Gordon Brown praised the success of the New Deal programme, introduced as a flagship programme in 1997, which he claimed has contributed to achieving the lowest level of unemployment in 21 years. Overall, since 1997, more than 800,000 people have found work and there are now one million notified vacancies. The level of youth unemployed is particularly low as a result of the New Deal.

He announced two major extensions to the New Deal affecting both long term unemployed people (primarily those aged 40 and above), and lone parents.

People who have been unemployed long term will be offered four options: work, work experience (including voluntary work), work training, or self-employment. 'The option of remaining unemployed will be removed' he said.

Significantly, the Chancellor announced a new Job Grant starting at £100, but with more available in some instances to assist those on this programme to transfer back to work. Personal employment advisers will work with people on this new programme as they do at present with other New Deal placements.