Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

The Failed New Deal scheme in figures

with 20 comments

Labour in 1997 began its welfare reform regime including Gordon Brown’s New Deal scheme aimed at getting rid of the  “life on benefits” trend. Regardless of progress made in making benefits harder to claim resulting in 2/5 of a million less claimants, 12 years on politicians are still using this but rebranding to various phrases including “passive receivers” when most of this problem is a thing of the past.  This article also focuses on the Governments aim of eradicating Child Poverty by 2020 – a mission proposed by former Prime Minister Tony Blair.

New Deal has cost the taxpayer £75 Billion since it was introduced – as this website states most of this amount has been pumped into Private businesses and Jobseekers not seeing any benefits from the course…

3 million new jobs, but only 400,000 less claimants – something not right here. Most claimants are due to unfair sanctions imposed and procedures tightened to prevent people claiming benefits they are entitled to. Some of this figure will be however due to Jobseekers securing employment.

1 in 9 jobs are occupied by foreign workers – gives great insight in the number of unemployed people who would have had a job if the Government didn’t let in foreign people so easily. These foreign workers have greatly taken up employment opportunities where they could have been filled by British people – remember some of these people will be skilled migrants such as doctors and entrepreneurs or investors however most are not specifically skilled (no degree or professional qualification).

51% in 1998, 34% in 2005 and 25% in 2008/09 – The percentage of New Deal participants finding work has been on the decline. This probably is due to participants doing no work experience and having no training. Please Note: The 25% is an average figure – third sector providers such as YMCA Training performed much worse.

Government failed to reduce Child Poverty by 1/4 and since missing that deadline Child Poverty has increased


Written by Universal Jobmatch

June 7, 2009 at 9:26 am

20 Responses

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  1. We disagree with the comment about ‘foreign workers’. All EU citizens have the right to work in other EU states. I have worked – for seven years – in France. I am a ‘foreign worker’.

    The problem is not foreign workers. It is the bosses trying to divide us.

    Workers and unemployed should be united.

    Andrew Coates

    June 7, 2009 at 9:29 am

    • I included the element on the 1 in 9 jobs being taken by foreign workers due to the issue regarding Europe and lack of control of immigration etc. Outside Europe you have to be skilled to be able to come here – that is not the case for EU citizens even though to be fair a lot of them do bring skills to help our economy.

      The idea of allowing free movement amongst EU states seems a great one however it can be debated that why should someone from East Europe take potentially someones job from West Europe? It is not like someone from West Europe will move to East Europe to seek employment there. It is not equally balanced.

      This said however you are right about the employed and unemployed should be united; and that bosses are to blame for “dividing” us.

      It is not about foreign workers being able to work alongside British workers but the case of ongoing segregation of recruitment selection – choosing either foreign workers or British workers and not a mix with Equal Opportunities and skills in mind.


      June 7, 2009 at 10:36 am

  2. […] did we come across this figure? Well…   The New Deal scheme costs Taxpayers £75 billion and claimants have dropped by 400,000 people (this figure excludes the surge in new claimants due […]

  3. what a pile of bollocks

    using that same argument, you might want to ban Brits from working abroad

    Brits go to other countries and, by your own words, “some of these people will be skilled migrants such as doctors and entrepreneurs or investors however most are not specifically skilled (no degree or professional qualification).”

    are you going to argue for immigration controls for Brits going to work abroad?

    because if you didn’t then it would be a bit inconsistent eh? that is arguing for immigration controls for Britain, but not when Brits abroad “take” jobs in other countries

    surely you see what nonsense this is?


    June 9, 2009 at 11:03 pm

    • This is not what the article was debating. Was simply stating 1 in 9 workers in the UK are foreign.

      As Andrew stated they are perfectly entitled to work here.

      It was more specifically aimed at contracts won by foreign companies that instead of advertising the job here and maybe bringing some staff across from Europe – they decided to source all their staff from Europe.

      To answer your questions – apart from those in the EU who are bound to such policy, Countries can decide their own immigration controls and policies.

      It also doesn’t work on an equal balance – just because one country allows loads of people in – the majority of the source of those migrating to that country doesn’t necessarily allow such a flow of people from the other country to theirs.

      The element here is an unfair recruitment selection process and NOT an issue on race or nationality.

      Sorry for any confusion unintended.


      June 10, 2009 at 10:10 am

  4. […] New Deal Complaints site we recently displayed on this site aims for a full investigation of the £75 billion New Deal scheme and believes that the DWP investigation is just the tip of the iceberg. Jobcentre Plus hasn’t […]

  5. […] Deal Scandal is a blog set up to expose the £75 billion fraud that is New Deal (and any further money being wasted for Flexible New Deal). New Deal has cost the taxpayer £75 […]

  6. “1 in 9 jobs are occupied by foreign workers”. This is a bit misleading. The real reason that British workers aren’t doing these jobs is you just can’t live on the minimum wages, the minimum wage hear is just to low. The only reason say the Poles came hear originally in such large numbers to do these minimum wage jobs was that under the exchange rate a minimum wage of say £5.00 an hour worked out at 10x its value in Polish Zloty so they were on the equivalent of £50.00 per hour. This meant if you came hear aged twenty from Poland could stick say flipping burgers on the minimum wage for 5 years in the UK, then you could effectively go back to Poland with the equivalent of an entire life times wages, you would be more or less set up for life. As the same financial possibilities aren’t available to British workers they can’t in fact even live off the minimum wage let alone retire on it after 5 years the British workers can’t be blamed for not doing them. Now you find that the pound has crashed and is only worth 3X not 10X its purchasing power in Polish Zloty though the Poles would still be 3X more better off then a British worker on that money if they came hear to do them, few of them are now so eager to come here and work doing these jobs anymore. But skinflint British employers no need to worry for as the Polish Labour Pool dries up, the British government will press for the accession into the EEC of even more desperate countries such as Rumania and Bulgaria, then ultimately their is always the Turkey with its huge pools of cheap labour and disastrous currency to fall back on.

    Lowestoft's Finest

    July 17, 2009 at 5:30 pm

    • So true. There is two main factors specifically with the current British situation…

      a) As you mentioned, the minimum wage isn’t enough – people have actually realised that it IS better to have a part time job and claim Housing Allowance – rather than have a fulltime job being heavily taxed so it becomes difficult to rent a place.

      b) The current economic climate pretty much guarantees most employers (of low level jobs) limiting wages to the NMW for at least 5 years.

      The worrying thing is we are in the 21st century and I think the UK could be experience some extreme problems. I wont go as far to say become Third World country but Welfare Reform proposals has already raised extreme concerns especially regarding the economy state at the moment.

      Poverty is largely regarded as a third world i.e. “Africa” (even though Africa has some very rich parts) but you would be shocked to read the full extent looking at statistics seeing income deprivation in around half the country, and the Government hasn’t decided to tackle this issue – all they do is make it harder to claim state benefits stating it as encouragement to persuade people back in to work: what, did they think all unemployed people decided not to bother searching for a job?

      There is nothing like not having money, I really believe that there isn’t anyone who would be happy claiming JSA instead of finding employment.

      You will have less time as having to work – but when you have all the time and no money you can’t really do much. It is about finding the balance.

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