APPENDIX 32
Memorandum from Barnsley Development Agency
(JG 40)
GRIMETHORPE SELECT COMMITTEE VISIT
Further to the above visit where we had some discussion
on the relevance of Benefit Transfer as a response to particular
problems experienced in Barnsley.
Please find the attached proposal document which
briefly outlines a way forward with this. This Benefit Transfer
model is not based on immediate savings to Government as used
by Glasgow Works for example, but is based more on the ideas of
the Irish Department of Social, Community and Family Affairs,
which subscribes to the philosophy of paying people to do something
useful and moving them on rather than paying them to do nothing
at all.
In order to re-engage those who are benefit
dependent we need to be able to demonstrate that this is a real
job with training and not another "scheme". We would
like to utilise the individual's existing benefit to pay a real
wage and to offer the type of support which will enable people
to move into jobs in growth areas.
BARNSLEY BENEFIT TRANSFER PILOT
PROPOSAL
Aim: To establish a route for people who have a long
history of benefits dependency into the world of work.
Rationale
1.1 Barnsley has a number of consortia that
act as delivery agents for the New Deal 18-24 Programme. Considerable
work has been undertaken to enhance this by creating an Intermediate
Labour Market scheme for six months as an add on to the Voluntary
Sector Option and in aiming to establish the Environmental Task
force option as a waged option to raise the profile and image
of these projects.
1.2 However, unlike other areas in South
Yorkshire, Barnsley does not have the opportunity to offer any
form of extra support for the over 25s regardless of the fact
that unemployment in this age group is our major problem. South
Yorkshire as a whole has been designated an Objective 1 area on
the basis of its low GDP (66 per cent of national average). More
construction jobs can be expected as a result of the investment
around Objective 1, but historically evidence shows (City Challenge
for example) that large contractors tend to import labour because
of a lack of local skills.
1.3 The Yorkshire Post (23 November
1999) identifies the top growth sector as construction and property
mirroring the comments of the FEFC Construction Programme Review
1999 which states that there is a continuing trend in increased
demand for higher level skills in the industry.
1.4 For Welfare to Work policies to succeed
they must establish purposeful connections to both unemployed
and the labour market. Success is based then upon simultaneously
serving two "high maintenance" groups, participants
and employers. This proposal aims to address an identified gap
within the labour market for Barnsley.
2. LABOUR MARKET
ISSUES
Barnsley is an ex-coal mining area with specific
problems that lead to dysfunctional labour supply side. Some key
issues are:
— to make the most of the Objective
1 programme and raise household incomes to near UK levels, at
least another 12,000 net jobs are required in the Borough;
— against this, only 5,317 people (6.1
per cent) were registered unemployed in December 1999—another
8,000 labour market participants are needed (this figure allows
for what would be a normal frictional unemployed total of approximately
1,500);
— of these unemployed, 20 per cent
are long term unemployed (12 months or more) and it is believed
that many of those unemployed for a shorter period are regularly
unemployed in a cycle of short term casual labour;
— in addition to the unemployed, the
level of "joblessness" among people of working age is
estimated at between 6 per cent and 18 per cent of the labour
market participants who would be active in an "average"
borough—suggesting a jobless population of approximately
12,000 to 25,000;
— much of this joblessness is due to
people having prematurely retired or taken redundancy payments
following the closure of heavy industry. Also a high proportion
of lone parents (the council sector accommodates 51 per cent of
lone parents, accounting for 13 per cent of all council rented
households) and a high proportion of carers (one in eight households
(13 per cent) has at least one person who is unable to care for
themselves);
— 50 per cent of the unemployed do
not have any qualifications at all, only 36 per cent have a qualification
at NVQ2 or above, and only 4 per cent have an NVQ3 or above (NVQ
here is used as a short hand for level of qualification rather
than being strictly confined to NVQ accredited qualifications);
— 70 per cent of residents over 45
years have no qualifications at all: In a door to door survey,
one third of residents admitted to needing basic maths and/or
English skills and 50 per cent admitted to never having used a
PC;
— except for childcare, there appear
to be no tangible barriers to the uptake of training and education
among those who are unemployed who are not training—they
just do not see the point;
— 48 per cent of male respondents wanted
to work in craft and semi-skilled occupations—this is in
addition to 9 per cent who want employment in personal/protective
industries; and
— the evidence from the CALLMI survey
of local employers suggests that they experience the type of recruitment
difficulties that are more typical of a labour market with no
more than frictional unemployment.
3. BACKGROUND
3.1 The Employment Sub-Committee of the
Education and Employment Select Committee visit focused on the
Grimethorpe area of Barnsley, an area which will be in a position
to offer a large industrial site for inward investment but where
an integrated package of regeneration activity seeks to ensure
both social and economic regeneration. A large part of this is
the Grimethorpe Housing Strategy, which is designed to be delivered
over a 10-year period. It will complement other initiatives in
a way, which will aid the economy revival, bring new residents,
empower the local community and create employment.
3.2 As part of this a Consortia are currently
proposing a Barnsley Community Build scheme to establish a community
enterprise. This enterprise will have its roots as a training
base to ensure that local people are given opportunities to undertake
industry standard qualifications within the construction industry
ready for work in the private sector. Housing Services are extremely
supportive of such an initiative and are willing to prepare a
schedule of works which would enable such an enterprise to develop,
gradually increasing the range of skills offered. Close working
relationships have been formed with the Sheffield Rebuild initiative
and best practice established from their experience is being used
as a basis for developing the enterprise.
3.3 The second arm of the enterprise is
to establish a team of four to install insulation measures in
line with Barnsley's Energy Efficiency Strategy. This will enable
local people to secure the necessary skills to bid for contracts
currently secured by contractors outside of the borough.
3.4 In order to source new employment opportunities
primarily in the field of property repair and maintenance this
part of the project aims to provide a matching service between
householders seeking property repair work and approved reputable
local builders and associated contractors. In order to remove
the concern of establishing an approved register of reputable
building contractors security additional work through the company
to offer employment or training to the long-term unemployed, particularly
over 40.
3.5 Another main issue in Grimethorpe, highlighted
at the meeting, was that of Community Transport. As part of this
initiative the case for improving transport links in Grimethorpe
(identified through the Grimethorpe Transport and Mobility Feasibility
Study) would be addressed by enhancing developing provision through
an Intermediate Labour Market with the Coalfields Community Transport
scheme. In this case, strategic management, including technical
support and training will be provided by Barnsley Dial a Ride,
and Community Transport. The trainees will provide transport for
unemployed people into work and fill other community contracts,
breaking the link between deprived communities and unemployment
by providing transport door to door for the unemployed into work.
There are some proposals within the South Yorkshire
Public Transport Action Plan to embrace new technology in terms
of communications, routing and information provision. This also
lends itself to residents being trained for jobs at Barnsley Interchange
and the Mini Interchanges, which are proposed within this plan.
4. PROJECT DESCRIPTION
4.1 The proposed over 25's pilot will harness
the opportunities offered by this regeneration package in encouraging
unemployed people to take up employment in an area of job growth.
It will set an industry standard wage (labour market rates between
£4.00 and £6.00 per hour) and use the individuals existing
benefits to form the basis of this, topping up to a "real"
wage for a "real" job. The benefit element will be used
as match funding for Objective 1 ESF, which will maximise value
from the programme both for the area and local people. This will
serve as a financial cushion to help the unemployed return to
work and will carry no benefit "penalties" for those
who are unable to sustain long term employment. Benefit will be
paid directly to the employer who will then covert this into a
full wage for the employee, the experience will not reflect a
benefit—plus scheme but a full waged position.
4.2 Jobs created under the initiative will
result in a net increase in the level of employment, be new or
additional jobs and not displace existing employment. The aim
will be to provide a two-year programme to ensure those able to
take on higher level qualifications are offered the opportunity
to do so. The focus of training will be on quality, industry standards
and on-site assessment. The schedule will reflect a minimum of
classroom situations and will aim to use real work examples in
order to offer relevance and continuity for beneficiaries.
5. PROCESS
5.1 The project will use the existing structures
in place for New Deal 18 to 24 clients in recruiting potential
employees and will offer them a similar experience of the Gateway
Process.
5.2 Barnsley Community Build will employ
individuals within its structure as detailed below. A dedicated
Guidance Worker will ensure individual training plans, appropriate
protective clothing, health and safety issues etc.
5.3 Training will be sought from a range
of existing training providers including Barnsley College. The
focus will remain on quality, job specific, site-based provision
and ensuring participants are receiving training which is relevant
to potential employers.
Detail:
CITB and City and Guilds Accredited Courses:
Level 3 Multi-Skilled craft Maintenance NVQ;
Levels 1, 2 and 3 Construction Craft NVQs;
Levels 1, 2 and 3 Key Skills NVQs;
Levels 1, 2 and 3 and Advanced Scaffold;
Health and Safety Training Programmes;
Driving: MIDAS (Minibus Driver Awareness Scheme);
Fire and Evacuation and First Aid.
5.4 The project will integrate younger participants
on New Deal with more mature returners to the labour market encouraging
a natural mentoring situation between young and old and aiming
to recreate a "normal" work situation.
5.5 THE PROPOSED
STRUCTURE OF
THE COMPANY
WILL BE:
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