The New Deal Scandal: Flexible New Deal blog (http://www.newdealscandal.co.uk/flexiblenewdeal/) is a part of the Flexible New Deal Scandal Network.

How the Government can solve Unemployment for FREE!

For over a decade the Government has seen to want to throw money at solving problems such as unemployment, which doesn’t work.  I don’t doubt for one second that the New Deal created loads of new jobs and helped people find employment. Sadly though these jobs were mostly for training providers to help deliver the scheme. Read more on New Deal Scandal »

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£187,500: how much it cost Taxpayers to get a Jobseeker off the dole

£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.

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Coward: James Purnell MP resigns prior to Flexible New Deal

So on June 4th prior to when the election polls closed, Secretary of State for Work and Pensions: James Purnell MP cowardly stepped down, leaving Welfare Reform up in the air and Flexible New Deal future uncertain.

What is certain though, the official announcement for successful candidates winning the Flexible New Deal contracts are to be delayed until after the Elections and the highly disapproved Welfare Reform Bill is moving closer to be made law – both long after James Purnell had made a run for it.

A Press Release on the DWP website called “welfare reform is about putting families first” back in April, failed to answer and build confidence in parents about the proposed welfare reforms. All James Purnell went on about is partnering with Relate to help families who are “under stress” (open to all families regardless if married or not) and support for alcoholics, heroin and crack users.

That is all well and said for but the big drug and alcohol problems typically are those outside a family environment. Most benefit claimants with these issues are either single (without child caring responsibilities) or single parents (without both parents doesn’t really constitute a family regardless if a child(ren) is involved).

Another case of the Government neglecting the majority while capitalising on the smaller amount of people with greater needs in order to  solely claim that they are making a big impact on the needs of people who seriously require support.

This said there is likely extra ties involved – Relate counselling is likely to be offered only after a contractual agreement signed with the parents enabling the sharing of information with DWP and other Government bodies when it should actually be confidential.

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