Early indications point to success for the British Government's New Deal programme to find jobs for the young unemployed.

Andrew Smith wary of "overhype"

First figures show that more than half of all young people leaving the new welfare-to-work programme find jobs without receiving any extra subsidy from the taxpayer.

Employment Minister Andrew Smith on the government's New Deal

The employment minister, Andrew Smith, said the impact of the programme "exceeded expectations", but warned that the figures were "very early data". He said he would not want to "overhype" the New Deal's success.

Conservative critics question the cost of the scheme, pointing out that many of the young people who have so far found work under the New Deal would have done so anyway, without the help of an expensive government programme.

The shadow spokeswoman for education and employment, Angela Browning, also pointed out that the scheme had yet to deal with those who were most likely to experience trouble finding work.

She said: "The hard cases will be the ones that will be the real test for the government. Whether they can, for example, get ex-offenders, people with disabilities, people from the ethnic minorities, if they can provide real long term jobs for those groupings, then of course we will welcome it, and the scheme will be seen to be a success."

Pilot schemes for the New Deal have been operating in 12 areas. The first projects started in January, and most of the participants are still in the "gateway" phase.

Under the scheme, 18 to 24-year-olds out of work for at least six months have to join a 'gateway' programme to help them with work and social skills, basic education, careers advice and problems like homelessness, debt or drug dependency.

After that the young unemployed are offered four options:

• A job with an employer. Private sector employers will get a £60-a-week subsidy for up to 26 weeks. The new deal also contributes £750 towards training young people for accredited qualifications.
• Six months' work with the government's environment task force
• Six month's work in the voluntary sector
• Full-time education and training

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