| Synopsis: |
This report examines the performance of New Deal 25+, a mandatory 'welfare to work' programme established in 1998 (and replaced in 2008), which aimed to help long-term unemployed adults, aged 25 and over, to improve their employability and get into work. By the end of March 2007, some 74,000 participants had passed through New Deal 25+, at a cost of around GBP 69 million to the Department. Over the life of the programme, the characteristics of participants changed, moving towards a core of 'harder to help' individuals with complex and multiple barriers to employment. New Deal 25+ brought a number of benefits to the long-term unemployed, but the overall employment impact of the programme was very limited and often short-lived. One of the main weaknesses of New Deal 25+ was its 'one size fits all' approach, and not enough was done to tackle two of the most fundamental problem areas, common to a large proportion of participants - a lack of qualifications and difficulties with basic literacy and numeracy skills. The employment outcomes for the programme, which were its primary aim, were very modest - on average, only 18 per cent of leavers found a job.This was a poor return for taxpayers' money. The new Steps to Work programme is more flexible than New Deal 25+ and allows for support to be tailored to the needs of individual participants. But the Department must learn the lessons from New Deal 25+ and react much more quickly to tackle problems as they emerge. It will also have to increase the involvement of employers within the scheme, especially those from the private sector. |