The review of the Government’s New Deal initiative shows it is realistic, says the Business Services Association (BSA). “Until now there has been little real engagement of employers with New Deal, which has been seen as insufficiently focussed on the real needs of industry,” says director-general Norman Rose.

The New Deal was created to help unemployed people into work by closing the skills gap between employers’ needs and available skills. The Government has committed up to £3.5bn over four years, by offering training to young unemployed people (18-24 year olds) who have been claiming Jobseeker's Allowance for six months or more, lone parents and jobseekers aged 25 plus who have been unemployed for two years or more.

Intentions by the Government to seek employer feedback to find out if the standards are achieved, are welcomed by the BSA. “Only through meaningful dialogue between employers and officials can there be any expectation that the real needs of both employers and jobseekers will be identified and met,” says Rose.

Since the implementation of the New Deal, 274,230 young people have been helped into jobs through the programme and 209,240 of these have moved into sustained work - jobs lasting more than 13 weeks.

“The New Deal is continuing to help the long-term unemployed find work, and has helped us reach the lowest unemployment for 25 years. This has been changing lives up and down the country, giving people a better future and it is contributing to the continued success of the economy, said employment minister Tessa Jowell.

Jessica Jarlvi