Select Committee on Work and Pensions Minutes of Evidence


Examination of Witnesses (Questions 40 - 45)

TUESDAY 31 OCTOBER 2006

MR RICHARD CAIRNS, MR LAURIE RUSSELL, MS KATE STILL AND MR DAVID COYNE

  Q40  Mrs Humble: Now on to the question I am meant to be asking you. Clearly there is an awful lot of work that is taking place in Glasgow at the moment and we have seen a lot of that in our short visit. Moving on to the City Strategy, what sort of difference will that make to what you are already heavily involved in? How are things going to be different when you do the City Strategy from what you are already planning to do at the moment?

  Mr Cairns: There are a number of things that one would expect to see from it. Having said that, before we start, if I have a criticism of the City Strategy in its current incarnation, developmental though it is, it is that the time horizon for this is not realistic. If you think about the nature of the people we are dealing with, if you think about the fact that we do not really think they are in a sustainable job until they have been in that job for 52 weeks and we have a time horizon for the City Strategy of some two years then it does not take someone a lot smarter than me to work out that this is not really the appropriate time horizon for this and it is not long enough to design interventions, carry out interventions, measure the effectiveness of the interventions, modify and improve them. I think that is stating the obvious. In terms of what we would expect to see different, there are a couple of things. One, we have set ourselves more stretching targets as a consequence of the introduction of the City Strategy. We have pushed the target up and we have brought the time window closer, not by huge amounts but by significant and stretching amounts. The existence of the City Strategy offers us the potential to do things more efficiently. In fact, there is an expectation that we will do things more efficiently and that is one of the things we have to do. Although Glasgow has had the whole question of social renewal and addressing worklessness at the heart of its strategies for some time, and it is a fundamental pillar of the economic strategy of the city, the very fact that the DWP, as it were, are now officially on-side on the same agenda and the budgets associated with that are officially on-side on the same agenda gives us a stronger and greater number of shoulders behind the wheel. Where the difference will come is around the alignment of intent, assuming we can find a way of doing it. Great if we do not physically pool the resources, at the very least we can share information and attempt to integrate effort. We have anticipated that we will do that by making the target more stretching than it was previously.

  Mr Russell: As Richard said it is emerging but from the delivery agencies' point of view what we would be keen to do, firstly, is to be involved in that discussion because it is important we learn the lessons from how we have been delivering projects in the past. It gives us the opportunity to work on our strengths so that we work together better to deliver the targets that the strategy is going to emerge with. Potentially it allows us to take some of the pilot ideas that we discussed earlier and replicate them in other parts of the city. All the agencies that are here today, and others that are not here today, find one of the most frustrating things we have is when we do something in a pilot scheme that works well but then the funding stops and you are not able to say how we can replicate that. It is relatively easy to take the model but sometimes it has got to have the right people in the right places and everything else. What the City Strategy does is it gives us another bit of that jigsaw to help replicate projects that we know are working in one area or with one organisation and spread them to other parts of the city.

  Q41  Justine Greening: Aside from the time stretch that you have talked about, what are the other barriers that you think might get in the way of this strategy being successful?

  Ms Still: I suppose it is the flexibilities that come with it. I do not get the impression there is a huge amount of resource coming with it. It is about making sure that we marshal the resources that we have but it is also about the flexibilities within the benefit system that might come with it that would make a huge difference.

  Q42  Greg Mulholland: Following on from that, do you think there will be advantages in involving the Jobcentre Plus procurement to allow City Strategy partnerships to contract provision locally?

  Mr Cairns: Yes. If you think of all the discussion we have had around what local agencies know about this, and assuming that one can design that procurement process so that it has a quite clear best value discipline attached to it then absolutely. These are City Strategies. At what point do we abandon the principle of the City Strategy and leave it to the mercies of some other process? If we are serious about it then we need as many of the tools in the toolbox at our disposal as possible and that would be one of them.

  Q43  Greg Mulholland: Do you think that is likely to happen or do you think there are conflicting dangers? For example, you have got the employment priorities of the Scottish Executive as well as the DWP, do you think there are issues there that could cause problems?

  Mr Cairns: Not with that. The design of the City Strategy in this city incorporates our Workforce Plus bid and the response to the Scottish Executive's strategy. We have seen people in the same room working on all three concurrently, so I am much less concerned about that.

  Q44  Greg Mulholland: My other question is Katie mentioned the resources, which is always a key issue. First of all, what funding stream resources can be pooled as part of the City Strategy? Do you think they will be sufficient to deliver the objectives?

  Mr Cairns: We are working on this. The biggest question would be around the extent to which any benefits or savings of the kind that accrue from this could be brought forward and rolled into the pot in addition to what the DWP currently spends on employment initiatives. Why are we not looking seriously at speculating on some of this, setting ourselves targets, bringing some of that saving forward in the expectation we will deliver it and using some of that now? Why is some of that potential saving not being placed at the disposal of the people who are attempting to make the change?

  Mr Coyne: In addition to that, if we could look at the interaction between Housing Benefit, Working Tax Credits and Childcare Tax Credits we could use the transition into work and make it a more rewarding experience.

  Q45  Chairman: Thank you very much, it has been very interesting. Good luck, I think you will need it!

  Mr Cairns: We will be busy.

  Chairman: Thank you.


 
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