§ Mr. BercowTo ask the Secretary of State for Education and Employment what assessment he has made of the effect of the national minimum wage on the costs to employers of New Deal recruits. [89422]
§ Mr. Andrew Smith[holding answer 2 July 1999]From April 1998 to end of March 1999, the monthly average of New Deal participants entering jobs was 7,600. During April 1999, after the introduction of the national minimum wage, 12,400 entered jobs.
As part of the national evaluations of New Deal for Young People and New Deal for the Long Term Unemployed we are carrying out a survey of participating employers. This will include questions on the wages being paid to New Deal employees (for example gross starting pay; hourly rate; most recent gross pay; whether or not the wages are the same as for the previous job holder and why not). Any references by employers to the national minimum wage and its impact will be recorded. The survey is taking place in the autumn of this year and will involve face-to-face interviews with 1,500 participating employers.
§ Mr. BercowTo ask the Secretary of State for Education and Employment what estimate he has made of the numbers of participants in New Deal programmes who have not obtained a job after they have completed their participation. [89415]
§ Mr. Andrew Smith[holding answer 2 July 1999]The information is available from the published Government Statistical Service statistics. They show that between January 1998 and April 1999 32,000 people left New Deal for Young People for known destination other than jobs. An additional 49,420 left for an unknown destinations. However, a recently published study reports on a survey of a sample of those leaving New Deal for unrecorded destinations between April and August 1998. Of all those who responded to the survey, 43 per cent. stated they had left New Deal to go into paid employment.