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Is the "Flexible New Deal" Really a Big Deal?
December 2009
On October 5 2009 the government launched the second stage of its “Flexible New Deal”. It claims this will transform our 750,000 long-term unemployed to better meet the needs of employers. OK, but what the real deal for you?
What’s the deal?
The government has recently extended its Flexible New Deal (FND) which it says provides an “inspiring opportunity for organisations from the private, public and third sectors to work together”
Nothing new here. It’s not an entirely new concept – it’s just the latest in the long line of other “deals”, e.g. New Deals 18-24 and 25+ which have attempted to get those who are unemployed into work. The FND focuses on the 750,000+ people who have been out of work for longer than six months and it’s desperate to get them all working by the end of 2010.
How does it work?
The scheme operates via 14 “FND providers”, all offering training that’s specifically tailored to meet the needs of each job seeker on the FND. As well as this, they must carry out a minimum of four weeks mandatory work experience. This “Package” is designed to overcome any barriers that are preventing them from obtaining work, ie it makes them more attractive to employers.
What does the FND cost employers?
If an employer wishes to hire someone through the FND, they can approach one of the providers which are legally obliged to work with them. But if you want to use an FND candidate to plug a gap in your workforce, there’s a catch – the job must be for at least 16 hours per week.
I don’t need that much. Of course this won’t suit some employers as they might not have that much work. So why does this rule exist?
Give me a reason
Well, it’s quite simple. The government wants people off benefits wherever possible, and these can usually be stopped only once a recipient works for 16 hours or more per week. But there’s another hidden risk.
Forced into it
Whilst it’s certainly true that many of the long term unemployed don’t want to be in that situation, there are some who have no intention of working whatsoever. However, regardless of their own personal circumstances all those claiming Jobseekers Allowance (JSA) are forced onto the FND when they are:
- 18–24 and have claimed JSA for six months
- 25+ and have claimed JSA for 18 months or more
Why use the FND at all?
So this all begs the question, why hire through the FND in the first place? Not only could your candidate be someone who does not want to work anyway, but you must give them minimum hours. In our view it offers nothing new for you, it’s just another attempt by the government to be seen to be doing the right thing.
Tip. If you are looking to recruit, you can place an ad for free with the Jobcentre Plus – and it won’t insist you offer a particular number of working hours
Source: Tips & Advice Personnel November 12th 2009
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