Welfare Reform on the Web (September 1999): Social Security - UK - New Deal

70,000 GET JOBS UNDER NEW DEAL SCHEME

J. Sherman
Times, May 27th 1999, p. 14

The New Deal Programme has resulted in 70,000 young people moving into jobs in the past year. An additional 40,000 have gone into full time education or training, 12,000 have gone into voluntary jobs and an equal number have joined an environmental taskforce.

BENEFIT CLAIMANTS FACE 20% CUT

J. Sherman
Times, June 1st 1999, p. 1

Announces that the government is planning to table detailed regulations in the Autumn that would heavily penalise existing claimants who failed to attend a job assessment. Ministerial sources have indicated that they would lose 20% of their payments, although what benefits would be cut has not been specified.

THE COMMUNITY PROGRAMME REVISITED: LESSONS FOR THE NEW DEAL ERA?

A. Gray
Local Economy, vol.14, 1999, p. 96-109

Paper examines the lessons for the New Deal era of some older strands in UK and European labour market measures: the Community Programme of the 1980s and the experience of 'entreprises d'insertion' in France, Spain and the Netherlands. Argues that "intermediate labour markets" are likely to need an indefinite subsidy of some kind to create jobs which do not displace market services, and the New Deal appears to be an unsuitable mechanism for providing this. Considers other ways in which unemployed people might be encouraged to take up useful work in the voluntary sector, using existing benefits and labour market programme budgets as a long-term subsidy to voluntary organisations.

EMPLOYABILITY THROUGH WORK

C. Evans, M. Nathan and D. Simmonds
Manchester: Centre for Local Economic Strategies, 1999
(Research paper; no.2)

Argues that in the most deprived areas unemployment cannot be reduced by improving the skills of the local workforce only. The supply of jobs must be increased as well. Report proposes a set of measures aimed at boosting demand for labour by:

• improving access by the long term unemployed to available jobs through the development of locally based job matching services;
• creating temporary jobs through Intermediate Labour Markets (ILMs) and through jobs pools aimed at connecting the long-term unemployed with the world of work.

GOVERNMENT'S NEW DEAL HAS TO WORK HARDER FOR THE LONG-TERM UNEMPLOYED

R. Taylor
Financial Times, June 15th 1999, p. 15

Argues that personal advisers in the gateway stage of the New Deal may be more concerned to get their clients into paid work, even if it is unskilled and poorly paid, than they are to guide them into improving their employment chances for the longer term.

GET WITH THE PROGRAMME

A. Smith
People Management, vol.5, June 3rd 1999, p. 33

Argues that the New Deal has been the first employment scheme to have actively promoted equality of opportunity and outcome for people of all ethnic and racial groups.

MINISTER DEMANDS 20% INCREASE IN NEW DEAL JOBS

S. Buckby
Financial Times, 25th June 1999, p. 12

The government is demanding a 20% increase in the number of young people getting sustainable jobs from the New Deal programme. Each Employment Service district and private company responsible for delivering the programme locally has been set a target for finding jobs that is 6% higher than a year ago.

THE NEW DEAL AT WORK

P. Davis
Education and Training Review, vol.1, Spring 1999, p. 31-32

Gauges progress being made by the New Deal initiative in providing more employment opportunities for the unemployed.

THE NEW DEAL ONE YEAR ON

R. Wilson
London: Institute of Directors, 1999

Survey revealed that, while most firms were prepared in principle to support the scheme, its deficiencies were deterring many employers from participating. Complaints included lack of clear information about the New Deal, the poor quality of New Deal recruits, lack of support from the Employment Service, the bureaucracy involved in the New Deal and insufficient subsidies.

A TASTE OF REALITY

L. Green
Community Care, no.1276, 1999, p. 26-27

Summarises comment on, and assessment of, the New Deals for the Unemployed, the Disabled and Lone Parents. There is concern that the New Deal is not reaching disadvantaged groups such as the disabled, the homeless and ethnic minorities. The level of service across the country is patchy, with New Deal centres run by private firms having the lowest success rates in getting clients into work. There is also concern about the level of compulsion and sanctions involved for non-compliance. However results from the 12 Pathfinder areas that implemented the New Deal in January 1998 are encouraging. Statistics show that the proportion of young people leaving unemployment after passing the six-month mark was 18% higher in Pathfinder areas compared to the rest of the country.