Select Committee on Business and Enterprise Written Evidence


Memorandum submitted by the Prince's Trust

 (A)   EXECUTIVE SUMMARY

  1.  In 2005-06 The Prince's Trust supported 40,805 disadvantaged young people; 75% of them moved into employment, education or training. The Prince's Trust is aiming to address the lack of skills in the construction industry by creating a pool of job-ready young people through working with major construction partners.

  2.  "Get Into Construction" offers unemployed 16-25 year olds an intensive training programme in the construction sector so that they can develop practical skills and move into employment. The Prince's Trust's Construction Leadership Group, whose members include major contractors in construction, is committed to employing either directly or through their supply chains all the young people who complete the Get Into Construction programme.

  3.  Construction employers often don't have the time or resource to invest in training and development for disadvantaged young people when they already have access to a pool of skilled workers from overseas. The Prince's Trust is aiming to address this problem by training young people in the industry.

  4.  There is a clear lack of diversity in the construction industry, particularly for ethnic minority and female workers. The Trust is aiming to address this problem by working with these groups on construction initiatives. For example on the pilot Get Into Construction, 12 out of the 16 participants (75%) were from black and minority ethnic groups.

  5.  More needs to be done to train young people in construction skills to deal with capacity issues on large infrastructure projects. The Trust is seeking to address this issue by training young people in the sector.

  6.  Places at FE colleges to train in the main trades are over-subscribed and more accredited on-site training programmes should be developed to ensure more people can enter the industry and learn key skills. Incentives should also be considered to help construction employers.

  7.  Despite willingness in theory for the construction sector to work with all our young people, in practice young people with a criminal record are excluded from numerous job opportunities.

 (B)   THE PRINCE'S TRUST: AN INTRODUCTION

  The Prince's Trust is a charity that believes in young people who often don't believe in themselves. We seek out those young people that need our help the most and work with young people who struggle at school, are in or leaving care, are long-term unemployed or have been in trouble with the law. We work with young people aged 14-30 to help them get back into work, education and training. The charity has helped over 550,000 young people since 1976 and continues to support 100 more every day. In 2005-06 The Prince's Trust supported 40,805 disadvantaged young people; 75% of them moved into employment, education or training.

  The Trust launched the Construction Leadership Group (CLG) in April 2006. The CLG is seeking to have a demonstrable impact on the sector by promoting construction as a positive career choice for young people and to highlight the key themes of diversity and sustainability. It is a membership forum for organisations involved with construction and related industries with 37 partner organisations including many of the UK's largest contractors (eg AMEC, Balfour Beatty, Bovis Lend Lease, Carillion) and major clients (eg BAA).

  "Get Into Construction" offers unemployed 18-25 year olds an intensive training programme in the construction sector so that they can develop practical skills and move into employment. It is the first of a portfolio of programmes relating to the sector which will deliver pre-employment training for young people supported by The Prince's Trust. As part of the CLG commitment to The Prince's Trust, each member is committed to employing either directly or through their supply chains all the young people who complete the Get Into programme.

  The Business Programme offers 18-30 year olds the opportunity to set up their own business with low interest loans, grants and mentoring support. Most are unemployed and have been refused funding by other sources. Since 1983 The Prince's Trust has helped over 63,000 young people set up in business. Many of the businesses The Trust supports are in the construction industry.

 (C)   THE ISSUES

Employment and Payment Practices

  In the construction industry, projects need to be delivered on time and to budget. The reality is that construction employers often don't have the time or resource to invest in training and development for disadvantaged young people when they already have access to a pool of skilled workers from overseas.

  The Prince's Trust is aiming to address this problem by creating a pool of job-ready young people through working with major partners in the construction industry.

    CASE STUDY: PRINCE'S TRUST/CARILLION TRAINING PROGRAMME

    The Prince's Trust is working with Carillion who operate 17 training centres across the UK, to deliver The Get Into Construction programme.

    This programme, funded by the Construction Leadership Group (CLG), will deliver 23 Get Into Construction courses throughout 2007 in 17 Carillion training centres across the UK for almost 300 young people.

    Young people will learn about Health and Safety and get a taste for a variety of skills ranging from carpentry to bricklaying. They will gain a Level 1 ConstructionSkills Standard Learning Exercise qualification and their CSCS Card (Construction Site Certification Scheme).

    Other Get Into Construction courses are run directly on construction sites, for example we are working with Robert McAlpine to train young people on the Colchester Garrison construction site in the East of England.

  There is a clear lack of diversity in the construction industry. At 3% the number of ethnic minority workers in construction is way below the 8% in the general working population.[53] By the very nature of the young people we work with, black and minority ethnic groups are overrepresented across our programmes. In 2006-07 we supported almost 3,000 young people from black and minority ethnic groups. On the pilot Get Into Construction that we ran in July 2006, 12 out of the 16 participants (75%) were from black and minority ethnic groups.

  In the construction industry female workers account for only 1% of the workforce on site.[54] To begin to address this, The Trust has secured funding from the London Development Agency to run a women only Get Into Construction to encourage better female participation in the construction industry. This will run later in 2007.

    CASE STUDY: FEMALE PARTICIPANT SHIBHAN

Names have been changed

    24 year old Shibhan was confused about what to do to sort her life out and felt that her life was in a bit of a mess. She went to various agencies but she felt they had nothing to offer that would suit her academically.

    Prior to joining The Prince's Trust she was looking for a suitable course in business and property development but had to do English and Maths for a year to get on an access course. She felt it would be too much of a challenge so she didn't pursue this.

    Shibhan heard about The Prince's Trust Get Into Construction through the hostel she was staying in. She felt it was the break she needed as she wanted to do a course that would give her skills within a specific industry.

    Shibhan was very apprehensive coming to the recruitment day as she knew construction was a very male dominated industry. She was the only women on the course with 15 young men. She really enjoyed the programme gaining knowledge of different construction skills and experienced painting and decorating, carpentry, plastering and bricklaying. Even though it was tough, she thought it was brilliant that apprenticeships were available which made her determined to reach her goal. She also learnt how to tolerate people more.

    On completing the course, Shibhan was put forward for an apprenticeship in Painting & Decorating. Unfortunately, it did not proceed as there were concerns about wearing religious clothing with personal protective equipment. Shibhan was however grateful for the opportunity The Trust had given her and is still keen to pursue a career in property development.

  What works well for disadvantaged young people in terms of payment practices within the construction industry is being paid on a weekly basis. This helps young people to manage their budgets more effectively, rather than being paid monthly. This is particularly beneficial to young people who are coming off benefits and moving into work as well as young people who are leaving home or the care system and have more financial burdens.

Long-term capacity for delivery of large infrastructure projects on time and to budget, such as the Olympics

  The Trust is helping with capacity on large infrastructure projects by training young people in construction skills to help sustain the industry in the long-term.

  The Trust is a partner in Active Generation, to be launched in summer 2008 by the Department for Culture, Media and Sports and the London Organising Committee of the Olympic Games. Active Generation funding will enable us to expand our delivery to young people across the UK. We will do this by encouraging progression into relevant industries such as construction, hospitality and retail, particularly through our Get Into programme.

  Engaged in our Construction Leadership Group (CLG) are a number of lead and joint venture partners in major construction projects linked to the Olympics. As part of the CLG commitment they will be training and employing Prince's Trust supported young people, particularly from the five Olympic Boroughs, to help deliver on these construction projects.

  The Trust is also working with CLG partners on other major construction projects, for example Balfour Beatty in Scotland on the £400 million Edinburgh Airport Rail Link due to begin construction in 2008.

Availability of, and investment in skills

  The Prince's Trust helps disadvantaged young people gain the confidence, skills and qualifications they need to find work and we believe that all young people should have the opportunity to develop their skills.

  The Trust is investing in developing the skills required in the construction industry for thousands of young people across the UK. All CLG partners commit, over a four year period, to a minimum of funding, training and employment in the construction industry for young people.

  Places at FE colleges to train in the main trades are over-subscribed and not always appropriate or practical given the minimum literacy and numeracy standards required. Construction is an industry where learning on site is often more productive and useful to both the individual and the employer, and can lead to further accreditation. The Trust would therefore encourage the provision of more on-site training replicating the objectives of the newly launch National Skills Academy for Construction and Bovis Lend Lease's Be OnSite initiative.

  There are also barriers for 16-17 year olds getting onsite jobs because of insurance costs and the need for them to be permanently supervised. Employers are often happy to take this age range on as apprentices but not as labourers. With the proposed introduction of work-based training in the DfES consultation "Raising Expectations: Staying in education and training post-16", The Trust is keen that 16 and 17 olds do have the opportunity to secure jobs onsite and learn on the job.

  As the UK's largest construction client,[55] we believe the Government should provide incentives and funding for contractors to improve the training and skill opportunities offered onsite to workers, particularly those from disadvantaged backgrounds.

  More support should also be given to major contractors and their supply chains to help them meet the requirements laid down in Section 106 (3.10) of the Town & Country Planning Act 1990 which requires contractors to use all reasonable endeavours to procure local labour in construction and skills. Where possible, The Prince's Trust could help source labour to help contractors comply.

  The Prince's Trust is also investing in the skills of young people in the construction industry through supporting numerous young people to set up their own businesses in the sector.

  CLG funding will also go towards investing in young entrepreneurs wanting to set up in the sector. As part of this, ICI Dulux (a CLG member) will provide free training in their decorator centres across the UK for young people wanting to set up their own painter and decorator businesses.

    CASE STUDY: VINCENT JELINEK—CONSTRUCTION BUSINESS—INCREATION

    From a family of New Age Travellers, Vincent Jelinek never had a formal education and spent much of his life living in Ireland, France, Spain and the UK. After various jobs in the woodwork business, Vincent realised his dream by setting up INCREATION, a high quality design and furniture company with support from The Prince's Trust. His predicted turnover this year is £1 million.

    "I have had a more unusual life than most; my parents were New Age Travellers. I didn't attend school. My mother taught me to read when I was seven and we had a big learning environment around the home. The rest of my education was a life education.

    I started working when I was 12 and always knew I had a bit of a business mind. But I realised that if I was going to succeed in life I would need to get a more formal education. So at 16 I went to college to become a furniture maker and designer. I only applied to one college not knowing any better and luckily got accepted. They had an entry requirement of three GCSEs but I managed to get in on the back of a small portfolio, desire and enthusiasm.

    I completed my course at 18 and did various jobs before deciding to set up a business and sought the support of The Prince's Trust in Hackney. They gave me a £3,500 loan, which then helped me to acquire a £3,000 grant for machinery from the Hackney Business Venture. After six months INCREATION was born. We specialise in being a complete interior company, which means we design, manufacture and install high quality kitchens, bedrooms and bathrooms.

    In the first year we turned over £45,000 on a predicted turnover of £25,000. Our predicted turnover this year is £1 million and we employ 24 staff full time.

Ex-offenders and the construction industry

  The Prince's Trust works with four target groups, which includes young people who are ex-offenders. Despite willingness in theory for the construction sector to work with all our young people, in practice young people with a criminal record are excluded from numerous job opportunities. This makes it challenging for The Trust as we are keen that all our target groups can take part in Get Into Construction and find a job in the sector.

    CASE STUDY: EX -OFFENDER JOHN

Names have been changed

    John from London successfully completed the Get Into Construction programme and was offered a job working on a social housing project. When his criminal records bureau (CRB) check came through the offer was withdrawn. This was a great disappointment as the young man had clearly demonstrated his ability to transform his life and make a positive contribution to the construction sector. It took a further six months for him to secure alternative employment with support from The Prince's Trust.

Recommendations to the Committee for inclusion in its report

    —  More sustainable funding needs to be made available for successful initiatives which are training young people in the construction industry, such as The Trust's "Get Into Construction".

    —  Successful initiatives which are helping to skill-up young people in the industry should be heralded as good practice so that they can be duplicated across the sector.

    —  Clear guidelines and benchmarks should be developed for improving diversity across the sector and examples of best practice communicated widely.

    —  The Government needs to support the construction industry develop accredited on-site training programmes for young people so that they can learn the skills on the job that are required within the industry. In particular support needs to be given to small construction businesses, including sole traders, wanting to take on apprentices.

    —  As the UK's largest construction client, the Government should provide incentives and funding for contractors to improve the training and skill opportunities offered onsite to workers, particularly those from disadvantaged backgrounds.

    —  More support should be given to major contractors and their supply chains to help them meet the requirements laid down in Section 106 and where possible skilled young people could be referred from Prince's Trust programmes.

    —  Clear guidelines need to be developed for employing ex offenders and capitalising on their skills.

3 May 2007







53   Construction Skills' Progress & Plan, April 2007. Back

54   Construction Skills' Progress & Plan, April 2007. Back

55   Construction Skills' Progress & Plan, April 2007. Back


 
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