Starts to New Deal for Young People, New Deal 25plus,
New Deal for Lone Parents

The New Deal programme is a key part of the Government's strategy to get people back to work. Seven programmes have been developed to target different client groups, but the three main programmes are:

• New Deal for Young People (NDYP) aimed at those aged 18-24 who have been claiming Jobseeker's Allowance continuously for 6 months;
• New Deal 25 plus (ND25plus) a mandatory programme for those who had been claiming Jobseeker's Allowance for at least 2 years;
• New Deal for Lone Parents (NDLP) aimed at all lone parents on Income Support, but open to all lone parents (aged 16 plus and with a child under 16) not in work or working less than 16 hours per week.

Figures are published on the ONS Neighbourhood Statistics website (under the Work Deprivation heading) for each year from 2001 to 2006.

The information is published for regions and local authorities in England and Wales and is also available down to middle-layer super output area (MSOA) level. This Research Monitor does not incorporate the MSOA results because of the very small numbers recorded in many areas and because the figures are rounded to the nearest five. The data are also officially published by gender and by one of four ethnic groups, but this short Monitor only considers the total numbers by area. Anyone requiring more details should download the complete set of results from the original source.

The data are considered to be extremely accurate and not subject to any sampling error.

The New Deal Scheme

Those joining the New Deal first enter a Gateway period lasting for 4 months, during which Jobcentre Plus advisers work with them to improve their employability. Anyone who does not find a job moves on to one of four options:

• A period of subsidised employment for 6 months;
• Full-time education or training;
• A job with an Environment Task Force;
• A job in the Voluntary Sector.

If a person reaches the end of their option and has still not found a job, they will normally reclaim Jobseeker's Allowance and will enter a follow-through period during which they will receive intensive help to find a job.

The Lancashire Results

Table 1 reveals that for 2006 in the Lancashire NUTS-2 area - which includes the two unitary authorities of Blackburn with Darwen and Blackpool - there were 4,225 starts to New Deal for Young People, 2,445 to New Deal 25plus and 2,645 to New Deal for Lone Parents. At the district level, Blackburn with Darwen recorded the highest numbers in all three categories whilst large numbers were also recorded in Blackpool, Preston and Lancaster districts.

The percentage change figures for the period 2001 to 2006 reveal a noticeable downward trend in starts in the 25plus category whilst in the Young People and Lone Parents categories the figures reveal significant increases. At the district level, the relatively small numbers lead to some volatile results, but in general terms the amalgamated results mean that at the broader county level, the trend is compatible with the changes at the regional and national levels in all three sections.

The unemployment claimant count in Lancashire has for a number of years been lower than the regional and national averages. The latest numbers reveal relatively low totals in comparison to historic trends.

There have been changes to the qualifying criteria for unemployment benefit over the years that have often reduced the official claimant count, whilst, in addition, the general economic picture has over recent years been positive. The need for initiatives to help people get back to work may not be as pressing as in previous years, but there will always be a requirement for good-quality supply-side measures that improve a person's employment prospects.

Table 2 details the jobs gained via the New Deal programme. Between 2001 and 2006, there was an overall decline in jobs gained for Young People at the county, regional and national levels, but in the other two categories the Lancashire NUTS-2 level results were at variance with the regional and national trends. For the 25plus group, the overall picture was one of a -12.2% decline at the national level, but the broader Lancashire area saw an increase of 2.2% that was most notably underpinned by a large increase in Blackpool.

For Lone Parents, the -15.6% decrease for the broader Lancashire area between 2001 and 2006 was totally at variance with the 12.0% increase at the national level and the 8.3% rise in the North West. Twelve of the fourteen Lancashire authorities recorded decreases so the county decline was not entirely due to a significant anomaly in one authority. An analysis of the figures for each North West authority reveals a few other areas recording percentage reductions, but the majority did not follow the Lancashire pattern. Of particular note were substantial increases in Lone Parent jobs gained in Manchester, Warrington and St Helens.