PM's 'Family Champion' Quits Amid Fraud Claims

The woman dubbed David Cameron's "back-to-work tsar" has quit as a Government adviser after the Prime Minister demanded a thorough inquiry into fraud allegations involving her company.

Emma Harrison, millionaire boss of a welfare-to-work firm at the centre of police investigations, resigned following criticism of her role by senior MPs.

Four former members of her company A4e, which has several government contracts, have been arrested and Mr Cameron was challenged at Prime Minister's Questions on what he was doing to prevent fraud by the company.

Announcing her resignation, Mrs Harrison said: "I have asked to step aside from my voluntary role as Family Champion as I do not want the current media environment to distract from the very important work with troubled families.

"I remain passionate about helping troubled families and I am grateful for the opportunity to contribute in an area where I have been active for many years."

Mr Cameron handed Mrs Harrison the unpaid role of getting families back into work in December 2010.

But two police investigations are under way after irregularities were referred by the firm to the Department for Work and Pensions.

Shadow work and pensions secretary Liam Byrne said: "Emma Harrison has done the right thing. But this is not the end - it's the start of the real questions about the Government's back to work contracts which are costing millions but are simply not getting enough people into jobs."

Margaret Hodge, a former Labour minister who chairs the Public Accounts Committee of MPs, told Sky News A4e should now have its government contracts suspended pending the outcome of the fraud investigations.

Her committee heard earlier this month that the company's shareholders were paid £11m in dividends last year, of which Mrs Harrison received 87%.

Ms Hodge questioned the granting of contracts to A4e under the new Work Programme in light of what she said was an "abysmal" delivery of the previous Pathways to Work scheme.

In the Commons on Wednesday, former Labour minister Fiona Mactaggart - who has campaigned for a Serious Fraud Office inquiry - challenged Mr Cameron: "What action are you taking to make sure neither vulnerable people nor the taxpayer are victims of fraud by A4e?"

He replied: "The investigation needs to be thorough, it needs to get to the truth and then we can take into account its findings."

But when he announced Mrs Harrison's appointment 14 months ago, Mr Cameron praised her "proven track record of turning lives around".

"Her approach is the complete opposite of the impersonal, one-size-fits-all approach that has failed so many families - which is why I have asked her to come on board to help us," he said.

In September last year, the PM visited A4e's offices in Brixton, south London, where he met Work Programme participants and advisers.