17 March 2004 - Welfare to Work package builds on success
Breaking down barriers to work by offering extra cash incentives, affordable childcare and help with developing skills was the driving force of Welfare to Work measures in today’s Budget.
The package builds on the success of the Government’s Welfare to Work policies and offers further help to lone parents, those who have been sick but want to return to work and those who need to acquire new skills to move into employment.
Secretary of State for Work and Pensions Andrew Smith said the latest measures capitalised on the success of policies which had delivered one of the world’s strongest labour markets, as today’s record-breaking employment figures show.
“The innovative policies of the last seven years have put us in a position of great strength with record levels of employment and the lowest unemployment since the Seventies. This budget continues the winning formula to help even more people find work and with it a route to a life off benefits and out of poverty.
“Policies that have delivered strong results are being extended. We will pilot a job preparation premium of £20 a week for those on incapacity benefits who take active steps to return to work.
“A work search premium of £20 a week for non-working partners in low income families will also be introduced in six pilot areas with high levels of unemployment.
“On top of this, childcare pilots due to start next month will also be extended to a further four areas and the New Deal for Skills will ensure people get the advice they need through Jobcentre Plus to build strong careers.”
The full package includes:
- Piloting a mandatory work-focused interview for some existing claimants of incapacity benefits in Pathways to Work pilot areas and a job preparation premium of £20 per week again in the pilot areas, for some claimants of incapacity-related benefits – from beginning of 2005;
- Introducing a work search premium of £20 per week in six pilot areas with high levels of worklessness. This will address the inactivity of partners in lower paid employment and has the advantage of addressing the inactivity of some ethnic minority groups – from October 2005;
- Inviting a small number of local authorities to join the Local Housing Allowance reforms for private sector tenants, starting April 2005, in preparation for full national rollout. This will enable more tenants to benefit from the greater choice and responsibility that the allowance brings;
- New Deal for Skills will ensure people get advice through Jobcentre Plus to develop skills they need to find work and build careers, also making sure employers can develop the skilled workforce needed for business success;
- Working with employers to increase employment opportunities for people aged 50 and over.
Further measures for lone parents will be introduced such as:
- Increasing the number of extended schools childcare pilots due to start next month to a further four areas from October 2004;
- Piloting a fund to help lone parents meet the costs of emergencies during the first 60 days in employment from April 2004;
- Allowing lone parents access to NVQ3/SNVQ3 level training in childcare (in all six cities) and also one other skill (to be determined locally in the light of local skills shortages) from April 2004;
- Running an additional 15 Discovery Weeks in London from April 2004;
- Establishing ‘Fair Cities’ initiatives in three areas later this year. This will support the creation of employer-led partnerships between local employers, public bodies, providers and ethnic minority communities. These groups will design initiatives to improve the employment outcomes, including retention and progression in work, of local ethnic minority communities – from July 2004.
Notes for editors
- Pathways to Work pilots are currently running in Bridgend, Rhondda, Cynon & Taff; Renfrewshire; Inverclyde, Argyll, Bute; and Derbyshire. Four new ones will begin next month (April 2004) in Somerset, Essex, East Lancashire, Gateshead & South Tyneside.
- The work search premium will be piloted in six areas from October 2005 – London, Birmingham, Bradford, Blackburn, Leicester and Luton.
- From July 2004 ‘Fair Cities’ initiatives will be established in three areas Bradford, Brent and Birmingham.
- The extended schools childcare pilots are due to start next month in Bradford, Lewisham and Haringey and will be extended to a further four areas from October 2004
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