NEW DEAL: AN EVALUATION
New Deal for Young People and other New Deal programmes
4. There are six main programmes under New Deal which
differ in a number of ways. NDYP was the first to be launched
and remains the most substantially funded part of New Deal. Initial
projections indicated that NDYP would involve at any one time
some 250,000 young people between the ages of 18 and 24 and that
it would cost up to £3.1 billion per annum. The programme
was designed for those who had been claiming Jobseeker's Allowance
(JSA) for six months or more although in some cases, such as for
those who have multiple disadvantages, early entry into the programme
is possible. Participation is mandatory for all 18-24 year olds
who are unemployed and have been claiming JSA for six months.
5. On joining the NDYP, participants enter the Gateway,
a period which lasts for up to four months. At the outset of the
Gateway, each participant is assigned a personal adviser who provides
assistance with job search, careers advice and guidance and preparation
for and submission to one of a range of options. Sixty per cent
of those entering NDYP find employment before they reach the end
of the Gateway.
6. At the end of the Gateway, participants who have
not found employment enter one of four 'options':
- the Employment Option which provides a subsidised,
waged job with an employer;
- the Environmental Task Force Option (ETF) which
provides a job with a wage or, more often, a 'benefits plus' package;
- the Voluntary Sector Option which provides work
with a voluntary sector organisation on either a 'benefits plus'
or wage basis;
- the Full-time Education and Training Option (FTET).
This option may last for up to a year. Participants are paid an
allowance equivalent to their benefits and have some access to
expenses for exceptional costs.
7. There is no 'fifth option' of remaining on the
unemployment register. If a participant declines or fails to take
up a place on an option or leaves an option early without good
reason, then a benefit sanction of two weeks loss of benefit (increasing
to four weeks and then six months for subsequent violations) may
be applied. It is only when participants have been sanctioned
for the third time that they lose their benefits for just six
8. The follow-through strategy is designed to help
participants to make progress towards finding and remaining in
employment, and it provides them with further assistance if they
return to the unemployment register either if they leave an option
early or at the end of an option.
9. New Deal for the Long-term Unemployed (NDLTU)
is targeted at those aged 25 or over who have been unemployed
for two years or more (although in some pilot areas different
approaches have been tested, reducing the period of unemployment
prior to entry into the programme to either 12 or 18 months).
Personal advisers provide support and advice and there are two
main optionseither subsidised employment or education and
training. Participation is not compulsory and in some areas NDLTU
has operated alongside other labour market schemes such as Work-based
Learning for Adults. From 1 April 2001, the minimum period of
unemployment needed prior to entry to NDLTU will be reduced to
18 months nationwide.
10. Participation in New Deal for Lone Parents
(NDLP) is voluntary. It is aimed primarily at single mothers who
have been claiming income support for six months or more and whose
youngest child is over five years and three months old. Participants
are assigned a personal adviser who can, after an initial interview,
provide assistance with job search and in-work support. In the
March 2001 budget, the Chancellor of the Exchequer announced an
expansion of NDLP which would include wider use of compulsory
work-focussed interviews and the introduction of a new advisory
and outreach service.
11. New Deal for Partners of Unemployed People
(NDPU) is aimed at those whose partners are unemployed job seekers.
Participation is voluntary. Those aged between 18 and 24 years
old without children can join NDYP on a voluntary basis. For older
participants, or those with children, there is access to a range
of advice and information through a personal adviser. NDPU will
be replaced by New Deal for Partners later this year.
12. The New Deal for Disabled People (NDDP)
provides access to advice and guidance through a personal adviser.
The programme is also intended to raise awareness among employers
and service providers of the employment needs of disabled people.
Participation is voluntary.
13. New Deal for People Aged 50 and Above
(ND50+), another voluntary programme, is aimed at those over the
age of 50 who have been claiming incapacity benefit, income support
or JSA for at least six months. As in the other elements of New
Deal, there is access to a personal adviser who can provide advice
and guidance. Those finding employment through the programme can
receive an employment credit for up to a year.
4 Q. 22. Back
participating in the ETF or the Voluntary Sector Option on a benefits
plus basis receive the benefits to which they would have been
entitled had they remained on the job seekers register plus an
additional allowance of £15.38 per week. Back
of Education and Employment press release, 22.06.99. Back
Treasury, Budget 2001: Investing for the Long Term: Building
Opportunity and Prosperity for All, March 2001, paras 4.11-16. Back