Blitz on London's unemployed

London's 250,000 single parents are to be targeted in a new blitz on unemployment in the capital.

Thousands will be offered extra cash and help with childcare just for looking for a job. And those who find work will receive a £40-a-week "reward" for a year on top of their salary.

The move is the latest bid by Work and Pensions Secretary Andrew Smith to bring down London's unemployment rate and curb the cost of benefits.

It is official recognition that for many, the sky-high cost of childcare in London means they feel better off living off state benefits than getting a job. London has the highest proportion of lone parents in the UK, with particularly severe pockets in inner-city boroughs.

The £40 bonus will start in April 2005 for all who get a job and move off benefits. The weekly payment will last for a year, making it worth a total of £2,080 per family. Some parents will also be given an extra £20 a week for making a bigger effort to find work.

The payments, which will be initially tested in south-east and west London, will be made if they agree to undergo a programme of training in basic skills and attend job interviews.

On top of giving cash, the Government will pay nursery or other childcare fees for those attending courses as part of a work-search programme.

From next year, an idea will be tested in Lewisham and Haringey in which schools open early to provide breakfast for the children of working single mothers, then stay open after lessons to provide tea and a safe environment until the parent returns from work.

The new measures for London come on top of the extra help with childcare announced by Gordon Brown in yesterday's pre-Budget statement.

Mr Smith admitted that many lone parents in London did not find work paid enough to be worthwhile, and many were little better off than they were on benefits.

"Research shows most lone parents want the choice of combining paid work with the vital job of bringing up a child, but they face a lot of barriers along the way," he said.