The Daily Telegraph reports that a new study finds the New Deal scheme is having little success in improving the lot of those unwilling or unqualified to work.

Authors of the study, published in a book entitled Local and Regional Economic Development: Renegotiating Power under Labour, Professor Robert Bennett of Cambridge University and Dr Diane Payne of University College Dublin say that although the scheme has worked well in attracting interest from employers and has seen thousands of participants since it began around three years ago, many are leaving the scheme at the early 'gateway' stage without saying where they are going or returning to benefits. The study quotes the government's own figures, which they say show that 43% of young people and 67% of those over 25 are 'falling by the wayside' in this way. The paper quotes the study as saying: "Among these is a very high proportion of the longest-term unemployed and 25-plus, suggesting the New Deal has done least for the most difficult participants." The study does however find praise for the New Deal Task Force, which is partly responsible for the scheme.

Yet again though there are conflicting statistics being put forward on both sides of the New Deal debate. Last month the government pointed to figures from the National Institute of Economic and Social Research from the first two years of New Deal which they said showed that the economy is richer by half a billion pounds a year due to the Government’s investment in New Deal.