One year after the creation of the Work Programme, figures show the flagship scheme is having a positive effect in helping the long-term unemployed, the government claims.

Nearly half (48 per cent) of claimants who joined the scheme at its inception in June 2011 have been off benefits at some point during the first year as a result of finding work.

Moreover one in four (24 per cent) of these initial participants had successfully left it by achieving three months off benefits after the first nine months of the programme. Estimates are that, a year in, that figure is now around 30 per cent, said the DWP.

While the findings are an indication that the payment-by-results scheme has achieved some success, the acid test will come in the autumn when statistics are first published for the number of ‘outcome payments’ made to providers. Under the terms of the programme, providers only receive these payments when they have found work for a claimant and that individual has spent six months in work.

Employment Minister Chris Grayling said: “These figures are the first indication that the Work Programme has had a promising start in what’s been a very difficult labour market.

“People I meet in the industry already say that performance is well ahead of where it was at the same stage with the Flexible New Deal from which it took over, and this data gives further encouragement. Now the welfare to work industry really has to demonstrate that it can reach new levels in helping the long-term unemployed back to work.”

Responding to the findings Matthew Fell, CBI Director for Competitive Markets, said: “The Work Programme seems to have made a promising start, with nearly half of participants coming off benefits at some point since joining, but it’s still far too early to tell how the programme is performing overall. In a challenging economic environment we should take action to make sure the programme delivers on its promise, not write it off.

“The government and programme providers must work together, and with employers, at a national and local level, to ensure that the programme can grow and fulfil its potential.”

Kirsty McHugh, chief executive of the Employment Related Services Association (ERSA) which represents providers, said:

“Welfare to work providers want to be transparent about how they are performing and today’s release of figures is therefore welcomed as a first step to cutting through some of the misleading and inaccurate figures being bandied around in some quarters.

“The truth is that the welfare to work industry is pulling out all the stops to help jobseekers into employment despite the challenging economic backdrop. These figures echo ERSA’s own which show that nearly one in four jobseekers who have been on the programme for at least six months have entered work. However, the economic backdrop remains worrying as a lack of confidence by employers will delay recruitment decisions.”