APPENDIX 13
Supplementary memorandum by the Department
of Trade and Industry
BACKGROUND:
At DTI's oral evidence session on 8 March, DTI
agreed to send the Committee written information about the New
Deal for Lone Parents and the New Deal for Skills.
NEW DEAL
New Deal is a generic term and there are a number
of different programmes bearing that name which have been specifically
tailored to meet the needs of different customer groups eg 18-24;
25 plus, 50 plus which are the main JSA New Deals; Lone Parents;
Partners and Disabled People which help the inactive benefit group
on IS/IB etc. The very first New Deal was introduced for young
people (18-24) in 1997-98.
NEW DEAL
FOR LONE
PARENTS (NDLP)
NDLP was introduced in 1998 for lone parents
claiming income support but was extended in 2001 to all lone parents
regardless of which benefit they claimed, if any at all. The programme
is entirely voluntary and lone parents who are interested in going
into work can join from day one ie they do not have to have been
on benefit for a specific period of time. A New Deal Lone Parent
Adviser (NDLP adviser) will meet regularly with the lone parent,
is able to provide advice, guidance and support, explore job goals
and produce an agreed action plan of the steps needed to attain
the goals. This may include confidence and motivational training,
help with job search/CV writing, upskilling for out of date skills
or complete training if the lone parent has no job skills.
Jobcentre Plus are a work first organisation
and would not retrain someone who had existing skills for which
there was a labour market need. There is no time limit on how
long it should take for the lone parent to become "job ready",
everyone is different, but it is important that they are serious
about going back/into work.
NDLP participants who attend an approved activity
ie Jobcentre Plus mainstream/New Deal approved training provision;
one-off training provision that has been purchased when no suitable
mainstream provision is available; attend a pre-arranged interview
with an adviser and attendance at a job interview; may apply for
help with eligible expenses as follows:
— Costs of registered childcare limited
to £27 per day/£135 per week for one child or £40
per day/£200 per week for two or more children. These limits
are the same as those imposed by Working Tax Credits (WTC) when
the lone parent starts work of 16 hours or more; WTCs pay 70%
of childcare costs until the limits detailed above are reached.
— Full reimbursement of all travel
costs, (including for children if travelling to child carer).
— If the lone parent is attending approved
training provision of two hours (this will increase soon) or more
per week and is in receipt of a qualifying benefit eg Income Support,
they can claim a £15 pw NDLP Training Premium. Lone parents
who do not qualify for the £15 NDLP Training Premium may
qualify for the normal £10 pw Training Premium.
— There is a fund called the Adviser
Discretion Fund (ADF) which advisers can access to help customers
overcome barriers that may prevent them obtaining work. If a customer
does not have appropriate clothes for an interview/work these
can be funded through ADF. Payments made from ADF are at adviser
discretion. No one has a right to help from the fund, each case
is looked at on its merits.
— Whilst NDLP participants in the main,
access the training provision available through the mainstream
New Deals (JSA programmes), JobcentrePlus negotiates with Providers
for hours of attendance to be reduced or duration of course to
be extended to cater for lone parents caring responsibilities.
Whilst NDLP participants are eligible for help with expenses when
attending approved training provision of two hours or more per
week, we encourage lone parents to attend training provision for
16 hours per week or more. When they are unable to attend for
16 hours however, Jobcentre Plus will negotiate with the provider.
— Approved training does not need to
be of NVQ2 level. We recognise that many NDLP participants have
considerable barriers that need to be overcome before they are
ready to start work eg lack of confidence, lack of basic skills
etc. Many lone parents attend short courses to overcome these
barriers before they are ready to consider other more formal job
focused training. However, JobcentrePlus does not normally fund
courses that are above NVQ level 2 (unless they can be achieved
in one year and within the funding period—see below).
— NDLP funding (in keeping with all
other Jobcentre Plus funding) is available for 52 weeks for customers
attending approved training provision. This 52 week period of
entitlement should not span more than 104 weeks. The only exception
to this is if a lone parent undertakes NDLP funded Basic Skills
training. Their window of entitlement is extended to 65 weeks,
to span no more than 117 weeks. This means that the lone parent
can go on several courses over a two year period and receive NDLP
funding, provided the total number of weeks on training does not
exceed 52 weeks (excluding any basic skills training).
— If NDLP participants exhaust their
52 week window of entitlement, they can requalify for another
52 weeks provided they have a break of at least 26 weeks from
their last day of funded activity. This assistance is only available
where the adviser feels that further training will lead to work.
If NDLP participants qualify for a further 52 weeks of entitlement
they will also be eligible for all the financial help as stated
in paragraph 1 above. A lone parent can enter any training provision/length
theywish so long as they do not want funding through NDLP and
there would be no reason why they could not continue on a specific
course if it takes longer than the 52 weeks to complete.
ELIGIBILITY FOR
MAINSTREAM NEW
DEAL TRAINING
18 to 24 year olds become eligible for help
through New Deal when:
1. the jobseeker has been unemployed and
continuously claiming JSA for six months they are required to
enter New Deal for Young People (NDYP); or
2. some jobseekers can choose to enter NDYP
earlier than they would ordinarily be required to.
3. Lone Parents access this training through
NDLP and are eligible from day one ie they do not have had to
be claiming JSA for six months.
To be eligible for New Deal 25 plus all jobseekers
must be aged 25 or over and:
(a) have a continuous claim to JSA for 18
months or more; or
(b) have had a claim to JSA for 18 out of
the last 21 months; or
(c) satisfy eligibility conditions for someone
who is eligible to enter New Deal early; or have left the New
Deal Intensive Activity Period at least 18 months before.
(d) Lone Parents access this training through
NDLP and are eligible from day one ie they do not have had to
be claiming JSA for 18 months.
NEW DEAL
TRAINING
There are three stages within NDYP and ND2S
plus. Gateway, Option/IAP and Follow-through. Mandatory attendance
in the Option/IAP period is 30 hours a week over five days, however
Jobcentre Plus negotiates with Providers for hours of attendance
to be reduced or duration of course to be extended to cater for
lone parents' caring responsibilities. Lone parents are encouraged
to attend training provision for 16 hours per week or more, however
if this is not possible, Jobcentre Plus will negotiate with the
provider.
Providers must deliver training approved by
Jobcentre Plus usually up to S/NVQ Level 2 but this is not a mandatory
requirement. Training must have a clear employment link which
leads to a certificate recognised by employers in that occupational
area and improve the long-term employability of the participant.
NEW DEAL
JOB CREATION
SCHEME
DWP are unaware of anything that is referred
to as a "New Deal Job Creation Scheme".
NEW DEAL
FOR SKILLS
— Lone parents receiving income support
can access adult learning independently (outside of the New Deal
for Lone Parents).
— In England, full time learning for
Learning and Skills Council funded courses is defined as being
an average of 13 guided learning hours a week.
— Basic skills training is fee free
and is available in many formats from college courses to learn
direct terminals (DfES Skills for Life strategy).
— It is not policy intention to restrict
training to level 2 only, there will be instances when appropriate
training will be below or possibly above that level.
— New Deal For Skills will enable individuals
to take up their level 2 entitlement to fee free learning/training
towards a level 2 qualification.
BACKGROUND TO
NEW DEAL
FOR SKILLS
1. Too many people are held back from sustained,
productive, decently paid employment by their lack of skills.
The Government cannot and should not take on the role of attempting
to assure people of jobs for life. But, working with a range of
partners, we can use public funding and programmes to help as
many people as possible gain the skills that will maximise their
prospects of being able to secure employment in a constantly changing
labour market. That help should focus particularly on those adults
receiving welfare benefits whose lack of skills and qualifications
is a major impediment to securing the employment they want.
2. Achieving that requires better co-ordination
of employment and skills programmes. In the past, they have not
linked as well as they should in supporting individuals. Employment
services could be over-focussed on getting people into jobs with
insufficient regard to whether they had the skills for sustainable
productive employment. Training services did not always put enough
emphasis on learners' employment needs and goals, and how they
could develop corresponding skills.
3. The National Employment Panel's 2004
report on "Welfare to Workforce Development"[69]
sought to address these gaps. It made recommendations on how different
parts of Government can work more closely together, to improve
the support for benefits recipients with significant skills gaps
who want to get jobs. The Government welcomed the report. Jobcentre
Plus and the LSC, with DfES and DWP, are now taking its recommendations
forward as part of the New Deal for Skills.
4. The New Deal for Skills complements the
original New Deal programme, which, since 1998, has helped over
a million people to find jobs. It comprises an integrated package
of measures of support for those who have significant skills gaps
that act as a barrier to sustained employment. The main features
were set out in the March 2004 Budget.
5. From April 2005, a skills coaching service
for jobless people will be piloted in eight Jobcentre Plus districts.
The service will mainly focus on people without a first full Level
2 qualification, but there will be local discretion to allow other
priority customers to access the service. Skills coaches will
work closely with Jobcentre Plus personal advisers to provide
the co-ordinated support individuals need to improve their skills
and get into work.
6. From April 2006 the Government will pilot
the approach of allowing benefit claimants currently on Jobseeker's
Allowance, Income Support and Incapacity Benefit, to take up free,
full-time training, for a first full level 2 qualification, where
this is judged by their Personal Adviser to be the best way of
helping them into work. Individuals will still receive the same
level of benefit and an additional £10 weekly benefit supplement
to cover the extra costs of learning. They will also receive additional
information and advice on training options. Receipt of this support
will be dependent on the participant meeting the conditions of
a learning agreement covering attendance and participation, agreed
with their personal adviser.
7. The Government will also be applying
the lessons learned from the Employer Training Pilots in a new
National Employer Training Programme (NETP). The national programme
will start to roll out in 2006-07, to be completed in 2007-08.
8. The national programme will offer free
training for employees who lack basic skills or a level 2 qualification.
9. A professional brokerage service will
be central to the national programme. This brokerage service will
advise firms about all levels of training, not just basic skills
and level 2. At higher skill levels where firms may pay the full
cost of training, brokers can offer advice and help to source
the right training. The brokerage service will also help companies
to link their investment in skills and training to their overall
business performance.
69 Welfare to Work force Development, NEP,
February 2004. Back
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