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Unemployment

Volume 706: debated on Monday 19 January 2009

Question

Asked by

To ask Her Majesty's Government what measures they propose during the current economic circumstances to ensure that individuals who are most disadvantaged and lose their jobs receive help to redress any imbalance in resources and opportunities available to them. [HL364]

In response to recent economic developments, the Government doubled funding for the Jobcentre Plus rapid response service this year from £3 million to £6 million and then doubled it again to £12 million for 2009-10 and 2010-11. This widens the excellent service already provided for those who have lost their jobs through large-scale redundancies by extending the service into all companies affected by redundancies of 20 or more, or localities affected by the cumulative effect of multiple smaller redundancies.

We have also announced the next stage of help for jobseekers. We know that the majority of people move off jobseeker's allowance within six months, but we are guaranteeing more help for those who do not. First, we are enhancing the support offered by Jobcentre Plus advisers. This will mean more time spent between an adviser and an unemployed person reviewing their job search activities and seeing how they can apply more effectively for the vacancies available. Secondly, we will be making available an expanded range of work and training options that an adviser would be able to offer customers. These will be “golden hellos” of around £2,500 for employers who recruit and train people unemployed for over six months; money and support to set up their own business; training to improve skills to get a job; and the chance to volunteer while looking for a job. Together these extra measures mean we will invest £0.5 billion to guarantee more support to every person looking for work for longer than six months.

Meanwhile, in last year's Pre-Budget Report the Chancellor announced an additional £158 million from the European Social Fund to help the newly unemployed. This will be supported by an additional investment of £79 million from the Government's Train to Gain budget to help people access the training they need to get back into work as quickly as possible. The extra funding will help the Learning and Skills Council, with local colleges and training providers, to work closely with Jobcentre Plus to make sure those people affected by job losses get access to the services they need.

Building on the successful city strategy pathfinders, we are also investing £1.5 billion between 2008 and 2011 through the working neighbourhoods fund, set up specifically to tackle worklessness in the most deprived communities. Local authorities will use this funding to reach those who are hardest to help, deploying innovative techniques to help people move back towards the labour market.

Jobcentre Plus has a range of other programmes to support disadvantaged people without jobs. Older jobseekers, for example, can receive additional help to find work through the voluntary New Deal 50-plus programme, while jobseekers aged 18 to 24 who have been unemployed for six months receive extra support through the mandatory New Deal for Young People, which includes subsidised employment placements and full-time training options. From next year, employment support for jobseeker's allowance customers will move towards a more individually focused approach, using the expertise of specialist back-to-work service providers, with the introduction of the flexible New Deal.

On 27 October 2008, we introduced a new benefit for disabled people and those with health conditions, the employment and support allowance, which replaces incapacity benefit and income support paid on the grounds of incapacity. Employment and support allowance is underpinned by the Pathways to Work programme, which is now available to everyone receiving incapacity benefits and employment and support allowance in Great Britain. Around £1 billion is being invested in Pathways to Work between 2008 and 2011 to provide the support disabled people need to return to work.

In addition, the Government continue to make help available through specialist disability employment programmes—Access to Work, WORKSTEP and Work Preparation.