Magazine article Public Finance

Government Faces Tough Choice over Welfare-to-Work

Magazine article Public Finance

Government Faces Tough Choice over Welfare-to-Work

Article excerpt

The government faces a stark choice between a huge investment in welfare-to-work schemes or a vast increase in the number of long-term unemployed young people, according to one of its former welfare advisers.

Professor Paul Gregg's proposals, along with recommendations from former government adviser David Freud, have shaped the Welfare Reform Bill currently making its way through Parliament

Gregg, who is professor of economics at the Centre for Market and Public Organisation at Bristol University, told Public Finance: "The government's got a choice of whether to run a tight ship or, at the other extreme, of investing massively to try to prevent the build-up of long-term unemployment'

He added that current levels of investment in welfare-to-work programmes were now inadequate as ever more people joined the dole queues. 'Stopping a build-up of long-term unemployment would be truly astounding with the resources that they have,' he said. …

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