Aid for unemployed facing benefit cut

LONG-TERM unemployed people who face having their benefits cut off this year could be offered paid training to help them get back into work.

Pôle Emploi estimates that a million people who have not worked for at least two years will lose their benefits entitlement in 2010.

Employment Minister Laurent Wauquiez has promised "several hundred million euros" in financial aid for them - but further details will not be available until the end of March.

Nicolas Sarkozy has said that "no one will be abandoned" and has asked Wauqiez to look at a system where the long-term unemployed would be paid to learn new work skills.

The cost would be shared between the government and unemployment charity Unedic.

Companies could also be paid a bonus for hiring someone who has lost their right to unemployment benefit.

Unemployed people who are nearing retirement age and have a full record of social security contributions may be eligible for the allocation équivalent retraite until their state pension arrives.

See this story for more information on the criteria, rates and income thresholds.

Unemployment rose 0.7% in January to 2.66 million after falling slightly in December.