Providers axed in New Deal schemes

The government has axed eight of the private sector providers
running its flagship New Deal schemes.

A shake-up of the New Deal for Young People and the New Deal 25
Plus programmes has also seen the addition of two new pilot areas –
Hammersmith & Fulham and Westminster, Kensington &
Chelsea.

From 18 November new providers will take over the running of the
schemes in Hackney & City, in London, and Tyneside North and
South Humber.

In Leicester, North Essex, Solihull and West Lancashire, one of the
two existing providers will have sole control of the scheme. There
is no change for Bridgend & Glamorgan, Exeter & East Devon
and the Forth Valley.

Minister for work Nick Brown said: “The three-year contracts, each
worth about £110m, have undergone rigorous competition to
ensure we are getting the best ideas and the best value for money.”