Controversial welfare-to-work firm A4e was facing fresh police investigation last night as it emerged it had once sent a jobseeker to look for work in a lap dancing club.
Three whistleblowers yesterday handed MPs a 'damning' dossier of alleged fraud at the firm, which is one of five prime contractors on the Government's flagship £5 billion Work Programme.
The government has refused a Freedom of Information request from Gareth Thomas MP, shadow minister for civil society, to provide him with the risk register that it prepared for the Work Programme.
Thomas revealed that he had submitted the FoI request to DWP at yesterday’s Civil Society Question Time debate on the first two years of the coalition government, organised by Civil Society Media and NCVO and attended by dozens of charity sector chief executives.
Some charities say they are pulling out of the government's Work Programme for the long-term jobless, claiming the payments received are inadequate.
The Single Homeless Project in London is the first to speak publicly about its decision to leave the £5bn scheme.
It says the upfront fees of up to £600 it receives do not cover the initial cost of helping long-term jobseekers.
DWP Minister Chris Grayling told the BBC it is charities' responsibility to agree contract terms they can deliver.
The government is meeting companies involved in its unpaid work experience initiatives, following protests about the way the schemes operate.
Employment Minister Chris Grayling will hold talks with dozens of firms. Some want a threat to withdraw benefits from those leaving placements early removed.
Public concern has prompted firms such as Waterstones and Burger King to quit.
Critics call the schemes "slave labour" but ministers insist they help prepare jobless young people for employment.
Campaigners have argued they are not voluntary because people can have their benefits docked if they do not complete the placement.