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


Written evidence submission by Merthyr Tydfil County Borough Council

1.0  OVERVIEW

1.1  The Future Jobs Fund programme has provided six South East Wales local authorities with a mechanism for breaking the cycle of long term unemployment in areas of high deprivation. This programme has created vacancies which are targeted at the hardest to reach and has provided local residents with a chance to change their personal, social and economic status.

1.2  Merthyr Tydfil County Borough Council (MTCBC) was successful in leading on the submission of an application to Department of Work and Pensions (DWP) for Future Jobs Fund in July 2009.

1.3  The application for funding is a consortium approach demonstrating a clear and strong partnership between six local authorities across South East Wales which are Merthyr Tydfil County Borough Council, Rhondda Cynon Taf County Borough Council, Caerphilly County Borough Council, Blaenau Gwent County Borough Council, Torfaen County Borough Council and Bridgend County Borough Council.

1.4  The initial tranche of jobs that were to be created across the six local authority areas was 872. This was contractually fully met.

1.5  In November 2009 the partnership was successful in securing an extension to the FJF contract due to the success of the first tranche and further committed to creating an additional 1,656 jobs over the course of 12 months again covering the whole of the South East Wales local authority areas.

2.0  SUCCESS OF FUTURE JOBS FUND

2.1  Generally across the six local authority areas the programme has been deemed a great success. The programme covering our area has created and successfully given the opportunity for 872 local people to access a very broad range of vacancies which have had a direct benefit to their local communities. Jobs have been created in various areas of work such as Bio-Diversity, Information Technology, Tourism, Leisure, street cleansing, Regeneration and Education.

2.2  FJF has also provided wider benefits which include allowing people on Job Seekers Allowance (JSA) to experience job search related activities which will also give individuals invaluable experience when seeking future employment.

2.3  In terms of the actual take up of vacancies the FJF grant allocation has enabled individuals to gain experience in interview and inductions, accredited training and specific on the job training allowing individuals to build their work ethic and develop essential skills to survive in the work place.

2.4  Employers have been keen to recognise the calibre of clients accessing FJF and this has allowed employers to "buy in" to the concept of FJF and develop additional vacancies to give more opportunities and enhance services to benefit the local community.

2.5  Employers have in some cases retained individuals who have been afforded to them via FJF and offered full time employment which is the greatest success. This has allowed some individuals to become financially secure and has taken them out of poverty. For example in the borough of Caerphilly they have had a total of 29 completers as part of the initial phase of delivery that have successfully gone into employment which is a success rate of 71%.

2.6  The range of experiences offered through the opportunities created has allowed individuals to develop transferable skills that can be taken to any employment opportunity. Individuals have established strong work ethics and we have witnessed changes in attitude that demonstrates clearly their desire to work and to actually be in employment rather than claiming benefits. This has been highlighted by the low number of early leavers from the provision.

3.0  STRENGTHS AND WEAKNESSES OF THE FJF PROGRAMME

3.1  Strengths

3.1.1  FJF has strengths in the following areas;

  1. Extension of the provision will allow a larger volume of NEETS young people to benefit from FJF which will make the pool of employable young people far greater in the future.
  2. Extension of the provision will give more time for the economy to recover therefore enhancing the chances for individuals to gain further employment leaving FJF.
  3. Equipping young people with transferrable skills.
  4. Training received by individuals has been customised to the clients and the role they are undertaking.
  5. FJF offers a combination of paid employment and skills development.
  6. Young people who have not worked have developed a work ethic.
  7. Participants of FJF have reported that the programme has benefited both in their health and well-being, confidence and motivation.
  8. It has helped those who have found it generally difficult to break into the job market.
  9. A good opportunity for graduates to gain valuable work experience.
  10. Employer perceptions of young people are changing positively.
  11. Links have been developed and established on a local level with third sector organisations and Registered Social Landlords (RSLs).
  12. RSLs have been encouraged to think creatively about how young people could benefit the local community.
  13. There has been an increase in civic pride of the young people employed within community settings.
  14. Teams of FJF participants have made significant improvements in the local community and environment.
  15. Participants have been able to gain future references to use when applying for alternative employment.
  16. Some participants moving from FJF Employment to real employment following completion of the FJF opportunity.

3.2  Weaknesses

3.2.1  FJF has weaknesses in the following areas;

  1. Scheme is too short and individuals would benefit from a longer employment term.
  2. Confusion over eligibility and links with other projects supporting the Young Persons Guarantee.
  3. Multiple FJF application approved in close proximity leaving less number of eligible participants to choose from. This makes fulfilling contract far more challenging.
  4. Some successful FJF Providers offering a higher wage to attract participants from organisations that have already offered positions under another FJF provider.
  5. Eligible people not being able to access FJF opportunities created as they are not better off working due to benefit structures.
  6. No clear exit strategy developed by DWP to support the transition back onto benefits or into work.
  7. Due to the scheme being only six months long, in some cases this has not been long enough for individuals to gain industry registered training.
  8. The brief for FJF is to ensure that the jobs created are of direct benefit to the community, which has resulted in it becoming very difficult to forge links with the Private Sector.
  9. A longer preparatory period would have enabled us to measure the success of the programme for individuals and wider benefits, such as reduction of crime rates and improving health issues.
  10. No initial scoping exercise took place with Job Centre Plus to identify the types of vacancies that would be developed. This led to opportunities being created that could not be filled due to lack of interest.

4.0  IMPACT OF FJF FINISHING IN MARCH 2011.

4.1  Job seekers will not have the opportunity to benefit from real paid employment.

4.2  FJF has provided individuals in some cases with a wide range of job offers. If the programme was to cease then individuals would be mandated programmes with no choice with regards their role and aspirations, which will hinder the development of work ethic.

4.3  Negative impact on the community and services offered to local residents. For every 100 participants lost 65,000 hours of work to benefit the local community will be lost.

4.4  Work related training opportunities will be far more difficult for job seekers to access. This, in the long term will continue to breed an unskilled pool of people for the local labour market.

4.5  Well establish contacts with agencies, organisations, third sector and public sector will cease.

5.0  HOW THE TRANSITION FROM FJF TO THE WORK PROGRAMME WILL BE MANAGED AND THE ROLE OF THE GOVERNMENTS PROPOSAL TO FUND NEW APPRENTICESHIPS.

5.1  FJF can still play a key role in apprenticeships. If the Government continues to fund FJF then this would enhance the prospect of employers committing to taking on a young person under the guise of an Apprentice. It is often hard to get employers to invest in young people and FJF will reduce the risk for the employer by clearly demonstrating the young person's commitment to the employer and organisation before additional investment is spent.

5.2  There appears to be a lack of understanding of how the Work Programme will look and therefore until further detail is released then it's not totally understood how the transition could happen. It is clear that this work is likely to involve the private sector and a concern whether the Work Programme will be able to meet the needs of individuals in their localities.

5.3  Both programmes should cross over with clear guidelines as to how it will work.

9 September 2010



 
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