---

Excellence in Cities Programme

Helen Jones: To ask the Secretary of State for Education and Employment what proportion of secondary school pupils will be covered by the Excellence in Cities Programme. [138376]

Ms Estelle Morris: Following from the announcement of my right hon. Friend the Secretary of State, on 16 October, of the expansion of Excellence in Cities, 870,000 pupils, or close to a third of secondary school pupils, will be covered by the programme from September 2001.

Skills Needs

Mrs. Dean: To ask the Secretary of State for Education and Employment if he will make a statement on the role of further education colleges in meeting skills needs. [138378]

Mr. Wicks: My right hon. Friend the Secretary of State set out his vision for the future role of further education colleges in a speech to the Association of Colleges earlier this week. He announced a new initiative to enable colleges to develop vocational excellence. It is proposed that, by 2004-05, half of all general FE colleges should have an established vocational specialism in which they are regarded as a centre of excellence. This major initiative will encourage and enable colleges to meet more effectively the changing skills needs of the new economy.

In addition, my right hon. Friend announced the speeding up of the programme of area inspections. These are key tools in enabling the Learning and Skills Council, and colleges themselves, to foster excellence in provision for 16-18 year olds.

A pamphlet outlining the speech has been published and a copy placed in the Library of the House.

23 Nov 2000 : Column: 314W

Business Start-ups

Mr. Jim Cunningham: To ask the Secretary of State for Education and Employment what resources and money are being targeted to help people who are aged (a) 50 and over and (b) aged under 25 years who are not working, to set up their own businesses. [139390]

Ms Jowell: Unemployed people aged over 50 who are looking for work and are considering self-employment may be eligible for Work Based Learning for Adults. This programme provides: initial support and advice, awareness of the implications of self employment, help to develop business plans, appropriate skills training and on-going mentoring while in training. The budget for Work Based Learning for Adults for this year is £316 million for England.

New Deal 50-plus provides practical advice and financial support for people moving back to work and this support extends to those who become self-employed or set up in business. The Employment Credit of £60 a week for up to a year for those working full-time and the in-work Training Grant of up to £750, provide vital financial support for the individual in their first year back in work. The budget for New Deal 50-plus this year is £120 million for Great Britain. In addition, from April next year, New Deal 25-plus will be offering a dedicated route into self-employment.

The Department for Education and Employment is also helping to fund the set up of PRIME, an independent organisation modelled on the Prince's Trust. PRIME offers advice and support to people over 50 wishing to set up their own business, through its network of pilot offices. PRIME also intends to offer structured advice and support to New Deal 50-plus clients. In addition to this it will soon be able to provide business loans to those individuals who are unable to secure these loans in the usual way.

There are two major initiatives that support unemployed young people in establishing their own business: the self-employment route of New Deal for Young People; and the Youth Enterprise Initiative.

23 Nov 2000 : Column: 315W

The self-employment route of New Deal for Young People is delivered in three stages: a one day awareness raising session; a four day course and/or counselling leading to the production of a business plan; skills training and on-going mentoring; and a 26 week period of test trading where a participant runs their own business while receiving a training allowance. The budget for New Deal for Young People this year is £466.4 million in England.

The New Deal programmes referred to offer the individual flexibility to choose between working for an employer or as self-employed; therefore the proportion of the New Deal budget which is used for self- employment support cannot be specified, as it is not ring-fenced.

The Youth Enterprise Initiative operates in England and is managed by The Prince's Trust, supported by DfEE and private donations. It offers loans and grants to disadvantaged young people between the ages of 18-30 wanting to set up their own businesses who are unable to access start-up capital from commercial sources. Assistance is given in putting together a business plan, and the help of a business mentor is provided for up to three years. Funding amounts to up to £50 million over seven years, and aims to help up to 30,000 young people into business.

Term-time Workers

Ms Walley: To ask the Secretary of State for Education and Employment if he will make a statement on the restoration of Jobseeker's Allowance to term-time workers. [139667]

Angela Eagle: I have been asked to reply.

Following the decision of the Court of Appeal on 14 October 1999, the current legal position is that ancillary workers with an on-going contract of employment, who are not entitled to Jobseeker's Allowance (JSA) or Income Support (IS) during term-time because of the hours they work, are also not entitled to JSA or IS during the school holidays.

Leave to appeal to the House of Lords against the Court of Appeal decision was granted on 11 April and we understand that the appeal has been listed for hearing on 21 March 2001. We are awaiting the outcome of the case and will consider carefully any implications of the House of Lords judgment once the precise details are known.

Where any doubts exist over entitlement to JSA or IS, school ancillary workers may make a claim, which will be decided on an individual basis. School ancillary workers with low incomes may claim in-work benefits such as Housing Benefit and Council Tax Benefit. Those with children may also be eligible for the Working Families Tax Credit.

New Deal for Young People

Mr. Loughton: To ask the Secretary of State for Education and Employment for what percentage of candidates who started the New Deal for Young People at its inception he is able to provide details about subsequent job placements. [138368]

Ms Jowell: We know that at the end of August 2000, at least 244,450 young people have got jobs, helped by the New Deal, since it started with the few pathfinders in January 1998 and nationally in April 1998. That means

23 Nov 2000 : Column: 316W

that 56 per cent. of those that have left New Deal, whose destination we know, have got jobs. Many others leave the programme without telling the Employment Service. Our sampling shows that it is safe to assume that a similar proportion of these will have gone into work.

TREASURY

Public Service Pensions

Mr. Ian Stewart: To ask the Chancellor of the Exchequer what plans he has to increase public service pensions from April 2001. [140429]

Mr. Andrew Smith: Legislation governing public service pensions requires public service pensions to be increased annually by the same percentage as state earnings related pensions (additional pensions). My right hon. Friend the Secretary of State for Social Security announced on 9 November 2000, Official Report, column 451, that benefits such as additional pensions will be increased by 3.3 per cent, in line with the annual increase in the Retail Prices Index up to September 2000. Public service pensions will therefore be increased by 3.3 per cent. from 9 April 2001, except those which have been in payment for less than a year, which will receive a pro-rata increase.

Oil

Mr. Opik: To ask the Chancellor of the Exchequer what plans he has to introduce a windfall levy on the profits of oil companies; and if he will make a statement. [140320]

Mr. Timms: The Government keep all taxes under review and decisions will be made as part of the normal Budget process. In his pre-Budget statement, on 8 November 2000, Official Report, column 317, the Chancellor said that the Government were

determined not to make short-term decisions based on short-term factors. The key issue is the level of long-term investment in the North sea. This will be the approach that will guide Budget decisions in future.

Early Retirement

Mr. Drew: To ask the Chancellor of the Exchequer if he will make a statement on the costs of early retirement in terms of lost tax revenue to (a) the Government and (b) local government. [139694]

Dawn Primarolo [holding answer 21 November 2000]: This information is not available centrally.

Mr. Drew: To ask the Chancellor of the Exchequer if he will make a statement on the impact of the tax regime on financial packages offered to public servants who take early retirement. [139705]

Dawn Primarolo [holding answer 21 November 2000]: The effect of the tax system will depend upon the terms of the early retirement package on offer. But, as for all occupational pension schemes, the tax rules allow a proportion of the pension benefits to be taken as a tax-free lump sum. Benefits other than any tax-free lump sum must be taken as pension income which will be subject to income tax in the normal way.

23 Nov 2000 : Column: 317W

---