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New Deal Wage Subsidy

As with all good soap operas, someone is killed off early.  Sadly in the New Deal saga it's the turn of the Wage Subsidies. 

DWP have decided to withdraw the New Deal wage subsidy early and it is now going to be withdrawn from 1 January 2010 (plan was April).  They say that this is due to the complexity of concurrently running ND employment and the 6-month offer.  We can't really see why this is complex - on New Deal = ND subsidy; not on New Deal = recruitment subsidy.

The £1000 recruitment subsidy was introduced in April.  The overall amount is less than the New Deal subsidy by a fair bit and is only paid in full if the employee is still in work 26 weeks after they start eg £500 up front, £500 retention.  Worse deal for employers, better deal for the treasury.

Existing New Deal subsidies will continue to be paid and are available until the end of the year.  As of 4 January 2010 the 6-month offer will be available in all areas. DWP are asking providers to advise any New Deal participants who have a New Deal subsidy voucher and marketing materials that this will no longer be valid in the new year and they should use the recruitment subsidy material.


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