About flexible New Deal
Flexible New Deal will replace the
current mandatory New Deal. This includes Private Sector Led New
Deal, Employment Zone, New Deal 50plus and New Deal for
Musicians contracts in October 2009.
Flexible New Deal will be a four-stage
programme with Jobcentre Plus delivering stages one to three.
Successful providers (Prime Contractors) awarded flexible New Deal
contracts will deliver stage four. The clients eligible for
flexible New Deal will have been claiming Jobseeker’s
Allowance (JSA) for 12 months.
Flexible New Deal will focus on improving
skills and helping customers into sustained employment. The
Department for Work and Pensions will pay 80% of the contract
budget to providers on achievement of sustained job outcomes at 13
weeks and at 26 weeks.
We will focus on achieving 26 week job
sustainability for all customers by working with other local and
national organisations.

The Department for Work and Pensions will be
providing longer and larger contracts for Prime Contractors,
seeking bids which reflect proposals for both five and seven year
terms.
There will be 14 contract areas in the first
phase with 10 each being delivered by two providers. The remaining
four will be delivered by single providers. We have been
invited to bid in 12 of these areas.
Based on the current process, there will be
approximately £190 to £230 million available in phase one for
these contracts per year.
Phase two of flexible New Deal, where a
number of other regions will be competitively tendered, will begin
in 2009.