To ask the Secretary of State for Work and Pensions what the budget for the Flexible New Deal is in each of the next three years. (262826)

Budgets and annual profiles for flexible New Deal phase 1 are subject to ongoing commercial negotiation and review.

To ask the Secretary of State for Work and Pensions (1) what his latest estimate is of the number of people expected to be referred to phase 1 of the Flexible New Deal; (266116)

All jobseekers in phase 1 areas who have claimed Jobseeker's Allowance for 12 months will be referred to the Flexible New Deal. Customers in our priority groups will be referred to the Flexible New Deal after six months. Phase 1 of the Flexible New Deal will cover 28 out of a total of 48 Jobcentre Plus Districts.

The Department does not forecast levels of long-term unemployment or the future number of claimants of Jobseeker's Allowance. However, for planning purposes the Department does make use of the HM Treasury unemployment assumption, which is based on an average of a number of independent unemployment forecasts. These figures are planning assumptions only and do not reflect an official view of numbers of unemployed people or the duration of unemployment. An update to this assumption will be published in the Budget.

The Department has not issued revised estimates of the number of starts to the Flexible New Deal. The Department has however asked bidders for Flexible New Deal contracts to draw up plans that are capable of supporting a wide range of customer referral volumes reflecting a range of possible labour market scenarios over the next three to five years.

To ask the Secretary of State for Work and Pensions if he will place in the Library a copy of the latest version of the (a) provision specification and (b) supporting information for phase one of the flexible New Deal (fND) including (i) estimates of the number of starts to the fND, (ii) budgets and (iii) payment models. (266131)

The provision specification and supporting information for Phase One of Flexible New Deal were published in the Invitation to Tender (ITT) in July 2008. A copy of the ITT and the letters issued in February inviting supplementary information from shortlisted suppliers has been placed in the Library.

The Department has not issued revised estimates of the number of starts to Flexible New Deal. The Department has however asked bidders for Flexible New Deal contracts to draw up plans that are capable of supporting a wide range of customer referral volumes reflecting a range of possible labour market scenarios over the next three to five years.

The budget for Flexible New Deal is being finalised following the Budget. However the Government are committed to ensuring that all who are out of work receive support that will offer them the best chance to get back into sustained employment, in line with the White Paper ’Raising expectations and increasing support: reforming welfare for the future'(Cm7506) published in December 2008.

The Department will retain a performance and payment regime based largely on outcomes, providing suppliers with the opportunity to develop innovative, individually tailored solutions. In the initial phase of the contract (first 18 months), we will consider alternative models based on a higher service fee element. After the initial phase of the contract we anticipate that the funding model will be based on 80 per cent. (outcome) and 20 per cent. (fee based) as originally announced. This is described in the material to be placed the Library.