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Budget 2006 Summary
A strong and strengthening economy:
Investing in Britain's future
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Employment opportunity for all

Line graph - The number of people in workThe Government's long-term goal is employment opportunity for all. It aims to promote a dynamic and flexible labour market in which everyone has the opportunity to fulfil their potential.

Since 1997, the New Deal has helped over 646,000 young people into jobs, and helped to provide greater employment opportunity for people who find it hard to obtain jobs, such as lone parents and people with a health condition or disability. Employment has risen by over 2.3 million in that time and unemployment has fallen to 5.0 per cent.

The Government has introduced reforms to improve work incentives and provide support for those on low incomes. Introduced in April 2003, the Working Tax Credit helps to make work pay for people on low incomes and is currently helping 2.2 million families. The adult rate of the Minimum Wage will rise to £5.35 from October 2006. The Government is now taking further steps to deliver higher employment across the country, by:

  • extending the support offered to help lone parents into employment;

  • rolling out the successful Pathways to Work pilots for Incapacity Benefit claimants across the UK by 2008, to provide tailored support for those most in need to get back to work;

  • responding to the recommendations of the Women and Work Commission, with new funding to focus on helping low skilled women; and

  • providing further help for jobseekers to ensure that they meet their responsibility to look for work.

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