§ Mr. Ralph Howellasked the Secretary of State for Employment if he will compile a list showing each of the youth and other employment schemes, including training schemes, now in operation; and if he will also show the date when each scheme commenced, the gross and net cost to date, the main purpose of the scheme, the number of young people who have benefited during each year of operation, and the weekly wage or allowance paid in each case.
§ Mr. Golding,pursuant to his reply [Official Report, 27th May 1977; Vol. 936, c. 706], gave the following information
The following special employment and training measures to alleviate unemployment are now in operation: the temporary employment subsidy, youth employment subsidy, job release scheme and small firms employment subsidy operated by my Department; the job creation programme, work experience programme, job introduction scheme for disabled persons and special training measures operated by the Manpower Services Commission. The community industry scheme funded by my Department has been expanded as part of the special measures programme.
Details of the schemes are as follows:
Temporary Employment Subsidy (TES).—TES was introduced on 18th August 1975; the TES (Supplement) was introduced on 29th March 1977.
The gross cost up to the end of May 1977 is as follows:
1975–76 … £2.7 million 1976–77 … £92.4 million 1977–78 (to 31.5.77) … £27.5 million Due to offsetting savings on unemployment benefit and the maintenance of revenue from taxation and national insurance contributions, the net cost to public expenditure is very low. Any estimate depends upon a number of variables and as some of these are still being studied it is not possible to quote a final figure.
The main purposes of the scheme, which has been extended on six occasions 308W and now applies in the private sector throughout Great Britain, are to defer redundancies and maintain employment. Briefly, the scheme provides that employers who agree to defer an impending redundancy affecting 10 or more workers in an establishment may qualify for a subsidy of £20 per week for a maximum period of 12 months in respect of each full-time job saved.
Companies exhausting the full 12-months period of TES on any date between 30th March 1977 and 31st March 1978 but which are still faced with the need to declare redundancies and which satisfy all the conditions of the main scheme may apply for the TES (Supplement) at the reduced rate of £10 per week for a maximum of six months; the supplement to follow immediately on the termination of TES.
As the TES scheme applies to men and women of all ages I am unable to supply the figures in the form requested. However, in 1976 a survey of the scheme was made and it was discovered that, in the cases examined, 10 per cent. of the workers involved in the applications were aged 20 and under. Applying this to the total figures for jobs saved in each financial year it is estimated that the following numbers of young people were helped:
1975–76 … about 2,800 1976–77 … about 16,000 1977–78 (to 31.3.77) … about 4,000 The closing date for applications is 31st March 1978. So far about 270,000 jobs have been saved, with another 56,000 in the pipeline. By the end of March 1978 it is estimated that some 463,000 jobs will have been saved at a gross cost of £433 million. It is estimated that the supplement could continue support for 178,000 jobs at a gross cost of £42 million.
Youth Employment Subsidy.—The youth employment subsidy scheme commenced on 1st October 1976.
The main purpose of the scheme is to encourage employers to employ young people under 20 who have been registered as continuously unemployed for six months or more.
309WUp to 8th July 1977, 22,398 applications had been approved in respect of young people entering employment.
Employers receive a subsidy of £10 per week for up to 26 weeks for each eligible young person recruited for normal full-time employment.
The gross cost of approved applications up to 8th July 1977 is estimated to be £5.2 million. I regret that an estimate of net costs is not available.
The scheme has recently been extended to 31st March 1978 when it will end.
Job Release Scheme.—The scheme started on 3rd January 1977 and was due to run until 30th June 1977, but has been extended to 31st March 1978. However, from 1st July 1977 the scheme is restricted to employed people only in the assisted areas.
The purpose of the scheme is to reduce the numbers of the unemployed in assisted areas, by encouraging older workers to leave work up to a year early and replacing them with younger workers from the unemployed register.
Participants in the scheme, who must be within one year of statutory pension-able age, are paid a tax-free allowance of £23 per week until they reach that age, provided they do not engage in employment, where earnings exceed £4 a week, and do not claim benefits or pensions for unemployment or incapacity under the Social Security Act. The allowance will be increased to £26.50 from November 1977.
The number of applications approved up to 30th June 1977 is 16,786. I regret that the requested information relating to young people is not available.
The estimated gross cost of the scheme in Great Britain is £28 million; the estimated net cost is £12 million.
Small Firms Employment Subsidy.—The small firms employment subsidy scheme was introduced on 1st July 1977 on an experimental basis for a period of six months.
The scheme offers manufacturing firms in the private sector with less than 50 employees on 29th March 1977 a subsidy of £20 per week for up to 26 weeks for each extra job of 35 hours or more per week over and above the number of jobs 310W they provided on 29th March 1977. Jobs of 21 hours or more but less than 35 hours per week will count as half and those where hours are less than 21 per week cannot be included.
The SFES scheme will apply only to firms having a manufacturing workplace in the special development areas.
It is estimated that approximately 5,500 people could be found jobs under this scheme at a gross cost of under £3 million. I regret that an estimate of net costs is not available.
Job Creation Programme.—The job creation programme was launched on 9th October 1975.
The main purpose of the programme is to provide short-term worthwhile jobs of community benefit to people who would otherwise be unemployed, priority being given to those aged 16–24 and over 50 and to those who have experienced long periods of unemployment.
Information is not available on the number of young people who have benefited during each year of the job creation programme. However, the number of jobs created in 1975 was 5,000, in 1976 was 52,000, and in 1977—to the end of June—was 31,000, and it is estimated that over the programme as a whole about 45 per cent. of all jobs have been filled by 16–18 year olds.
Participants in the job creation programme receive the local rate for the job subject to a maximum contribution from the MSC of £58.80.
The total funds allocated up to the end of the 1978–79 financial year were £100.6 million. The net cost of the programme is estimated at between one-third and one-half of the gross cost.
Work Experience Programme.—The work experience programme began on 21st September 1976.
It is designed to give unemployed young people aged under 19 a realistic introduction to the requirements, disciplines and satisfactions of working life.
By 2nd July 1977, 21,982 places had been approved under the programme.
Young people are paid a flat rate maintenance allowance of £16 per week.
The total funds allocated to approved schemes to 2nd July 1977 were £10 million. Savings in unemployment and 311W supplementary benefits which would otherwise have been paid mean that the net cost of the programme is approximately half the gross cost.
Job Introduction Scheme for Disabled Persons.—The job introduction scheme for disabled persons was introduced on 4th July 1977 and will run experimentally for 12 months.
It is intended to help certain disabled people who have been out of work for at least six months to find employment by offering employers a subsidised job trial. It will operate where the disabled person appears to be suitable for a job but where the employer has some reasonable reservations about his or her ability to do it.
The employer will be paid £30 a week for the first six weeks that the disabled employee works for them.
It is estimated that some 2,000 people will be helped during the experiment at a gross cost of £360,000.
Direct Training for Unemployed Young People by the Training Services Agency. —The Training Services Agency has operated training arrangements for unemployed young people under 19 since 1st April 1974.
The main purpose of the training courses is to improve the employment prospects of unemployed young people.
It is estimated that the numbers of young people benefiting in each financial year were:
1974–75 … … … 1,000 1975–76 … … … 4,500 1976–77 … … … 15,200 Trainees receive weekly allowances of £13.65 if they are living at home, and £11.35 if they are living away from home. In addition, trainees receive travelling expenses if they need to travel more than two miles to the training centre; free midday meals or an allowance in lieu; and a lodging allowance if it is necessary to leave home for training and residential accommodation is not provided.
The gross cost of the training arrangements from April 1974 to April 1977 is estimated at £17.9 million and the net cost is estimated at approximately three-quarters of the gross cost.
312WCommunity Industry.—The community industry scheme has been in operation since the spring of 1972.
The scheme's main purpose is to prepare for regular work unemployed young people who experience difficulty in finding and keeping jobs, in particular those 'who are socially and personally disadvantaged.
Since inception, the following numbers of young people have entered the scheme each year:
1972 … … 832 1973 … … 1,345 1974 … … 2,210 1975 … … 2,540 1976 … … 4,219 1977 (to April) … … 1,392 The weekly wages payable to young people working with community industry are at present £22.50 for 16 year olds. £25.05 for 17 year olds and £29.10 for those aged 18 and above.
The Department of Employment pays the schemes wages costs through grants to the National Association of Youth Clubs and the issues of grant to the end of April 1977 totalled £12.6 million. The comparable net cost is estimated to be £8.7 million.
Incentive training grants.—The programme of incentive training grants was initiated early in 1975.
The main purpose of the schemes is to help offset the pressures imposed on employers by the recession to cut back on training. The greater part of the assistance has been devoted to supporting opportunities for young people to start apprenticeships and other forms of long-term training, with the object of protecting industry's long-term requirements for skilled labour. The schemes can be divided into three main categories: (i) grants to encourage employers to recruit additional long-term trainees or offer college-based sandwich students industrial experience; (ii) training awards under which initial apprentice training is provided under the auspices of an industry training board or other organisation; (iii) assistance with placing on continuing the training of training award holders and redundant apprentices.
In total, the numbers benefiting under the 1975–76 programme were 25,500 and 313W under the 1976–77 programme up to the end of May were 34,800.
A trainee recruited by an employer receives the normal employee wage. A training award holder receives a training allowance of up to £17 per week. Under continued training grants training award holders receive £19 per week and redundant apprentices receive an allowance related to previous wages.
The gross cost of the 1975–76 and 197677 programmes is estimated at £30 million and the net cost is estimated to be approximately two—thirds of the gross cost.
§ Mr. Ralph Howellasked the Secretary of State for Employment how much is paid out in wages and allowances each week to young people engaged in each of: job creation, community industry, work experience and training under one of the TOPS training schemes.
§ Mr. Golding,pursuant to his reply [Official Report, 27th May 1977; Vol. 932, c. 706], gave the following information
Job Creation Programme: participants in the programme receive the local rate for the job, subject to a maximum of £58.80.
Community Industry: the weekly wage payable is £22.50 for 16 year olds, £25.05 for 17 year olds and £29.10 for those aged 18 and above.
Work Experience Programme: a flat-rate allowance of £16 per week is payable.
TSA training courses for young people: trainees receive weekly allowances of £13.65 if they are living at home, and £11.35 if they are living away from home, plus travelling expenses, mid-day meal allowances and lodging allowance if necessary.