The director general for employment at the Department of Work and Pensions has hailed the government’s new Work Programme as “a step change in innovation”.

The programme is due to be operating nationally by July.

Adam Sharples told an ippr symposium yesterday on welfare to work, sponsored by KPMG and Reed in Partnership, that one of the key innovations is that providers are only paid on results.

“It is the first time ever in the UK that providers of a welfare to work programme are paid by results,” said Sharples.

Under the programme, providers will only get paid when the person, who must previously have been receiving benefits, has been in the job for six months. However, they will also receive up to 26 four-weekly “sustainment payments”, as well as an incentive payment of £1,000 in some cases.

Payment ranges from £3,500 for a person in the 18-24 age group for somebody who leaves Jobseekers Allowance, up to a maximum of £14,000 for someone previously receiving Incapacity Benefit.

“They are incentivised to get somebody into a job, but not just into any old job — a job that fits and that lasts,” said Sharples.