Welfare Reform Bill

In any event, I am delighted that the noble Lord is keen to ensure that the national minimum wage is fully enforced, as are we all. If there are any breaches, we will ensure that the systems in place to investigate and monitor come into operation. That is a key part of tackling poverty in this country, and it has made a significant contribution to it. The amendment would fundamentally alter the nature of the programme. "Work for your benefit" is not subsidised employment; that is available in other parts of the jobseekers’ regime and at an earlier time. "Work for your benefit" is an employment programme designed to help long-term unemployed people to develop work experience and work habits, but also to provide substantial support to them to capitalise on that experience. Regulation 12 of the National Minimum Wage Regulations 1999 specifies that a worker who is participating in a scheme, ""designed to provide him with training, work experience or temporary work, or to assist him in seeking or obtaining work … does not qualify for the national minimum wage in respect of work done … as part of that scheme"." There are other qualifying criteria that have to be met for that exemption to operate, particularly when work trials last for longer than six weeks, but there is recognition under those regulations at the moment that there is a difference between a work experience operation and work to which the national minimum wage should apply. The ultimate aim of the programme is to get people into the open labour market and into work. By paying benefit at wage rates, incentives to do that are diluted, particularly for those who may be experiencing a work environment for the first time in a long while. "Work for your benefit" could be seen as an alternative to work, and that is not why the scheme is designed as it is. However, I assure the Committee that "work for your benefit" will not replace existing jobs. We will make it clear to providers that any work experience placements must be in addition to existing or planned vacancies and cannot be used to replace existing workers. That will be written into contract specifications.