New Deal 'failed unemployed'

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A government scheme to help those aged 25 and over find work had an 80% failure rate, a report by a key assembly scrutiny committee has found.

Fewer than one in five participants in the New Deal 25+ scheme found employment afterwards, the Public Accounts Committee (PAC) reported.

The failure was particularly acute given the "relatively buoyant economy", the report added.

The Department for Employment and Learning pledged to study the report.

New Deal 25+ was a mandatory "welfare to work" programme established in 1998, which aimed to help the long-term unemployed, aged 25 and over, to improve their employability and get into work.

But despite spending £69m, the PAC found the Department for Employment and Learning adapted a "one-size-fits-all" approach and did not address fundamental problems.

Its shortcomings resulted in a high number of repeat participants who, despite completing the programme on multiple occasions, still failed to find a job.

Poor return

PAC committee chair Paul Maskey said the programme was "limited" and "short-lived".

He added that a failure to address a lack of qualifications among participants, in particular difficulties with basic literacy and numeracy skills, contributed to the programme's failures.

"Overall, we can only conclude that New Deal 25+ provided a poor return for taxpayers' money," Mr Maskey added.

"The committee was encouraged to learn that the department's new programme, Steps to Work, is more flexible and allows for tailored support.

"As the Department for Employment and Learning moves forward with this venture, it must aim to help significantly more people into employment," he said.

A spokesperson for the Department for Employment and Learning said they "welcomed" the report and would "study its findings and respond in the new year".