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- £1.5bn for councils and communities to boost employment
£1.5bn for councils and communities to boost employment
| Published | 6 December 2007 |
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Local Government Minister John Healey today (6 December) announced that 66 local and 21 transitional authorities will receive a share of a new £1.5bn fund as part of the Government's drive to turn around long term unemployment in our most disadvantaged communities. This forms part of the almost £9bn funding boost for local government announced today.
This Working Neighbourhoods Fund is a new dedicated fund for local councils and communities to develop more concentrated, concerted, community-led approaches to getting people in the most deprived areas of England back to work. It replaces the existing Neighbourhood Renewal Fund and incorporates the Department of Work and Pensions Deprived Areas Fund (DAF) to create a single local fund.
Allocations are based in part on the most comprehensive mapping of prosperity and deprivation across England, the new Indices of Multiple Deprivation 2007, also published today. This data shows that 20 per cent of men and women living in the most deprived fifth of areas are not in work.
The Government wants all communities to share in rising prosperity and is determined to break the cycle between worklessness and the lack of economic growth - a challenge certain areas face. It is part of the radical restructuring of the Government's approach to regenerating some of the country's most deprived areas - with a new invigorated role for councils and communities in tackling stubborn and persistent unemployment.
Under this new approach local areas that successfully turn around long term unemployment will receive new financial rewards. There will be at least a £50m package of incentives and rewards for councils that boost employment levels. These rewards could be used to fund community facilities or local projects.
John Healey said:
"In a tough financial climate Government is focusing its efforts and resources where they can have the most impact. New data shows that 20 per cent of men and women living in the most deprived 20 per cent of areas are not in work. At a time when people are working harder than ever before it is only right that we find new ways to get the long term unemployed into work - and also ways to keep them there.
"Over the next three years our priority is turning around long term unemployment in our most disadvantaged communities. Through the new Working Neighbourhoods Fund we want councils and communities to work together to develop innovative ways of getting more people into work. Whether this is setting up job advice skills schemes in community settings like libraries, stepping up outreach schemes in council estates or 'in-work' community support and skill schemes to end the 'revolving door' of worklessness - what matters is what works. And with financial rewards to spend on local priorities for councils that boost employment everyone can benefit from this new approach."
The total Working Neighbourhoods Fund of £1.5bn will be allocated over the next three years with more than £450m in 2008/2009, and £500m in 2009/2010 and 2010/2011. At least £50m will be available as a reward fund which will go to areas that have made good progress over the first two years on tackling worklessness and improving enterprise levels.
Notes for Editors
A full breakdown of Working Neighbourhoods Fund allocations is available online at: www.communities.gov.uk/documents/localgovernment/xls/576317, MS Excel, 26 Kb.
- The Indices of Multiple Deprivation 2007 looks at income, employment, health and disability, education, crime, the living environment and barriers to housing and services to rank areas in England according to how deprived they are. These 32,000 plus super output areas are smaller geographic areas than most wards with a population of between 1000 and 3000 in order to provide a pinpointed and detailed picture of the level of deprivation. The indices are available online at: www.communities.gov.uk/communities/neighbourhoodrenewal/deprivation/deprivation07.
- The index provides local authorities and delivery partners with a comprehensive snapshot of the quality of life of their residents, allowing areas to look at particular issues that need to be tackled such as access to educational attainment or crime.
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