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HM Treasury 3 9 November 1999 CHANCELLOR ANNOUNCES FURTHER MEASURES TO INCREASE
EMPLOYMENT OPPORTUNITIES AND SUPPORT FAMILIES Delivering employment opportunity for all, ending child poverty and
ensuring fairness for families and communities was at the heart of
the Pre-Budget Report published today by the Chancellor Gordon Brown.
The Chancellor said: "This Government's central aim is employment opportunity for all,
the modern definition of full employment. Our long term economic ambition
over the next decade, for employment, is to achieve a higher percentage
of people in work than ever before. " Building on the New Deal measures already implemented, the Chancellor
set out further measures designed to increase employment opportunities.
These are: The Government intends to intensify and extend New Deal 25+ on a
national basis from April 2001, building on the principles of the
New Deal for the under 25s, bringing rights and responsibilities for
the 25+ into line with those for young people. This will include the
offer of a job with a private sector employer; or self employment;
work-based training or work preparation programmes; In preparation, the New Deal for over 25s will be strengthened from
April 2000. It will provide more support for job search and to enhance
links with employers. Extra support will be available to those who
do not manage to find a job to address their basic skills needs, including
'soft' skills with access to careers guidance and mentors, and specialist
support for those with deep-rooted problems such as alcohol or drug
dependency; There will be tougher implementation of responsibilities for the
long term unemployed. New Deal Personal Advisers will identify a number
of suitable vacancies and jobseekers will be expected to apply for
them. If candidates are unsuccessful advisers will try to establish
why and use this feedback to help candidates enhance their employability;
building on the internet jobs bank, using new technologies to deliver
an improved service: expanding the nationwide network of touch-screen
Job Points and developing links with the BBC and other potential partners
to harness the potential of interactive digital television; For the New Deal for Young People a nationwide expansion of the
intensive gateway approach currently being piloted, from Spring 2000,
taking into account the lessons learnt from the evaluation of these
pilots. In, addition, an extension of the New Deal Innovation Fund,
to develop new approaches to help people into jobs; enhancement to the New Deal for Lone Parents: including inviting
lone parents on Income Support with children between the age of three
and five to participate; outreach to lone parents with children aged
14 and 15; and the long term aim of extending the principle of the Working Families
Tax Credit (WFTC) to working households without children through an
Employment Tax Credit. The Chancellor announced the Government's aim to reduce child poverty
by half within a decade as the Government moves forward with its commitment
to end all child poverty in Britain within the next twenty years.
Building on the measures announced in Budget 98 and 99 (increases
in Child Benefit, introduction of WFTC, new Children's Tax Credit
from April 2001, and increases in Income Support), which will together
lift 1.25 million people out of poverty (including 800,000 children),
the Chancellor announced:
Alongside the Pre Budget Report the Treasury has today published
a new paper - "Supporting Children Through the Tax and Benefits System".
The paper describes the increasing prevalence of low incomes amongst
families with children, details the latest research on child poverty
and explains how the evidence has informed the Government's policy
approach. NOTES TO EDITORS 1. For further information on the more intensive New Deal for long
term unemployed over 25 and the enhanced package for jobseekers see
HM Treasury news release 6. 2. Since May 1997, youth and long-term unemployment have been halved.
The claimant count measure of unemployment, at 1.2 million, is the
lowest for nearly 20 years and there are nearly one million unfilled
vacancies in the economy. 3. The New Deal for people aged 18-24 aims to help young people who
have been unemployed and claiming Job Seekers Allowance (JSA) for
six months or more to find work. It includes: gateway provisions,
help with job search, careers advice and guidance; for those who do
not find unsubsidised employment, mandatory activity after four months,
to help improve their employment prospects; and follow-through to
ensure clients are helped to build on their experience and move into
employment. More intensive gateway provision is currently being trailblazed
in 12 areas, and will be rolled out from April 2000. So far,, nearly
350,000 young people have joined the New Deal and 145,000 have found
jobs. 4. The New Deal for Lone Parents is a voluntary programme providing
a personalised service combining job search help, advice and training
to all lone parents on income Support. As part of a package of enhancement,
invitations to participate will be extended to lone parents with children
under 5. 5. The 10p rate of income tax was introduced in April 1999. From
2000-01, the basic rate of income tax will be cut to 22p. The point
at which employees start to pay national Insurance contributions will
be increased by 25% over the next two years so that it will be aligned
with income tax personal allowance in April 2001. The National Minimum
Wage was introduced in April 1999. 6. Working Families Tax Credit (WFTC) was launched in October 1999.
It replaces Family Credit with a more generous tax credit, which will
generally be payable to employees through the pay packet from April
2000. By 2001, about 1.4 million working families will be receiving
WFTC, around 500,000 more than would receive Family Credit. 7. The Children's Fund will be worked up to the same timetable as
the forthcoming spending review and the size of the Fund will be decided
as part of this, with a view to it being up and running in April 2001.
The Fund will complement how the Government already works with and
supports the children's voluntary sector. The review process will
be cross-departmental and decisions on how the Fund will be organised
within Government is still to be decided. Throughout the process,
the Government will engage in active consultation with voluntary and
community organisations, particularly on how the voluntary sector
can deliver the Government strategic objectives on child poverty,
and also on the best way to support the sector without adding unnecessary
red tape. 8. The children's paper published today includes: a survey of the latest research in particular showing the growth
in child poverty in the UK and that work is the best route out of
poverty; and
an explanation of how measures already announced in Budgets 98 and
99 will provide an extra £6 billion a year for children by the
end of this Parliament, lifting 800,000 out of poverty. These include
the largest increases in Child Benefit, the introduction of the Working
Families Tax Credit, the new Children's tax Credit, and increases
in Income Support. 9. "Supporting Children Through the Tax and Benefits System" is the
fifth paper in the Treasury's "Modernisation of Britain's Tax and
Benefit System" series. Media copies are available from the Treasury
Press Office on 0171 270 5238. Non media copies are available from
the Treasury Public Enquiry Unit on 0171 270 4558. HM TREASURY PRESS OFFICE Press enquiries to: 0171 270 5238 Non-media enquiries to: 0171 270 4558 If you have access to the Internet you can find this news
release, children's paper and other Treasury information on http://www.hm-treasury.gov.uk
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