SOCIALIST UNITY

5 March, 2008

Instant dosh: show us the money…..

Filed under: welfare reform — Louise @ 8:05 pm

poundsigns.gif“Continuing the success of our 20 year relationship with the Department for Work and Pensions (DWP) and its predecessors, we are delighted to have the opportunity to work on such a strategically important initiative. With over 26 years of experience providing dynamic and innovative support to a variety of disadvantaged groups, the award of this contract reflects the significance of our work in delivering the DWP’s New Deal for Disabled Persons scheme, where we are one of the leading providers in the UK.” (Tony Garrett, Group Managing Director of Instant Muscle).

Instant Muscle was one of these much vaunted organisations contracted to deliver part of Pathways to Work scheme. They were awarded a £11m contract last November to run the scheme in Surrey and Sussex. But within the past couple of days the charity has gone into administration, making 250 people redundant. Around 60 staff across South Wales, 40 staff based in Nottingham. The charity has 30 offices based in the UK. The first the staff knew about this was when the administrators told them to leave the premises. And funny enough, not one of the directors turned up to explain the situation!

The irony of ironies is that staff will becoming the very people they were “helping” and this isn’t lost on them.

Henry Shinners, associate director of accounting firm Smith and Williamson and one of the appointed administrators said that staff weren’t paid for February. And there’s a possibility the business could be taken over. Yes, you can just see the corporate vultures hovering around in the distance waiting to swoop….

Now what happened to this flagship of “providing dynamic and innovative support to a variety of disadvantaged groups”? One former employee of Instant Muscle said that the company suffered from the Icarus complex, “it expanded too quckly and flown a bit too close to the sun”…

Whatever the reason this happened (incompetency, and/or greedy bosses…) there’s one less contracted company to carry out the Pathways to Work scheme but never fear some greedy company will take its place.

You do get the feeling that once the politicans are ideologically committed to partnerships with the private sector that the private companies involved realise that taking taxpayers money will be like taking candy from a baby. They also realise that they will not be held to account for how they spend the money .

Oh, and Tony Garrett, Group Managing Director isn’t available to comment….

1 Comment »

  1. On the day we are informed that the Minimum wage is to rise to £5.73 thats a rise of 3.8 percent. However the council have put up my rent up this week an increase of 5.6 percent and my council tax by 3.25 percent.

    Comment by sunshine 1 — 5 March, 2008 @ 11:01 pm

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