Select Committee on Education and Employment Appendices to the Minutes of Evidence


Memorandum from The Prince's Trust

  The Prince's Trust has taken an active role in the delivery and development of The New Deal since it's inception. In this financial year (2000/2001) we expect to deliver the following programmes:

    —  "Volunteers": an opportunity lasting 20, 60 or 120 days aiming to move 10,600 from unemployment into work or to take up further education or training. The programme combines a challenging period in the outdoors with different, and difficult, community placements. "Volunteers" join a team of young people from different backgrounds including, uniquely, a substantial group (1400 in 2000/2001) who are already in work.

    —  This year we expect to provide 60 and 120 day opportunities for 2200 New Dealers. The programme is offered in 315 locations across the UK.

    —  Outcomes: 37 per cent of all participants who complete the programme find work. 12 months after completing the programme 82 per cent are in employment.

    —  "Work Away": work based placements exclusively with New Dealers (18-25) but run in co-operation with partners in Sweden and Italy. Last year (the programme is currently being redesigned) 450 young people took part in a programme lasting 60 days. Young people spend periods of work and training in two partner countries.

    —  Outcomes: 34 per cent of completers are now in work.

    —  "Business": the Trust has encouraged the development of the self-employment option of New Deal. This year we expect 1700 young people (18-30) who have been unemployed for over six months—"New Dealers" (even if they are not registered as such) to take this self-employment option. The Trust provides business advice, a soft loan or grant and a mentor. This support runs for three years. Curiously only 484 18-25's were registered as starting their own business under New Deal.

    —  Outcomes: 78 per cent of businesses survive after 12 months, 47 per cent after 36 months. 57 per cent loan repayment after 36 months.

  This briefest of brief summaries demonstrates, I hope, the Trust's commitment to New deal: we may be the largest single provider in the voluntary sector.

  Issues which we would be interested in exploring further with the committee:

    —  The need to reduce or remove the rigidities created by the four options.

    —  The managerial and financial difficulties faced by voluntary sector organisations committed to the New Deal (most, if not all, operate at a loss).

    —  The desirability of promoting the self employment option. It achieves the best results and could suit more young people.

    —  The continual challenge of working with young people who, all too often, have very low motivation and even lower levels of skill. Getting these young people in to work and keeping them there takes a great deal of time and money.

The Prince's Trust

December 2000

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