Employment and Training (Hansard, 30 July 1984)

§ Mr. Tom King

Jobs depend essentially on employers making and selling goods and services that people want at prices they will pay. This Government's policy is to help employers create jobs by encouraging enterprise and the efficient operation of the labour and produce markets: and to help people to equip themselves to perform the new jobs so created. This is the purpose of the Government's employment and training programmes generally and not just those for the unemployed. In total, they are currently helping around 550,000 unemployed people and another 140,000 in jobs at a cost of some £2¼ billion a year.

I am now proposing to take further steps to help people into jobs through the enterprise allowance scheme and the community and voluntary projects programme, all of which have proved very successful. The first of these schemes has proved highly popular as a means of assisting unemployed people to start up in business on their own. It appears that almost all the small firms set up survive the 122W first year and almost two thirds will survive the second. On average, each one creates half as many jobs again for other people.

The scheme therefore entirely meets the Government's objectives of promoting self-help and independence in employment. We announced in May that the weekly allocation of places on the Scheme would be raised to 1,000 until the end of July and we have now decided to maintain intake at that level.

I also propose to increase the effectiveness of the community programme in improving the prospects of resettling the long-term unemployed into regular jobs by accepting the Manpower Services Commission's recommendation that, as part of the adult training strategy, participation in the community programme should be linked with short courses of work preparation and basic skills training. Of the 200,000 who pass through the programme in a year, some 50,000 are likely to benefit from such training when the arrangements are fully in operation.

From 1 October the average wage limit applying to the community programme will be raised from £60 to £63. This will help sponsors in the management of projects. At the same time I intend to ensure that the places on the programme go to those most in need by normally confining eligibility from 1 October to those long term unemployed who are also benefit recipients.

The voluntary projects programme has also proved popular both with the unemployed and with sponsors as a means of improving employment prospects. It caters for about 40,000 people a year and resources will be provided to enable the scheme to continue in 1985–86.

I am considering the future of those measures which are currently due to end in March 1985 and will make a further announcement in due course.