HC Deb 24 July 2000 vol 354 cc439-40W
Mr. Cox

To ask the Secretary of State for Education and Employment if he will make a statement on the impact of the New Deal on reducing youth unemployment in the Greater London area. [132073]

Ms Jowell

The New Deal for Young People is aimed at people aged 18–24 who have been claiming unemployment benefits for six months or more.

Claimant unemployment among this group has fallen by 70 per cent. in the three years since April 1997 and by 56 per cent. since April 1998 when the New Deal was introduced. Part of this fall is due to the delivery of a strong and stable economy, but the New Deal for Young People has helped unemployment to fall even faster. The fall of 56 per cent. since the New Deal was introduced compares with a fall of 18 per cent. in total unemployment, 23 per cent. in total youth (18–24) unemployment and 26 per cent. in the total number unemployed for six months or more. The effect of the New Deal is confirmed by independent research from the National Institute of Economic and Social Research.

It is not possible to measure the New Deal effect exactly in each part of the country. However, in Greater London the fall in unemployment among the New Deal client group has also been substantially faster than for other groups. In Greater London, in the two years since April 1998, claimant unemployment among those aged 18–24, unemployed for six months or more, has fallen by 56 per cent., from 19,346 to 8,552. This compares with a fall of 21 per cent. in total unemployment, 29 per cent. in total youth (18–24) unemployment, and 26 per cent. in the total number unemployed for six months or more.