Chancellor Alistair Darling leaving for the House of Commons to deliver his 2009 Pre-Budget Report speech. Picture: HM Treasury

The December 2009 Pre-Budget Report has announced further action by the Government to support jobs, including:

  • National rollout of the Better Off In Work Credit, providing a top-up payment to benefit claimants whose income from work is less than £40 per week greater than their benefit income.
  • A guarantee that that every 18-24 year old who has been claiming Jobseeker’s Allowance for 6 months will be offered a job, training or a work placement lasting at least 6 months.

First announced in the 2009 Budget, the Young Person’s Guarantee promises all 18 to 24 year olds who are coming towards the 12 month stage of their claim to Jobseeker’s Allowance (JSA):

  • An offer of a job (either a new job through the Future Jobs Fund or an existing job in a key employment sector).
  • Work focused training.
  • A place on a Community Task Force.

The Guarantee will start in 2010 but we will make some elements available before then. In July 2009, for example, we announced the creation of up to 47,000 jobs as part of the Young Persons Guarantee. The first of these jobs will be available in October this year.

In return for this significant investment the Government will require all eligible young people to accept a job, training or work experience. This will give many thousands of young invaluable skills and work experience that will help them secure a worthwhile job. This will ensure that no young adult is permanently disadvantaged by the recession.

The 2009 Pre-Budget Report also announces:

  • a 1% cap on public sector pay in 2011-12 and 2012-13
  • an additional(1) 0.5% increase in the employee, employer and self-employed rates of National Insurance contributions from April 2011. However, the Government will also ensure that the 15 million people on income below £20,000 will not pay any extra National Insurance contributions.
  • the point at which individuals pay 40% rate tax(2) will be frozen in cash terms in 2012-13
  • A new 50% tax on discretionary bonuses will apply to the excess above £25,000 for bonuses paid between 9 December 2009 and 5 April 2010.

You can find all the latest information on this year’s Pre-Budget Report at 


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