|  | 
JOHN HUMPHRYS:                So Tessa Jowell not a disaster, 
the New Deal, but a bit of a disappointment.  We were entitled to expect 
rather more for our money weren't we?
TESSA JOWELL:                Well I think it's important 
to look at the experience of Sheffield which your film was devoted to against 
the experience of the New Deal as a whole.  If we take the New Deal as 
a UK wide programme one hundred and seventy thousand young people have 
left benefit and got into work and about seventy-five per cent of those 
nationally are in work three months later.  Now we monitor very carefully 
the performance of every New Deal area and in terms of the number of people 
who leave the New Deal, young people who leave the New Deal from the first 
stage, what we call the Gateway, Sheffield is I think at the bottom or 
next to bottom in the national ranking.  If you look at the number of.... 
The proportion of New Deal people in Sheffield who leave the New Deal having 
undertaken one of the training options then Sheffield fares much better, 
it's somewhere in the middle.  Another important comparison between Sheffield 
and the rest of the country is looking at the levels of disadvantage that 
young people come onto the New Deal with.  The New Deal nationally shows 
that something like six out of ten young people leave the first stage of 
the New Deal and go into work.  The remaining forty per cent have very 
serious numeracy and literacy problems.  In Sheffield that proportion is 
sixty per cent which is why training, education, the further help which 
is provided in the later stages of the New Deal is so important.
HUMPHRYS:                    Right.  Well let's break 
all of that down a bit over the next quarter of an hour or so and put aside 
Sheffield specifically for a moment and look at the national picture as 
you said and when you look at that you see that forty-five thousand of 
those got, of the hundred and seventy thousand figure that you gave me, 
get short term jobs in other words they're not sustained jobs, they don't 
last for more than six months.  That's not good.
JOWELL:                    Well to some extent the 
fact that twenty-five per cent of young people going into work from the 
New Deal are in jobs that we know last less than thirteen weeks which is 
the definition, you know, is what you would expect in a dynamic labour 
market.  All over the country there are vacancies, there are other jobs 
for young people to go to if they don't like the job that they've gone 
into and they don't always tell us when they move on which is why the overall 
percentage of young people leaving the New Deal and going into work is 
well over half, about fifty-seven per cent.
HUMPHRYS:                    Yeah - but I mean you 
wouldn't suggest that nationally twenty-five per cent of the labour market 
are in jobs that don't last more than a few weeks.  That's just not the 
case.
JOWELL                    But before young people 
come onto the New Deal let's just look at who the New deal for young people 
is seeking to help.  It is seeking to help young people aged between eighteen 
and twenty-four who have been unemployed for six months.  So they are already 
facing a degree of disadvantage.  Something has gone wrong that has meant 
that they haven't gone into work and it is addressing those problems that 
the New Deal at every stage is geared to act.
HUMPHRYS:                    Right but half of them 
would have got jobs anyway - the point that was made very forcefully in 
that film.
JOWELL:                    Well I think that is a 
very important conclusion from the macro-economic evaluation and it is... 
that is the numerical calculation that the New Deal effect in the period 
that the research took, the first year of the New Deal, was about thirty 
thousand jobs arose precisely because of the New Deal.  But we know (both 
speaking at once) if I could just finish the point, we know as a matter 
of fact that a hundred and seventy thousand young people have moved from 
benefit through the New Deal and into work.
HUMPHRYS:                    Well that's the figure 
we're breaking down isn't it and we've already established that forty-five 
thousand who got a short term job or a part time job......
JOWELL:                    ..... no not necessarily 
part time......
HUMPHRYS:                    But a short term job 
- they may have gone onto something else indeed but short term job as we've 
agreed.  We're also establishing........
JOWELL:                    But about a hundred and 
forty thousand have gone on to jobs that last for more than three months....
HUMPHRYS:                    Indeed - and half of 
those, and this is the point I'm making and it's a very important point, 
you've acknowledged it, would have got the job anyway because of changes 
in the economic circumstances.  Now you promised when you came into .... 
When you put this scheme forward when you were in opposition that you would 
get two hundred and fifty thousand people off the dole, young people off 
the dole - that's what you said.  It was always a nonsense in a sense to 
make that promise, if I could just finish the point I'm making  because 
by the time you got into power many of those had already got jobs, there 
were then only a hundred and seventy thousand still on the dole so it was 
eating away at the basic logic of this scheme.
JOWELL:                    Look I am as eager as you 
are to measure at each stage the impact of the New Deal but what is quite 
clear is that the first stage of the New Deal which is when the young person 
has help with interviews, has help in compiling a curriculum vitae, is 
told about the kinds of jobs that are available, is linked to their personal 
advisor, their sort of mentor who is there for them to help them to move 
from unemployment into work.  What is quite clear is that that process 
which sees seventy-five per cent of people leave the gateway into jobs 
which last for more than three months has a differential effect.  For some 
people it makes all the difference in the world and for others the benefit 
may be marginal.
HUMPHRYS:                    But that is absolutely 
crucial you see.....
JOWELL:                    It is crucial and what 
we can't do is to weight the precise impact but the figures tell us, the 
figures are published they are the government's statistical figures that 
a hundred and seventy thousand young people since the New Deal launched 
have moved from benefit to work.
HUMPHRYS:                    Sure, and you keep making 
that point and statistically it's right.  But when you break it down it 
tells you a great deal about the scheme.  And what it's telling you is 
that it's been fine in terms of general youth unemployment, but this scheme, 
in order to have proved itself, really to have to proved itself, would 
have dealt with the most difficult people.  You spent a lot of money, in 
other words, and this is the very important point, you spent a lot money 
on this deal, where it need not have been spent. That's the point.
JOWELL:                    No, I don't think that 
is the case and the point.....
HUMPHRYS:                    Well it's sustained by 
the experts in the field, the people who......
JOWELL:                    No, I think the point is, 
and every young person who comes onto the New Deal as a condition of their 
eligibility for the New Deal has been out of work for six months or more.
HUMPHRYS:                    And they would have got 
a job when economic circumstances changed.  That's the whole point, and 
what you were trying to do with the New Deal, Gordon Brown, let me tell 
you what will remind you, no doubt you will know it, what he said, a few 
years ago, our plan, when the scheme was being drawn up, our plan is nothing 
less than to abolish youth unemployment.  Now that was an enormous thing 
to say, and if it were to happen, then of course it would have meant that 
everybody, every single young man and woman, who was not employed however 
difficult to find a job for, would have got it.  That is not what is happening 
and those who are at the bottom of the heap, those who are least likely 
to find a job are not, under the New Deal, finding a job.  That's the basis 
of it, that's why it's a flawed scheme.
JOWELL:                    That is not the case.
HUMPHRYS:                    Statistically, it is.
JOWELL:                    Let's take first of all, 
the point about youth unemployment.  Since the election, youth unemployment 
has fallen by sixty per cent.
HUMPHRYS:                    ....and we'd established 
.......
JOWELL:                    ...and a major forty per 
cent
HUMPHRYS:                    ....nothing to do with 
the scheme.
JOWELL:                    ...no, no, no, that's not 
the case...
HUMPHRYS:                    ....you've acknowledged 
it is the case.
JOWELL                    ....no, no, I have not acknowledged 
it is the case.  Forty per cent of that reduction is due to the New Deal. 
 Of course we've seen a combination of the New Deal driving down on youth 
unemployment and we've also seen growth in the number of jobs as the figures 
we published last week show seven-hundred-and-fifty-thousand more people 
are in work, at least seven-hundred-and-fifty-thousand more are in work 
that at the time of the election.
HUMPHRYS:                    ...because of economic 
circumstances...
JOWELL:                    ....and we have a buoyant 
labour market and we have vacancies all over the country.  But let me pick 
up a key point from your film and a point that you've also suggested, which 
is, this is about job creation.
HUMPHRYS:                    I haven't used the word 
'job creation' actually.
JOWELL:                    OK, well the film certainly 
did.  The New 
Deal is not a job creation programme.  The new deal is about giving young 
unemployed people the skills to make them employable...
HUMPHRYS:                    I understand that..
JOWELL:                    ...matching skills that 
they have to their local labour market.
HUMPHRYS:                    I understand that but 
you can't given them those skills if they are functionally illiterate and 
if they are innumerate and forty per cent of them are.
JOWELL:                       Precisely, which is 
why, last week, or the week before last, we announced a ten-point plan 
to build on the success of the New Deal so far, in recognition of the fact 
that increasingly the New Deal is going to be facing young people who are 
increasingly disadvantaged, like the sixty per cent in Sheffield who come 
onto the New Deal, not able to....with inadequate standards of numeracy 
and literacy, that's why the New Deal will work harder, will build on it's 
success, will address the basic skills gap, and will also do things which 
are very important to employers, and you know, having talked to the Employment 
Service in Sheffield, they confirm the importance of this feedback.
HUMPHRYS:                    Well I got it, I got 
that.......
JOWELL:                    ...how to present themselves....
HUMPHRYS:                    .....absolutely, that's 
the sort of thing you say, helping young people how to present themselves. 
 There's a lot of waffle in it, if I may say so, it's ten points and some 
of it is incredibly obvious stuff ensuring, but when you get to the really 
crucial stuff, ensuring that every young person is literate and numerate, 
number one, you don't tell us how you are going to do that, you tell us 
how you are going to assess people, to find out whether they are literate 
and numerate, but you don't yet have the assessors, and it's going to take 
a year to get all of those assessors....
JOWELL:                    ....well, I don't know 
where you get that from John.
HUMPHRYS:                    From your document.
JOWELL:                    I mean, the assessment......no, 
no, no, we haven't said there's a year before we start doing that...
HUMPHRYS:                    ...in addition, eleven-thousand, 
NDPA's, those are the people who are going to do it, will be trained over 
the next twelve months in the handling of identification of basic skills 
needed.  So we have not even got to begin the process of actually giving 
them the education they need.  We are simply trying to find enough assessors 
in order to establish how many there are.
JOWELL:                    That is not the case.  
It is a part of every personal advisors job to assess basic skills when 
the young person comes onto the New Deal.  If they haven't got GCSE's, 
because what the New Deal is seeking to do is to guarantee that the young 
person, before they move to work has standards of literacy which are broadly 
equivalent to having GCSE's.  Which is the employability threshold.
HUMPHRYS:                    Right, now given that 
they don't have that, let's assume that we've leapt forward a year and 
now you have got all these assessors, and the kids come along and the assessor 
says, yes, he can't read or write or whatever, or she, what happens to 
them then?
JOWELL:                    Well they then go on, where 
they don't have those basic skills, they then go on to courses in order 
to teach them those skills. 
HUMPHRYS:                    Do they exist all over 
the country today because we've had a little difficulty finding them.
JOWELL:                    They do, they do.  And 
if you look at the use of the full time training and education option in 
Sheffield, you will see that that is part of the Sheffield programme that 
has success which out-performs other New Deals in other parts of the country.
HUMPHRYS:                    Well, I tell you, you 
don't need to go all the way to Sheffield from London, you just pop across 
to East London here where Safeway were trying to find some people to do 
very very basic jobs like shelf-stacking and manning check-outs and all 
the rest of it.  They had difficulty recruiting, they tried to recruit 
them and they couldn't do so, because the people who were applying for 
the jobs couldn't read and write.  It isn't happening is it?  That is the 
problem.  And the scheme has been going for a long time and had you not 
spent an awful lot of money in ways need not have been spent, perhaps there 
would have been enough to spend, when it absolutely had to be spent to 
help the most in need.
JOWELL:                    John, I think you're trying 
very hard to make a case, with respect, that is not sustained by the facts.
HUMPHRYS:                    Oh,  I wasn't making 
the case, I am simply putting it to you.
JOWELL:                    You know your film tried 
to make the case. There is nobody more determined to build on the success 
of the New Deal, to address these issues..
HUMPHRYS:                    I don't dispute that 
for a moment..
JOWELL:                    ..than I, the Chancellor, 
David Blunkett..
HUMPHRYS:                    It's the way you're doing 
it that I'm questioning, not your determination. Of course you want to 
do it, I'm questioning whether you are going about it the right way.
JOWELL:                    What is absolutely clear 
after eighteen months of running the New Deal is that we are now facing 
levels of disadvantage which mean that the efforts that we make in the 
first stage of the New Deal in particular, have to be redoubled in order 
to address basic skills, standards of numeracy and literacy and..
HUMPHRYS:                    ..re-directed as well 
as redoubled..
JOWELL:                    No because the, I mean 
this has already been going on but you know we haven't been doing enough 
of it in recognition of the levels of..
HUMPHRYS:                    My point precisely. 
JOWELL:                    The New Deal is a dynamic 
programme. You know you wouldn't expect me to say that when we launched 
it in 1988 it would continue, you know in its...
HUMPHRYS:                    No, but you could have 
listened to the points that people were making.  I can remember sitting 
in this very studio with people like the Chancellor, the man who is now 
the Chancellor of Exchequer, the man who is now the Secretary of State 
for Employment and Education and saying look, these are going to be the 
problems and they were saying no, no, no, we are going to crack it and 
they didn't say we were going to take years and years and years to get 
around to dealing with these youngsters with the biggest problems of all. 
They didn't acknowledge the difference, this is the point you see. Now, 
if you tell me you are redirecting it, fine, a lot of people say about 
time too. 
JOWELL:                    What we are having to do 
is to provide for these young people in a period of nine months or a year, 
what most of us get through at least eight years of secondary education. 
We have to move very fast but don't pretend that it can be done over night. 
We are not going to give up on these young people. We are not going to 
give up on these young people and all the signs are that the New Deal, 
strengthened, refocussed at tackling levels of disadvantage that I don't 
think anybody quite believed existed at the levels that they do, will deliver 
these young people into work and an alternative to what would otherwise 
have happened of a lifetime on benefit. And when the Conservatives you 
know criticise and carp about the New Deal, just remember they have opposed 
it every step of the way. They are responsible in very large part for the 
levels of disadvantage that the New Deal is now tackling. 
HUMPHRYS:                    Tessa Jowell, thank you 
very much indeed for coming here this morning.
 |