Magazine article Public Finance

Welfare Groups Question Jobseeker Programme Closures

Magazine article Public Finance

Welfare Groups Question Jobseeker Programme Closures

Article excerpt

The government's decision to axe two job-creation schemes worth a total of £lbn has been called into question.

The abolition of the £450m Young Person's Guarantee and £515m Jobseeker's Guarantee came in a package of spending cuts and suspensions outlined by Chief Secretary to the Treasury Danny Alexander last week.

Both schemes were set up by the previous government in response to the recession. Under the Young Person's Guarantee, jobseekers aged 16 to 24 were entitled to training or work placements if they had been out of work for six months. The Jobseeker's Guarantee gave similar assurances for anyone out of work for two years.

But Matt Whittaker, senior economist at the Resolution Foundation, which specialises in policy for low earners, said the move was 'troubling'.

Details of the government's new work programme, which is expected to pay employment agencies according to how many people they find work for, was still scant, he added. …

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