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Been on New Deal? You are likely to be owed over £50

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After some extensive research into UK Unemployment Benefit (Jobseekers Allowance) and New Deal related legislation, New Deal Scandal can inform you, confirmed by DWP, that the £4 weekly travel deductions are unlawful.  This means New Deal participants past and present are entitled to be reimbursed.

The Training Allowance

New Deal participants who claim for travel expenses are deducted £4 per week from their Training Allowance.

The Training Allowance and The Law

The law does mention about the extra weekly payment while on New Deal, it however doesn’t mention that:

  • The Training Allowance being for, intended to be for or expected to be for, travel or food.
  • It makes no acknowledgement of any lawful authority of £4 having been deducted each week (which is probably why the amount of training allowance weren’t £4 less even though obviously not everyone would claim travel)

Where does the £4 deduction come from then?

The £4 per week deduction is a contractual agreement between the Jobcentre/DWP and the New Deal provider. The £4 deduction is advised in the Provider Guidance (available on the DWP website). As the name suggests this is only guidance (I have spent a week checking up on the various laws to make sure) but the New Deal prime contractor  provider has to follow this as the contract makes reference to it.  This still makes it illegal – it doesn’t change this.

What is the legalities about this?

It is unlawful for the £4 per week travel deduction being made (especially when the other option is being out of pocket receiving no reimbursement at all). The New Deal provider are only doing this act because failure to do so could cause them problems as its is a condition for the contract.

How much is it worth?

If you didn’t claim travel then it is not worth anything. Also note that if you have been on New Deal previously you can also claim for then plus interest. You can only claim for the actual amount of weeks you have done though.

13 weeks @ £4 per week = £52 (around a weeks benefit money)

If you have been on New Deal 3 times (and claimed every week for travel) you are looking at £156 (plus interest).

Interest

This don’t work out as much as you can’t charge the rate set by banks etc.  Use a Court Interest Calculator to work out how much you can apply for.

How do I get my money back?

You would have to write to either the New Deal provider or Jobcentre Plus. I would suggest the New Deal provider – they are a private business and have no lawful authority to tax you, whereas Jobcentre Plus does whatever it wants.

Just some points to remember:

  • Quote the amounts – with a  break down of number of weeks @ £4, the sub total, the interest (if applicable) and total
  • Give them a deadline (7 or 14 days are typically a good choice)
  • Remind them of a possible class action court case
  • Tell them about the dates you were on programme (can be slightly estimated if unsure)
  • It is better if you submitted your claim at the same time as others

Spread the word

Feel free to spread the word amongst other New Deal participants past and present.

Keep us updated on the response you hear back via the below comments.

Class action lawsuit

If New Deal providers and Jobcentre Plus refuse reimbursement as a group we could collectively take this to court. The amount in this scam could be as much as £50 million. (Depending on the number of participants claiming and number of weeks) – I would estimate at least £2 million.




44 Comments

  1. 1
    Bored Tax payer says:

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 2 Thumb down 5

    • 2
      ken says:

      many former tax payers including all here have found themselves placed on new deal.the bad treatment/bullying/harassment fully extends to them also including past “i am alright jacks’” that are not now,the only cries were when the banking sector tried to somehow distinguish themselves from other unemployed in the media with job losses it was now time to demand more money for them and their families.

      it makes no difference to someones background or past work history.
      if you have the misfortune to find yourself unemployed for a period of time you are going to find yourself in this position,this is what the complaints are about its your hard earned £700 million thats now be squandered on nothing more then detention centers for unemployed with outcomes that would be similar to being outside at least you can get todays paper not a fortnights ago,and not have to listen to the above.

      due to the credit driven boom bust of the last twenty nine years the policies will have a direct impact on the welfare state with unemployment near constantly in the news,the horrendous debt figures are another major outcome although these are not so well published and are very damaging also.

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  2. 4
    sandtigerscotland says:

    Hi

    Could you let me know the legislation that deals with ND travel and also the relevent chapter in the Provider Guidence sheets?

    Thanks

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  3. 5
    sandtigerscotland says:

    Got the ND Travel costs at Ch 4 so just need any legislation.

    Ta

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  4. 6
    david ayre says:

    Ithink it is shocking that poor people are been robbed this way; i will claim my money back i think the newspapers would love a story like this shame on the goverment

    david ayre did not rate this post.

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  5. 7
    Jon says:

    so has anyone actually claimed this money back yet? I’m currently at another provider called charter training, “relearning” microsoft office which I actually did as part of a I.T course back in college, so its all a bit pointless really, but I am losing out on this £4 deduction along with many other people here and would like to know if anyone has been successful.

    Jon did not rate this post.

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    • 8
      Flexible New Deal says:

      I will be very interested in this too.

      I had successfully claimed my £4 per week deductions but was authorised by head office of my provider. Not sure about any other successful cases from people I dont personally know.

      Flexible New Deal ratings for this post: Flexible New Deal gives a rating of 5Flexible New Deal gives a rating of 5Flexible New Deal gives a rating of 5Flexible New Deal gives a rating of 5Flexible New Deal gives a rating of 5

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  6. 9
    Chris says:

    I have told my New Deal Provider that my travel expenses are £17 per week on First Bus, but i actually use Arriva, which is £13 per week. So im not losing any money!

    I got First Bus on the 1st day and they haven’t checked my tickets since!

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  7. 10
    Robert Stephens says:

    I will be following up on this information. Thank you very much !!! This should not be allowed

    Robert Stephens did not rate this post.

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  8. 11
    robert davies says:

    I just found an excellent website exposing the Ingeus UK outfit this company is going down very soon I think.

    robert davies did not rate this post.

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  9. 12
    robert davies says:

    I just found an excellent website exposing the Ingeus UK outfit this company is going down very soon I think.

    Here is the link

    http://ingeusdontwork.wordpress.com/

    robert davies did not rate this post.

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