Sites like this can be enormously helpful in working out the financial consequences of government-subsidised work placements.
Slap £6.19 (the minimum wage) into the weekly earnings box, and you find that a full-time employee would be generating roughly £1650 of revenue per year for the government (taking into account income tax and NI contributions from both employer and employee). If such a worker is made redundant and replaced by someone on the MWP, that is the amount of our taxes that is being wasted. In fact, it would be more than that, because the existing worker would now be unemployed, so our taxes would have to pay their JSA as well. Assuming the basic rate of £56.80 per week, that's another ca £3000 a year of our taxes down the drain. So that's about £4650 per worker per annum net cost to the public purse, which - for comparison - is a few hundred quid short of a secondary school place. So, if you were minded to be deliberately disingenuous, in the manner of a Daily Mail headline writer, you could spin this as "each workfare placement depriving my child of an education".
On top of this, a company is getting a gift in kind of £11,600 (gross salary plus employer's NI contributions) per worker per annum by being permitted to allow people to work for free in this way. There are many good reasons for paying taxes, but subsidising companies that were already extremely profitable (Tesco: £2.8bn pre-tax profit in 2012; Homebase: £41.2m in 2010; Poundland: £12m in 2009) doesn't seem to be one of them. What makes these companies more in need of our taxes than the two million people who, even if all job vacancies were filled, would still be unemployed?
Either the work needs doing, in which case these companies should be paying for it, or it does not, in which case we're simply wasting peoples' time and depriving them from gaining experience for work they might actually want to do.
This policy makes no sense from either a financial perspective or from the perspective of helping people into employment.