The chancellor noted that thanks to "prudence" one million more people are in work today than in spring 1997. New measures announced:

- More personal advisers, "proven to work" for the 50,000 youth unemployed.

- A new agency to deliver support for people of working age. In 2001 a "brand new, modern agency will be established with a clear focus on work" pulling together the Employment Service and the parts of the Benefits Agency.

- A new advice service for redundant workers called the Job Transition Service to be set up in areas where large-scale redundancies occur, particularly in high unemployment areas or where there is a high dependency on one industry.

- an extra £9.5 million to extend the Innovation Fund to March 2003, £5 million ring-fenced for helping disadvantaged people into jobs.

- More "choices" and help for 150,000 lone parents not on income support to get into work. Starting in autumn 2001, the offer of help and support from the New Deal for Lone Parents will be made available to all lone parents who are not working, or who are working less than 16 hours per week.

- From April 2001, lone parents on income support with children over the age of five will be required to meet a personal adviser .

- Help for people with disabilities In addition, from April 2001, people with disabilities on Income Support and Jobseekers' Allowance will be able to keep £20 a week of any earnings without losing any benefits.

- Secretary of state for social security, Alistair Darling, will be announcing an extra £200 million in a package of measures to help disabled people and carers in the coming days.

- From April 2001, children aged three to four with severe disabilities will receive an additional £37.40 a week through the extension of the Disability Living Allowance.

- The government has decided to allocate £5 million additional money from the windfall tax reserve to help establish the National e-Learning Foundation.

- Education and employment secretary David Blunkett to announce more resources for the learning and skills council on Thursday.