LABOUR leadership hopeful Liz Kendall has pledged to scrap the Conservatives' controversial Work Programme and give the powers to local government.
Ms Kendall denounced the scheme as a "failed experiment in welfare privatisation".
When it started ministers said they were prepared to pay up to £14,000 per case, and up to £5 billion over five years, to help people into work.
But providers were accused of cherry picking the easiest cases and struggling to help the long-term unemployed.
Ms Kendall said: "I believe Britain is great, and can be even greater still if we tackle the long-term, structural weaknesses in our economy, so everyone achieves their potential and every part of the country shares in our future success.
"Our great cities should not have to wait for Westminster to address housing shortages or fill skills gaps.
"They shouldn't be stuck with national programmes, like the Work Programme, when they can do better themselves.
"And they shouldn't have to look to central government for almost all of their funding."
She will make a speech on the economy in which she will argue that power, wealth and opportunity should be spread more widely across the UK.
Labour's shadow Scottish secretary Ian Murray has also called for powers over the back-to-work programme to be given to local authorities in Scotland.
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