OXFORD East MP and Employment Minister Andrew Smith says the Government's New Deal welfare-to-work programme is beginning to reduce unemployment.

He said recently released figures reveal that 69,000 young long-term unemployed people have so far benefited from the deal.

But the Government admits that it does not know how many of the 33,000 companies that agreed to take on young people under the programme have actually done so.

Mr Smith said that the New Deal "was beginning to have an impact on unemployment, with the long-term youth rate down to its lowest figure for over 20 years."

He added: "The number out of work has fallen by a quarter since the New Deal started nationally in April.

"It is still very early in the process. The programme is a long-term investment but these initial findings are positive."

The figures show that 38,900 young people have so far been weaned off welfare and into jobs under the scheme with more than 27,200 unsubsidised. Another 30,900 are now on training and work experience.

The total entering the programme was 167,400 but 40,200 have dropped out.

About 127,000 were participating in New Deal at the end of September.

Conservatives have dismissed the figures as "chaotic" since they do not show how many companies have recruited people under New Deal.

In a separate development Oxford-based watchdog the Training Standards Council is to investigate the quality of the New Deal training.

Next month eight new inspectors will join the 20-strong inspection team.

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