Supplementary memorandum submitted by
The Highland Council
1. THE NUMBER
AND PROPORTION
OF WORKLESS
HOUSEHOLDS IN
THE REGION
The oral evidence provided stated that the employment
deprived population of the region is 13,500. The source of this
information is the Scottish Index of Multiple Deprivation (2006).
The Scottish Household Survey does provide information on the
number and proportion of workless households, but the definition
includes every household where the head of the household is aged
16 years or older. It therefore includes the retired population
and this inflates the figures, particularly for rural Highland
where a higher proportion of the population is older. For Highland
the 2003-04 data identifies 33,098 households, 35.7% of all households
in the region. Clearly this is inflated to the extent that it
is not usable. We have looked at how we can refine the survey
data for our area to take into account those of working age but
the sample size is too small (around 1,000 households) to make
the answer robust.
2. AVERAGE HOUSEHOLD
INCOMES
On the average incomes for the Highland population
the oral evidence provided quoted £18,800 gross average annual
pay from the Annual Survey of Hours and Earnings and that we did
not have information on annual average incomes. Having checked
all data sources available to us I can confirm that national data
on household incomes is available from one source, CACI Paycheck.
The provider of that data advises that "Paycheck profiles
all 1.6 million postcodes in the UK using information on over
four million households from lifestyle surveys and Census and
Market Research data. It is available as a mean, median and mode
figure for each postcode or as a PayCheck type". It claims
to have information from 16% of households in the UK.
The most recent figures from this source (2005)
show the annual average household income for Highland at £28,825
compared to £29,909. The median figures are £24,692
and £25,248 respectively. Within the Highland area there
are significant variations in the average household income from
this source with some parts of rural Sutherland the average household
income figures are 75% of the Highland average. In the Bonar Bridge
are visited by the Committee members, the average household income
is 88% of the Highland average.
Although this data source corroborates other
data showing that Highland income levels are lower than the Scottish
figures, historically the Council and its partners have tended
not to rely on this source of information because of concerns
about data reliability. Detailed information is not available
from the provider on the surveys used, the geographical coverage,
and the way in which profiles are built up or the analytical techniques
used to cope with varying coverage.
3. INCOMES DATA
GENERALLY
The difficulties in quantifying the extent and
distribution of poverty, in terms of incomes, in the region are
clear from the oral evidence provided and from this supplementary
evidence provided. Committee members will no doubt recall the
evidence from Philomena de Lima (in answer to question 71) which
highlighted academic concerns about the way in which national
surveys are under-taken and the under-representation of samples
in the Highlands and Islands.
It is worth noting that the Scottish Index of
Multiple Deprivation (the source used most often by the Scottish
Executive) itself measures income deprivation not from incomes
data but from take up of certain benefits, namely: Income Support;
Pension Credit; and Job Seekers Allowance. It seems that the lack
of reliable incomes data is not peculiar to the Highlands or to
the Highland Council.
The sense of frustration showed by some Committee
members from the lack of reliable data is shared by the Council
and its partners. It would be extremely helpful if the Committee
could consider how its enquiry may press for better incomes data,
improvements to sampling methods in the Highlands and Islands
and to consider whether there is a role for information to be
provided from any other Government source including the Inland
Revenue.
4. PROMOTING
TAKE UP
OF PENSION
CREDIT AND
THE WORK
OF THE
COUNCIL'S
BENEFITS PROMOTION
TEAM
The oral evidence provided explained that the
majority of the Council's resources for promoting benefit take
up are routed through the independent advice network, amounting
to almost £1 million each year. Service Level Agreements
are in place with the network of nine providers across the region,
also detailed by the evidence provided by Carol Greer. In addition
to this the Council has a small dedicated in-house resource comprising:
— A money advice team (five accredited
money advisors plus one accredited manager).
— A Benefits Maximisation Team (two
staff members). This team has exceptionally high skills in all
welfare benefits and completion of applications for all welfare
benefits, including Pension Credit (PC), Attendance Allowance
(AA), disability benefits etc. In the last year the team achieved
total gains of £626,322 the following take-up:
|
| | AWARDS AND GAINS BY BENEFIT (1)
|
CTB
Awards | CTB
Gains
| HB
Awards |
HB
Gains | PC
Awards
| PC
Gains | AA
Awards
| AA
Gains |
|
| 164 | £162,108
| 49 | £108,040
| 40 | £88,468
| 23 | £64,411
|
|
|
| | AWARDS AND GAINS BY BENEFIT (2)
|
DLA
Awards | DLA
Gains
| CA
Awards |
CA
Gains | Other
Awards
| Other
Gains |
Total
Awards | Total
Gains
|
|
| 16 | £54,855
| 14 | £20,342
| 47 | £128,099
| 353 | £626,322
|
|
The work for this team is generated from self-referrals from
customers, with very strong links to Social Work and Housing Services.
The team also receives scans from DWP containing information about
customers with potential entitlement to particular benefits. The
Maximisation Team hold weekly surgeries, eg in Merkinch (visited
by the Committee), visit customers in their homes, provide talks
to community groups and community councils, run road shows as
well as meet customers in Service Points. These two posts are
currently funded by DWP but the funding ends in March 2007. The
Council is currently considering whether both posts can be mainstreamed
although currently the Council is reducing staff (20% of management
and 5% of other staff) to meet budget targets.
— 3 Visiting Officers to provide the specialist
Housing Benefit (HB) and Council Tax Benefit (CTB) advice including
assistance with completion of application forms for various benefits
such as pension credit. Visiting Officers visit customers in their
homes.
— Front-line advice on Housing Benefit and Council
Tax Benefit is delivered also through the Service Point Network
staff (37 local offices) and in the Service centre (telephony
service).
— * Expert advice on Housing Benefit and Council
Tax benefits and general welfare benefits advice is available
through eight Area Finance Teams.
5. SKILLS SHORTAGES,
GAPS AND
APPRENTICESHIPS IN
THE CONSTRUCTION
SECTOR
The summary findings from the study of construction and building
services contracts in the Highlands and Islands is appended. It
highlights shortages in nearly all buildings trades and gaps in
managerial skills. It includes a number of recommendations including
training.
I can confirm that where Modern Apprenticeships are in place
with contractors and indeed through the Council's own scheme (which
recruits six to nine apprentices each year) all apprentices attend
local colleges for construction skills training.
6. THE COUNCIL'S
APPROACH TO
WORKING WITH
COLLEGES TO
MEET SKILLS
GAPS AND
SHORTAGES IN
ITS WORKFORCE
The Council's current approach to meeting skills gaps and
shortages in labour include:
a. Working with Inverness College and CITB to deliver
craft training to six to nine apprentices each year in craft construction
disciplines.
b. Recruiting Motor Vehicle apprentices.
c. Training and certification to meet SSSC Registration
requirements for Social Care workers is delivered mainly in-house,
with some programmes through Inverness College and North Highland
College.
d. Basic Skills support including Return to Learn and
Improve Your Study Skills are delivered by Highland Council through
the Workers Education Association (WEA) in partnership with NHS
Highland.
e. The development of basic ICT skills and competences
for staff is delivered in-house, so that we can address geographical
barriers.
f. Working in partnership with Northern College in Aberdeen
to develop a distance learning, part-time teacher training programme
to develop local teachers.
g. A two year programme of training unqualified staff
to become Social Workers and also have a programme of "Practitioner
Trainers" to provide training to the Council's Home Carers.
h. Working with Inverness College to provide SVQs in Early
Years Care.
i. Working with Queen Margaret University, Edinburgh in
the development of their new Executive Masters in Public Service
Management.
j. The Council has also had discussions with the University
of the Highlands & Islands Business School and Open University
about the possibility of accrediting the Management Competency
Framework, but this is early days. There has also been discussion
with UHI about relevant CPD modules for managers, but this is
under development.
k. Working with Sabhal Mo"r Ostaig (the Gaelic college)
to provide a distance learning course for staff wishing to develop
their ability to work with the public in Gaelic.
l. The Council has a Youth Recruitment Programme (currently
being reviewed to ensure compliance with Age Discrimination Legislation).
This programme promotes recruitment and training for those aged
between 18-25 and includes apprenticeships, other SVQ training
and has links to specific graduate recruitment programmes such
as that within the Property & Architectural Service. The review
of the Youth Recruitment Programme will also include the setting
up of bursaries to support young people from Highland to gain
work experience within the Council and qualify in areas of skill
shortages.
HIGHLANDS AND ISLANDS CONSTRUCTION AND BUILDING SERVICES
CONTRACTS STUDY
KEY HIGHLIGHTS
OVERVIEW
— The current buoyancy of the construction and building
services sectors in the Highlands and Islands can be attributed
to a growth in the demand for public sector investment in new
buildings and infrastructure and private sector-led commercial
and housing developments. This has resulted in a demand for relevant
skills and labour.
— The construction and building services sectors
account for 7% of total employment in the Highlands and Islands
compared with Scotland, 5% and GB, 4%.
— In the Highlands and Islands there is a high proportion
of small companies within these sectors, with 94% employing less
than 10 persons.
— It is estimated that around two-thirds of businesses
have an annual turnover of less than £250,000.
CURRENT AND
PROPOSED PROJECTS
OVER THE
NEXT FIVE
YEARS
— 1,035+ capital and repair and maintenance projects/programmes
have been identified for delivery over the next five years, but
not all had associated costs.
— Total employment in the construction and building
services sectors in 2010 is estimated to be around 15,500 FTEs—an
increase over the next five years of at least 2,700 FTEs from
at least £1.6 billion of additional capital and repair and
maintenance spend.
— At least 950 FTEs will be created and at least
1,720 FTEs will be safeguarded.
LABOUR AND
SKILLS REQUIREMENTS
— Labour shortages, leading to recruitment difficulties,
exist for the following occupational groups: bricklayer, painters
and decorators, plumbers, electricians, plasterers/screeders,
plant and general operatives, traditional trades (stonemasonry
and cornicing), and managerial positions.
— Skills gaps are most significant at the managerial
level, including customer care, interpersonal and team building
skills allied closely to managerial skills.
— Skills shortages, rather than skill gaps, are
the most significant factor that could compromise successful project
delivery over the next five years.
— 78% of respondent employers/property developers
to this study are currently experiencing recruitment difficulties—of
these, 17% are experiencing significant recruitment difficulties
and 61% had some difficulty.
RECOMMENDATIONS TO
ADDRESS LABOUR
AND SKILLS
SHORTAGES AND
GAPS
— Recommendation 1—to devise a Highlands
and Islands Construction and Building Services strategy and plan
to address skills and labour issues.
— Recommendation 2—for the public sector
organisations to continue to promote and raise awareness of training
processes and procedures and to assist companies to address current
skills shortages and gaps. This includes:
— targeting female as well as male recruits, older
people and young school leavers.
— employing migrant workers, coupled with the need
for an appropriate structure and process to accommodate and assist
migrant workers in the Highlands and Islands.
— Recommendation 3—for the public sector
organisations to continue to encourage Highlands and Islands construction
and building services employers (especially smaller employers)
to participate in training of new entrants and upskilling existing
employees.
— Recommendation 4—for all companies
and public sector support agencies to continue to work in partnership
with the Highlands and Islands construction and building services
training providers.
— Recommendation 5—for the public sector,
in recognition of the size and composition of companies in the
Highlands and Islands area, and the scale of the projects coming
on stream, to look at the way it procures and packages construction
and building services tenders to encourage local smaller business
to bid for contracts.
— Recommendation 6—for local construction
and building services companies to actively consider joint working
to enable them to put forward credible bids for the projects coming
on stream over the next five years.
Carron McDiarmid
The Highland Council
23 January 2007
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