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New Deal

Volume 459: debated on Wednesday 25 April 2007

To ask the Secretary of State for Work and Pensions what the average cost per person moving into unsubsidised employment was of each New Deal programme in each year since 1997-98. (118799)

New Deal costs per person into unsubsidised employment£New Deal for Young PeopleNew Deal 25 PlusNew Deal 50 PlusNew Deal for Lone ParentsNew Deal for Disabled PeopleNew Deal for Partners1997-987,742—————1998-991,6631,259—118——1999-002,2402,316—285——2000-013,0291,2511,363267—2,0412001-022,8224,0062,4151521,9903,0302002-033,0034,0172,6382541,5611,2562003-043,4494,5101,7802601,4851,4942004-053,6634,5781312921,9346332005-062,8524,197533671,557467 Notes:1. Employer subsidies are only paid through New Deal for Young People and New Deal 25 plus. Costs for these programmes are calculated excluding employer subsidies and excluding those who have only gained subsidised employment through these New Deals.2. Cost figures are calculated on latest confirmed spend figures to March 2006and figures for people into unsubsidised employment through each New Dealto March 2006.3. The New Deal 50 plus cost figures up to 2002-03 include the DWP-funded ND50 plus employment credit. In 2003-04 this was replaced by the 50 plus element of the working tax credit, which is the responsibility of HMRC, so New Deal 50 plus costs reduced very significantly between 2002-03 and 2003-04.4. Following agreement with HM Treasury in 2002/03, ringfences for New Deal were removed from New Deal. Administrative costs are excluded as it is no longer possible to identify the costs of administering the costs of each New Deal separately from the costs of other labour market activities.5. Cost data includes start-up costs.6. Following changes to the New Deal 25 plus programme in April 2001 when a mandatory intensive activity period was introduced, programme costs rose significantly resulting in an increase in the costs of helping people into work through the programme.7. The costs of helping someone into work through New Deal for Lone Parents are lower as support provided to participants is primarily Adviser support and administrative costs are excluded from cost calculations.8. Costs for voluntary programmes are also lower than the mandatory New Deals as a higher proportion of participants on voluntary programmes will be job ready without additional intervention.9. Programme start dates are: New Deal for Young People: January 1998; New Deal 25 plus: July 1998; New Deal for Lone Parents: October 1998; New Deal for Partners: April 1999; New Deal 50 plus: April 2000; New Deal for Disabled People: July 2001.10. Although New Deal for Young People started in January 1998, it only operated in pilot locations between January-March 1998, rolling out nationally from April 1998.11. Average cost figures are rounded to the nearest pound. Source:DWP Departmental Reports 2004-2006, Jobcentre Plus Accounts 2005-06.DWP Information Directorate.