Building Britain's future: budget for jobs announces £1bn future jobs fund and guaranteed work or training for all young people

DEPARTMENT FOR WORK AND PENSIONS News Release (EMP-081) issued by COI News Distribution Service on 22 April 2009

Today's Budget delivered an extra £3.1bn to help people looking for work. This includes a guaranteed offer of work or training to every 18-24 year old in Britain at risk of becoming long-term unemployed. More than £1bn will be invested in young people, and others at disadvantage in the labour market, to make sure a generation is not written off.

The Government will fund 250,000 jobs in the public and private sector, including 150,000 new jobs created through the Future Jobs Fund. The Fund will enable local authorities and third sector groups to submit innovative bids for jobs that will make Britain a better place and improve their local community.

From next week we will begin work with councils and voluntary groups on developing new jobs through the Future Jobs Fund and, by January next year, every 18 to 24 year old who is approaching 12 months unemployment or more will be guaranteed a new job, training or paid work experience place.

In addition to the Future Jobs Fund we will offer 100,000 job opportunities in the sectors of the future that will help Britain grow. Despite the recession, many sectors still have vacancies and others will grow over the coming years, so talented young people can take up interesting jobs that will give them vital work experience for the long-term.

Welcoming the Budget, Secretary of State for Work and Pensions James Purnell said:

"This is a budget for jobs. It is also a budget for the future, with a guarantee that we will not write off a generation of Britain's young people, or allow their talents to be wasted.

"We will invest £3bn in more help for jobseekers, including offering long-term unemployed people 250,000 jobs across the private and public sector. Through the innovative Future Jobs Fund, we will provide 150,000 new jobs in local communities and across the voluntary sector, whilst every 18-24 year old at risk of being unemployed for more than a year will have access to work or training. An additional 100,000 jobs will be offered in sectors to help Britain grow.

"These 250,000 jobs will be real opportunities, to give young people and other people with labour market disadvantages the chance to experience the pride and purpose of work. We will focus on quality opportunities which will benefit young people, but also benefit Britain. We will not make the mistake of pushing people into dead-end schemes which have no purpose.

"We will not lose a generation to long term unemployment and the Government's plan to help people back into work will stop the talents of another generation being wasted."

On top of the £1bn committed to guaranteeing young unemployed work and training, an additional £1.7bn will be invested in more help for all jobseekers, through Jobcentre Plus and the Flexible New Deal, which gives people out of work for more than a year intensive help through private or voluntary providers.

Notes to editors

1. A new Future Jobs Fund will provide funding for 150,000 jobs that will come on line from the autumn, and will be paid at least at National Minimum Wage. These will be targeted primarily at 18-24 year olds, but some will also be available for other disadvantaged groups and unemployment hotspots.

2. 100,000 jobs set aside in growing sectors, again primarily for long term unemployed young people. The jobs will include:

- 50,000 jobs in the caring sector through the establishment of Care First: providing specifically tailored pathways into social care jobs, with a £1500 recruitment subsidy offered for sustained employment and training.
- 50,000 jobs (with pre-employment training and £2000 recruitment subsidy) dedicated to other growth sectors, such as hospitality - it will be a flexible fund so we can help stimulate demand for jobs and give young people a start in careers that will expand in the future.

3. The guarantee, which will be fully in place by early 2010, will include training places lasting up to 6 months plus community work placements for those who don't take up the other options, so no one is left to languish on benefits without real help to improve skills.

4. The budget is available online at: http://www.hm-treasury.gov.uk/bud_bud09_index.htm

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