Abstract

The costs and financial benefits accruing from two employment agencies were analysed over the two years of their operation. The analysis determined the net costs for society as a whole, the taxpayer and the supported employees, when reductions in welfare benefit payments and costs to previous day services, and increases in tax were taken into account. The results indicated that supported workers generally benefited financially as a result of their uptake of paid work but that costs outstripped financial benefits for the taxpayer and society as a whole. There were significant differences in net costs between the two agencies. The results also indicated that the cost‐benefit performance of the two agencies was improving overtime, suggesting that the financial benefits of providing the service could ultimately outweigh the costs involved. This is in line with the general trends found in research in the USA, but progress towards a break‐even point was much slower.

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