19-11-04

Edinburgh lone parent pilot ignores failure of New Deal

John Barrett, Liberal Democrat MP for Edinburgh West, today warned the Government that anEdinburghpilot project to help lone parents find work would not address the basic failures of the New Deal system.
 
Edinburgh is one of several areas across the UK where the Department of Work & Pensions has chosen to pilot two new measures targetted at lone parents who are involved in the New Deal for Lone Parent (NDLP) programme. 
 
The first is a ‘Work Search Premium’, which provdes an extra £20 a week to lone parents who are actively searching for a job and have been receiving Income Support for more than a year. The second is the “In Work Credit”, which gives lone parents £40 a week extra for their first year in a new job.  Both measures are designed to encourage lone parents back into full time employment.
 
However, in a letter to the Minister for Work, John Barrett MP said the pilots failed to address the underlying failure of the New Deal for Lone Parents. Figures obtained by Mr Barrett show that only half of NDLP participants have left income support and entered employment.
 
In a statement, John Barrettsaid:
 
“The New Deal for Lone Parents is not a cheap programme, costing taxpayers over £47 million every year. This makes it important for the scheme to be effective but all the evidence suggests the NLDP is failing in its desired effect.
 
“Barely half lone parents who have left the NDLP have entered employment with the remainder staying on income support. This shows an underlying problem with the system, which will not be solved by tinkering at the edges through pilots such as those being carried out in Edinburgh. Flexibility is the key when it comes to training programmes and the ‘one size fits all’ approach involved with the New Deal is what must be changed.”
 
ENDS
 
Notes to Editors
 
• More information on the New Deal for Lone Parents (NDLP) is available at
www.newdeal.gov.uk/newdeal.asp?DealID=LPAR
 
• Information from the House of Commons Library showed that 550,930 lone parents left the NDLP by the end of June 2004.  Of these leavers:

  • 281,040 (51%) left for employment;
  • 3,860 (less than 1%) transferred to other benefits;
  • 181,540 (33%) withdrew for other reasons but remained for Income Support;
  • 73,070 (13%) left for unknown destinations.