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


Written evidence submitted by Acacia Destiny

SUMMARY

Acacia Destiny CIC has been working with the Future Jobs Fund to provide employment opportunities in the Child Care and Health & Social Care sectors in Stoke-on-Trent, Staffordshire. From our perspective, the Future Jobs Fund has been a great success, gaining young people employment through training and work experience. Operating in a "hot spot" area, there was a split of 77% 18-24s and 23% over 24s employed. Overall, Acacia has a 100% performance rate and an 87.5% employment rate at the end of the six month programme.

STRENGTHS OF THE FJF PROGRAMME

The FJF scheme has clearly enabled people to get into work, gaining experience and regaining some self belief. The candidates we processed would not have found employment or training without the FJF. We were surprised by the number of qualified individuals who were unable to find employment without the FJF programme.

Ongoing contact with the candidates has shown us that the individuals have realised the benefits of employment and have welcomed the opportunity to prove and better themselves. They have found job satisfaction working in the care sector. Most had wanted to work in this sector before the FJF programme, so the FJF has not only clarified their career goals, but has opened the door for them.

Under Acacia's programme, the FJF has given candidates a qualification as a building block for further development. This has not only increased the individual's confidence and improved their employability for the future, but has benefited the wider community and the care sector generally by ensuring better qualified employees are now working in the sector.

A broad cross-section of the community has been represented within the individuals who have gained employment - different personalities, genders and ethnic backgrounds have been offered employment in the care sector through the FJF programme. Around 20% of the individuals employed through the FJF have been male - quite impressive in a sector that nationally employs 13% males and locally just 12% males (NMDS, July 2010).

FJF has also created jobs within Acacia. We now have 12 full time staff to work on the FJF programme, two of whom are employed through the FJF themselves who have recently secured full time employment with us.

WEAKNESSES OF THE FJF PROGRAMME

Acacia have tried to organise the weaknesses encountered into three broad areas: the candidates, JobCentrePlus and funding.

The candidates

In the first six months, we had over 400 candidates referred to us from JCP. Of these, only 25% were suitable for employment in the care sector. A further 29% were unsuitable for various reasons (attitude towards the role or employment, criminal record etc) and 25% failed to attend interviews with us or employers.

CRB checks were a particular issue within this sector. Despite asking at interview stage if there were any issues that may come up on the CRB, some candidates had employment offers withdrawn when CRB checks came back. The length of time it took for CRBs to be reported back caused delays as well. Whilst some were returned in a week, most took three to four weeks. In extreme cases, it was more than four weeks.

JobCentrePlus

The importance of the role played by JCP in selecting and informing suitable candidates for the FJF cannot be understated. However, due to pressures of both time and targets, this became a weakness.

We felt that there was a lack of understanding of the FJF which led to JCP staff referring to the FJF as a "six month placement". This often made candidates reluctant to commit; when Acacia changed the terminology to six months employment, including training to NVQ level 2 stage and the real possibility of continued employment at the end of the programme, the majority were far more enthusiastic. In the end, Acacia produced a combined information and application pack for use in JCP at referral stage to help both the staff explain and the candidates understand what the FJF programme was about.

Improved careers advice would also have benefitted the referrals process and the candidates enormously. Some candidates were referred to us with no understanding whatsoever of what the role entails.

Funding

Some candidates were put off when they compared what they would gain in wages against what they would lose in benefits. Perhaps this could have been negated by allowing more than 25 hours per week to be funded by the FJF.

We also found that a number of the smaller employers in our region were likely to terminate employment at the end of the FJF programme because they could not afford to sustain the additional jobs created by FJF. Further funding to FJF employers for a period of time after the end of the FJF programme would have increased the success rate of the programme for the longer term.

Another weakness was the transfer of wage compensation from DWP to Acacia. These payments would come from DWP to Acacia, who would then promptly distribute it to the employers. With the employers often paying the individuals on a weekly basis, they were always receiving the wage compensation around five weeks in arrears. For some of these employers, this put tremendous strain on their finances and placed some of the FJF jobs in jeopardy. If the payment from DWP to Acacia was delayed for any reason, this increased the problem massively.

IMPACT OF TERMINATION

The decision to end the Future Jobs Fund in March 2011 rather than March 2012 has left many candidates, job seekers and employers in the care and child care sectors at a considerable disadvantage. Acacia has 54 candidates (15% of the total referred to us) who have been interviewed by us or by employers who are now being told that there are no further vacancies. Having motivated the candidates to undertake successful interviews, they were massively let down by the termination of FJF.

Although the FJF programme has been headlined as running until March 2011, there are a large number of contracts that will have been ended prior to that, with nothing to fill the vacuum during the months until the new Work Programme is unveiled. This will not only disadvantage the individuals who have been left in this void, but it will have a detrimental impact on the care sector as well.

Inevitably, there will be a negative impact on Acacia as well. We increased our staff levels to operate the FJF programme; these staff are now at risk while we wait for the replacement programme to come on stream.

TRANSITION TO REPLACEMENT PROGRAMMES

At the time of writing, details of the replacement Work Programme are sketchy, so it is hard to evaluate the impact it will have on the jobs market. Certainly the arrival of several thousand qualified and motivated ex-civil servants will make the marketplace more competitive and may lead to those already disadvantaged members of society falling even further behind. We can only assume that this will have been factored in to the new programme.

The current proposal to fund new apprenticeships as a partial replacement for the FJF is not an ideal solution, but neither was FJF. Although there are obvious parallels between the apprenticeships route and the way we have chosen to implement the FJF programme, the major stumbling block to overcome is one of full-time vacancies. At the moment, we can approach potential employers, offer them a part-time employee with a funded salary, then train the individual both in the workplace and in the classroom. With the implementation of apprenticeships, they will presumably need to be a full-time employee with the guarantee of full-time employment at the end of the apprenticeship. An insistence of it being a full-time position throughout may well be a major barrier in the current climate.

We also have concerns about the plans for candidates over 24 years of age. Although the FJF was primarily aimed at 18-24 year olds, we have been operating in a "hot spot" area and have seen 23% of our employed individuals come from the over 24 group. Whilst appreciating the need to get people into work at an early stage, before unemployment leads them down the potential path of low self-esteem and reliance on benefits, there does need to be some contingency for other sectors of society.

31 August 2010



 
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