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New Deal

Volume 458: debated on Monday 19 March 2007

To ask the Secretary of State for Work and Pensions how much was spent on all new deal programmes in each year since 1996-97 in 2003-04 prices; how much he estimates will be spent in each of the next three years in 2003-04 prices; and if he will make a statement. (101291)

The available information is in the following table.

New deal expenditure at 2003-04 prices

£ million

1997-98

Outturn

50

1998-99

Outturn

353

1999-2000

Outturn

591

2000-01

Outturn

648

2001-02

Outturn

713

2002-03

Outturn

758

2003-04

Outturn

655

2004-05

Outturn

622

2005-06

Outturn

532

2006-07

Budget

550

2007-08

Planned

573

Notes:

1. Factors used to calculate 2003-04 prices are taken from Treasury Gross Domestic Product deflators.

2. The earliest reported costs for new deal are for the financial year 1997-98 as the programme started in January 1998.

3. Figure for 2008-09 are not available.

Source:

Jobcentre Plus Financial Reporting and Control Team Notes:

To ask the Secretary of State for Work and Pensions why spending on new deal programmes for (a) 18 to 24-year-olds and (b) 25 year olds and over was reduced between 2004-05 and 2005-06; what budget has been set for 2006-07; and if he will make a statement. (101307)

Between them, the mandatory new deal programmes have been successful in helping more than 965,000 people into work. New deal streamlining measures were announced in the Chancellor's 2003 budget statement. Spending on both new deal for young people and new deal 25-plus decreased partly because of these changes, which started in 2004-05 but were more fully implemented in 2005-06. The most substantial change was to reduce the minimum period of time participants would spend on the options stage of the programme from 26 to 13 weeks.

Evidence indicates that two thirds of all mandatory new deal job outcomes occur before the options stage, and most outcomes that do occur during options are achieved during the first 13 weeks. The programmes continue to ensure that participants who need additional help to get into work receive it, for example by spending more than 13 weeks on the options stage of the programme.

Budgeted expenditure for 2006-07 is £225 million for new deal for young people and £157 million for new deal 25-plus.

To ask the Secretary of State for Work and Pensions how much his Department spent on the new deal in each year since 2003-04; and what spending is planned in each year to 2009-10. (102219)

The available information is in the following table. Figures for 2008-09 and 2009-10 are not available.

New deal spend since 2003-04 (£ million)

2003-041

655

2004-051

639

2005-061

538

2006-071

590

2007-083

631

1 Actual spend

2 Budgeted spend.

3 Planned spend.

Notes:

1. Latest confirmed spend figures are to March 2006.

2. Figures include all new deal programme costs, staff costs, and allowances paid to participants, apart from the 50 plus element of the working tax credit, which is the responsibility of HMRC.

3. Figures are rounded to the nearest £ million.

Sources:

DWP Financial Strategy Division, DWP Financial Control Division, DWP Information Directorate.