The Government's flagship employment scheme faced fresh criticism following a new study which confirmed how targets had been missed.
A report for the Public Accounts Committee about the Work Programme said that the number of people moving off benefit into sustained employment was less than a third of the level expected.
The National Audit Office said in its commentary that no external providers involved in the programme met minimum performance levels set in their contracts.
For jobseeker's allowance claimants under the age of 25, the best performing provider achieved 2.2% into work to the end of March, compared with a target of 5.5%, while the worst achieved 0%, it was reported.
The Government faced calls to scrap the scheme last month after revealing that only 3.5% of those taking part had found sustainable jobs.
Figures published by the Department for Work and Pensions showed that 800,000 people had started the Work Programme since it was launched last year, but only 31,000 stayed in a job for six months.
Margaret Hodge, who chairs the Public Accounts Committee, said: "This first analysis of the Work Programme performance figures shows the extent to which the scheme is failing participants, and particularly the young and the harder-to-help. Against a contractual target of 5.5%, the lowest performing provider did not manage to place a single person in the under 25 category into a job lasting six months.
"The Work Programme was specifically designed to incentivise providers to assist those furthest from the work place, but the appalling performance for Employment Support Allowance ex-incapacity claimants demonstrates how this experiment simply is not working.
"Between June 2011 and July 2012, of the 9,500 ex-incapacity claimants referred to providers, I am astonished that only 20 people have been placed in a job that has lasted three months."
A Department for Work and Pensions spokesman said: "More than 200,000 people have already got into a job thanks to the Work Programme, and it's a better deal for taxpayers than previous schemes because it is based on payment by results. It's still very early days but we know some providers are doing better than others. We're already seeing growing numbers of people getting into work and have taken action to ensure further performance improvement."