Youth Unemployment sand the Future Jobs Fund - Work and Pensions Committee Contents


Written evidence submitted by Cute Dog Consulting Ltd

We submit our evidence regarding the success of FJF in terms of our own experience as both employers and potential providers of FJF service, as well as partners of 3SC.

Our evidence follows your guideline headings:

  • The extent to which the FJF has succeeded in matching new work experience opportunities to young unemployed people.

We consider that the FJF has been instrumental in matching new work experience opportunities to young unemployed people to an unprecendented level. We have 23 social enterprises which we can name, in London and the South East, who have provided a brand new job for under 25 year old benefit claimaints who now have experience of working in a profit making community based organisation and an understanding of what constitutes a social enterprise. In the case of three young people, they have expressed the wish to start their own social enterprise, and at the end of their FJF placement we at Cute Dog will be supporting them (via SEEDA funding) to write a business plan and start their own business. This would never have been possible without FJF funding and without the increased confidence and knowledge levels of these young people. One young person is starting a community theatre group, another an event organising company and the third an internet marketing company. All are aiming to employ other marginalised young people, but fear that without FJF funding continuing, they will not be able to fund or resource these staff posts as a start up.

  • Strengths and weaknesses of the FJF programme from the perspective of providers (including in the third sector), employers and young unemployed people, and particularly in relation to the long-term sustainability of employment opportunities.

Strengths were certainly the employer engagement possibilities. We had "something to tell" employers and were able to engage with them in a way that Job Centre Plus was not doing. Smaller community based organisations were able to create jobs and give young people the chance to prove themselves, in a way that would not have worked without our coaching and mentoring service, and the wage subsidy for six months. One of the other strengths of FJF was the clear and uncomplicated offer; employers "got it" very quickly and were happy with the prompt service, filtered application process (so they got really high levels of candidates applying for their jobs) and the 26 weeks of wage assistance. In terms of sustainability we can site 3 employers in the South East of England with whom we have worked who have kept their FJF placement on and in fact one employer has told us that this single job has contributed to a 20% increase in business for his furniture restoration project. He is delighted.

Weaknesses - few - the DWP made this an easy to adminster and realistic programme with good payment points and realistic paperwork. The only weakness was the marketing of the programme. Not one employer we spoke to had heard of the programme until we mentioned it. Having said that though, it would be a shame to waste any of the valuable funding on marketing and I think we could rely on existing providers to market the programme based on current success and satisfied employers and beneficiaries.

STRENGTHS OF THE FJF FROM THE PERSPECTIVE OF PROVIDERS.

The likely impact of the decision to end the FJF in March 2011 rather than March 2012

We can only comment as potential deliverers of FJF via the 3SC contract, as we had an allocation to deliver (and 50 jobs created) when the FJF extention to 3SC was suspended in May 2010. We still have these jobs ready and waiting and the job descriptions written. We cannot match the jobs and employers to young people without an extension to the contract. Furthermore we were partners in a successful bid from Faith in the Future in Stoke Newington, London, where we had 30 jobs to fill. We engaged with employers in the hope that our bid would be approved, and have still the interest from employers and the young people targetted, as well as engagement made with the local Job Centre. The impact of the decision to end FJF in March 2011 rather than March 2012 will mean the loss of at least 80 jobs Cute Dog has already created that remain unfilled due to lack of capacity within the 3SC and other supplier's contracts.

Furthermore we believe that there will be an impact on the growth of the economy. The employers to whom we spoke when marketing FJF and when helping them to create jobs all said that without the input of FJF support and wage subsidy, they were reluctant to "run the risk" of engaging with marginalised young people and raising their hopes in case they could not meet their wages. These employers will not create jobs, in our opinion, without the support of specialist FJF contract holders, and financial incentive. This was beginning to have a significant impact on our growth out of recession, even in the smallest terms.

  • How the transition from FJF to the Work Programme will be managed, including the part to be played by the Government's proposal to fund new apprenticeships.

We cannot comment on the transition from FJF to Work programme as we do not fully understand the Work offer. However we know that employers are not as keen on apprenticeships as they were on FJF due to the wage aspect of only £95 and the lack of support from benefit to wage for young people. They were also concerned about the need to be absent from the workplace to attend college, and much preferred the "short sharp" intervention of FJF in terms of them being able to "test out" young people in the workplace for six months, and fast track them with their own, specific, learning programme. Apprenticeships seem to be the focus of this new Government, and they really don't meet the need of the average sole trader, SME or community organisation.

These are the opinions of Cute Dog Consulting as a social enterprise, employer focussed training provider, partner in an FJF contract and employer ourselves of marginalised young people in the SE. We would be happy to expand upon them or take part in a wider consultation.

6 August 2010



 
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