HC Deb 01 April 2004 vol 419 cc1631-3W
Mr. George Osborne

To ask the Secretary of State for Work and Pensions what the estimated cost of the New Deal is in the current financial year, broken down by programme. [158417]

Maria Eagle

The information is in the following table:

Estimated New Deal Costs1
£ million
2003–04 Plans
New Deal for Young People 340
New Deal 25 plus 255
New Deal 50 plus 56
New Deal for Lone Parents 82
New Deal for Disabled People 27
New Deal for partners 11

Note:

1Includes programme and administrative spend.

Source: Department for Work and Pensions Departmental Report 2003.

Mr. George Osborne

To ask the Secretary of State for Work and Pensions (1) how many people have participated in the New Deal since its inception, broken down by programme; [158418]

(2) what the (a) planned and (b) actual cost of the New Deal has been in each year of its operation; [158419]

(3) what the average cost per participant of the New Deal has been to date. [158425]

Maria Eagle

The information requested on the number of New Deal participants is in the following table:

Number of New Deal Participants1 Number of New Deal Starts2
New Deal for Young People3 831,350 1,081,680
New Deal 25plus4 496,790 673,790
New Deal for Lone Parents5 459,070 577,710
New Deal for Disabled People6 69,450 69,450
New Deal for Partners7 7,480 7,480
New Deal 50 plus8 98,040 98,040
1 All figures relate to individuals who have started each programme.
2 An individual may have had more than one start over the period. A distinction between individuals and starts for NDDP, NDP, and ND50 + can't be made.
3 January 1998—December 2003
4 April 1998—December 2003
5October 1998—December 2003
6 Pilots launched in September 1998. National network of NDDP job brokers launched from July 2001. Up to December 2003.
7 Launched as New Deal for Partners of Unemployed People in April 1999. Extended to partners of other benefit recipients in April 2001. Up to December 2003.
8 New Deal 50 plus was introduced in nine pathfinder areas on 25 October 1999 and rolled out nationally on 3 April 2000. Up to March 2003.

Source:

New Deal Evaluation Database, Information and Analysis Directorate, DWP

The information requested on the planned and actual cost of the New Deal is in the following table:

£million
New Deal for Young People New Deal 25 plus New Deal 50 plus New Deal for Lone Parents New Deal for Disabled People New Deal for Partners
1997–981
Outturn2 43
1998–99
Plans3 8525 114 18 3
Outturn2 260 34 18 1 1
1999–2000
Plans4 764 223 51 6 15
Outturn2 370 97 3 39 22 5
2000–01
Plans5 9402 130 16 43 18
Outturn2 412 60 56 43 14 11
2000–02
Plans6 10366 183 16 72 55 17
Outturn2 308 213 87 46 10 8
2002–03
Plans7 10302 215 16 121 79 26
Outturn2,11 339 254 106 80 27 6
2003–04
Plans2 340 255 56 82 27 11

1Planned figures not available prior to start of financial year.

2Source: 2003 DWE Departmental Report (Cm 5921).

Actual Cost up to March 2002 (£millions)1 Number of New Deal Participants up to March 20022,3 Number of New Deal Starts up to March 20022,4 Average Cost per individual up to March 2002 (rounded to the nearest £10) Average Cost per start up to March 2002 (rounded to the nearest £10)
New Deal for Young People 1,393 5552,882 5788,240 2,520 1,770
New Deal 25plus 404 6366,190 6481,230 1,100 840
New Deal for Lone Parents 146 7248,170 7343,040 590 430
New Deal for Disabled People 47 812,960 812,960 3,630 3,630
New Deal for Partners 25 95,150 95,150 4,850 4,850
New Deal 50 plus 146 1066,970 1066,970 2,180 2,180
Total 2,161 1,252,322 1,697,590 1,730 1,270
1Source: DWP Departmental Report 2003
2Source: New Deal Evaluation Database, Information and Analysis Directorate, DWP
3 All figures relate to individuals who have started each programme
4 An individual may have had more than one start over the period. A distinction between individuals and starts for NDDP, NDP, and ND50 † can't be made.
5 January 1998—March 2002
6 April 1998—March 2002
7 October 1998—March 2002
8 Pilots launched in September 1998. National network of NDDP job brokers launched from July 2001. Up to March 2002.
9 Launched as New Deal for Partners of Unemployed People in April 1999. Extended to partners of other benefit recipients in April 2001. Up to December March 2002
10 New Deal 50 plus was introduced in nine pathfinder areas on 25 October 1999 and rolled out nationally on 3 April 2000. Up to March 2002.

Over one million people have been helped in to work through the New Deal since its creation, but it has also been a success in financial terms. NIESR estimated that the economy as a whole is richer by £ million a year as a result of the New Deal for Young People. Independent evaluation has also found that the New Deal for Lone Parents saves money; with every lone parent moving into work equating to an exchequer saving of nearly £1,600.