§ Mr. Jim CunninghamTo ask the Secretary of State for Education and Employment what assessment the Government have made of the effectiveness of the subsidies paid to small firms as part of the New Deal. [90190]
§ Mr. Andrew SmithEarly qualitative research with 25 employers (including some employing fewer than 50 employees), carried out as part of the national evaluation of New Deal for Young People, explored views on the wage and training subsidies. Employers clearly appreciated the advantages of the subsidies in reducing costs of employing and training young people. Some respondents expressed the view that smaller employers 173W stand to gain more from subsidies than larger employers, as the savings may make the difference between being able to employ an extra member of staff or not. A report on this research was published in December 1998 and is available in the Library.
Further research with employers will be published towards the end of this year and in the summer of next year.