Long-term Unemployed (Hansard, 10 December 2001)

§ Mr. Clappison
To ask the Secretary of State for Work and Pensions, pursuant to his statement of 28 November, in what circumstances benefit will be withheld from the long-term unemployed. [20272]

§ Malcolm Wicks
Starting in April next year, the Government will pilot a new approach to assist long-term unemployed people who need more intensive help to get into work. Long-term recipients of jobseeker's allowance will be guaranteed a full-time job, lasting up to a year, and paid at the national minimum wage. In return, they will be required to take up that opportunity. It is our intention to ensure that there will be a choice of jobs on offer but no choice of simply remaining on benefit. Anyone who refuses to take up a job offer without good reason will have their benefit withdrawn in the same way as those jobseekers who fail to take up an offer of suitable employment.

§ Mr. Clappison
To ask the Secretary of State for Work and Pensions, pursuant to his statement of 28 November, (1) in what circumstances long-term unemployed may receive remuneration above the national minimum wage; [20275]
(2) how much of the remuneration for the long-term unemployed will be provided by (a) Government and (b) employers. [20280]

§ Mr. Nicholas Brown
Long-term unemployed people participating in the new job guarantee scheme will be paid out of Government funds at the national minimum wage. Those with children will also be eligible to apply for 615W working families tax credit in the same way as other workers. In addition, it will be open to employers to make payments on top of the funding provided by the Government but this will be entirely at their discretion.

§ Mr. Clappison
To ask the Secretary of State for Work and Pensions, pursuant to his statement of 28 November, what targets he has set in respect of his proposals for the long-term unemployed, including targets for sustained unsubsidised employment following completion of the 12-month period of employment; and what plans he has made to evaluate his proposals. [20273]

§ Mr. Nicholas Brown
The new approach to assisting long-term unemployed people by guaranteeing them a full-time job will be piloted in 20 areas, starting in April 2002. Because these are pilots, no targets have been set for the number of participants moved into sustained unsubsidised employment. The pilots will provide the information we need to set such targets if and when the scheme is extended.
The pilots are expected run for up to two years and will be subject to a full and thorough evaluation.