The Government have made available up to £5 billion additional discretionary spending to support people through the course of the recession. This has been used in a variety of ways—and the bulk of this has been for this Department to lead on. Of this £5 billion we expect to spend £2.1 billion in 2009-10 and £2.9 billion in 2010-11.
As a result of the investment that the Government have made, claimant unemployment was over 450,000 lower at the end of 2009 than was expected at the time of the Budget 2009. This has also allowed us to use this funding flexibly to ensure it can be directed to where it can support people in the greatest need. To maintain such flexibility, we have not ring-fenced allocations to each element.
The following DWP programmes are funded from this budget:
Increasing resources available to Jobcentre Plus, employment programmes and local authorities
We announced in the 2008 pre-Budget report, and in the Budget 2009, that we would be providing extra funding to Jobcentre Plus to effectively handle the higher volume of customers through the recession. That funding was provided immediately and Jobcentre Plus has increased staffing levels by 16,000. The funding also allowed increase in programme budgets to core programmes including the new deals and the flexible new deal. Benefit exit rates have been maintained and over 330,000 people left JSA in January alone.
Additional support before redundancy
In November 2008, we quadrupled the funding to deliver the Jobcentre Plus’ Rapid Response Service which offers support to employers and workers who are facing redundancy. Since the service was expanded, more than 4,000 employers have taken up this support.
Additional day one support for all
From the start of a new jobseeker’s allowance claim, customers can access improved help from Jobcentre Plus to get them back to work quickly. This support can include one-to-one adviser support, coaching and access to Local Employment Partnership vacancies.
In April 2009, we introduced new specialist help for professionals and executives, delivered by external recruitment agencies, to help them with jobsearch techniques and give them advice specific to their needs and experience. In our December White Paper “Building Britain’s Recovery”, we announced our intention to extend this support further by offering professionals and executives follow-up sessions.
Six month offer for all
Every jobseeker’s allowance customer who remains unemployed for six months or more now have access to a substantially improved range of services including access to recruitment subsidies vouchers, work-focused training and volunteering placements and help to become self employed through the six month offer.
The six month offer was introduced in April 2009 and provides opportunities for up to 230,000 people. Between April 2009 to October 2009, 39,420 people has taken up the support offered through the six month offer.
Furthermore, access to self employment support and the financial credit is now available to all jobseekers after three months.
Young Persons Guarantee and the Future Jobs Fund
The Young Persons Guarantee launched on 25 January 2010 guarantees all young jobseekers aged 18-24 a job, training or work experience from six months unemployment. From April 2010 young people will be required to take up one of the options on offer if they are still unemployed after 10 months. The Future Jobs Fund is a key element of the guarantee, where local authorities, partnerships and others (such as third sector or social enterprises) are able to bid to create jobs through the fund.
The first FJF jobs began in October 2009, and to date Government have agreed to fund up to 110,000 FJF jobs; around 65 per cent. of the 170,000 jobs the fund is targeted to fund.
The YPG is also supported by over 400,000 Government funded training, internship, work experience and job opportunities. This will include a target of 16,000 apprenticeship places through the FJF.
Graduates are also eligible for a new graduate guarantee, where any new graduate still unemployed after six months is guaranteed access to an internship, training or help to become self-employed.
Backing Young Britain
The BYB campaign was launched in July 2009. This national campaign delivers a variety of measures to help young people aged 16-24 into work, or move closer to the labour market. As well as encouraging business to support young people by offering jobs, apprenticeships and work experience places, it will create 10,000 mentoring places, 5,000 short term work experience placements and 20,000 longer term non-graduate internships, as well as supporting the graduate internships already announced. Places are available now.
870 organisations have signed up to BYB to date (at 8 March 2010), with the number growing all the time.
Additional support for older workers
In the “Building Britain’s Recovery” White Paper we committed to provide additional back to work support to people aged 50 and over. This support includes more time with a personal adviser, access to specialist back to work support and giving people early access to the six month offer.
These new measures will be delivered from spring 2010.
Help for homeowners
Improvements to the help provided to homeowners through the Support for Mortgage Interest scheme were introduced in January 2009 for new working age claims, which:
shortened the waiting period to 13 weeks
increased capital limit to £200,000,
introduced 2 year time limit for new JSA claims
froze the standard interest rate used to calculate Support for Mortgage Interest at 6.08 per cent. for all customers (including pensioners), until the end of June 2010 benefiting around 220,000 homeowners.
Once the standard interest rate freeze ends, the Government intend to move towards a fairer, more affordable approach, that more closely reflects mortgage interest rates.
These changes demonstrate very clearly the Government’s commitment to provide additional support to those facing financial difficulties and help protect them against repossessions and will be reviewed once the housing market conditions improve.