All DWP Welfare to Work contracts, including Pathways to Work and New Deal programmes, include mandatory clauses outlining the remedies where contractor fraud is committed. Remedies range from a formal warning with the recovery of any amounts paid by the Department in respect of any fraud or financial irregularity and damages that are appropriate through to termination of contract. Contracts will be terminated where the breach of the contract terms is sufficiently serious.
DWP deals with minor irregularities internally. Where the Department believes the matter is more serious, and where there may be sufficient evidence for a prosecution, the matter will be referred to the police.
DWP will always investigate any allegations and take action where there is sufficient evidence for us to do so.
The Department is undertaking four investigations into contracts for New Deal and one investigation into contracts for Pathways to Work.