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


Written evidence submitted by Rhyl City Strategy

Rhyl City Strategy is submitting this written evidence in response to an invitation from DWP. The views expressed in this evidence are those of the Rhyl City Strategy Community Interest Company, and include feedback from Future Jobs Fund employees and employers. Seven employers attended a feedback session on 1 September 2010, another seven employers submitted written evidence and 12 FJF young people attended a feedback session on 6 September 2010.

REPORT SUMMARY

Background

1.  The Rhyl City Strategy Community Interest Company is the lead accountable body for a FJF programme in Conwy and Denbighshire, North Wales, and has created 322 job vacancies across its network of employers from the business, statutory, and voluntary and community sectors. Between November 2009 and August 2010, the partnership has achieved 223 FJF jobstarts. To date, of 70 FJF completers, 38% have entered sustained employment, and a further 10% have progressed into full time education or training.

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

2.  The Rhyl City Strategy FJF programme has successfully matched 223 young unemployed people to new work experiences. Jobcentre Plus has played a key and effective role in referring eligible customers to the opportunities, with job profiles being matched to jobseekers' experience, skills and interests. Monthly jobfairs have supported the matching process.

3.  Our FJF programme has provided opportunities for young unemployed people from a broad spectrum, many of whom have had no or limited previous work experience or skills training.

STRENGTHS 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

4.  The benefits of the FJF programme have been far-reaching for unemployed young people and employers across a range of sectors, businesses, and the community as a whole.

5.  The programme has facilitated the creation of "real" jobs, enabling FJF employees to develop a work ethos and demonstrate work-place discipline and reliability, as well as gaining relevant, up-to-date and work-focussed skills and qualifications. For many, this opportunity has broken the continuum of long-term unemployment and enabled the achievement of a portfolio of experience which has proved advantageous in subsequent job search. In many cases, the direct contact between jobseekers and employers has led to real opportunities for progression into permanent, sustained employment.

6.  FJF employees come off benefits and many are taking home a wage for the first time. This has helped challenge negative perceptions about being "better off on benefits". The scheme has had significant impacts on motivation and self worth, enabling young people to improve self-esteem, confidence and interpersonal skills. The more vulnerable employees have the support they need to develop and progress.

7.  The FJF programme is highly effective in connecting employers with the worklessness agenda. The flexibility of the grant funding and up-front funding model has helped to attract employers to the programme and encouraged them to "take a risk" on someone who they might not otherwise have considered. The programme helps to challenge employer perceptions of the long-term unemployed, and encourages them to seek to recruit from amongst this group, thereby exercising their social responsibility

8.  The programme is helping to stimulate local enterprise growth. The flexibility of the grant funding and the provision of an up-front payment is enabling the participation of smaller employers and organisations and the creation of a range of additional new posts. This influx of new employees has enabled many organisations and employers to develop new areas of work, which has stimulated internal growth. This is sometimes leading to the creation of a permanent position, and an FJF employee being taken on as a permanent member of staff.

9.  At this early stage, there is insufficient evidence to draw conclusions about the overall long-term potential of the programme to move people into sustained employment. However, there are indications that there is considerable capacity to use this job creation exercise to generate growth in the SME sector. This should be seen to maximum effect as the economy begins to come out of recession and employers seek to take on additional staff in response to increased business.

10.  Rhyl City Strategy's partnership approach builds on existing relationships with employers from a range of sectors and develops local capacity and commitment to engage with the worklessness agenda. By working through a locally based partnership, the FJF has reached a network of employers that would otherwise have never become involved in such a programme.

11.  Through its focus on hot-spots, the FJF targets the most disadvantaged communities, tackling a culture of worklessness in our poorest communities. By providing a resource for community based organisations, the fund supports local regeneration activity. Over the longer term, this offers potential to create a new generation of people with first hand experience of the voluntary and community sector who will be well-positioned to participate in the Government's Big Society proposals.

12.  Employers indicate that the FJF administrative processes are not proving too onerous. Employers are able to use the grant to cover costs of training and associated administration and overhead costs.

WEAKNESSES OF THE FJF PROGRAMME FROM THE PERSPECTIVE OF PROVIDERS (INCLUDING IN THE THIRD SECTOR), EMPLOYERS AND YOUNG UNEMPLOYED PEOPLE

13.  The community benefit focus of the FJF limits its potential to support business growth within the commercial sector. This is particularly unfortunate, as in the current economic climate, it is the private sector which is most likely to be able to offer permanent employment at the end of 26 weeks.

14.  As JSA claimants, potential FJF employees have had to be "available for work", and as such have not been able to participate in pre-employment training or work trials.

15.  Competitive recruitment processes mean there is a potential risk of employers "cherry picking" the best candidates, with the "hardest to reach" left at the end of the queue; employers can be reluctant to take on employees with particular support needs. However, the additional resource provided by the scheme does assist with this issue.

16.  A minority of employers have found the administration onerous.

17.  There have been some issues with referrals to vacancies not translating to jobstarts, either because advisors have not been disseminating information on vacancies to jobseekers, or because jobseekers have not been chasing up applications to employers. In order to overcome this issue, Rhyl City Strategy has established monthly jobfairs in partnership with Jobcentre Plus, which have proved effective in matching eligible jobseekers to vacancies.

18.  16-17 year olds are not eligible to participate in the programme.

19.  Many FJF employees state they would prefer the scheme to last 8-12 months, with a greater number of minimum hours.

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

20.  There is a concern that the positive gains will be at risk of being lost. With the FJF having only been in operation for a short period of time, there has been no opportunity to explore its full potential.

21.  The FJF has been an extremely powerful tool in engaging employers in the worklessness agenda and in stimulating local business growth through job creation; the programme has helped to engender an optimism and confidence at a potentially bleak time. Ending the FJF when the economic recovery is still so fragile runs the risk of halting the growth of many small local organisations.

22.  In previous recessions, it has taken five years for youth employment to get back up to pre-recession levels; the decision to end the programme early runs the risk of losing the momentum with employers, and destroying confidence in some of our most disadvantaged communities.

23.  Our local FJF employees have expressed concerns at the impact on a lost generation of young people, who will find it impossible to find work without the scheme.

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.

24.  We are still awaiting information on how the transition from FJF to The Work Programme will be managed. At this stage, we would wish to see a Future Jobs Fund component built into the model.

25.  We have found the focus that the FJF gives to recruitment from hotspot areas particularly effective in tackling unemployment in disadvantaged communities, and would wish to see a similar arrangement reflected in the new Work Programme.

RECOMMENDATIONS

26.  Rhyl City Strategy would like to see the FJF programme reinstated until March 2012, giving time to develop an FJF component within the new Work Programme. There should be continuity so that working relationships and good practice are not lost.

27.  Any development of the FJF in the new Work Programme should incorporate a model that has a particular focus on targeting deprived communities at neighbourhood level.

YOUTH UNEMPLOYMENT AND THE FUTURE JOBS FUND

Background

28.  Rhyl City Strategy is one of 15 City Strategy Pathfinders taking part in a DWP programme to tackle unemployment and economic inactivity in the UK's most disadvantaged communities. Rhyl, situated on the North Wales Coast, was a thriving holiday resort until the advent of cheap flights in the 1970s. The town's economy subsequently went into decline, leaving a legacy of deprivation. Two of the five wards of Rhyl are consistently in the top five of the Welsh Index of Multiple Deprivation and Rhyl West holds the number 1 position out 190 wards in Wales. Rhyl City Strategy brings together a partnership of key stakeholders from the statutory, voluntary and business sectors to pool resources and align activities in pursuit of the shared goal of improving the employment rate in the town. Rhyl City Strategy has Community Interest Company status.

29.  The Rhyl City Strategy Community Interest Company is the lead accountable body for a FJF programme in Conwy and Denbighshire, North Wales. The LAB submitted a successful bid to DWP to deliver 322 Future Jobs in Conwy and Denbighshire.

PROGRAMME MODEL

30.  Rhyl City Strategy (RCS) has an existing network of partner organisations developed over the past few years. We have a Consortium of over 180 members from all sectors of the community, all with a shared vision to reduce economic inactivity. The Consortium meets quarterly, enabling joined up working and reducing duplication.

31.  In preparing its bid to DWP, RCS received a commitment from its network of employers to create a total of 322 jobs. These partners span public, private and the voluntary sector and range from small, micro businesses to the largest of employers in the area - the County Councils. The types of jobs created are widely diverse across a range of sectors, including accounts, youth workers, childcare, football coaches, conservation workers, graphic design, IT, tourist information guides, administrators, construction workers, retail and catering, music/creative arts, sports & leisure.

32.  Rhyl City Strategy employs a Coordinator and an Adminstrator to run our FJF programme. RCS pays a grant to the employers, who organise all aspects of the FJF employees' employment, training, support and onward progression.

RHYL CITY STRATEGY FUTURE JOBS FUND: SUMMARY OF OUTCOMES

33.  In May 2010, the RCS FJF programme achieved 100% of its Tranche 1 target; a total of 143 jobstarts. The target for Tranche 2 is a further 179 jobstarts by March 2011. Since May 2010 we have filled 80 of these 179, with the remaining 99 to fill in the next seven months. Of the 223 jobs we have filled since November 2009, there have been just 27 early leavers, of which six left to take up a permanent employment. This gives a retention rate of over 90%.

34.  To date, 70 of our FJF employees have completed their 26 weeks. Of these, 27 (38%) have progressed into permanent employment, and a further 7 (10%) into full time education or training.

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

35.  To date, our FJF programme has matched 223 young unemployed people to new work experiences. The matching process has been extremely successful. Jobcentre Plus has played a key and effective role in referring eligible customers to the opportunities. A dedicated officer has had responsibility for "matching", and all advisors have been actively sighted on the opportunities available; this has ensured that job profiles have matched jobseekers' experience, skills and interests. In support of the matching process, and in order to maintain a momentum, we have developed monthly jobfairs, which are attended by all employers with live vacancies, and to which Jobcentre Plus advisors refer all eligible jobseekers. These have proved an effective means of matching young people to work opportunities, offering an opportunity for young people to meet a range of employers and explore a number of options before applying for formal interviews.

36.  "The main problem that I faced in finding work was the fact that I had no recent work experience to offer on my CV due to being in university. The RCS Job Fair combined with JCP for the FJF allowed me direct contact with employers in an interview like environment. This allowed me to demonstrate and explain the skills I had. It also allowed me to see a wide variety of employers in quick succession." - (FJF employee)

37.  The FJF programme has offered opportunities for young unemployed people from a range of backgrounds and experiences. Some of our participating employers had initial concerns that they would be swamped with applications from graduates, and that the scheme would fail to reach those young people in particular need of support. In fact, the scheme has provided opportunities for young unemployed people from a broad spectrum, many of whom have had no or limited previous work experience or skills training.

STRENGTHS 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

Benefits to individuals

38.  In our experience the benefits of the FJF programme have been far-reaching, to unemployed young people, employers across a range of sectors, businesses, and the community as a whole.

39.  In marked contrast to previous employment schemes, the programme has enabled the creation of "real" jobs, with young people performing identical tasks to permanent staff. FJF employees have had the opportunity to gain relevant, up-to-date and work-focussed skills, experience of working with colleagues and gain knowledge of the sector. Operating in a real work environment has encouraged the development of a work ethos, giving young people often for the first time the experience of a daily routine and a "taste for work", and an opportunity to demonstrate work-place discipline and reliability.

40.  "I have got into a good routine compared to when I was on JSA." - (FJF Employee)

41.  "Before I started the FJF programme I used to sit round at home or go to the Job Centre, but on this programme it builds my confidence up and I think it helps my communicating skills by meeting different people everyday". - (FJF Employee)

42.  For many, this opportunity has broken the continuum of long-term unemployment and enabled the achievement of experience, training, networking and references which have then proved highly advantageous in terms of subsequent job search.

43.  The six-month duration of the scheme has allowed time for young people to fully participate in work-place training and in many cases to gain relevant, work-based qualifications. Eligible jobseekers go through the process of applying for a job, rather than being sent on a programme, and as such, there is greater individual empowerment and ownership of the process. FJF employees can demonstrate to prospective future employers that they have experienced the world of work, and have developed a portfolio of experience.

44.  FJF employees go through the process of coming off benefits, with support to deal with any arising difficulties; support at this vulnerable stage reduces the risk of attrition. In many cases, FJF employees are taking home a wage for the first time, which can challenge previously negative perceptions about being "better off on benefits". The scheme has had significant impacts on motivation and self worth, enabling young people to improve self-esteem, confidence and interpersonal skills.

45.  "It's given me independence and a confidence boost not being on JSA, I am now earning my own money." - (FJF Employee)

46.  "By earning my wage, it makes me feel good been able to pay my own way." - (FJF Employee)

47.  One of the key strengths of the programme is the direct sustained contact between jobseekers and employers. We have seen this translate into real opportunities for progression into permanent, sustained employment, with unemployed young people using the opportunity to get their "foot in the door" and to impress employers with their hard work and enthusiasm.

48.  "Before I started with FJF I would have never worked on a farm, and now I have it is a great experience as I am also getting kept on full time after the scheme ends." - (FJF employee)

49.  Through providing a resource to employers, the programme ensures that the more vulnerable employees have the support they need both to find a position and to develop their skills and behaviour once employed.

50.  "One was not a good timekeeper, if he was fully employed then he would have been finished but through FJF has been able to use this as an opportunity to develop. Another realised that earning a wage was better than benefits." - (FJF employer)

51.  "We have taken on people who may not have come forward through the normal routes; they have needed extra support to gain the skills in the workplace" - (FJF employer)

BENEFITS TO EMPLOYERS

52.  In the Rhyl experience, the programme has provided a fresh impetus and an effective mechanism for connecting employers with the worklessness agenda.

53.  The flexibility of the grant funding and up-front funding model has helped to attract employers to the programme. The scheme provides employers with a resource that enables them to take on someone who they might not otherwise have considered, eg someone who needs extra support and mentoring.

54.  "Employers can develop the capacity of individuals who are very removed from the workplace - they could not afford to invest resources in getting individuals up to speed by using their core funding alone, given that their core funding is very tight at present". - (FJF employer)

55.  The programme has provided a form of extended "work trial"; where internal resources have allowed, and an FJF employee has shone, the employer has taken them on permanently at the end of the six month contract. This has helped to challenge employer perceptions of the long-term unemployed, and encouraged employers to seek to recruit from amongst this group, raising their awareness of JCP as a recruitment option and sighting them on the potential of recruiting from amongst the long term unemployed. In our experience, participating employers have been largely impressed with the calibre and attitude of the FJF employees, and have used the funding responsibly to provide their employees with the skills and qualifications they need to develop and progress.

56.  The programme has also offered employers an opportunity to exercise their social responsibility by playing an active role in tackling youth unemployment in a recession

57.  "The FJF has allowed us to recruit directly from a sector of the community that was under represented within our organisation and added a sense of freshness to Co-Options activities." - (FJF employer)

STIMULATING GROWTH AND OPPORTUNITY

58.  In Rhyl, we have now begun to see the exciting potential of the scheme to stimulate local enterprise growth. The FJF provides employers with grant funding for wages, training costs and any associated support, administration and overheads. The flexibility of this funding and the provision of an up-front payment has enabled the participation of smaller employers and organisations, which have previously been deterred from involvement in initiatives because of onerous bureaucracy and their own limited organisational capacity. Through provision of this resource, participating organisations, including small to medium sized enterprises (SMEs) and social enterprises, are being enabled and encouraged to create a range of additional new posts.

59.  This influx of new employees, bringing skills and fresh ideas, has enabled organisations and employers to put resource into exploring and developing new areas of work, either through direct use of the FJF employees, or by freeing their own time up to concentrate on previously neglected areas. In many cases and increasingly, we are seeing this stimulating growth within the employing organisations themselves, resulting in the FJF employees being taken on as permanent members of staff. Locally, we have seen this to particular effect in the social enterprise sector.

60.  "In a small organisation the FJF has been a massive help, especially with the recession." - (FJF employer)

61.  "One of the Future Jobs Fund workers is due to spend a week with a project called Butterwick Trees. This is a social enterprise scheme which collects seeds from a local environment, germinates them and then grows and sells trees with a focus on promoting local species. This young man is going to learn about how this works and the technology associated with this so that he can then inform the developmental plans to develop a business here in North Wales on this model. What a fantastic opportunity that is being involved in pioneering work which is geared to generating a business which will generate jobs down the road. And apart from the experience for the young person I think this is also a great example of a participant employer thinking creatively and evidencing a lot of lateral thinking in relation to the deployment of workers."

62.  This ability of the FJF to increase organisational capacity, thereby generating a self-perpetuating cycle of job creation, is proving itself to be one of the key strengths of the FJF programme. This should be seen to maximum effect as the economy begins to come out of recession and employers seek to take on additional staff in response to increased business.

63.  "The FJF has given us a unique opportunity to take on young people and to provide them with work opportunities in areas of potential growth within our organisation. Without the FJF we probably would not have taken this step and probably continued with our existing staffing levels. Such has been the success of some of the placements, that we are able to offer two full time permanent posts on our smallholding and within our textile recycling facility." - (FJF employer)

64.  "As a small organisation with limited resources CJIW has benefited significantly in terms of growing capacity and extending reach amongst service-users. Furthermore, significant added-value has been achieved from the introduction to the organisation of young new staff who have brought in fresh ideas and perspectives, particularly in terms of additional insight into the needs of the local area, as well the needs of communities of interest and identity, thereby helping CJIW to improve its reach and effectiveness." - (FJF employer)

65.  "The flexible structure of the scheme has enabled the creation of a full-time post, with the FJF portion acting as an employment subsidy. This pump-priming has, in turn, led to the securing of ongoing funding to allow the post to continue." - (FJF employer)

66.  At this early stage, there is insufficient evidence to draw conclusions about the long-term potential of the programme to move people into sustained employment. At the time of writing, the Rhyl City Strategy FJF scheme has seen 38% of FJF employees completing the programme progressing into sustained work, from a sample of 70 leavers. A further 10% of leavers have moved into full-time education or training. Our current experience certainly indicates that employers are adopting the scheme as a genuine opportunity to offer a meaningful work placement to a long term unemployed person, and that employers are seeking to turn that short-term opportunity into a sustained job for the right recruit wherever possible.

67.  "I think that if this approach had been in place when everything was much more vibrant economically that we would have done some serious damage to reducing some quite established long term unemployment, because I think the environment would have had more capability to use this job creation exercise to generate growth. For me the weakness has actually been consequent upon the timing and focus being associated with short term impact on joblessness amongst youth." - (LAB Board member)

68.  Through its focus on hot-spots, the FJF provides an excellent facility for targeting the most disadvantaged communities, contributing towards tackling a culture of worklessness which exists in some of our poorest communities. The fund has offered an opportunity for community based organisations to develop their activities, and to employ local community members. In this way, the fund is actively supporting local regeneration activity and creating new opportunities for the long term unemployed to become involved in neighbourhood renewal. Over the longer tem, this offers a powerful potential to create a new generation of people with first hand experience of the voluntary and community sector who will be well-positioned to participate in the Government's Big Society proposals.

69.  "The ARC Communities initiative with CJIW (Community Justice in Wales) in Colwyn Bay has provided an interface between youth and the homelessness agenda by employing young people on FJF to deliver services to the homeless. In addition to raising awareness in the young people, we have seen chaotic service users responding to and valuing the input of these young people, which has lead to breaking down barriers on both sides. These young people have learned about and responded to the social care medium which relates to the community cohesion agenda and the "Big Society" - (LAB Board member)

PARTNERSHIP APPROACH

70.  Rhyl City Strategy's FJF delivery model has used a partnership approach, building on existing relationships with organisations from the private, voluntary and community and statutory sectors, developing local commitment and contacts, and raising local capacity and interest in the agenda. The FJF scheme has enabled Rhyl City Strategy to mobilise a network of local employers to play an active role in tackling local youth unemployment by creating a diverse and exciting range of new work opportunities. The FJF has provided a flexible and highly effective mechanism for engaging employers actively in the worklessness agenda.

71.  By working through a locally based partnership, the FJF has reached a network of employers that would otherwise have never become involved in such a programme. In administering the scheme locally, Rhyl City Strategy is facilitating networking and liaison amongst its committed group of employers, and building on this engagement to promote and raise awareness and take-up of other employability programmes and provision eg Basic Skills Employer Pledge/NVQs etc.

ADMINISTRATION

72.  Employers have indicated that the administrative processes associated with the FJF are far more straightforward than with other schemes, with paperwork and reporting requirements not proving too onerous. This in itself is encouraging continued participation. The flexibility of the grant is also a strength of the scheme, with employers able to use the grant to cover costs of training and associated administration and overhead costs.

73.  "The administration by Rhyl City Strategy of the scheme has been straightforward and non-bureaucratic. This has resulted in highly-efficient use of government resources, with the direct financial benefits of the scheme accruing to the young person and VCS organisation rather than being absorbed into overhead and administrative costs." - (FJF employer)

WEAKNESSES OF THE FJF PROGRAMME FROM THE PERSPECTIVE OF PROVIDERS (INCLUDING IN THE THIRD SECTOR), EMPLOYERS AND YOUNG UNEMPLOYED PEOPLE,

74.  Local stakeholders have identified a number of areas where the FJF programme could be improved upon.

75.  There have been some issues with referrals to vacancies not translating to jobstarts, either because advisors have not been disseminating information on vacancies to jobseekers, or because jobseekers have not been chasing up applications to employers. In order to overcome this issue, Rhyl City Strategy has established monthly jobfairs in partnership with Jobcentre Plus, which have proved effective in matching eligible jobseekers to vacancies.

76.  The community benefit focus of the FJF limits its potential to support business growth within the commercial sector. This is particularly unfortunate, as in the current economic climate, it is this sector which is most likely to be able to offer permanent employment at the end of 26 weeks. Rhyl City Strategy is constantly having to turn down applications from employers keen to participate in the scheme where no community benefit can be identified; eg a firm of solicitors, a carpet fitter & a pub.

77.  As JSA claimants, potential FJF employees have had to be "available for work"; this has meant that they have not been able to participate in pre-employment training, even where funding for this has been available. This opportunity could have helped prepare people for work, and helped them to get the most of their 6 months' employment. FJF vacancies were not available as work trials.

78.  On the whole, employers have welcome the straightforward administrative processes in involved with the FJF programme. However, a minority of employers have found the administration onerous, particularly as they are required to make monthly rather than quarterly claims.

79.  Competitive recruitment processes mean there is a potential risk of employers "cherry picking" the best candidates, with the "hardest to reach" left at the end of the queue; employers can be reluctant to take on employees with particular support needs. However, the additional resource provided by the scheme does assist with this issue.

80.  It is of particular concern that 16-17 year olds are not eligible to participate in the programme.

81.  As far as the FJF employees are concerned, the main weakness of the scheme is the length of contract; they would prefer to see an 8-12 month commitment from the employer, with a greater number of minimum hours.

82.  "There's no security if you're not kept on, you face having to look for a new job which is very difficult in our current economic climate." - (FJF employee)

83.  "Six months isn't long enough; by the time you have got into the rhythm of working, it's time to look for another job. Also 21-and-under wages need to be addressed, also the amount of hours needs to be more, maybe 30 hours minimum." - (FJF employee)

84.  "Obviously the fact you're not guaranteed a permanent place, I knew it was only definite for six months from the beginning but it is still disappointing, also I think there should be more hours given instead of just 25." - (FJF employee)

85.  "I feel 8 -12 months would give people a better opportunity to get more out of this course." - (FJF employee)

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

86.  Rhyl City Strategy has found the decision to end the FJF in March 2011 rather than March 2012 extremely disappointing. We feel as a partnership that the positive gains made locally will be at risk of being lost, along with the momentum that has been growing around employer engagement. With the FJF having only been in operation for a short period of time before the decision was made to pull the funding, there has been no opportunity to explore its full potential; the lessons will be lost before the real gains have a chance to be realised.

87.  "As is so often the case, we are lurching towards abandoning something before we've really and truly explored its full potential. So we once again have discontinuity and undermine a really interesting piece of architecture." - (LAB Board member)

88.  The FJF has been an extremely powerful tool in engaging employers in the worklessness agenda and in stimulating local business growth through job creation; the programme has helped to engender an optimism and confidence at a potentially bleak time. Ending the FHF when the economic recovery is still so fragile runs the risk of halting the growth of many small local organisations, or worse.

89.  "The ARK scheme would have folded without the FJF programme." - (FJF employer)

90.  "This programme has stabilized the small businesses within this recession." - ( FJF Employer)

91.  In previous recessions, it has taken five years for youth employment to get back up to pre-recession levels; the decision to end the programme early runs the risk of losing momentum with employers, and destroying confidence in some of our most disadvantaged communities.

92.  "People will be disadvantaged again. Back to square 1. Hot Spots will be back to where they were before the FJF began." - (FJF Employer)

93.  "One employer had wanted to increased their placements to 10-12 next year, working in partnership with other national organisations - everyone was disappointed that this was no longer possible because of funding cuts." - (FJF Employer)

94.  "It's been a godsend for us. It's a fantastic scheme, will be a big loss." - (FJF Employer)

95.  The FJF employees themselves have their own concerns about the impact of the loss of the scheme:

96.  "Unemployment would rise and the benefit of the cut would not be as significant as many positions would disappear meaning the employees would go back on JSA, housing benefits etc, which in some cases would equate to the FJF allowance without giving work experience, confidence etc." - (FJF employee)

97.  "I personally think it would be a STUPID idea to end FJF in 2011. It has given young people a chance to get back into work. Without it there will be more young unemployed people than ever. Maybe I'm being dramatic but there is a chance that the more young people are unemployed then the more trouble we'll have on the streets. It's better to have people in work than hanging around on the streets causing trouble or sitting at home doing nothing all day." - (FJF employee)

98.  "More young people will be in jobs, but soon there will be more people young and old in the job centre struggling for job, finding jobs and the job centre struggling to get everybody in on time." - (FJF employee)

99.  This would leave a lot more people out of a job and people would not have money to survive or do things they enjoy doing and with people having nothing to do they will need other ways to occupy themselves which could lead to a rise in crime and drug use." (FJF employee)

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.

100.  We are still awaiting information on how the transition from FJF to The Work Programme will be managed. At this stage, we would wish to see a Future Jobs Fund component built into the model.

101.  We have found the focus that the FJF gives to recruitment from hotspot areas particularly effective in tackling unemployment in disadvantaged communities, and would wish to see a similar arrangement reflected in the new Work Programme.

102.  "We welcome the opportunity to input to the development of the new Work Programme to ensure the good practices of reducing long term unemployment amongst young people, particularly in deprived communities such as Rhyl, is not lost. We would like to see that the commissioning arrangements for the Work Programme help shape the relationship between the Prime Contractor and the deprived communities they serve, to ensure the impact of service delivery is measured not just on the outcome of sustainable jobs, but on the economic regeneration of communities." - (LAB Board member)

RECOMMENDATIONS

103.  That the FJF programme is reinstated until March 2012, giving time to develop an FJF component within the new Work Programme. There should be continuity so that local working relationships and good practice are not lost.

104.  That any development of the FJF in the new Work Programme should incorporate a model that has a particular focus on targeting deprived communities at neighbourhood level.

105.  That consideration is given to granting the option of extending a Future Jobs Fund job for up to twelve additional weeks, on submission of a business case. The employer should be offered a gradually reducing subsidy during this additional period.

106.  MEETING THE FJF EMPLOYEES

107.  Lee Jagger - Admin Assistant - FJF has now been completed and I have been offered a permanent position and am now a "Trainee Assistant Manager".

108.  Jennie Jones - Admin Assistant - I am currently three months into my FJF contract, I find it encouraging that they have already offered a previous FJF candidate a permanent position.

109.  Cy Williams - Recycling - After completing my FJF scheme I have been offered a permanent position within the company.

110.  Daniel Gill - Farm Assistant - I have completed my six months on Future Jobs and I have now secured a permanent position within the company.

111.  Lauren Roberts - Front of House - Not happy at not being kept on but this is due to the financial position of the company.

112.  Chris Fone - Front of House - I am not being kept on, however I will use my experience within my FJF 6 months contract in the future for other employment.

113.  Janine McSween - Admin Assistant - I have completed the FJF project and have been kept on. During my 6 months I had completed several courses and am currently in the middle of completing my NVQ level 2 in Business and Administration. My confidence has grown since being employed.

114.  Lloyd Beattie - Admin Assistant - I completed five months of my contract, but was fortunate enough to apply for a permanent position within another company, using the experience of my FJF placement.

115.  Lloyd Buckley - Removals Assistant - I am four months into my FJF and I'm positive that they will offer me a permanent position at the end of it.

116.  With me personally this scheme has succeeded extremely well. I don't yet know if I am being kept on but even if I'm not at least I have a reference and experience under my belt. For anyone on the FJF a reference and experience are the key elements even if someone isn't kept on. It looks better on a reference that they were working for six months than being unemployed not doing anything.

117.  I think Future Jobs is good because it creates work opportunities for young people out of work.

118.  I think it is great that FJF gives young people the experience in different things and all sorts of Jobs and what jobs are out there.

119.  Future Jobs is good because it gives you experiences in different things. Future Jobs is good for young people because it will found you a job and it's better to have a job for six months and get the experiences needed for the future.

120.  I think it has succeeded and is a brilliant idea giving people the opportunity to earn experience which should then stand them in good stead for their future employment

121.  I think it is a really good scheme to get young people off JSA and back into work. It does work and I do think it's successful.

122.  It's managed to get me into a completely different line of work which I never thought I could get into. Also, it has given me my independence back as I am no longer depending on Job Seekers Allowance to get by.

123.  It has succeeded ok and I think it has helped old and young people to get back into work but disagree with only a 6 month contract. I am very thankful that I got back into work but will be gutted if I'm not kept on.

124.  It helps you earn experience within the six months for what trade or job you have. Gives you confidence and helps you pay your bills instead of relying on JCP, housing benefit and gives you the confidence to find a new job.

125.  It has helped me get some construction experience under my belt as I have never had the chance to learn a trade until I came on this course. I had previously been unemployed for seven months and without this I don't know what I would have done. I have gained a CSCS card and a forklift truck license as well which will hopefully improve my chance of getting a decent job in the future.

126.  The FJF gives another line of hope and confidence to the long term unemployed

10 September 2010



 
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