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Welfare Reform on the Web (February 2002): Social Security - UK - New Deal

DOES WELFARE-TO-WORK POLICY INCREASE EMPLOYMENT? EVIDENCE FROM THE UK NEW DEAL FOR YOUNG PEOPLE

R. Riley and C. Young

London: National Institute of Economic and Social Research, 2001 (Discussion paper; 183)

Paper examines empirically the employment effects of the New Deal for Yong People. Finds that the programme has reduced measured unemployment among the target group partly by shifting them into non-work activities but also by raising employment.

HOW DO THE ETF AND VOLUNTARY SECTOR OPTIONS PERFORM?

D. Simmonds

Working Brief, no. 129, 2001, p.11-14

Figures show that the environmental task force and voluntary sector options of the New Deals have been insufficiently successful in moving people into unsubsidized jobs. However, the people joining these options have very low skills, and providers have a very short time in which to remove barriers to employment. Suggests that ETF and the voluntary sector option should move towards being a wage-based option for the hardest to help, building on the proven success of intermediate labour markets (ILMs).

IT'S OUR SAFETY ON THE LINE

A. Bennett

Guardian, Nov. 8th 2001, p.20

Government has decided to abolish protective screens in the new Job Centre Plus offices, which will both provide employment advice and process benefits claims. Staff are preparing to strike over this issue because they are in constant fear of assault by frustrated claimants. Argues that benefits offices are violent places because of the miserly, coercive and bureaucratic nature of the system itself.

(See also Financial Times, Nov. 20th 2001, p.6)

LESSONS FROM THE NEW DEAL: FINDING WORK, PROMOTING EMPLOYMENT

C. Hasluck

New Economy, vol. 8, 2001, p. 230-234

Article reviews the substantial body of evidence on the impact of the government's New Deal programmes designed to help people into jobs. The New Deals for the young unemployed and lone parents have been more successful than the one aimed at the adult long-term unemployed. Author questions the strong shift in emphasis towards a "work first" model and expresses concern that the unique brand of the New Deal will be lost as the programme becomes more of a mainstream activity of the new agency that is bringing together the work of the Employment Service and parts of the Benefits Agency.

THE MACROECONOMIC IMPACT OF THE NEW DEAL FOR YOUNG PEOPLE

K. Riley and C. Young

London: National Institute of Economic and Social Research, 2001 (Discussion paper; 184)

Paper evaluates the impact of the New Deal for Young People (NDYP) on the wider economy. It emphasizes the importance of the programme's effect on wage pressure which is identified separately from the impact of the National Minimum Wage introduced around the same time. While the impact of the NDYP on the wider economy appears modest it is associated with economic gain.

MAKING IT WORK: INSPECTION OF WELFARE TO WORK FOR DISABLED PEOPLE

G. Griffiths

London: Social Services Inspectorate, 2001

Local authorities have a responsibility to provide services that maximise both service users' and carers' capacity to work. Report finds that most councils had not seen supporting disabled people in employment as a high priority. Although some general services to support carers had been developed, many had not recognised that, if carers were to be able to hold down jobs, the people they cared for needed flexible services.

STATE-PAID WORK FOR LONG-TERM JOBLESS

S. Womack

Daily Telegraph, Nov. 29th 2001, p.9

Describes a new programme under which long term unemployed people are to be given jobs paid for by the government. People who have not been able to find work in spite of being on a New Deal programme will be guaranteed a job at the minimum wage of £4.10 an hour for up to a year. They will be offered a choice of jobs but will have benefits withdrawn for non-cooperation. The scheme will be piloted in six areas from April 2002.

(See also Independent, Nov. 29th 2001, p.12; Financial Times, Nov. 29th 2001, p.4)

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