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← Overview Database of Innovative Social Policies in Europe

New Deal 25 Plus

Country of implementation
United Kingdom
General short description of the innovation
Introduced in 1998 under Labour's New Deal flagship, the New Deal 25 plus provided support in finding an employment and increasing the long-term employability of programme participants. In the re-engineered programme after 2001, participation in the Gateway stage was mandatory for all persons with more than 18 months JSA receipt. The initial Gateway period was extended to 16 weeks and early entry was encouraged. In 2003, New Deal 25+ options were reviewed and the following four mandatory options were introduced: subsidised work (SEO) for 26 weeks; Essential Skills Training for 26 weeks, Education and Training Opportunity for 26 weeks and exceptionally up to one year, and a Preparation of Employment Programme for 20 weeks and possible extension of 6 weeks. The FINAL stage, ?follow-through?, for those who have not found work at the end of the IAP, lasts up to six weeks and offers extra help and support to those still unemployed. In 2009, the programme was replaced by the single Flexible New Deal.
Target group
Total Population
Policy Field
  • employment
  • social
Type of Policy
  • public-private partnership
Duration of the policy
Introduced in June 1998; enhanced in April 2000 and re-engineered in April 2001.
Scope of innovation
  • Scope: structural
  • Budgets: 3.2 billion until 2007 (including the budget for New Deal for Young People, which was jointly recorded); 290 million between 2007 and 2010
  • Number of intended beneficiaries: about 493,000 participants (between 1998-2002; 250,000 until 2000; 100,000 under the enhanced programme; 143,000 from 2001-2002)
  • Spatial coverage: national
Type of ideal-typical strategy for the innovation
  • liberalisation
Type of innovation
  • new policy, practice or measure
New outputs
  • benefit duration
  • benefit eligibility
  • services
  • subsidies/tax-credits
  • training schemes
Intended target group
Unemployed JSA claimants aged 25 years and over
Working age population
  • employment situation (unemployed)
  • main source of income: social protection (jobseekers allowance)
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (Jobcentre Plus)
  • central state
  • private for-profit organisations (commercial)
  • private not-for-profit organisations (e.g. Third Sector organisation or NGO)
Clarification of the role of various actors
delivery through the Jobcentre Plus agency and a variety of local partnerships
Intended output
  • benefit duration
  • benefit eligibility
  • services
  • subsidies/tax-credits
  • training schemes
Clarification of outcomes in terms of impacting resilience and labour market inclusion
From the original (1998) and enhanced national programe (2000) roughly a half of Gateway leavers returned to JSA whilst from the re-engineered national programme (2001) the figure was just 14%. Between 1998 and 2002, for leavers, around one half returned to claim JSA, whilst roughly one in six went into unsubsidised employment (Wilkinson 2003). Leavers from the re-engineered programme were less likely to leave ND25 plus to return to claim JSA partly because of the mandatory nature of the Gateway. Under the re-engineered programme 28% of leavers went into unsubsidised employment compared with 14% from the original programme and 16% from the enhanced programme. Early entry was associated with more programme participation and better outcomes. On the other side, participants with longer unemployment duration were less likely to stay on the programme beyond the Gateway, and less likely to go into employment. The percentage of ND25 plus leavers going into unsubsidised employment declined with age. Older participants were also more likely to transfer to other benefits. Other research found that between July 1998 and March 2001 73,000 long-term unemployed people entered a job from the programe with over 60,000 of these jobs being sustained jobs (13 weeks after leaving the programe) (IER 2002). The programme continues to ?churn? a significant minority of participants through the benefits system, with no real impact on labour market outcomes (Price Waterhouse Coopers 2004). / / Source: / Institute for Employment Research (IER) (2002). The re-engineered new deal 25 plus: A summary of recent evaluation evidence. Warwick. / Miller, C. et al. (2008). Implementation and second-year impacts for New Deal 25 Plus customers in the UK. Employment Retention and Advancement (ERA) demonstration, DWP Research Report No. 520. / NIAO (2009). Review of the New Deal 25+. Report by the comptroller and auditor general, NIA 111/08-09, Belfast. / Price Waterhouse Coopers (2004). The New Deal 25+. Evaluation report No. 9, Department for Employment and Learning, Belfast. / Wilkinson, D. (2003). New Deal for people aged 25 and over: A Synthesis Report, DWP commissioned report, Policy Studies Institute.
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