Skills and training seen as key

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The chancellor has confirmed there will be training offered to everyone under the age of who have been jobless for 12 months.

From January, everyone under the age of 25 who has been jobless for 12 months will be offered a job or a place in training with additional money on top of benefits for those in training.

The chancellor said: "I am also determined that we do even more to protect young people from the damaging impact of long-term unemployment.

"The alternative is a return to the days when a whole generation of young people found themselves abandoned to a future on the scrapheap.

"We will not repeat that mistake."

Darling stated he wanted more action to help people gain the "crucial skills" that will be needed in the future.

"As part of my guarantee to young people, I will spend over £260m of new money, for training and subsidies to help them get the skills or experience needed in sectors with strong future demand," he said.

Stakeholder Response: Association of Learning Providers

Graham Hoyle OBE, ALP's chief executive, said: "The acknowledgment that we need to re-skill unemployed people in the face of a rapid decline of non-skilled jobs is long overdue. The jobs-first strategy that has dominated the government approach to welfare-to-work for decades is no longer appropriate and has to go. Ministers recognise this but we need to see things change on the ground."

Stakeholder Response: British Retail Consortium

Jane Milne BRC business director said: "In these difficult trading conditions, we welcome the work in hand to link people losing jobs in retail to retailers recruiting. It's important that the sector keeps their skills but we also need to add to them, through apprenticeships for new employees (including school leavers) and by supporting retailers' own schemes for raising the industry's skill levels.

"Retailing has created half a million jobs since the last recession. It is one of the sectors with strong future demand. Retailers should have access to the additional support announced."

Stakeholder Response: Wise Group

Laurie Russell, chief executive of the Wise Group, told ePolitix.com: "As one of the short-listed bidders for Flexible New Deal bidder and provider of unique work programmes, we appreciate the emphasis placed on getting people back into work to prevent another lost generation of young people.

"When unemployment topped three million we were set up to provide a stepping stone back to employment and it's a testament to our way of working and our staff that we have now helped more than 25,000 people find a job.

"The need for agencies such as the Wise Group is even more relevant today and it’s crucial that these new government funds are made available to social enterprises such as the Wise Group. We are more effective in delivering employment services because we care about the individual as whole."

Stakeholder Response: GuildHE

Economist and GuildHE Council member Professor David Green, who is vice-chancellor of the University of Worcester, said:

"There is a real danger that next year's prospective students will become casualties of the banking sector's crisis. Ministers must realise by now that the country's future rests with the development of our knowledge economy and relies on creating better education and training opportunities for everyone. Britain needs high quality graduates and well-resourced universities and colleges more than ever.

"The way forward for any government is to work to create productive jobs, and higher education is playing an important role in that process. Universities and colleges are involved in developing industries that are cornerstones of the British economy, such as computing, communications, advanced materials, design and the creative arts. The Obama administration in the US has realised this and is acting upon it. The UK should follow suit if it wants to remain a competitive economic force."

Stakeholder Response: Chartered Management Institute

Ruth Spellman, chief executive of the Chartered Management Institute, says:

"Whilst welcoming the chancellor's determination to protect young people from unemployment and the possibility of creating a lost generation, the Budget misses the opportunity to tackle skills shortages across the workforce. There is a risk that by guaranteeing employment and training for those under 25, the measures will simply displace problems of re-skilling and unemployment to another part of the job market.

"The chancellor should have considered offering a tax break for employers providing development to their staff. After all, employers are best placed to identify who needs re-skilling, up-skilling or redeployment. They need to have the financial support to tackle skills shortages, but the autonomy to decide what training will keep them in business.

"In the targeted help for businesses, we welcome the proposals to increase capital allowances to 40 per cent in growth sectors. However, people costs are the biggest costs that most businesses face. The chancellor has missed an opportunity to back policies that reward investment in people and lay the foundations for long-term, sustainable growth."

Stakeholder Response: GoSkills

Peter Huntington, chief executive of GoSkills, said: "Many employers in passenger transport will welcome these proposals as some operators continue to recruit new staff. We look forward to receiving more details of the scheme and how GoSkills may assist in its implementation.

"GoSkills welcomes the new measure to increase skills and training, but there are concerns as to how employers in our sector will access this funding. Feedback from previous schemes is that very often there is unnecessary bureaucracy making the schemes challenging to implement.

"GoSkills looks forward to seeing the full details of the Flexible New Deal scheme and how the government plans to action these proposals. GoSkills would welcome consultation on the new measures so that we can advise how best to help employers and new recruits to the Passenger Transport Sector."

Stakeholder Response: Chartered Insurance Institute

David Thomson director of policy and public affairs at the CII said:

"The CII welcomes the acknowledgment that skills continue to be a top priority during this economic downturn. But we must not lose sight of our long term skills goals – those put forward by Lord Leitch and which are still relevant today. Hopefully the £260m announced today for under 25s will help provide them with a base to build upon so as to make a vital contribution to the economy. Though some re-skilling in a time of recession is necessary, it must not divert support away from the longer term goal of upskilling needed for our economy to remain internationally competitive. If we take our eye off the ball we could be playing catch up for a very long time. 'Who trains, Wins' remains a relevant mantra for companies through the recession " .

Stakeholder Response: NASUWT

Chris Keates, general secretary of the NASUWT, the largest teachers' union in the UK, said:

"It is clear that the government recognises that the education service will develop the ambition, skills, expertise and drive essential for economic reconstruction. The additional funding to secure a place for all young people who want one in post 16 education exemplifies this and will be welcomed by schools and colleges.

"I am disappointed that the Chancellor has continued to focus on efficiency savings and has not taken the opportunity to undertake a rigorous review of whether the millions of pounds of public money spent in education on organisations such as the TDA, NCSL and National Strategies represent good value for money. This is where efficiency savings should be focused, not on further reductions to an already depleted civil service."

Stakeholder Response: British Red Cross

Maryanne Burton, Head of Volunteering at British Red Cross said:

"The number of enquiries we've received has doubled as the recession as taken hold. In 2007, we were seeing around 300 enquiries a month, now it's over 600. We've also increased the number of internships to accommodate the growing number of people leaving education who are in need of work experience to help them get a foothold in the job market."

"The rise in unemployment is worrying and the government is right to look at ways to help people back into work, particularly the long-term unemployed. From our experience, the British Red Cross sees the potential of volunteering as a route into employment. Volunteering opportunities can help people build skills, confidence and self-esteem. It is important that any scheme aimed to reduce unemployment takes into account the potential benefits that volunteering can bring."