Rethink on New Deal contracts

The New Deal has been shaken up with eight private sector providers
losing their contracts.

Two new pilot areas have also been introduced for the components of
the programme affected, the New Deal for Young People and New Deal
25 Plus.

According to government figures the New Deal for Young People had
helped 351,340 young people into jobs by the end of January this
year. But, in an attempt to make the scheme more attractive for
employers and reduce red tape, earlier this year the government
implemented changes to the employment option of the programme.

Efforts are also being made to make young people’s training more
job-focused, incorporated into existing training processes, and
tailored to clients’ individual needs.

The two new pilot areas are in London: Hammersmith and Fulham; and
Westminster, Kensington and Chelsea. From 18 November new providers
will take over schemes in Hackney & City, also in 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.

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