A youth employment scheme that found work and training for 160 people has failed to secure Government funding.
Two employees at Dundee Employment and Aftercare Project (Deap) are now out of work after cash for the Youth Challenge Project ran out last week.
It was hoped that Skills Development Scotland (SDS) would continue financing the initiative, which cost around £80,000 over six months. But it was announced yesterday that Deap secured only a fraction of the funding it needs.
Deap managing director Mary Hamilton has expressed her disappointment at the decision by SDS.
She said: “The project supported 160 young people, aged 16 to 24, to gain valuable skills and qualification through a range of work experience opportunities with local employers, access to short accredited courses and job matching in line with the needs of local employers.
“The sector specific training achieved by 120 young people engaging on the project helped 40 young people within Dundee, gain employment during this short time.
“In order to continue to provide this level of service, Deap submitted a proposal for the new Employability Fund, which replaces previous government funded programmes.”
Announced by the Scottish Government in December, the new model brings together a number of strands of previous pre-employability programmes such as Get Ready for Work and Training for Work.
SDS administers the funding in partnership with local authorities, colleges, the Department for Work and Pensions and training providers.
Mrs Hamilton predicts that her organisation will now only be able to assist 10 young people aged 16-17 this year, due to a reduction in funding.
She said: “Deap has been awarded a contract to deliver the Employability Fund Project in Dundee as from April 2013, however it is significantly lower than we expected.
“There is no opportunity within the contract for DEAP to provide sector skills training and employability support to unemployed people aged 18 to 24, or over 25.
“Unemployment rates for Dundee would suggest that this remains a priority area for improvement within the city.”
There are almost 1,500 people aged 18 to 24 who claim Job Seekers Allowance in Dundee a third of all claimants in the city.
Joey Hepburn, 19, was a trainee employment officer at DEAP, but he is now on the dole as a result of the decision.
He said: “The success of the Youth Challenge Project has been phenomenalwith a lot of hard work and a little willpower the targets were reached.
“I cannot see why they wouldn’t fund such a successful project which has excelled in the current climate; we are here to fight against youth unemployment and the young people in Dundee need all the help they can get.”
Mrs Hamilton added: “As an organisation we are concerned as to how this decision to offer Deap such a small contract was taken.”
A spokeswoman for SDS said the bidding process was above board.
“In the months leading up to the launch of the Employability Fund, SDS engaged with a range of organisations to develop the referral process for the fund,” she said.
“In addition to work to develop the referral process, the skills body held two ‘bidders’ conferences’ to ensure potential providers were fully briefed on the criteria and framework of the new funding model and process.”
Mrs Hamilton said Deap will now seek alternative funding.