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


Written evidence submitted by Catch 22

INTRODUCTION

Catch22 welcomes the opportunity to respond to this inquiry into Youth Unemployment and the Future Jobs Fund. Catch22 has a significant amount of experience in both supporting young people into employment and specifically the Future Jobs Fund (FJF) as a provider of opportunities for young people.

Catch22 believes the FJF has provided significant benefits for young people from which they have gained new skills and experience to help them find long term sustainable, fulfilling, and appropriate employment. As an employer of young people on FJF placements, we have had extremely positive experiences. The FJF has enabled us to employ young people that we would not have otherwise been able to and we have been consistently impressed with the young people that we have been able to employ.

The FJF provides a real lifeline for young people, particularly given the current extremely high levels of unemployment for young people. Catch22 is concerned that while the Government has committed to continuing with funding already agreed, the withdrawal of support for new bids to create jobs and bids already in the pipeline will jeopardise the chances of many young people. It is important that the Government recognises the benefits and opportunities afforded to young people and employers through the FJF and ensures that these are not lost as a result of cutting the programme.

THE EXTENT TO WHICH THE FJF HAS SUCCEEDED IN MATCHING NEW WORK EXPERIENCE OPPORTUNITIES TO YOUNG UNEMPLOYED PEOPLE

As well as supporting young people to find work and training opportunities under the Future Jobs Fund, Catch22 has been able to provide young people with FJF opportunities within our services.

The following case studies showcase the success of two such placements:

Boo joined a Catch22 Skills centre in order to learn about mechanics and as a way of keeping out of trouble. He studied NVQ Level One in Motor Mechanics and he was presented with his qualification by Princess Anne. Whilst doing his NVQ, Boo learnt numeracy and literacy skills, as well as practical skills such as servicing and preparing cars for MOTs. Once he had finished his NVQ, Boo continued to volunteer at the skills centre, helping to teach other young people the same skills he had learnt.

In Spring 2010, Boo was offered a job under the Future Jobs Fund as a Support Technician, working for Auto22, a new social enterprise based in Kent which was set up by Catch22 and is a car servicing and repair business. His main duties include supporting the Technicians on a day-to-day basis, maintaining the workshop tools, and preparing and valeting vehicles after they have been repaired.

 "There are loads of things I love about the job. Working on cars brings a new challenge every day, and gives me the opportunity to develop my technical and problem solving skills. I also really enjoy working as part of the team - there's always someone to help if there's something I don't understand, and it's great to have a laugh while learning. The job also gives me the opportunity to meet new people and develop my customer service skills - something that I'm keen to continue learning about in the future." - Boo, 20, Support Technician at Auto22.

"Having graduated from university in 2008 I have found it extremely difficult to find work because of the current recession. After many applications I managed to find myself a part time job at [a local retailer] which was offering a four hour per week contract. I found it progressively difficult to find a job which offered more hours. Thankfully the Future Jobs Fund came about at the right time, I was put forward for a couple of interviews and was successful gaining the role of admin assistant at Catch22.

"I feel I have benefitted a lot from working for such a rewarding organisation. I have learnt new skills including how to use new software including database inputting, minute taking, multitasking, and the day to day running of a busy reception. I have gained confidence in all aspects of the job and I am learning new skills daily. Through this job I have been able to attend numerous courses to help develop my understanding of the role which have been highly beneficial.

"I think the Future Jobs Fund is a brilliant idea helping people get back into work, and offering work experience and courses to help them within that specific job role. It has been a great opportunity for me I've loved working for an organisation that is helping out others. Not only has helped me get back into work but I have met new friends, gained confidence and I now have a better idea of what I would like to do for a long term career.

"I think it's great that I have a mentor who comes to check how I am getting on and helps with further job searches or any other problems that I have. I feel that I have needed this support and guidance.

"I am very appreciative of this opportunity and if it wasn't for the Future jobs fund I would never have found a job as well suited as this. I feel that it is an excellent scheme with good career opportunities." - Sally, 24, Administrative Assistant at Catch22 Service.

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

The Future Jobs Fund is an extremely important way of providing young people with the skills and opportunities that they need to move into sustainable and appropriate employment by broadening their experiences. The case studies above showcase the value that it has contributed to the young people that Catch22 has worked with.

Catch22 has some concerns about the inflexibility of the eligibility criteria. Due to the chaotic nature of some of the young people's lives, the requirement to have been on jobseekers allowance continuously for 26 weeks has prevented some young people from being eligible. In one case, a young person had taken on a short temporary contract of just a few days which had meant that he wasn't able to take up a FJF position. He was extremely disappointed as he was very excited about the position.

There have also been concerns raised about the salary level for FJF employees. By only paying minimum wage, some young people have been forced to take another job to supplement their income. Furthermore, some young people have found themselves doing similar jobs to other staff, but being paid considerably less.

Some young people have commented that they were disappointed that the contract is only temporary for six months, feeling that they would benefit from a longer period of employment:

"My main concern is that the contract is for only six months, however I understand funding is difficult and can't last forever….six months is not long enough to really learn and develop the role. It takes a few months just to get to grips with the job and fully understand what is needed." - Sally, 24, Administrative Assistant at Catch22 Service.

In general, however, the experience of the Future Jobs Fund from the perspective of young people and Catch22 has been extremely positive and Catch22 believes that the FJF has resulted in permanent employment for the young people involved.

"From my perspective I would recommend FJF. It enables organisations to employ young people at practically no cost for six months. In our case, the FJF fund covered the cost of Boo's tools, some protective clothing and some training as well as salary costs. I've found the people I deal with at FJF to be extremely helpful, and the reporting requirements are pretty straightforward and not too time consuming". - Auto22.

"This has been a gift for our service as we really needed an extra admin person to cover reception, answer phones, book clients in for classes etc but our budget does not cover this…

"Due to our current funding situation, it is unlikely that we will be able to offer Sally a job at the end of the FJF period. However, I would be happy to do this should the situation change. Having Sally here has demonstrated that the post is needed. It has given us an opportunity to see how Sally performs in the job, a little like an extended work trial at no cost to us…I think this is a useful scheme as it provides work experience, a reference, some income and a chance to try out a particular role for the people involved. It also gives the employer a chance to see if a job is needed/useful.

"From an employer perspective, this has been an excellent opportunity. We have been fortunate with Sally as she is a very capable and enthusiastic candidate" - Catch22 service employing Sally.

THE LIKELY IMPACT OF THE DECISION TO END THE FJF IN MARCH 2011 RATHER THAN MARCH 2012

Catch22 is concerned that the decision to end the FJF earlier than expected, announced as part of the Cross-Government Efficiency Savings, ignores the issues that created the initial drive for the creation of the Future Jobs Fund. As illustrated by the case studies above, the FJF provides a real lifeline for young people, particularly given the current extremely high levels of unemployment for young people, providing six months of training and development.

Youth unemployment has a negative impact on young people in terms of their self esteem and confidence, mental health, and ability to reengage with the labour market by keeping their skills fresh and up to date. But as well as short term impacts, youth unemployment also leaves a lasting legacy. Research by Paul Gregg has shown that being unemployed for more than 12 months under the age of 23 has a hugely negative impact on a young person's future, causing a permanent scar of disadvantage. Those who have experienced long durations of unemployment in their youth still suffer from sizeable wage penalties in their forties.

The FJF also has a role to play in breaking the intergenerational cycle of unemployment by giving young people the opportunity to gain new skills and experience, particularly in areas of high unemployment. Recent research commissioned by the BBC illustrates the impact that the recession and public spending cuts is likely to have across England. It shows that there is a clear north-south divide in the ability of local authorities to withstand changes to the economy, with areas such as the north east faring particularly badly as a result of their reliance on public sector employment[11]. The FJF will be a key factor is helping young people in these areas to find work.

While the Government has committed to continuing with funding already agreed, the withdrawal of support for new bids to create jobs and bids already in the pipeline will jeopardise the chances of many young people.

It is important that the Government recognises the benefits and opportunities afforded to young people and employers through the FJF and ensures that these are not lost as a result of cutting the programme.

"Had the scheme continued, I was looking at recruiting an additional person under this initiative to assist with fundraising, identifying sources of funding and helping with applications." - Catch22 service employing Sally.

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 new Work Programme is still lacking a lot of the detail about how exactly it will work. Catch22 is concerned that the young people that we work with are adequately and appropriately supported by the organisations who are contracted to work with them.

Catch22 has a wide range of expertise in working with young people and supporting them into employment. A key example of this is "From Care2Work", a national employability initiative for care leavers which works to find local solutions to narrow the gap between care leavers and their peers by creating opportunities and raising aspirations. Managed by the National Care Advisory Service (NCAS) based within Catch22, "From Care2Work" works in partnership with local authorities, private sector employers and third sector organisations in England. Its aim is to identify and share good practice and enable relationships between corporate parents and employers in order to increase the breadth of opportunities available to young people leaving care.

 "From Care2Work" has established the critical success factors in supporting young people into employment: The From Care to Work journey, and within this there are a number of key learning points for supporting young people into work which Catch22 believes should be taken into account in the design of the new work programme.

THE "FROM CARE TO WORK" JOURNEY

Every care leaver experiences a different path to achieving sustainable and rewarding employment. For some, this is a journey that starts in extreme chaos and risk taking, which is the beginning of our continuum. This is when we must work with young people on motivating change - encourage self belief and work towards achieving stability. Only when a young person can contemplate a learning pathway to securing employment can we move on to the next phase of the journey.

Planning for action is the second phase of our journey, which begins when we know a young person believes they have the potential to continue in learning and secure future employment. Participation in education, training and employment encourages young people to acquire the skills and knowledge relating to a job they have identified as their goal. Increasingly, this includes opportunities to participate in work experience as part of further education courses, diploma frameworks and apprenticeships. Within the care and pathway planning process, we should continually be asking how we can support this young person to build their work profile.

In the third and final phase of our "From Care2Work" Journey - achieving economic wellbeing - young people are in a position to consider their pathway to sustainable and rewarding employment and lifelong learning. We must be confident that increasing numbers of young adults part company with our services: with a clear job search strategy identifying suitable opportunities; an awareness of the labour market and where future employment lies; and able to produce effective written applications and performing well in interviews.

9 September 2010



11   BBC, 9 September 2010, North East and Midlands "least resilient" areas. Available online at
http://www.bbc.co.uk/news/uk-england-11141264

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