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New Deal Schemes: Per Capita Costs

Volume 488: debated on Monday 23 February 2009

To ask the Secretary of State for Work and Pensions how much has been spent on average per claimant on the New Deal for (a) Young People, (b) 25 Plus, (c) 50 Plus, (d) Disabled People, (e) Lone Parents, (f) Partners and (g) Musicians in each year since each scheme was established; and if he will make a statement. (246790)

Available information is shown in the following table:

Amount spent on average per claimant on the New Deals in each year since each scheme was established

£

New Deal for Young People and New Deal 25 Plus combined

New Deal 50 Plus

New Deal for Disabled People

New Deal for Lone Parents

New Deal for Partners

1997-98

1998-99

816

43

1999-2000

1,766

211

2000-01

2,034

254

2001-02

1,977

390

135

2002-03

2,064

577

217

2003-04

2,443

3,967

915

233

2004-05

2,534

85

1,239

245

212

2005-06

1,852

40

1,114

259

297

2006-07

1,295

14

1,259

483

271

2007-08

1,433

16

1,453

397

170

Notes: 1. The average cost has been calculated by dividing the total expenditure each year by the number of customers joining the programme within that year. This provides a good approximation, but since the costs for any one individual occur over a period of time (and are not possible to track) the figures will not be exact. 2. Expenditure figures exclude administration costs as they cannot be identified since 2002-03 when 'ring fences' were removed with agreement from HM Treasury. 3. In the case of New Deal for Young People and New Deal 25 Plus, the expenditure does include associated Annually Managed Expenditure (weekly training allowance). 4. New Deal for Young People and New Deal 25 Plus started in 1998, with phased introduction between January and July. Average expenditure per customer on New Deal for Young People and New Deal 25 Plus has reduced year on year since 2005-06 due to changes to New Deal from April 2004 (which included reducing the length of the options period to 13 weeks). The full impact of this change did not take effect until 2005-06. 5. New Deal 50 Plus started in 2000. Performance information is not available until 2003-04. New Deal 50 Plus costs reduce after 2002-03 as the employment credit element of ND50+ (funded by DWP) ceased and was replaced by the 50 plus element of the working tax credit (funded by HMRC). The small residual spend relates to the New Deal 50 Plus Training Grant. 6. New Deal for Disabled People (NDDP) started in 2001. Spend prior to this date is for pilots in selected areas. Performance information is not available until 2001-02. Both costs and participant numbers have risen significantly following re-tendering in 2004. As participants can stay on the programme for longer than a year, dividing spend by starts is not really a valid comparison of spend per person. Furthermore, NDDP is no longer a national programme (it only operates in 18 districts) so costings would be further affected since the programme was subsumed by provider led Pathways from December 2007. 7. New Deal for Lone Parents started in 1998. Average expenditure per customer on the New Deal for Lone Parents programme increased from 2006 due to the additional help available by way of in work credit, child care costs and the increased availability of training opportunities. 8. New Deal for Partners started in 1999 and was re-launched in 2004. Performance information is not available until 2004-05. 9. New Deal for Musicians started in 1999. Performance information is not available for the New Deal for Musicians Programme. Sources: 1. DWP financial systems (numerator). 2. DWP Tabulation Tool (denominator).