The FT reports that Labour is examining plans to offer £1000 cash gifts to the hardcore unemployed who find work through the New Deal.

The plan is among three being considered for the Labour manifesto, all aimed at increasing the assets of the poor.

The two other ideas being considered are the payment of £500 to £1000 into an account for every child when they are born, or to give £1000 to every 17-year-old from a poor background.