The government in the UK has over-estimated the number of people it can help back into work under a new scheme, according to an official report.

It was announced recently that the UK would see a new scheme, which was aiming to help 40 per cent of the people who are currently out of work find jobs.

However, according to research conducted by The National Audit Office (NAO), the realistic figure will be closer to around 26 per cent.

The office said though that the scheme which began last year, and will cost between £3 billion and £5 billion, had made a significant improvement in understanding the problems that were caused by previous welfare-to-work schemes and rectifying them.

Amyas Morse, head of the NAO, said: "The department has set providers stretching performance targets and it needs to ensure that they do not cut corners to stay in profit, such as targeting easy-to-reach people."

Last week, employment minister Chris Grayling told the Telegraph that targeting employment must be the most important issue for the government.

Posted by Alex Donnell