Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 40 - 59)

MONDAY 15 NOVEMBER 2004

Department for Work and Pensions and Department for Education and Skills

  Q40  Jim Sheridan: How do you advertise for these advisers?

  Mr Anderson: We advertise in the press and we ask for a certain set of skills.

  Q41  Jim Sheridan: Do you ask for a particular age?

  Sir Richard Mottram: We would not be allowed to do that.

  Q42  Jim Sheridan: In the Executive Summary at page 3, it says here that between 700,000 and 1,000,000 people who are over 50 would like to work, of which 200,000 are looking actively. So, 200,000 out of 1,000,000 are looking actively for work. What has happened to the other 800,000?

  Sir Richard Mottram: The other 800,000 would be a combination of people who are on Incapacity Benefit and perhaps some others who were retired and were thinking about coming out of retirement, for example.

  Q43  Jim Sheridan: Of the 200,000 who are looking actively, do we know the age profile or the skills profile for them?

  Sir Richard Mottram: We possibly do. My initial hunch about them is that they are going to be down the younger end of this band, so they are more likely to be people in their 50s rather than in their early 60s. We do know the skills profile of people who have left the labour market in this age group and they are less skilled on average than the working population as a whole which is precisely why one of the things we have focused on is how we can help people with their skills.

  Q44  Jim Sheridan: The reason that I ask about those 200,000 is that, given that we have a skills shortage in the country of joiners, plumbers etc, I assume that none of these 200,000 fall into that category.

  Sir Richard Mottram: I do not think that would be a safe assumption. The thrust of the Report is that there are all sorts of very good reasons to try and ensure that these 200,000 and many others of the 1,000,000 get into work because some of them have skills and, even if they are unskilled, the country has an interest in giving them the skills necessary for them to get into work.

  Q45  Jim Sheridan: Can I just touch on a question that the Chairman asked earlier about Incapacity Benefit. There are an awful lot of people over 50 who are on Incapacity Benefit.

  Sir Richard Mottram: Yes.

  Q46  Jim Sheridan: If you look at industries like the construction industry, it is very, very unusual nowadays to find someone in the construction industry in their late 50s.

  Sir Richard Mottram: Yes.

  Q47  Jim Sheridan: Yet, when people try and get a joiner or plumber to work privately, they seem to get them easily. I notice a wry smile on your face.

  Sir Richard Mottram: Yes, that is one of my faults! Yes, of course. What the Department is trying to do with things like the Age Positive Campaign and all sorts of other campaigns is to change the attitude in our society towards employing older people and, as is brought out in the Report and as is very familiar to all of us, there are a number of very farsighted employers—I probably should not start to name them but to mention one, B&Q for example—who have gone out of their way to recruit older people because they have found that they do a very good job and, as the Report brings out, most of the things which people use to argue against employing older people are myths. So, I suspect that ones which are stopping some people being employed in the construction industry are myths.

  Q48  Jim Sheridan: I think you are right, B&Q are a perfect example of how employing more mature people does have its benefits. Mr Anderson, in terms of training and education, you say there has been an improvement in recent years with people over 50 becoming involved in training and education, but what are the figures for that?

  Sir Richard Mottram: I think that is probably a question for Mr Marston.

  Mr Marston: The best survey evidence that we have comes from a survey called the National Adult Learning Survey and the data from there suggests that those aged 50 to 59 participating in any form of learning over the past three years has gone up. It now stands at 74% in 2002-03. So, steadily and progressively, we think we are seeing an increase in participation in all forms of learning in that older age group.

  Q49  Jim Sheridan: What are the main reasons given by people aged 50 or over for not getting involved in mainstream education and skills update? What are the main reasons they give for that?

  Mr Marston: As the Report rightly identifies, there is a wide range of reasons. Some of them are concerns about simple lack of information and advice, not knowing quite where to go or what would be available. Some may well be confidence and motivation factors. I think there will be a range of different matters that are obstacles for different people.

  Q50  Jim Sheridan: There is mention in the Report of the outreach schemes we have that have been of benefit. What is the success rate of that and what type of groups are you taking these projects to?

  Mr Anderson: These are in various parts of the country where we are working with voluntary sector organisations and we are working with other government departments to co-ordinate efforts to get at particular communities. They have not been brought together, if you like, in one national programme, they have been left to the discretion of local districts to work on themselves. The pilots are to be evaluated next year.

  Q51  Jim Sheridan: My experience of people who have perhaps worked in industry and, for various reasons, have lost their job is that there are opportunities there but that they have to update their skills in terms of new technology, how to operate computers, et cetera, et cetera which an awful lot of people are somewhat concerned about. How do you overcome these concerns and these barriers?

  Mr Anderson: I am sorry, I did not catch that as it is quite noisy.

  Q52  Jim Sheridan: How do you overcome people who have a fear of computers? They may have worked in a factory all their life.

  Mr Anderson: When individuals present themselves to our personal advisers, the personal adviser will first of all have a discussion with them about the particular issues that they see as being barriers to get into work and they have then a range of training provision that is available for reference over a whole list of things which may be basic skills, confidence raising or may be basic office activity, and that provision is available for advisers to recommend that people should go and have training.

  Q53  Jim Sheridan: Are there any incentives for people to take these new skills up? Do you offer them incentives for them to do that?

  Mr Anderson: The incentives particularly the New Deal 50 Plus are not actually for paying people to go into training, no. On the other hand, one would hope that with the aid of advisers to motivate them, they would be incentivised to take up the training in order to reach their objective of getting a job.

  Q54  Mr Steinberg: Sir Richard, it is peculiar because, 10 years ago, we would not have been doing a Report like this, would we? We would be doing a report on how we could get 50 year olds out of work so that we could get young people into work.

  Sir Richard Mottram: Yes. That could be part of the problem though, could it not?

  Mr Steinberg: Yes. I am very shortly to become a member of this club.

  Chairman: You are not going to get Incapacity Benefit!

  Q55  Mr Steinberg: To get on to Incapacity Benefit would be quite nice! A lot of people surveyed have been incapacitated for a long time. Seriously, I am going to become a member of this club very shortly and it seems to me that in fact we have not heard a great deal about New Deal 50 Plus. This is substantiated on page 44 at point 3.7 where it says, "The results of our customer research in the three locations suggest that they have a low awareness of the local services available to help improve their employment prospects, and how to access them. This includes Jobcentre Plus Programmes, information, advice and guidance services and other local services." In other words, presumably a lot of people did not know there was such a thing going. Why is that? It does not sound much of a successful scheme, Mr Anderson.

  Mr Anderson: There are a number of reasons why awareness would be low. First of all, this is a voluntary programme and therefore these people are not forced to come into our offices and hear about it in contrast with other New Deal programmes. The district managers are given a budget to promote this programme and, in recognising the lack of awareness, there is actually an emphasis on guidance for this group being introduced as a result of last year's budget that will actually provide more guidance and more co-ordination.

The Committee suspended from 5.06 pm to 5.13 pm for a division in the House

  Q56  Mr Steinberg: What you were saying is that you are basically just starting to do something about it now.

  Mr Anderson: There was not a budget available last year but there is this year for marketing for this year. The use of it is at the discretion of district managers according to the priority that they give to their own client load in their own area but there clearly is more to do in making people aware of this.

  Q57  Mr Steinberg: So, you have just started to do something about it but the Learning and Skills Council do not seem to be bothered about it at all because, if you have a look at the year end report, it is said that, out of 47 learning and skills councils, only seven of them actually take this very seriously at all and the other 40 do not. What are you going to do about that? That does not actually surprise me because my experience of skills councils is that they can always tell you why they cannot do something instead of how they should be able to do something.

  Mr Marston: The Report rightly identifies the importance of a particular instrument that the LSC use, that is to say Equality and Diversity Impact Measures, and seven of the 47 use that instrument to identify older people as one of the aspects of equal opportunities that they want to pursue. The important point to register is that that does not mean that the other 40 therefore are not paying any attention to this. But you can come at it in different ways and the Learning and Skills Council are putting a lot of effort into trying to ensure that, across a whole range of these priorities, they have provision in place and they have programmes in place to support a wide range of skills and opportunities. The further progress that we are hoping to make comes through an exercise that has recently been commissioned to look at the way in which each of the 47 is currently addressing older workers and older learners within the range of programmes that they are offering. That will report back in the New Year as the basis for trying to take the best practice which may well be in those seven and make that more general across the piece.

  Q58  Mr Steinberg: So, basically, what you are saying is that although seven of them only appear to put it in their strategy, only 40 are actually doing something but not so transparently.

  Mr Marston: They are not using the particular instrument of the Equality and Diversity Impact Measures.

  Q59  Mr Steinberg: Do you not think they should?

  Mr Marston: The priority for older workers and older learners could be expressed in a number of different ways. It is an aspect of equality of opportunity but it works in a number of different respects. So, all of the learning and skills councils in one way or another will be offering a range of programmes. I would not want to over-cite this particular mechanism.


 
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