Written evidence submitted
by Wales Council for Voluntary Action
INTRODUCTION
WCVA is currently delivering two Future Job contracts.
The first contract for 300 jobs began in October 2009 and a second
contract for 1800 jobs was awarded to March 2011. To date we have
placed over 600 young people into work, engaged with and supported
over 100 third sector employers and currently have over 300 vacancies
available.
WCVA's Future Jobs contract is distinctly different
from its local authority counterparts in that it is a region wide
and base around a wide-ranging consortium of third sector organisations.
The contract was developed in consultation with the third sector
and the assembly government with the aim of securing even the
smallest organisation involvement.
One of the perceived benefits of the FJF to young
people and the employer alike is that they receive proper wages
and have had the same terms and conditions as other employees
thus being treated the same, learning many workplace skills such
as time keeping, work ethic, confidence, specific job skills,
managing money etc. If they have had problems then the employer
has been able to tackle the problems whilst they are at work,
so it is real and practical instead of theoretical in a training
course.
1. THE EXTENT
TO WHICH
THE FJF HAS
SUCCEEDED IN
MATCHING NEW
WORK EXPERIENCE
OPPORTUNITIES TO
YOUNG UNEMPLOYED
PEOPLE
In WCVA's experience the consortia approach has worked
and FJF has successfully match work experience opportunities and
young people in local areas and deliver benefits for both the
participating employers and the young people. WCVA provides in
depth advice and guidance to employers in the scheme concerning
the suitability of their vacancies, recruitment processes and
the client group.
Opportunities created include: Youth Worker, Actors,
Website Admin, Estates Worker, Sports Leaders, Bird of Prey Handlers,
Community Safety Wardens, Outreach Workers alongside the usual
vacancies in admin, recycling operatives, warehouse type employment.
Early indications are as well that these opportunities
have matched the individual's expectations and to date only 12.5%
have left their employment before the 26 weeks on the first contract
and to date it is zero on the second contract.
WCVA has worked hard to develop links with the Welsh
Job Centre Plus regions and to develop mutual understanding about
the local labour market including numbers on the register to ensure
that the aspirations of employers participating in the scheme
and individual clients are managed with a realistic picture of
their locality.
This investment is essential for these type of schemes
and has paid dividends by creating new jobs within third sector
organisations, many of which provide interesting, unusual and
fulfilling jobs for the young people employed under the scheme.
2. 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
Even in the early stages of the scheme, WCVA's experience
is that FJF has a number of important strengths.
Strengths:
- The programme is straightforward with minimal
paperwork. This makes it easy to understand both for employers
and jobseekers alike.
- The scheme has provided a welcome boost to Young
People who are unemployed; engaging then in a workplace environment,
enhancing their skills, learning and employability and in some
cases resulting in a job after the scheme has ended.
- From WCVA's perspective, the programme has also
created some very interesting and aspirational employment.
- It has supported the development of some third
sector organisations and acted as a testing ground for roles within
their business; much of the work has been community focused and
therefore this has impacted on the communities these young people
are from. For example one employer -a social enterprise - has
created 18 jobs in recycling garden waste.
- The employees have benefitted from on the job
training in practical and soft skills.
- They have acquired a trade as well as learnt
time and financial management skills. (For example making sure
they get to work on time and managing their finances until the
next pay cheque).
Such initiatives have the potential to create a win-win
- engaging individuals in socially useful activities, building
the capacity of the third sector as well as benefitting communities.
The experience of implementation on the ground has
also exposed some weaknesses. These are highlighted below.
Weaknesses:
The process of tender selection lacked transparency
and within Wales appeared to counterintuitive and not strategically
managed working against the early consultation work WCVA carried
out with the Assembly Government, JCP and Local Authorities. As
stated earlier Wales carried out consultation between all the
relevant stakeholders to determine a "team Wales" approach
to FJF. As a result of this discussion WCVA bid for and secured
a pan Wales contract based on the third sector's capacity with
challenging (but achievable) targets in the first round of contract
awards. WCVA prides itself on its partnership approach and the
target outcomes were based on an estimation of the employment
opportunities that could be achieved by engaging with the sector
across the region. However it became clear that in subsequent
bidding rounds that the original information and estimates were
ignored and other bids were allowed in areas where there was already
oversubscription often creating duplication and confusion within
JCP and their localities often eroding the sector's capacity to
meet the targets set.
The 28-day conversion rate - from a vacancy coming
in to filling the position is unrealistic. Experience shows that
it takes one to two weeks for referrals to reach employers. Employers
then administer their own recruitment processes, which can take
time (WCVA has given a great deal of advice and guidance around
this issue). For some roles, CRB checks are necessary and these
can take a number of weeks. In most cases, the process takes a
minimum of two months, therefore creating time lags and affecting
performance according to the targets set.
As the expectation around a 28 day conversion rate
is passed onto the employer this can create pressure when they
obviously want the right people for the job and do not want to
unnecessarily rush the process to hit an externally driven target.
3. THE LIKELY
IMPACT OF
THE DECISION
TO END
THE FJF IN
MARCH 2011 RATHER
THAN MARCH
2012
Recent statistics (published by the National Assembly
Wales and collated by Members Research Service using office for
National Statistics) show that unemployment in the UK has risen
to 7.8%. In Wales, it stands at 9%. Unemployment among young people
is much higher - almost half of unemployed people in Wales are
under 25.
The National Assembly for Wales Enterprise and Learning
Committee recently conducted its own enquiry into the problem
of NEETS (young people not in education, employment, training
or skills). A range of organisations submitted responses and the
Committee is due to publish its report in the autumn. In general
the submissions emphasised that action needs to be taken to close
the policy and practice gap, and address the needs of young people,
especially NEETs. In Wales, where unemployment is higher than
the national average, and where youth unemployment is rising at
a rapid rate, there is an urgent need for innovative approaches
to job creation and to tackling unemployment.
The think tank IPPR has recently published a report
arguing that welfare reform, and the work programme, however well
conceived, will ultimately fail if there is not an effective strategy
for job creation and growing permanent jobs in the economy. International
experts in the IPPR report argued that unless there are jobs for
people to go to, welfare-to-work programmes will hit a brick wall
and will be unable to support people into work. It also concluded
that far wider efforts in job creation are required.
The Future Jobs Fund has been at the forefront of
job creation. It has been a testing ground for organisations to
assess the medium term viability of a post, and growing organisational
capacity. During this period of "viability" testing
the individual is also benefiting from invaluable work and life
experience. Even if their future does not ultimately lie with
the organisation, they can leave it a more enthusiastic, highly
motivated individual with enhanced skills through "experiential
learning" that will help them to find subsequent employment.
In many cases the client group does not always have
the experience and background to go for many of the jobs advertised.
Many have never worked and therefore the Future Jobs Fund has
been a lifeline and a springboard into future employment.
WCVA itself has employed four young people within
different departments. One of these is working as an Administrator
on the Future Job Fund Team. This young man had been to University
but had left, deciding the course was not suitable for him but
not knowing what he wanted to do. Remaining unemployed for nine
months he struggled to get interviews and when he did was up against
high numbers of applicants and people with experience. He is making
excellent progress with us, gaining confidence and making a real
contribution to processes and development and we are looking to
make him a permanent member of WCVA staff.
Action for Children in its evidence to the Assembly
Enterprise and Learning Committee noted that there is a huge shortage
of work placements, and a shortage of schemes matching the interests
of young people. Work Based Learning is criticised by Action for
Children as rarely resulting in a job or move off benefits for
young people.
In contrast, an FJF activity appears to provide more
substantive learning opportunities and is more likely to lead
to positive job outcomes at the end. With this in mind, WCVA believes
that the decision to finish FJF a year early brings with it risks
and may also represent a missed opportunity.
The growing problem of NEETS is one that policy makers
and those working in employment related support services cannot
ignore. The FJF offers interesting and aspirational work opportunities
as well as "experiential" learning for these target
groups. It is unclear what can or will replace this in the short
and even medium term.
The new Work Programme due to be operational
by Summer 2011 will take a while to embed. The Future Jobs Fund
could have continued to impact on the benefit register and on
young people's lives whilst the Work Programme was being rolled
out in the early stages. By retaining the FJF through to its full
term, the Work Programme would have benefited from a period of
transition delivering benefits to the client groups, to participating
employers, to the government in reduced benefit rates, and also
providing invaluable learning to inform prime contractor's delivering
the Work Programme on initiatives to reach young people in fresh
ways.
The decision to terminate the scheme early has other
disadvantages. The programme has stimulated large demand from
existing and new employers to take advantage of it and many are
now disappointed to hear that it is to finish in March. There
will be many young unemployed and organisations that will miss
out on this scheme as a result.
The learning and investment made in JCP relationships
and the employer infrastructure is also at risk of dissipating
because of the emergence of a gap in provision between now and
implementation of the Work Programme in the summer 2011.
At a time when the problem of NEETS, alongside high
levels of unemployment among graduates, the absence of effective
programmes that support young people into work is a major problem.
4. 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
The Work Programme proposes to give greater freedom
to suppliers to give people the support they need, rather than
a prescriptive one-size-fits-all approach. In theory, therefore,
supported employment schemes such as Future Jobs fund could be
included in the new Work Programme.
It appears from early discussions that the time span
between FJF finishing and the Work programme starting could be
three months. For existing Flexible New Deal Providers early indications
say that they should start by April 2011. But for the new Prime
Contractors this is likely to be June 2011. As a result there
is a real possibility that this client group will not have any
provision and could potentially be lost in the system until picked
up by Work Programme providers. This needs to be taken on board
and provision picked up by JCP sooner rather than later if the
target group of NEETS are strategically addressed.
WCVA would wish to emphasise the importance of a
strategic approach developed and applied locally. The needs of
young people need to be prioritised and mapped, and provision
developed at the local level if programmes are to be effective.
FJF has worked because it has been supported employment
and has served as a transition into work for many of the young
people that have been though the fund.
It remains to be resolved whether prime contractors
will have the capital, resources and commitment to introduce these
sorts of schemes and more experimental approaches. It is also
not clear that how they will transfer risk or pay partners and
suppliers.
The Work Programme if it is to be successful will
require prime contractors to embrace a partnership approach working
with the third sector and smaller, more specialised, local organisations
to deliver employment related support which meets the needs of
young people.
WCVA's experience of administering the FJF means
that as an organisation we are well placed to play this brokerage
role with the third sector, as we have built capacity, and have
the networks in place at the local level to support in the delivery
of the services required.
WCVA has been at the forefront of innovation with
its existing schemes. As an organisation, we recently combined
European funding for the ILM with the Future Jobs Fund thus enabling
us to create 10-month extended placements for individuals. Through
the partnerships we have built with Housing Associations in Wales
we have succeeded in helping to create work in the re-usable energy
field. Housing Associations are able to take an individual through
a 10-month placement learning real practical skills for the future.
These young people will then be well placed for the modern apprenticeships
scheme.
Many businesses are losing highly skilled staff through
natural wastage and unable to replace because of the economic
climate at the present time. Therefore linkages into apprenticeship
schemes would be the next logical step forward for individuals
as this type of activity creates enthusiastic and highly motivated
individuals with a small but valuable employment history that
should make them more attractive to employers. It is therefore
imperative that skills programmes in Wales are aligned to work
in parallel with the new Work Programme and that employers are
incentivised to become involved in apprenticeship programmes.
If programmes and initiatives are more effectively
joined up, the client will benefit from a seamless, integrated
and supported journey from welfare to work. Government, employers
and taxpayers will also benefit through joined up approaches the
skills base that has been built up will be lost to individuals,
employers and government. Society as a whole also benefits from
growing the size of the third sector, and the range of meaningful
and socially useful work.
SUMMARY
For WCVA the Future Jobs Fund contract has been a
challenging contract to manage and we are learning much along
the way.
The main challenge has been has been the apparent
lack of co-ordination and strategy in the bidding and contracting
process. This has led to frustration, duplication and pressure
to meet targets. However with the WCVA ethos underpinning partnership
work we have managed to steer through this and in fact work with
not against other FJF providers.
WCVA's unique position has allowed us to develop
a business model that has enabled us to innovate and create synergy
with other European programmes thus creating longer-term interventions
for many young people, which are a huge advantage to both the
individual and organisations.
Individuals who are furthest from the job market
will need long-term support to move them towards employment over
sustained periods. In order to reward progress towards the labour
market for long-term unemployed and the most disadvantaged groups,
a measure of improved employability that is widely agreed upon
will be needed
Placing people in real and supported employment
provides individuals with the self-esteem, raises their aspirations
and self-belief that they are employable not just being dumped
or discarded on yet "another training scheme".
WCVA would argue that by working in partnership with
the third sector and providing real employment is a cost effective
way of dealing with the multiple barriers individuals face and
produces a triple benefit; helping individuals, enabling third
sector organisations to grow capacity and benefits society in
supporting the growth of socially useful and socially responsible
work in the economy.
The Rowntree Foundation undertook one of the most
thorough assessments of the ILM programme in 2000. They looked
at the cost effectiveness of such provision compared to mainstream
schemes like New Deal. It was found that their high success rate
in assisting long-term unemployed meant that they provided "equivalent
or better value for money" than alternative schemes.
The WCVA North West Wales scheme cost per person
in 2006 at the finish of the first scheme was £5,622 providing
excellent value for money. It achieved a job entry rate of 63%
again exceeding other welfare to work programmes including Employment
Zones and New Deal. On the present scheme, which is part way through
its delivery, the cost per head is running at £5,280.
The Future Job Fund, which has many similarities,
cost per person is set at £6,500 but many employers do not
claim the full amount back, and could be argued is as cost effective
as any other scheme that has been delivered.
Programmes similar to Future Jobs will be vital in
the new Work programme particularly given the client groups that
the new programme will need to cater for. WCVA's experience has
shown that programmes such are far more successful in overcoming
the multiple barriers individuals face than the "training
schemes" of the past.
We would therefore urge DWP to encourage prime contractors
to invest in this type of activity and support prime contractors
to create mechanisms through which solutions such as Future Jobs
Fund can be scaled up, replicated or learned from. This will mean
issuing contracts that reward steps towards achieving job outcomes,
and which focus on the long term value to be gained from the client
journey, not just the hard outcomes themselves. Prime contractors
will need to take this approach on board if they are to maximise
the value of such approaches and work successfully in partnership
with third sector organisations.
Finally the evaluation of FJF by the DWP also needs
to be given priority as does the role for independent evaluation
of such schemes in ensuring that the success, and learning from
FJF is understood both by the DWP and Job Centre Plus but also
the prime contractors delivering the Work Programme as well as
the organisations who have participated in such schemes.
WCVA looks forward to a summary of this enquiry and
to hearing the experiences of other FJF providers across the UK.
23 August 2010
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