HC Deb 27 January 1998 vol 305 cc188-90W
Mr. Willetts

To ask the Secretary of State for Education and Employment (1) what is the total number of young people unemployed for more than six months whom the Government expect to participate in their welfare-to-work scheme in 1998–99, broken down between those who will be eligible in April 1998 and those expected to become eligible in each successive month; [25102]

(2) what are the Government's estimates for the number of young people unemployed for over six months participating in their New Deal scheme in each of the next four years, separately identifying those who do not go beyond the Gateway. [25110]

Mr. Andrew Smith

It is not possible to provide precise estimates of the numbers of young people aged 18–24 who will take part in the New Deal. In 1998–99, the programme will benefit all young people who have been unemployed for more than six months and who remain unemployed, and all those who reach six months' unemployment. In addition, some young people will choose to join the New Deal early.

By convention, the Government do not publish forecasts of unemployment. In October 1997, some 120,000 18–24 year olds were recorded as having claimed Jobseeker' s Allowance for six months or more. Each month, about 15–20,000 18–24 year olds reach six months' claimant unemployment.

Mr. Willetts

To ask the Secretary of State for Education and Employment what is the legal status of the agreement to which employers must subscribe when they participate in the welfare-to-work scheme; and what penalties will be imposed on employers who breach it. [25107]

Mr. Andrew Smith

The Employer Agreement enshrines legally binding terms and conditions designed to secure the quality of those jobs to which the subsidy may be applied. It also includes a pledge, signed by the Employer, by which they commit to working with the Employment Service and its partners to make a success of the New Deal. Where the employer is in breach of these terms and conditions, the Employment Service can take any or all of the following actions, depending on the circumstances:

  • rescind the agreement
  • stop future payments
  • cease further client referrals
  • make recovery, if possible against other or future payments
  • take the employer to court.

Mr. Willetts

To ask the Secretary of State for Education and Employment if the Government will give a break-down by(a) ethnic origin and (b) gender of the young people unemployed for more than six months expected to participate in their welfare-to-work scheme in 1998–99. [25103]

Mr. Andrew Smith

It is not possible to provide precise estimates of the numbers of young people who will require help from the New Deal. The programme will help young people who are, or who become, unemployed for six months or more, irrespective of ethnic origin or gender. The latest published data show that, in October 1997, around three quarters of those aged 18–24 who had been claiming Jobseeker's Allowance (JSA) for six months or more were men. The claimant count does not provide information on the ethnic origin of JSA claimants. The summer 1997 Labour Force Survey suggests that around 10 per cent. of all 18–24 year olds who had been unemployed according to the ILO definition for six months or more were members of ethnic minorities.

Mr. Willetts

To ask the Secretary of State for Education and Employment, following the Chancellor's announcement of 12 January 1998 of the extension of the Government's New Deal programme to those aged 25 to 34, if benefit claimants in that age group will be obliged to join the scheme with no fifth option of claiming benefits. [25111]

Claimant unemployment1 ILO unemployment1
October 1992 October 1997 Average change per year (per cent.) Autumn 1992 Autumn 1997 Average change per year (per cent.)
All ages
Number 2,814,400 1,432,900 9.8 2,847,000 1,852,000 7
Rate (per cent.) 9.9 5.1 1 10.2 6.6 0.7
18–24s
Number 819,700 371,400 10.9 739,000 423,000 8.6
Rate (per cent.) 17.5 9.3 1.6 16.8 11.8 1
6 month+ 355,200 122,100 13.1 393,000 200,0002 9.8
25 and over
Number 1,980,500 1,045,900 9.4 1,970,000 1,259,000 7.2
Rate (per cent.) 8.5 4.5 0.8 8.6 5.3 0.7
2year+ 348,800 243,700 6 416,000 2365,000 2.5
1 All figures are seasonally unadjusted.
2 ILO figures for the two New Deal groups cover the period summer 1992 to summer 1997, as summer 1997 is the latest period for which data are currently available.

Mr. Andrew Smith

We are currently finalising the details of the extension and will announce them as soon as possible.

Mr. Willetts

To ask the Secretary of State for Education and Employment how many small and medium businesses, broken down by size of workforce, the Government expect to participate in their welfare-to-work programme. [25101]

Mr. Andrew Smith

It is too early to make an estimate; but we are seeking extensive participation by small and medium businesses, and are encouraged by preliminary indicating such as the support expressed by the Federation of Small Businesses.

Mr. Willetts

To ask the Secretary of State of State for Education and Employment if the Government will publish the agreement to which employers must subscribe when they participate in the welfare-to-work scheme. [25106]

Mr. Andrew Smith

The Employer Agreement is already in the public domain. It has been circulated throughout the pathfinder districts as part of the New Deal literature, and I have placed a copy in the Library.

Mr. Duncan Smith

To ask the Secretary of State for Education and Employment how many ex-offenders are taking part in the(a) employment, (b) education, (c) environment and (d) voluntary option of the Welfare-to-Work Scheme. [25923]

Mr. Andrew Smith

This information will not be available until later in the year.

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