BBC News - Welfare-to-work provider penalised 26 September 2013 Last updated at 13:59 One of the main firms running the government's welfare-to-work programme has been punished for poor performance. A4E will see a cut in the number of referrals in the East Midlands, South Yorkshire and Merseyside, following an analysis of all contractors by the Department for Work and Pensions (DWP). Ingeus and G4S will gain referrals as a reward for better performance. The DWP's figures show almost 15% of people referred to the programme have been found sustainable employment. Other firms losing referrals include Avanta and the Newcastle College Group. The Mandatory Work Activity scheme, better known as welfare-to-work, was launched by the coalition in May 2010. People are put on placements including maintenance work on houses, renovating furniture or supporting charities, during which time they do not lose benefits. The coalition says this helps get people back into paid work, but opponents say the programme is exploitative and offers no guarantees. Those who have been on the scheme for the maximum two years and fail to find sustainable employment are returned to Job Centre Plus, the standard arrangement for jobseekers.