless they exceed their absence limit where they wont
  2. Short listing those who appear not to be able to make the entire 13 weeks or those who are close to exceeding permitted absence limits to be dismissed – those who seem likely to “drop out” will not award provider with Job Outcome bonuses thus are surplus to requirements and those that are close to the limit regardless of being in their rights and not committing an offence are likely to become a liability to limit the amount projected to be received.
  3. Acknowledging that the Jobseeker cannot appeal or prevent being dismissed, has no rights to find out the reason for dismissal or have a chance to put right/get a second chance,  and that it takes immediate effect.
  4. Short listing random people for dismissal to ease overcrowding of training centres
  5. Making false declarations under oath of a disclaimer claiming reasons for dismissals as rather severe (misconduct, Health and safety concerns etc.) all being lies, knowing that the Dismissal Form has a sole purpose of helping a Decision Maker impose sanctions on a jobseeker, who doesn’t get to see such a form.
  6. Tell the Jobseeker verbally an entire  different story (such as due to attitude, not contributing enough etc.) consisting of rather mild reasons, so when he or she becomes required to give reasons why the training course ended or appeals to a decision of benefit sanctions,  the jobseeker merely complains about something irrelevant to the actual stated reason and becomes sanctioned as a result.
  7. When a Decision Maker writes to the Training Provider, the training provider delays the reply so when the Decision Maker writes to the Jobseeker, he or she doesn’t get a copy of the answers provided as the system is intended to do.
  8. Now that the people were exited – the training providers profit margins further reach the projections.

… is known as “exiting“. Read more on New Deal Scandal »

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New Deal fraud technique: "pre-signing"

This potentially fraudulent act involves:

  1. Bullying the client into signing…
    • Blank documents or not filled in forms, Or
    • Incomplete (but partially filled in) forms
  2. Giving the reason as to “save time”, “I will complete the rest later…” and this is typically enforced by inadequate time for the paperwork to reasonably be completed (such as someone already waiting or an unreasonable target i.e. complete everyone’s paperwork by lunchtime).
  3. Threats of dismissal or 6 month sanctions, for non-compliance
  4. Verbally agreeing what you will write

    The fraudulent element is as follows…

  5. Writing something completely different to what was verbally agreed

Or, This fraudulent act involves:

  1. Requiring signature specimens (regardless of any “genuine” reason i.e. security)
  2. Using “Windowing” technique with specimens to make someone appear to have signed some document

… is known as “Pre-signing“; the second definition is more likely to use that term in common dialogue. Read more on New Deal Scandal »

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New Deal fraud technique: “penciling”

The illegal act of:

  1. Filling in a document with pencil
  2. Getting the client to sign (either in pencil or pen)
  3. Later go over the pencil lines in pen to make a few modifications or rewriting the entire agreement
  4. Erase the pencil lines (if client signs with pencil go over it with a pen first)

Or

  1. Filling in a document with pencil
  2. Getting the client to sign
  3. Erasing certain words, sentences or paragraphs and filling in the gaps with other words or sentences.

… is known as “Penciling“.

If your New Deal provider ever wrote reviews and such like in pencil I would recommend you use the Data Protection Act 1998 to retrieve all the documents they hold on you (failing that if they say they no longer have it, try the Jobcentre) and see whether the content changed

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New Deal fraud technique: "windowing"

The illegal forging act of:

  1. Creating a photocopy of a document with the signature you wish to use (thus to prevent marks created from the top of the pen making an impression on the original sheet which enables detection of fraud easier)
  2. Placing the photocopy against a window (hence where the name comes from) or a light box/overhead projector (which gives artificial light if not enough light from a window is available)
  3. Cover the photocopy with the document you wish to have the signature on (the light enables the content of the photocopy to be seen through that document)
  4. Trace the signature (and if you have a steady hand you have a good copy, doesn’t have to be perfect: signatures typically vary slightly)

… is known as “Windowing“. Read more on New Deal Scandal »

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New Deal should be subjected to a Serious Fraud Office inquiry

All New Deal training providers, past and present should be subject to an investigation by the Serious Fraud Office.  The fraud investigation can’t be conducted by the Department for Work and Pensions as they also fall under the suspicion of fraudulent activity and other acts of unlawful misconduct and requires an outside independent investigation. Read more on New Deal Scandal »

Flexible New Deal or flexible New Deal?

Is it Flexible New Deal or flexible New Deal? (notice the lowercase f in flexible)

I have noticed different providers and news sources have displayed Flexible New Deal differently, have I said it wrong saying Flexible New Deal instead of flexible New Deal?

I am aware that its basically is New Deal 2.0 but I have reported it as Flexible New Deal because it is the name of a new programme rather than being a new type under an existing New Deal such as flexible New Deal or inflexible New Deal.

Anyone with the official properly written way of saying it?

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New Deal ends in half of Great Britain

Since Monday, in half the country there will be no new referrals to New Deal. This could be due to implementing the Flexible New Deal or due to revelations of New Deal fraud we recently reported, as the Flexible New Deal (if contracts are signed on time) are not due to begin until October allowing a 13 week programme to commence this week.

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New Deal Scandal record hits DOUBLE on news of A4e Fraud

At only 19:55 BST the record number of unique visitors on this blog today has beaten the previous record a week ago (22nd June 2009) by 2 times and has tripled the daily average number of unique visitors. It seems everyone is very interested in the A4E fraud so we will bring more revelations on Action 4 Employment in the future.

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New Deal fraud investigation: Reed in Partnership

Several years ago Reed in Partnership were investigated over 13 employees who has forged placements for those who had signed off to gain bonuses and also used the Employment Services data of New Deal candidates that found work outside of Reed to top up missed targets, totalling an expected multi-million pound fraud.

This was back in 2001, what have the Department for Work and Pensions learned since then?

It appears that the Government is still very slow in picking up on fraud – with the departments executive agency Jobcentre Plus ignoring complaints from Jobseekers and New Deal participants, and generally having a very laid back attitude, turning a blind eye approach to working in partnership with these external providers it can’t be surprising the failings of these fraud investigation teams they have.

For one, Ipswich Unemployed Action have reported that YMCA Training, a New Deal training provider, didn’t have planning consent for providing their services – the New Deal contract team that are supposed to monitor service delivery of contracts are, yes you guessed it, a Jobcentre Plus department and NOT Department for Work and Pensions who award the contracts. Before signing the contract training providers have to submit plans and details of the proposed premises for approval – it appears they couldn’t be bothered to do a 5 minute online planning permission check on the property (or alternatively ring Ipswich Borough Council direct).

Even though Jobcentre Plus is an executive agency of the Department for Work and Pensions (sorry for any confusion above) and that the DWP is reportedly corrupt, it seems like one team inside the DWP are checking via audits etc. the forms and such like for suspicious signatures and information for alleged fraud, while all along Jobcentre Plus staff such as New Deal Personal Advisers are even aware and support the acts of fraud happening in the system.

When will the Department for Work and Pensions learn?

Reed article source: http://www.recruiter.co.uk/

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A4e to lose Flexible New Deal contract for fraud: other training providers also under investigation

The Department for Work and Pensions has been investigating Action 4 Employment and at least 2 other undisclosed training providers for fraud over the last 13 months – this comes after Maatwerk had their contract terminated for fraud.

This means that even though they weren’t restricted or blacklisted from bidding for Flexible New Deal contracts: they will now lose the Flexible New Deal contracts after at least 20 cases of fraud have been discovered in May 2008 at A4e in Hull where two staff members falsified forms meant for the employer and also forged signatures on the forms in order to receive job outcome bonuses from DWP.

Action 4 Employment was also involved in a temporary job recruitment agency scam – thus forcing New Deal participants into temporary work which resulted in more job outcome bonuses from DWP.

Another New Deal provider has been forced to repay £48,000 for fraud – the name of the provider hasn’t been disclosed.

The DWP was happy to pay Pertemps PDG over 2 million when a report clearly stated fraud – in this instance no concerns other than as a report were raised.

Also, so far all fraud cases were consisting of forged signatures on forms and such like – the DWP have not yet picked up on timesheet abuses (paid to be there for x hours, as shown on timesheets, but participants are there for significantly less i.e. 10 hours instead of 30), dismissal abuses (dismissing participants for false or trivial reasons to receive full 13 weeks amount without them being there for even half that time), guaranteed jobs bonuses abuse (some participants have received a job offer before having to do the course starting 2-6 weeks after the course starts, providers still get job outcome payments intended as a bonus if they get the participant work, even if they had nothing to do with it) and future job outcome bonuses abuse (getting participants to enter an agreement where the provider has “permission” to contact any future employer after the course has ended to get job outcome bonus even though you got the job after the course unaided by them) to name a few.

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Guide to Decision Makers Guide (DMG)

This is a quick guide on the Department for Work and Pensions‘ Decision Makers Guide… Read more on New Deal Scandal »

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Refuse New Deal VSO Programme Provision: NDYP ND25 IAP

It has came to our attention that the Department for Work and Pensions’ Executive Agency Jobcentre Plus is trying to push as many people in to the New Deal courses before it ends and become replaced with Flexible New Deal.

This is NOT legit and you CAN get out of it. Read on. Read more on New Deal Scandal »

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Secretary of State for Work and Pensions James Purnell MP

Well, not any more…

Secretary of State

(former) Secretary of State: James Purnell MP

Read more on New Deal Scandal »

DWP Corruption? The Campaign Against DWP Corruption

The Independent Watchdog for the Department for Work & Pensions

We hope you’ll find us a useful resource in helping to recognize, combat and raise awareness of abuse of power involving the UK government’s largest department, a department dependent upon a sea of civil and judicial servants, we repeatedly find not doing their job properly.

In March 2007 the then Department for Constitutional Affairs Minister Harriet Harman MP spoke on BBC1’s Question Time of “transparency” and “adherence to law”.

It is with ongoing sadness, we find her former department failing in the latter, this campaign providing the transparency parliament craves.

On the basis of a detailed body of written evidence demonstrating wrongdoing, we seek; abolition of the Office of Social Security Commissioners (OSSC) and the Parliamentary Ombudsman (PO), as they stand.

We likewise campaign for lay involvement in social security appeals, whether by jury or panels, to combat abuse of power in these private judicial courts which we find breaking the law, contrary to their function, as Parliament requires; to uphold it.

We also want to see change in the complaints procedure, again by way of truly independent adjudication for staff misconduct and disciplinary action for all demonstrated instances of mischief or illegal activity within the DWP and its associated bodies including the Child Support Agency (CSA), now re-branded the Child Maintenance and Enforcement Commission (CMEC).

We aim likewise to inform, how public servants, salaried by the British taxpayer, can, for their own reasons, bully and defraud the weakest members in society , while those judicial servants in place to oversee them, not only condone such, join in, cover up and whitewash their colleagues criminal behaviour, the DWP remaining a bastion of the archaic and corrupt practice of closing ranks; a mentality which invites the campaign.

DWP CORRUPTION – YOU AND “THE LAW”

PRIVATE AGENCIES

As a DWP watchdog, we have found the DWP’s Office for Constitutional Affairs (now re-branded the Ministry of Justice) misusing taxpayer’s money to employ private legal firms to knowingly and successfully plead for corrupt and illegal decisions, from corrupt Social Security Commissioners .

USE OF GAGGING ORDERS

We have likewise found corrupt DWP management misusing taxpayer’s money, to hire private legal agencies to threaten and thereby gag private citizens attempting to pursue legitimate redress of grievance within the DWP’s internal grievance procedure long before the internal procedure is exhausted!

HUMAN RIGHTS ACT 1998

With regard to the Human Rights Act 1998, adopted by the U.K. we observe breaches of this legislation by the DWP standard, routine practice, the Appeal Tribunal Service and the OSSC invariably tolerating or paying only lip service to such, the DWP having little or no interest in their customer’s legal rights, a situation most benefit claimants know little about.

The so called “new system of protection” namely the European court, requires “domestic remedies” to have been “exhausted”. Although seemingly well intended, the Act is itself vague, slow and beyond the reach of welfare claimants to pursue, such requiring the employment of an advocate for opinion from the court of appeal and beyond, something generally not covered we understand, by legal aid, not forgetting from past cases it could take over sixteen years to get there as in the Deumeland case.

That protection the public could do without and having sought such, never finding a remedy anyway:

Klaus Deumeland was fined DM800 for bringing “vexatious” proceedings his complaint being that the proceedings were extraordinary protracted .

Make up your own mind whether sixteen years is a reasonable period to obtain (or in his case not obtain) the said protection but otherwise keep the legal profession in work at the expense of both the public purse and the victim.

More DWP Jobcentre Plus corruption on www.ukcorruptiontoday.com

£187,500: how much it cost Taxpayers to get a Jobseeker off the dole

£187,500

This is the amount it cost Taxpayers to get a single Jobseeker of the dole.

This is the bombshell that stuck the final nail in the coffin of New Deal. A scheme setup by Gordon Brown for New Labour aiming to get less people claiming unemployment benefits and stop living a “life on benefits” lifestyle.

How did we come across this figure? Well…   The New Deal scheme costs Taxpayers £75 billion and claimants have dropped by 400,000 people (this figure excludes the surge in new claimants due to the economical crisis) – this equates for each person who is not claiming benefit: £187,500!!

Of course, we shouldn’t presume that these 400,000 people have all obtained sustainable full time jobs, due to benefits being made more difficult to claim in this period. We also can’t presume or expect that these 400,000 less claims were a result from the New Deal courses.

What I can quite confidently state that with £75 Billion instead of the 13 week New Deal courses, the Government could have employed 9 times more people (assuming that those 400,000 people got full time jobs) – or 3.6 million people to stick it as a figure – full time on an annual salary of £20,000 for one year.

Alternatively, they could have employed over 360,000 people on a £20,000 annual salary for 10 years.

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Coward: James Purnell MP resigns prior to Flexible New Deal

So on June 4th prior to when the election polls closed, Secretary of State for Work and Pensions: James Purnell MP cowardly stepped down, leaving Welfare Reform up in the air and Flexible New Deal future uncertain.

What is certain though, the official announcement for successful candidates winning the Flexible New Deal contracts are to be delayed until after the Elections and the highly disapproved Welfare Reform Bill is moving closer to be made law – both long after James Purnell had made a run for it.

A Press Release on the DWP website called “welfare reform is about putting families first” back in April, failed to answer and build confidence in parents about the proposed welfare reforms. All James Purnell went on about is partnering with Relate to help families who are “under stress” (open to all families regardless if married or not) and support for alcoholics, heroin and crack users.

That is all well and said for but the big drug and alcohol problems typically are those outside a family environment. Most benefit claimants with these issues are either single (without child caring responsibilities) or single parents (without both parents doesn’t really constitute a family regardless if a child(ren) is involved).

Another case of the Government neglecting the majority while capitalising on the smaller amount of people with greater needs in order to  solely claim that they are making a big impact on the needs of people who seriously require support.

This said there is likely extra ties involved – Relate counselling is likely to be offered only after a contractual agreement signed with the parents enabling the sharing of information with DWP and other Government bodies when it should actually be confidential.

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