Access to Work Scheme Under Fire: Businesses Owed Thousands and Facing Closure

The Crisis in the Access to Work Scheme

Businesses employing disabled individuals are reporting that they are owed hundreds of thousands of pounds by the government, with many fearing they may have to let staff go. The Access to Work scheme allows companies and employees to apply for grants that help support disabled people in the workplace. However, backlogs and significant payment delays have left businesses struggling financially.

Impact on Businesses

One firm has reported being owed nearly £200,000 and is concerned it may have to close due to these financial strains. Another company has already shut down partially because of issues with the scheme. The Access to Work programme was recently highlighted by ministers as a means of enhancing job prospects for disabled individuals amidst significant welfare cuts.

Government's Response

The Department for Work and Pensions (DWP) claims to have introduced a streamlined claims process to address these delays. The scheme is designed to cover various support costs, from taxis to powered wheelchairs.

Case Study: Yateley Industries

Yateley Industries, a charity in Hampshire that has been operating for nearly 90 years, employs around 60 individuals, most of whom have disabilities. They are currently owed £186,000 and describe the situation as an existential threat. Chief Executive Sheldon McMullan expressed that without these funds, they could potentially close, which would have dire consequences for the local community.

Growing Bureaucracy

Businesses have pointed out that the bureaucracy associated with the Access to Work scheme has increased recently, with more forms to fill out and submit via post instead of electronically. Steven McGurk, president of the Community Union, warns this could push many disabled individuals out of the workforce.

Closing of the No Limits Cafe

In Newton Abbott, the No Limits cafe, which employed individuals with learning disabilities, recently closed due to new restrictions and issues with the Access to Work scheme. Founder Sarah Thorp noted that the scheme had started denying funding for work experience, despite Job Centre recommendations. This change resulted in a shortfall of £800 a week, leading to the cafe's closure.

Delays Impacting Claimants

Claimants themselves are also facing significant delays, with 55,000 outstanding applications reported in October. Some individuals have waited over six months for assessments, resulting in lost job offers. The DWP has stated that they prioritize those who have recently received job offers.

The Need for Reform

Steve Darling, MP and spokesperson for Work and Pensions, emphasized that while the Access to Work principles are commendable, many individuals and businesses are left covering costs out of pocket while waiting for payments. This situation could lead to financial strain or even business closures. Minister Sir Stephen Timms acknowledged that the Access to Work programme is not currently in a good state and that significant reforms will be necessary to make it sustainable moving forward.

In response to these challenges, the DWP reiterated their commitment to ensuring that outstanding payments are made swiftly and that they are continuously working to improve the claims process for employers and employees alike.