I have three proposals to make.

Mr Speaker, those facing redundancy need greater support.

As the success of the Rapid Response Service has demonstrated, support in the work place in the form of advice on job-search, careers, and accessing existing vacancies can make a huge difference to employment prospects.

We will now further expand the Service so that its work includes all redundancies, not just those at the largest workplaces.

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And to complement this, I will offer greater provision of pre-redundancy re-training through the Train To Gain initiative.

We will also target the successful Local Employment Partnerships not just on the harder to reach groups, but also on the short-term unemployed.

Mr Speaker, there are still over half a million unfilled vacancies.

Today I can announce a new initiative to help fill them, through national cooperation, with the country’s major employers.

The National Employment Partnership will be chaired by the Prime Minister.

So far, 20 of the largest employers, including Tesco, Centrica and Royal Mail, have agreed to take part. Together, they employ over 2 million people.

I welcome their commitment to work with us to speed up recruitment, increase vacancies through Jobcentre Plus, and to step up access to work-related training.

And it is the high-quality support, provided by Jobcentre Plus network and New Deal programmes, to those out of work which has underpinned the success in the last few years in helping people quickly into employment.

I am determined to provide the resources so that this network - internationally recognised as world-class - can continue its excellent service.

I am setting aside additional funding to ensure Jobcentre Plus and the New Deal have sufficient capacity.

Today’s employment measures are worth a combined £1.3bn; essential to prevent a temporary job loss becomes permanent unemployment.

Again, all these measures are only possible because we have taken a deliberate decision to support business, protect jobs, and help homeowners.

And I have set aside £1bn in the reserve so that we can continue to help during difficult times, and ensure that we emerge from the current downturn stronger and ready to seize the opportunities ahead of us.

Mr Speaker, I can also announce additional help for people of all ages.

Turning first to motorists, we rightly have a system of car taxation which takes into account the environmental impact from different types of car.

In the last Budget, I announced I was going to take this further by increasing the number of bands for Vehicle Excise Duty.

As planned, differential first year rates which people pay when they buy a new car will be introduced in April 2010.

They provide powerful incentives to purchase less polluting cars.

I intend to go ahead with the introduction of new bands, reflecting fuel efficiency.

But it would be wrong to do this in a way that places undue burdens on motorists at this time.

So I have decided to help people by phasing in new rates and lower increases.

First, in 2009, duty rates for all cars will only increase by a maximum of £5 as has been normal practice.

Second, from 2010, we will bring in differential increases in duty.

In the original proposal, some cars would have seen increases of up to £90.

Instead, I now propose that the more polluting cars will see duty increased, but up to maximum of £30.

And less polluting cars will see no increase or a cut of up £30.

Mr Speaker, for savers.

We want to encourage those with modest incomes to put money aside.

To help them we are setting up a Saving Gateway - which will mean that the Government adds money to every pound saved.

From 2010, up to 8 million people on low incomes, who put money into the Saving Gateway, will get 50 pence added for each pound they save.

The Saving Gateway will be widely available through a range of banks, building societies and credit unions and, I can tell the House, the Post Office.

Mr Speaker, I also intend to step up help for families with children.

We have already announced that the child element of the Child Tax Credit will increase by £50 above indexation next April.

We have also announced a further increase in that credit of £25 above indexation in 2010.

I now intend to pay both these increases together in April, making it worth in total £2,235 for modest income families.

The Government is also working with Local Authorities to further improve take up of tax credits and benefits.

Local authorities have a key role as well in working with families to tackle disadvantage and extend opportunities for children.

We are introducing a child poverty bill next year which will set in legislation the historic commitment to eradicate child poverty by 2020.

And I have already announced that child benefit, which was only £11.05 in 1997, will increase from £18.80 to £20 a week in April next year.

We are supporting families and increasing opportunity for all children.

Mr Speaker, I also want to do more for pensioners.

First, for pensioners on modest incomes, I can announce today an increase in Pension Credit in April.

I will increase it from £124 to £130 a week for individual pensioners and from £189 to £198 for pensioner couples.

An increase above indexation - and the biggest increase in Pension Credit since it was introduced in 2003.

I can also confirm that State Pensions will increase in line with the highest rate of inflation this year.

This will increase the basic state pension for a single person from £90.70 to £95.25 - an increase of £4.55 a week - and up from £61 in 1996/97.

And now that inflation is expected to fall quickly, pensioners should see a real benefit.

Mr Speaker, I don’t want people to have to wait for this extra money.

I want them to get it as quickly as possible.

This will benefit them and benefit the economy.

So families will not have to wait until April to receive their increase in Child Benefit.

Instead they will start to get it in January - 3 months early.

I want to do the same for pensioners.

They are already getting a winter fuel payment - increased again this year.

But I want to do more.

So I will ensure that every pensioner will get a one-off payment of £60, on top of the £10 Christmas bonus, from January.

And for couples, £120, also from January.

And this £70 payment will also go to children with disabilities.

In all 15 million people will gain from the beginning of next year.

Pensioners and children. Helping them and helping the economy.

Mr Speaker, these are exceptional times and require exceptional measures.

It requires action now to help people - and action now to build a stable economy.

We have made our choice.

Helping businesses. Helping homeowners.

Helping people into work. Boosting incomes.

All only possible because this Government has taken the deliberate decision to support people and businesses through these difficult times.

And I commend this statement to the House.