No. 1/1999
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No. 1/1999 |
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The government's New Deal (see also CEDEFOP Info no. 1/98) programme is going through some heavy water as drop out rates of 40% are reported. Fears that the UK£ 5 billion (ca. EUR 7.36 billion) flagship programme is failing come as economic forecasts suggest a rise in unemployment over the next two years. The New Deal's aim was to provide high quality training to the unemployed under-25s as they took up positions with accredited employers. Over 29,000 employers have signed up to the deal but the calibre or attitude of some candidates leaves a lot to be desired according to the Welfare Policy Centre of the Hudson Institute.
A new report* by the independent Centre for Local Economic Strategies voices similar concerns indicating that the failure of the public sector to play its full part in the New Deal will seriously impact on the success of the programme when the economy downturns in 1999. The public sector accounts for only 2-3% of the subsidised jobs offered. The programme, the report says, will not " achieve its full potential without the participation of the public sector in areas of high unemployment." The report which covers local authorities and national health trusts and authorities says the main reasons for the poor response to the New Deal are lack of resources, lack of suitable vacancies, low levels of labour turnover, bureaucratic inertia and low level of applicants. The study suggests that the programme as it stands is too rigid to fully succeed - either because the options are not suited to public sector employers' circumstances or because it does not take enough account of the diverse nature of local public services. The "design and delivery of the New Deal does not yet allow for sufficient ownership by local partners". However, Andrew Smith the employment minister declared that "the New Deal has already got about 30,000 young unemployed people off benefit into jobs." The government said 21,000 of these jobs are unsubsidised whilst another 50,000 young people are being trained or educated for employment. Despite the set-backs, the government is pressing ahead with the programme, and following a pilot project, announced the national expansion of the New Deal for lone parents to 500,000 single mothers with a child over five. Some leaders in welfare reform consider the scheme for single mothers will only work if participation is made compulsory. The government is also raising the age limit for the New Deal extending it to older workers between 25 and 65. Twenty-eight pilot studies will be set up across the country to extend the scheme to 60,000 older workers who have been unemployed for 12 to 18 months. Under the scheme older workers will be given individually tailored help and presented with four options: to take a job with an accredited employer; to take up full time training or educational courses; to work in the voluntary sector or to enter self employment. Loss of benefit sanctions will not extend to the long term older unemployed, who are already eligible for UK£ 75 (ca. EUR 110) per week subsidy to help them into work. A recent survey by Industrial Relations Services**, however, found employers are generally pleased with the quality of recruits and are benefiting from an improved Employment Service. Moreover, Parliament's Select Committee on Education and Employment in its report*** on the New Deal has given it a cautious welcome but has advised employment services to ensure that young people remain employed following their initial subsidised employment. The Employment Service in its latest strategy document indicates ways in which it will improve its service to New Dealers****. More information from: |
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