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Budget 2009 Headlines

The budget has been delivered!  So what are the headlines for the welfare to work and skills sector?  These can be found in Chapter 5 of the budget report (download the document below), but the main points are:
  • an additional £1.7 billion for DWP to ensure that JCP has the capacity to deliver a personalised service to individuals and the Flexible New Deal (FND) employment programme will provide individuals who become long-term unemployed with dedicated support from an employment specialist to help them move back into work.
  • a guarantee of a job, work placement or work-related skills training for at least six months for everyone aged 18 to 24 who has been claiming JSA for 12 months.
  • funding for Care First, offering 50,000 traineeships for young people in the care sector. Social care providers will receive a subsidy for offering sustained employment and training to young people who have been out of work for 12 months.
  • funding for local authorities and partners to take forward the creation of 100,000 new jobs in socially useful activity. 10,000 of these will be green jobs.
  • additional funding for local authorities in communities most affected by rising unemployment to provide a further 50,000 jobs in areas of high unemployment.

It isn't clear if the 18 to 24 initiative fits in with New Deal or how new jobs are going to be created, but this will no doubt become evident as the various departments jump into panic mode to deliver what the Chancellor has promised!

Changes to Working Tax Credit have also been announced which will be welcomed by many in the sector:

  • target to raise take-up of WTC among people without children by 100,000 by April 2011.
  • from 31 July the four week run on (covering the period after people cease to qualify for WTC) will be extended to cover people who would lose their entitlement to WTC because of a move to part-time working. This is worth up to £32 per week for someone on minimum wage.

But if you’re thinking of turning to drink as a result of the current economic climate, don’t. It’s going to cost you 1p more for a pint of beer, 13p more for a bottle of whisky and 4p more for a bottle of wine.

And to finish, a wonderful quote from the budget report: The UK labour market has entered the downturn from a position of strength.  Doesn’t that make you feel much better!  Happy Budget!


Budget 2009 - Helping People Fairly

Click the logo to download chapter 5 of the strategy report. 

Visit http://www.hm-treasury.gov.uk/bud_bud09_repindex.htm to download the full budget reports. 

Budget 2009 - Financial Statement

Click the logo to download the Financial Statement & Budget Report for headlines across the whole budget.

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