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← Overview Database of Innovative Social Policies in Europe

New Deal for Young People

Country of implementation
United Kingdom
General short description of the innovation
NDYP was a flagship within the New Deal programme and part of the Labour government?s ?Welfare to Work? strategy. The NDYP is aimed at 18-24-year-olds to help them into employment and stay there through assistance in job search and basic skills development through full-time education and training, and work experience through job placements and subsidised employment to improve employability. / / Participation in the programme was mandatory for Jobseeker Allowance (JSA) recipients who have been receiving benefits for six months. Early entry before reaching the six month point included people with disabilities, lone parents, ex-offenders. The programme had three key stages. First step (?Gateway?): four months of benefits plus tailored support to the needs of beneficiaries; assistance with job search, careers advice and guidance; Second step: four employment options, which either provided a subsidised, waged job (SE) for six months with an employer; or an Environmental Task Force (ETF) or Voluntary Sector (VS) Option which both provided up to six months employment in a job with a wage or, more often, a ?benefits plus 15? package; and finally Full-time Education and Training Option (FTET) which could last up to a year. Participants were paid an allowance equivalent to their benefits and had some access to expenses for exceptional costs. After this, a ?Follow-through? process of advice continued to support programme participants for at least 16 weeks and up to six months. Sanctioning non-compliant recipients was an important mechanism to enforce behaviour.
Target group
Policy Field
  • education
  • employment
  • social
Type of Policy
  • public
  • public-private partnership
Duration of the policy
April 1998-2008; In 2009 and after revision, the New Deal programmes (including the NDYP) became part of the Flexible New Deal. Programme stop in 2011.
Scope of innovation
  • Scope: structural
  • Budgets: 3.2 billion until 2007 (including the budget for New Deal 25+, which was jointly recorded)
  • Number of intended beneficiaries: The Government met its target of getting 250,000 under 25 year olds off benefit and into work before the end of the 1997 to 2002 Parliament in September 2000.
  • Spatial coverage: national
General description of (intended) objectives and strategies
The general objective was to help young people into employment, stay there and improve their prospects of staying and progressing in employment through assistance in job search and basic skills development through full-time education and training, and work experience through job placements and subsidised employment to improve employability. / In addition, the programme aimed at increasing activation measures, prioritising the transformation away from a ?passive? culture of benefits to a ?work first? regime. A new agenda of ?rights and responsibilities? created more explicit links between individual behaviour, benefit entitlement and engagement with the labour market.
Nature of the innovation-long-term perspective
systemic change towards activation
Type of ideal-typical strategy for the innovation
  • liberalisation
  • others (activation)
Type of innovation
  • new form of policy implementation/delivery
  • new policy, practice or measure
New outputs
  • benefit eligibility
  • others (work experience, volunteering)
  • services
Clarification of intended mechanisms, outputs and outcomes (optional)
The programme was innovative because its work-first approach and change in the relations of rights and responsibilities. Also, it offered a menu of choices for unemployed; provided a lengthy assessment of their needs and wishes, and provided a follow-through phase that continued to provide them personalised support. The local delivery of the scheme was also seen as an improvement to previous programmes. Delivery also involved contracting out to private employment support services and Joint Venture Partnership.
Intended target group
Young people (18-24), unemployed for 6 months and more
Working age population
  • employment situation (unemployed)
  • main source of income: social protection (social assistance)
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (Jobcentre Plus)
  • central state (DWP)
  • private for-profit organisations (commercial) (where contracted to provide employment support services)
  • private not-for-profit organisations (e.g. Third Sector organisation or NGO) (where contracted to provide employment support services)
Intended output
  • benefit duration (shorten the benefit duration and facilitate the transition into employment or training)
  • benefit eligibility (the programme was mandatory and non-compliance could have let to cuts or loss of support)
  • others (work experience, volunteering)
  • services (provide tailored support, and where possible early entrance, to further develop skills and competences, enhance participation in work experience, training and/or labour market)
  • training schemes
Clarification of outcomes in terms of impacting resilience and labour market inclusion
It is estimated that in the first year the NDYP led to a reduction in youth unemployment (employment for more than 26 weeks) from 66,638 to 35,061, a fall of 47% between 1998 and 2002. Some reports claim that about half of those who found work would probably have done so anyway because of a favourable economic development. Riley et al. (2002) found that by the first half of 2000, NDYP had generated about 25,000 jobs (including those in subsidised employment) of which 10,000 went to people outside the NDYP age group. Personalised advice worked most intensively with those who they thought were most ?job ready? (see New Deal Evaluation Database). The Jobcentre Plus has not been able to monitor systematically the nature and quality of jobs achieved by New Deal for Young People participants, their progress made once in employment or the increase in their employability. / / Beale et al. show that those taking the Employment Option outperformed those taking other options. Participants taking the Employment Option spent seven percentage points longer in employment than a matched cohort of Full-Time Education and Training Option participants. The difference is larger for the Employment Option compared to Voluntary Sector and Environment Task Force Options at nine percentage points each. The results also show that participants taking the Environment Task Force Option, on average, performed the least well. / / References: / - Beale, I./Bloss, C./Thomas, A. (2008): The long-term impact of the New Deal for Young People, Department for Work and Pensions, Working Paper No. 23, London. / - Bradley, I. (2004). Analysis of the Long-Term Outcomes of New Deal for Young People MApplStats Dissertation, Sheffield Hallam University. / - Wilkinson, D. (2003): New Deal for Young People ? Evaluation of Unemployment Flows, PSI Research Discussion Paper 15, Policy Studies Institute, June 2003. / - Finn, D. (2003): The ?employment first? welfare state: lessons from the New Deal for young people, in: Social Policy&Administration, vol. 37 (7), 709-724. / - National Audit Office (2002): The New Deal for Young People, Report by the Controller and Auditor General, London. / - Jones, J. et al. (2002): The New Deal for Young People, Report by the Comptroller General, National Audit Office, TSO, London. / - Riley, R. and Young, G. (2001): Does Welfare-to-Work increase employment? Evidence from the UK New Deal for Young People, National Institute of Economic and Social Research. /
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