New Deal For Disabled People To Be Scrapped Not Extended

A letter from the Department for Work and Pensions to Paul Holmes MP has thrown into doubt the Government's support for the New Deal for people with disabilities, despite Gordon Brown's statement yesterday that abolishing the New Deal would mean they could not move people off incapacity benefits into work.

The letter says there are no plans to renew contracts for the New Deal for Disabled People after April 2006. Further, the Department was unable to give any details of a comprehensive replacement programme.

Yesterday Gordon Brown reiterated the importance of the New Deal in reducing the number of people on incapacity benefit.

Commenting, Paul Holmes MP, Liberal Democrat Shadow Minister for Work said:

"The Government's claim that it can set up a worthy replacement to the New Deal for Disabled People across the UK in 12 months strains the bounds of credibility.

"Job-seeking disabled people could be left without support within months. Those with the greatest barriers to work are likely to be abandoned first as the New Deal contracts' expiration date approaches.

"Providers of the New Deal will find their budgets thrown into chaos because of the uncertainty.

"We need to hear exactly why this is necessary."