New Deal Schemes: Expenditure

Work and Pensions written question – answered on 30th March 2010.

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Photo of Theresa May Theresa May Shadow Minister (Women), Shadow Secretary of State for Work and Pensions

To ask the Secretary of State for Work and Pensions what the cost to the public purse of the New Deal programme has been in each year since its inception.

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

The available information can be found in the following table.

Since 1998 the New Deal has led a major transformation in employment support for people in Britain. Together, the different New Deal programmes have helped around 2.25 million people into work.

Programme and administration expenditure on New Deal 1997 to 2003
Period Yearly outturn for New Deal programmes (£ million)
1997-98 43
1998-99 314
1999-2000 535
2000-01 565
2001-02 629
2002-03 614

From 2002-03 onwards HM Treasury agreed to simplify reporting arrangements and only required the Department to report on total New Deal expenditure. As the Department was no longer required to manage administrative budgets for individual New Deals, managers were afforded extended flexibility in deploying the resources available to them. In addition to the programme expenditure, the figures in the following table therefore only include the direct staff costs of administering New Deal programmes (calculated on the basis of number full time equivalent staff delivering the programme) and are not directly comparable with the figures contained in the table above which include all administrative expenditure.

Expenditure on New Deal 2003-09
Period Yearly outturn for New Deal programmes (£ million)
2003-04 559
2004-05 588
2005-06 512
2006-07 449
2007-08 515
2008-09(1) 446
(1) Forecast outturn as reported in Departmental Report 2009.

Notes:

1. Yearly outturn data includes programme and administrative expenditure but excludes the cost of AME training allowances.

2. The figures for 2002-03 include an estimate of administrative expenditure.

3. These figures are available in the Departmental Report 2009 which is available in the Library.

Source:

Department for Work Pensions, Employment Group Finance, Planning and Performance Division

The latest New Deal figures will be affected by the introduction of the new Jobseekers Regime and Flexible New Deal (gradual implementation started from April 2009).

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