WELFARE TO WORK

The New Deal for young unemployed people is part of the Government's Welfare to Work programme announced in the budget of July 1997. Pilot programmes started in 12 areas in January 1998 and the New Deal went national in April 1998. It promises to provide employment, training and/or education for 18-24 year olds who have been unemployed for six months or longer. There are now five options, three of which are relevant to the voluntary sector:

1. Voluntary Sector
Young people take a voluntary sector job for 6 months and are paid a sum equivalent to their benefit plus a grant of up to £400 paid in instalments. If the provider is willing and able to pay a wage they may do so, in which case the organisation will receive the equivalent of the young person's benefit plus grant. The job must include training for one day per week. £750 will be paid to the voluntary organisation for the training. There will be a further payment to cover the extra costs of facilitating a placement.

2. Employment
Employers will be offered £60 per week subsidy to employ someone for 6 months on a standard wage. The job must include training for one day per week for which £750 will be paid.

3. Environmental Task Force
The person will have a place on an environmental task force, with grant, funding and training the same as for the voluntary sector option. The majority of these projects will be via voluntary organisations.

Before starting on one of the options, participants will receive a 'Gateway' programme of job guidance and counselling for up to 4 months. This programme will be specific to individual needs and could include: jobsearch, careers advice, personal support, basic skills and specialist support services e.g. for homeless people. People must have been on the Gateway programme for at least 2 months before taking up the employment option, and at least 3 months before taking up the voluntary sector or employment taskforce option. It is envisaged the voluntary sector has a major role to play in providing a range of services within the Gateway programme.

Ex-offenders, single parents, people with disabilities and some other priority groups do not have to meet the 6 months unemployed criteria, and are able to join the New Deal programme immediately.

The emphasis in delivering the programme is on local partnerships and there are several basic partnership models. The Employment Service runs the New Deal in Halton. However in some areas private companies run the New Deal. Contracts for the voluntary sector and environmental taskforce options are managed regionally. Funding for both these options is subject to tender.

Since June 1998, people who are over 25 and have been unemployed for more than 2 years are also being assisted. A £75 per week subsidy is available to employers who provide 6 months work with training. The New Deal for lone parents which involves help with jobsearch and childcare went national in October 1998. Ther are also New Deal programmes for people with disabilities, partners of people receiving Job Seekers Allowance, and people over 50 years old.

For further information contact:
New Deal Information Line: 0845 606 2626.

Runcorn Bridgewater Job Centre, 83 High Street, Runcorn, WA7 1AX.
Telephone: 01928 855300.
Fax: 01928 855399.

Runcorn Rutland Job Centre, Rutland House, Halton Lea Shopping Centre, Runcorn, WA7 2ET.
Telephone: 01928 855200.
Fax: 01928 855252.

Widnes Job Centre, 5 Widnes Road, Widnes, WA8 6AB.
Telephone: 0151 551 8400.
Fax: 0151 551 8404.

Useful Books

Partnerships for the New Deal: playing an active role: a guide.

The New Deal for young unemployed people: update for voluntary organisations.

Voluntary Sector Involvement in the New Deal Pathfinder areas.

All above available from NCVO Policy department 020 7713 6161.

Design of the New Deal for 18-24 Year Olds,
available from regional offices of the Employment Service.

The New Deal Handbook by Clara Donnelly, Matthew Nimmo and Paul Convery. £5.99 from The Unemployment Unit and Youthaid, 322 St John Street, London EC1V 4NT.
Telephone 020 7833 1111.

Click to return to Fundraising Information menu.