Flexible New Deal | New Deal Scandal: Leading Welfare Reform Concerns

£187,500

This is the amount it cost Taxpayers to get a single Jobseeker of the dole.

This is the bombshell that stuck the final nail in the coffin of New Deal. A scheme setup by Gordon Brown for New Labour aiming to get less people claiming unemployment benefits and stop living a “life on benefits” lifestyle.

How 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 to the economical crisis) – this equates for each person who is not claiming benefit: £187,500!!

Of course, we shouldn’t presume that these 400,000 people have all obtained sustainable full time jobs, due to benefits being made more difficult to claim in this period. We also can’t presume or expect that these 400,000 less claims were a result from the New Deal courses.

What I can quite confidently state that with £75 Billion instead of the 13 week New Deal courses, the Government could have employed 9 times more people (assuming that those 400,000 people got full time jobs) – or 3.6 million people to stick it as a figure – full time on an annual salary of £20,000 for one year.

Alternatively, they could have employed over 360,000 people on a £20,000 annual salary for 10 years.