Select Committee on Public Accounts Thirty-Fourth Report


Conclusions and recommendations


1.  The employment gap between ethnic minorities and the overall population is unacceptably high at 14.2%. Despite the Department spending £40 million annually on pilot schemes to narrow the gap, it has decreased by only 2.8% in the last 10 years.

2.  The Department's current aim to make further progress in increasing ethnic minority employment lacks quantification and is not sufficiently challenging. Unlike for the period 2005-2008, the Department no longer has a specific target to increase ethnic minority employment. Its aim remains, however, to reduce the employment gap by 1% for each of the next three years. This is less challenging as the Department is no longer required to discount the impact of prevailing economic conditions. The Department should set a more specific target, which is both challenging and realistic and can influence how resources are best deployed in terms of their potential to promote ethnic minority employment.

3.  Lack of continuity in the Department's strategy to promote ethnic minority employment has reduced its effectiveness. Between 2002 and 2006, a series of pilot projects to increase ethnic minority employment were trialled but not continued or rolled out nationally. It is not clear whether the lessons from these pilots have been incorporated into the Department's wider focus on disadvantaged groups. The Department needs a longer term, clearly articulated strategy to support ethnic minority employment, which is more consistently implemented and monitored against key milestones.

4.  Only seven of the fifteen City Strategy Pathfinders have specific targets aimed at reducing ethnic minority employment gaps. As a condition of funding, all City Strategies for areas with significant ethnic minority populations should include measurable targets to demonstrate their impact in tackling the employment gap.

5.  Jobcentre Plus's personal advisers do an impressive job in helping ethnic minorities find employment, but they need better support from Jobcentre Plus. Despite considerable training opportunities and dissemination of good practice, personal advisers often do not have sufficient time or incentives to make use of these important aids to their work. As part of its performance management process, Jobcentre Plus should set a minimum amount of time that personal advisers need to spend on training and accessing good practice, and reflect this in the personal advisers' workload.

6.  The scaling back of outreach activity by Jobcentre Plus increases the risk that the hardest to reach unemployed ethnic minorities will become more isolated. The ending of Ethnic Minority Outreach in 2006 reduces the ability of Jobcentre Plus to engage with economically inactive ethnic minorities and help them get closer to the labour market. Outreach provision should reflect the needs of the local community and is best assessed locally. Jobcentre Plus managers should report periodically to district managers on their outreach activities and the extent to which they have met local needs.

7.  Discrimination remains a major barrier to employment. Jobcentre Plus should independently assess ethnic minority awareness of its procedures for reporting suspected cases of discrimination. The Department should also explore the possibility of encouraging employers to obtain a recognised `Kitemark' certifying that they are an equal opportunities employer.

8.  The quality of some New Deal training needs to improve, in particular, English language teaching for Speakers of Other Languages. Despite the need for high quality English language training, Jobcentre Plus has not addressed the shortcomings it has identified in the quality of training provided. The Department needs to satisfy itself that all its contracts with English language training providers specify appropriate teaching standards and that, where these are not met, penalties are imposed. The Department should set out the results of this review and the overall quality of teaching achieved in its Annual Report.


 
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Prepared 17 July 2008