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New Deal

Volume 462: debated on Thursday 28 June 2007

To ask the Secretary of State for Work and Pensions (1) what the average cost per participant was on the New Deal for young people in each year since 2001; (143573)

(2) what the average cost per participant was on the New Deal 25 plus in each year since 2001;

(3) what the average cost per participant was on the New Deal 50 plus in each year since 2001;

(4) what the average cost per participant was on the New Deal for disabled people in each year since 2001;

(5) what the average cost per participant was on the New Deal for lone parents in each year since 2001.

The available information is in the following table.

New Deal—average cost per participant

£

New Deal for young people

New Deal 25 plus

New Deal for young people and New Deal plus1

New Deal 50 plus2

New Deal for lone parents

New Deal for disabled people

2001-02

1,337

1,175

80

299

2002-03

1,311

1,435

128

465

2003-04

1,535

1,880

33,941

135

743

2004-05

1,658

1,879

484

145

1,039

2005-06

1,289

440

168

970

1 There is no split currently available between New Deal for young people and New Deal 25 plus for 2005-06

2.Participant numbers for New Deal 50 plus are only available from January 2004.

3 Calculations for New Deal 50 plus for 2003-04 are based on starts to the programme from January to March 2004 only.

4 New Deal 50 plus costs for 2004-05 and 2005-06 were only incurred by those people who claimed the New Deal 50 plus in-work training grant.

Notes:

1. On 6 April 2003 the New Deal 50 plus Employment Credit was replaced by the 50 plus element of the Working Tax Credit. For the period Jan-March 2004 some of those who were helped into work through New Deal 50 plus may still have been receiving the Employment Credit, which was paid for up to a year. Costs also included the New Deal 50 plus in-work training grant which some participants claimed after entering work through the programme.

2. New Deal 50 plus costs for 2004-05 and 2005-06 were only incurred by those people who claimed the New Deal 50 plus in-work training grant.

3. Costs are calculated on the total number of people participating and total spend on each programme, excluding administrative costs and include, where applicable, costs incurred in payments made to employers and Job Brokers.

4. Calculations are also based on all New Deal programme costs and allowances paid to participants apart from the 50 plus element of the Working Tax Credit, which is met by HMRC. As this is not included, New Deal 50 plus costs reduce considerably from 2004-05.

5. Following agreement with HM Treasury in 2002-03, ring fences were removed from New Deal. Calculations exclude administrative costs 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.

6. Calculations include start-up costs.

7. 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 50 plus: April 2000; New Deal for Disabled People: July 2001 (New Deal for Disabled People pilots ran from September 1998-June 2001).

8. Calculations are based on latest spend figures to March 2006 and New Deal programme start figures to March 2006.

Source:

DWP Departmental Reports 2004-2005, Jobcentre Plus Accounts 2005-6.

New Deal Evaluation Database, DWP Information Directorate.