Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the implications for his policies of the research finding reported in the evaluation of the Work Programme published by his Department in December 2014, that differential pricing has had little impact in driving provider behaviour in the way they segmented customers and prioritised support; and if he will make a statement.

The differential pricing model is designed to reflect the different levels of investment required for different types of claimants. Providers are predominantly paid by results, with higher payments for the hardest to help.

Provider performance has improved for many groups which receive higher payments under differential pricing. For instance, of those completing a year on the programme, 1 in 10 ESA New Claimants have had at least three months in work since joining the scheme – this compares to 1 in 25 for the earliest cohorts.

The Department is committed to learning from the evaluation results and we will consider all aspects of the payment model in the design of any future contracts.