East Ayrshire and West Dunbartonshire to benefit from new jobs drive

17 Jan 2001

A new Government initiative giving small firms up to £2300 to recruit staff was welcomed today by Scottish Secretary John Reid. ‘Recruit’ will be piloted in two areas of Scotland where Action Teams for Jobs are operating to help people find work.

Commenting on the ‘Recruit’ business grant scheme, which will be launched in East Ayrshire and West Dunbartonshire this spring, Mr Reid said:

"In Scotland we have the highest employment since 1960 and unemployment is at a 25 year low. Our New Deal is working, helping thousands of people move from welfare into work and meeting the needs of employers at the same time.

"But we know there are areas in Scotland where people are finding the move into work more difficult. We have already set up Action Teams for jobs in four areas of Scotland which suffer from persistently high levels of unemployment. The Government is committed to providing additional help in overcoming barriers to work for people living in these areas.

"I recognise the difficulties small firms can have in recruiting staff. The New Deal provides an ideal recruitment source for employers with vacancies to fill. Grants of up to £2300 are a real incentive for small firms to recruit new staff through the New Deal for 18-24 year olds or the New Deal 25+. We want to kick-start the local economies in East Ayrshire and West Dunbartonshire and improve the lives of hundreds of people out of work.

"The New Deal has slashed youth unemployment and helped over 30,000 young Scots find jobs. We are determined to build on that success and address the needs of communities throughout Scotland."

NOTES FOR NEWS EDITORS

1. Recruit will be piloted in 12 Action Teams for Jobs areas, including East Ayrshire and West Dunbartonshire in Scotland. The pilots will be evaluated after 6 months, and at the end of that period could be expanded. Recruit pays businesses £2,310 for 18-24 year-old New Dealers, including a training payment of £750, and £1,950 for Over 25s. It is payable in two lump sums – a recruitment incentive payable up-front, with the balance payable after 13 weeks to reward retention.

2. Recruit is just one of a package of measures announced today by Education and Employment Secretary David Blunkett. They include:

  • National launch on 29 January of scheme to call suspected benefit fraudsters.
  • The New Deal will become compulsory for over 25s later this year.
  • National launch of the Job Transition Service, which provides tailored help for communities facing large-scale redundancies.