Introduction

The Labour government since its election in 1997 has sought to tackle poverty and social exclusion in the UK and ensure that the UK is competitive in the global economy by virtue of a skilled and flexible labour force. It has introduced a number of policies, including active labour market programmes, which promote work as the best means of reducing poverty and social exclusion. The design of these programmes has changed over time, and this chapter discusses the degree to which the delivery of welfare and employment services is being made more personalised. These trends will be illustrated by the two largest activation programmes in the UK: the New Deal for Young People and the New Deal 25 Plus. Both these programmes are aimed at unemployed people, that is, recipients of Jobseeker's Allowance. However, as there are New Deals aimed at other client groups – for instance, lone parents – the chapter also touches on the experiences of recipients of other benefits. The chapter begins by placing these developments in their policy and economic context.

Policy and economic context

The key policy and economic factors that have influenced the development of active labour market policies are the Labour government's employment policy, levels of employment and unemployment in the UK, the main characteristics of unemployed people, the government's proposed reforms of the public sector and its reform of welfare-to-work policies.

Employment policy

Tackling unemployment is central to the government's long-term objectives of economic growth and rising living standards. The aim of the government's employment policy is ‘to ensure a higher proportion of people in work than ever before’ (HM Treasury, 2005, p 3). The Department for Work and Pensions, which has responsibility for employment and benefit policies, has targets agreed with the Treasury for the period 2005-06 to 2007-08 to: increase overall employment rates over the economic cycle; increase the employment rates of disadvantaged areas and groups (such as disabled people), taking account of the economic cycle; and reduce the number of children in workless households (DWP, 2005).

Associated with this has been a desire to secure a cultural shift in the contract between the individual and the state (Blunkett, 2000).