§ 12. Mr. Jon Trickett (Hemsworth)What steps his Department is taking to broaden participation in the labour market in former coal-mining areas. [114609]
§ The Minister for Employment, Welfare to Work and Equal Opportunities (Ms Tessa Jowell)We recognise that serious problems are faced by communities in former coal-mining areas, in many of which, despite the growth in jobs nationally, unemployment rates are below the average for England as a whole. We are adopting two strategies. The first is to build capacity through the single regeneration budget and the European social fund specifically to improve labour market participation and get people back to work through a range of national programmes adapted flexibly to local circumstances. The second is the new deal for 50-plus, which is already available in two former coal-mining areas. It offers a tax-free employment credit of £60 a week, guaranteeing a minimum income for the first year back at work of £170 a week.
My right hon. Friend the Chancellor announced in the Budget £40 million to fund special action teams to help people in the worst unemployment blackspots. My right hon. Friend the Secretary of State will shortly announce further details of the action teams and of their locations, but my hon. Friend will wish to know that six will be established in former coal-mining areas.
In Doncaster, the new employment zone will offer tailored support for former mineworkers in addition to the £10 million made available through the Coalfield Regeneration Trust.
§ Mr. TrickettI thank my right hon. Friend for that reply. I pay tribute to the Government for the active way in which they are providing support for the former coal-mining areas such as my constituency, which were left devastated by the Conservative Government. Is my right hon. Friend aware that two schemes in my constituency—two intermediate labour markets, one at Havercroft and one at Sesku Ringway—are due to have their funding terminated next week? They are excellent schemes. Twenty long-term unemployed people now feel some enthusiasm for life, but the funding is about to expire, with the loss of experience that will result. 1108 What advice can my right hon. Friend offer to those of my constituents who feel somewhat dismayed about the future?
§ Ms JowellThe point that my hon. Friend makes about the two specific initiatives underlines the importance of implementing national programmes with sufficient flexibility to recognise important local innovations. I know that efforts are being made locally to replace the funding that will come to an end, but I shall be happy to meet my hon. Friend as a matter of urgency to see whether further action can be taken.
§ Mr. John Healey (Wentworth)Does my right hon. Friend recognise the high rates of labour market inactivity in the former coalfield areas, especially among men over 50? Our experience in Rotherham of piloting the adult new deal suggests that the roll out of the new deal for 50-plus, the employment credit and the new transition support announced by my right hon. Friend the Chancellor in the Budget this week will all help. However, does she accept that there remains a problem with the attitude of employers, who too often will not accept the benefits that older workers can bring to their companies?
§ Ms JowellI accept that there is a problem with some employers, but fortunately others are leading the way in demonstrating the benefits of diversity, as the number of vacancies increases and the number of people unemployed and seeking work falls. As part of the national implementation of the new deal for 50-plus, we shall redouble our efforts to build on the good experience of many employers of the stability, motivation and loyalty that come from having older people in their work force. That will be linked to the code of practice supported by employers that directly tackles age discrimination in the workplace.