Written evidence submitted
by Centrepoint
SUMMARY
- Centrepoint is disappointed that the Government
has decided to end the Future Jobs Fund (FJF) a year earlier than
planned.
- Our experience as an FJF employer has shown that
the placements represent a valuable work experience opportunity
for many young people.
- We therefore urge the Government to include a
similar system of work placement opportunities in its upcoming
Work Programme.
- Many of the young people we have recruited were
previously unable to find work due to a lack of experience. But
since gaining some experience during their placements, several
are securing job interviews and one young person has been given
a permanent job at Centrepoint.
- We have, however, found that the FJF programme
has been less successful for some of the homeless young people
we support due to the effect that moving into low paid work has
had on their finances.
- It is therefore crucial that any new system of
work placements takes account of the financial arrangements of
young people who are living independently with no support from
their family.
- It is also important that young people are given
ongoing support after they move into work placements to make they
are coping with the transition, and begin preparing for their
next step when the post ends.
- Despite the challenges faced by some, Centrepoint
believes that the FJF programme provides an important opportunity
for young people who are ready to undertake it, and believe that
scrapping the programme will leave some young people without any
opportunities to gain the experience they need to find permanent
work.
- This will particularly damaging for young people
as the ending of the programme comes at the same time as conditionality
of benefits are set to increase, for example, with a cut in housing
benefit after a year on JSA. This is deeply unfair to young people
who could be actively seeking work but still not find a job in
the current high level of youth unemployment.
- It is therefore crucial that the Work Programme
includes work experience opportunities for young people. Increasing
the number of apprenticeships could be a way to achieve this but
these posts must provide sufficient financial and pastoral support
to ensure that vulnerable young people living independently have
a fair chance of successfully pursuing them.
INTRODUCTION
1. Centrepoint is the leading national charity
working with homeless young people aged 16 to 25. We are a registered
social housing provider, a charity enterprise and a company limited
by guarantee. Established 40 years ago, we provide accommodation
and support to help homeless young people get their lives back
on track.
2. We work with around 800 young people a day
and have over 30 services across London and the North East. Young
people can stay at Centrepoint for up to two years, during which
time they receive intensive support to help them develop the skills
they need to live independently.
3. Two-thirds (65%) of young people are not in
education, employment or training (NEET) when they arrive at Centrepoint[28],
and few young people we work with receive any financial support
from family or friends. Many are therefore entirely dependent
on welfare benefits to support themselves as they try to rebuild
their lives and move towards employment and independent living.
Many young people at Centrepoint have additional support needs
and find it difficult to find work due to the chaotic nature of
homelessness. Many have also had their education disrupted due
to crises or traumas in their childhood and adolescence, leading
to a lack of qualifications. This means that many young people
find it difficult to find work, particularly when competing with
increasing numbers of young people in the current period of record
youth unemployment.
4. Centrepoint has also been a provider of Future
Jobs Fund (FJF) posts as a subcontractor of Groundwork UK. Centrepoint
currently has eight young people working with in the organisation
as part of the Future Jobs Programme, several of whom are nearing
the end of their six-month placement. A further 15 posts are soon
to be filled. This submission includes feedback from the young
people currently in FJF posts within Centrepoint on how they have
found the programme, as well as feedback from Centrepoint support
workers about the experience of young people they support who
have been given placements at other organisations.
5. Centrepoint's experience has shown the FJF
programme to be extremely valuable for many young people, helping
them to gain experience and develop new skills. Some young people
have experienced problems on the programme due to a lack of support
and financial pressures. But overall we believe the programme
to be a valuable source of work experience for young people, and
are concerned that the programme is to be ended next year. We
therefore urge the Government to provide similar work experience
opportunities through its new Work Programme, learning lessons
from problems faced by some under FJF.
THE EXTENT
TO WHICH
THE FJF HAS
SUCCEEDED IN
MATCHING NEW
WORK EXPERIENCE
OPPORTUNITIES TO
YOUNG UNEMPLOYED
PEOPLE
6. The extent to which young people were matched
with appropriate work placements seems to have varied widely between
different Jobcentre Plus (JCP) branches and employers.
7. Some young people felt as though their areas
of interest and existing qualifications had been well-explored
and taken into account by the JCP, meaning they had been effectively
matched with an appropriate placements. Those with such experiences
very much valued this level of service, and thought the placement
they had been given would be even more useful to their long-term
progression as it effectively utilised and build upon their existing
skills.
8. Others, however, felt that they had been pushed
into the first placement that became available and that their
interests were not taken into account. Some were forced to take
the first job they were offered, even though they had interviews
coming up for other posts that may have suited them better. Several
of the young people currently employed by Centrepoint reported
that they found the opportunities themselves rather than through
their personal advisor who had given them little assistance.
9. A number of homeless young people supported
by Centrepoint had experienced particularly poor service from
the JCP. Several young people were put forward for a job which
was not in the sector they had hoped to move into, but had no
choice other than to attend the interview and later take the job
or they would have faced benefit sanctions. The process happened
extremely quickly, leaving the young people with little chance
to reflect on whether the post was right for them or the implications
that taking the job would have on their finances.
10. Young people reported that in some cases
the employer organisation had a big role to play in matching them
with the right placements. For example, a number of young people
made a general application to Centrepoint encompassing a number
of different posts, and after their interview and a discussion
of their skills, Centrepoint matched them with the most appropriate
role they had available. Young people who were placed at other
organisations did not receive this level of tailored service.
The quality of the recruitment team at the employer organisation
therefore appears to have been a key factor in placing young people
in an appropriate position.
STRENGTHS AND
WEAKNESSES OF
THE FJF PROGRAMME,
PARTICULARLY IN
RELATION TO
THE LONG-TERM
SUSTAINABILITY OF
EMPLOYMENT OPPORTUNITIES
11. Overall the Future Jobs Fund has proved to
be an extremely valuable programme, giving young people a valuable
chance to gain work experience. The young people recruited to
Centrepoint had been unemployed for between six and ten months.
When applying for previous jobs, they had been told that the main
barrier to their employment was a lack of experience. Some had
had short-term or part-time work but could not make the step up
to a more permanent position.
12. Since taking part in the scheme, a number
of young people reported that it had boosted their confidence
and given them more material to include on their CV. They also
emphasised that they were grateful for the wide range of activities
they had had a chance to gain experience of during their placements.
One young person also felt that working for a large, recognised
charity would be good for their CV.
"It makes us look more employable".
13. The young people working at Centrepoint also
felt that the training budget which they had received had been
extremely valuable. They appreciated that Centrepoint had taken
a broad view of the value of training and allowed them to pursue
training opportunities that were good for the individual's long-term
development even if the particular course had little advantage
for the organisation in the short-term.
14. A number of young people who were coming
towards the end of their placements believed that taking part
in the FJF programme had had a big impact on their long-term employment
prospects. For example, a number were now getting interviews for
permanent jobs when, prior to the FJF post, they had not managed
to get any. One young person employed at Centrepoint (and who
was also a former resident of a Centrepoint service) has been
offered a permanent position within Centrepoint following her
FJF post. She does not believe that she would have managed to
achieve this without the FJF post. Please see the Annex for more
details.
15. There are also huge advantages for the employer
organisations. The young people recruited at Centrepoint have
added huge value to the teams they have been working in, particularly
as we would have been unable to create the post without FJF funding.
Financial rewards
16. While the FJF programme has been a great
chance for some to gain some experience, the situation is more
complicated for the homeless young people Centrepoint supports.
Some young people may be able to rely on family and friends to
support them, but the young people we work with must support themselves
and maintain their own tenancy. The weekly salary and the impact
of on their benefits is therefore a key consideration. As FJF
posts are limited to 25 hours a week at minimum wage, 18-20 year
olds will only receive £120 a week, and 21-25 year olds will
receive £145.
17. Many of the young people who have been recruited
to Centrepoint positions have been able to live with their parents
during their six month post. They have therefore not found the
salary prohibitive. Several are, however, graduates and are therefore
disappointed at the wage given the hard work and money they invested
in their degree. But overall they took the decision that it was
worth taking a low salary for a month in order to get some good
experience.
"The pay's not great but it gets you by while
you're getting experience."
"I'm treating it more as a paid internship
in a way. But it's worth it as it's giving me such good experience."
18. The situation is far more complicated for
the homeless young people Centrepoint support. They are unable
to live at home and therefore have large financial outgoings in
order to support their tenancies. For many of young people in
this position, the FJF wage has proved insufficient to meet their
outgoings, particular after the reduction in their benefits is
taken into account. This has led some young people to give up
their positions, and others have built up large arrears and face
eviction.
19. For example, one young man in a Centrepoint
semi-independent housing project was organised a FJF position
by the JCP. It was not in a field that he was interested in but
he agreed to take the job in order to avoid being sanctioned.
After the cuts to his housing benefit were taken into account,
he had virtually no financial benefit from working. When he started
work, his HB was suspended while the local authority reassessed
his claim. After a few weeks, it was calculated that of his £120
a week rent, he would have to pay £70 from his £145
a week earnings. To make matters worse, the job he had been given
was in a different area of London meaning that he had high travel
costs, particularly as weekly travel cards were not cost effective
as he only worked a three day week. This meant that he was paying
around £25 per week in travel. After rent and travel he therefore
only had £50 a week to meet his £10 a week service charge,
previous arrears payments and basic costs such as food - the same
amount as he had had when claiming JSA. This financial pressure
led him to drop out of the programme after less than a month as
he felt the temporary sanction this would impose would cause him
fewer problems than the long-term implications of working for
such a low income.
20. The young man in question had a history of
arrears, but this was not taken into account when he was placed
into an FJF post. It is crucial that young people's wider circumstances
are taken into account before matching them with positions as
it may be that some young people living independently cannot afford
to work part-time at minimum wage.
21. More effective joint working between different
agencies could help to make the scheme work better for vulnerable
young people. For example, it may be that some young people can
get Discretionary Housing Payments to help them pay their rent
once their HB drops, but as the name suggests, this is not guaranteed.
But if the local JCP and HB office could work together on an individual's
case, it may be that a suitable package of financial support could
be created.
22. Roll-on of housing benefit when a young person
moves into work is also crucial. One Centrepoint young person
was placed in an FJF post two weeks before the 24 week threshold
which would entitled them to a housing benefit run-on. This caused
him to build up large arrears as they had to back pay their rent
shortfall for the period in which it had taken the HB office to
reassess their claim. It is crucial that vulnerable young people
who move into work receive a few weeks run on to help them adjust
to their new financial situation.
Travel
23. As mentioned in the case of the young man
above, travel payments are a major barrier to some young people
taking on FJF posts. Ideally young people should be matched with
job opportunities within their local area. Many of the young people
that Centrepoint works with have been out of work for a long time
or have never worked. It is therefore, important to match them
with realistic options for them while they make the transition
to work, for example, in a post that does not require long and
expensive journeys each day.
24. If young people must travel long distances
for their post, the JCP should consider providing free or subsidised
travel to work. A couple of the young people working at Centrepoint
received a free travel pass for the first month to help them adjust,
but others received no such support, including the young people
in Centrepoint services. Providing assistance with travel may
make the difference for a young person struggling on a tight budget.
Level of support while in FJF post and preparation
for next steps
25. Feedback from FJF participants suggests that
there is a lot of inconsistency in the level of support being
offered by JCP once they start working. Some young people had
monthly check-ups with their personal advisers to assess progress
whereas others had no contact once they had been appointed.
26. Additional support can be very important
for young people, particularly those who have face additional
challenges such as mental health problems or a history of debts.
Some of the young people supported by Centrepoint encountered
problems when they moved into FJF posts as the JCP had not taken
account of the additional needs they faced. It is therefore crucial
that a needs assessment is part of the job matching process and
that they are given support throughout their placement to make
sure they are coping. Otherwise, there is a risk that they could
end up in a worse position than when on benefits, for example,
with mounting debts.
27. Moving into work can have a big effect on
the mental well-being of vulnerable young people so it is important
that they are helped through these transitions. For example, one
Centrepoint resident managed to build her confidence significantly
after starting her FJF post. But when the six months post came
to and end and she could not find work, her mental well-being
sunk lower than before. It is therefore crucial that sufficient
support networks are in place to help young people cope with these
changes. This support package should include any agencies working
with the young person to make sure a plan is in place to ensure
the young person has the support they need to cope with their
new situation.
Follow on
28. It is also important that plans are put in
place for what happens to the young person at the end of the six
months. Some young people received help to find follow-on work
but this was most often from the employer organisation. For example,
some young people received help from their line manager to write
applications for permanent positions or with interview advice.
However, not all young people received this level of help so it
is important that JCP also plays a role in finding young people
follow-on opportunities so they progress made during the FJF post
is not lost.
THE LIKELY
IMPACT OF
THE DECISION
TO END
THE FJF IN
MARCH 2011 RATHER
THAN MARCH
2012
29. While improvements could have been made to
the organisation of the FJF programme, it has proved to be an
extremely valuable programme providing crucial work experience
opportunities for young people. Ending the programme early with
mean that fewer young people will have the opportunity to benefit
and increase their chances of finding long-term employment. This
will mean that youth employment is likely to increase at an even
faster rate.
30. The young people employed by Centrepoint
were asked what they would have done if it had not been for the
FJF programme. Most said that they would likely still be long-term
unemployed. Others thought they might have found work eventually,
but that it would have been in a sector they were not interested
in and with little or no prospects. One FJF employee said that
he felt the programme had given him "an out" from dead-end
work. Others felt that they would have had to work for free in
order to gain experience which would have left them in growing
debt.
"[Without the FJF programme] I'd had to have
taken out a graduate loan and taken an unpaid internship."
31. But others said that they would not have
been able to afford to volunteer as they had rent to pay or no
access to credit, meaning that many would have been left with
no options other that to continue signing on. If volunteering
was to become a viable option for young people, they felt that
they would need additional financial support through travel and
lunch reimbursements. They also emphasised the importance of any
volunteering placements being well-structured and relevant to
their interests to ensure it gave them valuable experience.
32. Centrepoint is particularly concerned about
the cancelling of the FJF programme at a time when the Government
has indicated that they will increase conditionality of welfare
benefits. It will be deeply unfair if young people are sanctioned
for not finding work if they comply with all the JCP requirements
but there are simply no job opportunities available. For example,
we are particular concerned about the proposed 10% cut in HB after
claiming JSA for a year. Without offering job opportunities, many
young people, particularly those with more complex needs, are
unlikely to find work and will be subject to the HB cut. This
likely to lead to them building up arrears, risking eviction and
homelessness.
33. When the young people were asked about the
scrapping of the programme, several raised the potential costs
to the taxpayer of doing so. For example, they noted that the
cost of an FJF placement is much less than the Treasury would
get back from that individual in tax if they later manage to secure
a good long-term job. The programme was therefore seen as a good
investment which would prevent further development of a culture
of worklessness.
34. Young people also highlighted the cost of
ending one new programme and starting up a new programme. They
acknowledged that savings had to be made but encouraged the Government
to instead consider streamlining existing services. For example,
young people believed that prioritising different elements of
the JCP offer was necessary. For example, they felt that money
for work experience elements should be protected, by cutting back
on other support such as the job programme sessions which many
young people felt to be of little use. They suggested that help
with CVs and interview technique could be the responsibility of
employers as part of any JCP funded placements. However, they
argued that the posts themselves must not be cut or reduced as
young people living independently would not be able to cope on
even lower salaries.
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.
35. Centrepoint strongly urges the Government
to include work experience opportunities for young people in the
Work Programme to reduce the impact ending the Future Jobs Fund.
With competition increasing for each vacancy, having work experience
is becoming more and more important. Fewer employers are offering
positions for those straight out of education, so is important
that the Government is working to secure work opportunities to
give young people a first step on the ladder.
36. If new apprenticeships are created in sufficient
number they could help to fill this void but is crucial that sufficient
financial rewards are attached to these placements or they will
not be a viable option for the homeless young people we support.
It is crucial that the Work Programme does not focus only on those
young people who are easiest to help. Young people who are furthest
from the labour market should also be considered to ensure they
have support packages in place that give them a realistic chance
of moving into work.
37. When designing work experience opportunities
it will be important to build in:
- Detailed tailored planning to ensure young people
are matched with the right post.
- Mechanisms to ensure good quality support from
the employer.
- Well-rounded support packages that are coordinated
by JCP throughout any placement to ensure that the young person
is coping in their post and are preparing for next steps.
- Financial support packages that reflect the individual
young person's situation and ensure they are not put at risk by
moving into work.
38. Tapers within the benefits system will also
have a big impact on the success of the Work Programme. It is
important that young people who move into work do not see their
benefits cut at too sharp a rate or it will not be sustainable
for those without family support networks to access opportunities.
39. It is important the Work Programme does not
end at the point when a young person moves into their first placement.
Personal advisors need to help young people to develop a long-term
plan, where there are follow-up opportunities for young people
to access once they have gained some experience. If apprenticeships
are properly organised they could help to provide this pathway
of progression, but is important that young people are supported
until they can find permanent, sustainable work. This should help
prevent young people from simply returning to unemployment once
the placement is completed.
Apprenticeships
40. Centrepoint welcomes the Government's proposal
to fund more apprenticeships, as our experience suggests that
they good apprenticeship placements can be extremely beneficial
for young people. However, it is crucial that the new apprenticeships
are accessible to the young people that Centrepoint supports.
The apprenticeship system must not simply "cream off"
the more able young people. Centrepoint's experience suggests
that the employer-led apprenticeships often present the best opportunities,
offering a full wage rather than just an allowance. Unfortunately,
however, these opportunities often required young people to have
five GCSEs at A*-C which many young people at Centrepoint do not
have due to their educational being disrupted by crises in their
past or additional support needs. It is therefore crucial that
at least some employer-led apprenticeship opportunities are accessible
to young people without qualifications, giving greater weight
to young people who show potential in other ways.
41. If access to apprenticeships is to be fair,
it is also important that the opportunities are targeted on groups
who are traditionally less likely to access apprenticeships. For
example, the intake for many apprenticeships remains distinctly
gender biased. Traditional apprenticeships in manual trades tend
to be male-dominated, and newer apprenticeships focusing on other
vocations such as hairdressing often have worse terms and salaries.
It is therefore important that efforts are made to encourage more
young women to apply for the full range of opportunities and that
the assessment process is fair and open to give women and equal
chance of success.
42. Apprenticeships can provide an excellent
opportunity for young people, but those without support from their
families will be limited by the salary and conditions of the individual
placement. It is therefore crucial that young people are matched
up with the right opportunities which allow them to support themselves
and give them a real opportunity for a long-term career.
CONCLUSION
43. Centrepoint has found the Future Jobs Fund
to be a very valuable programme for many young people. We therefore
urge the Government to include a similar system of work experience
opportunities within the new Work Programme. It is, however, crucial
that these opportunities are linked with necessary support to
ensure that homeless young people without family support can pursue
the same opportunities as their peers.
Annex
Experiences of young people employed at
Centrepoint as part of the Future Jobs Fund programme
CASE STUDY:
SARAH[29]
Sarah became homeless at 19 and lived at a Centrepoint
service before moving on to another youth homelessness organisation.
She was eager to work but did not have the necessary experience.
Through the Future Jobs Fund, she gained a job in Centrepoint's
Participation team. This is a post which Centrepoint would not
have been able to fund itself, but has been of huge value to the
organisation, as Sarah has played a crucial role in encouraging
other young people to get involved in the Parliament. Working
at Centrepoint has noticeably increased Sarah's confidence and
helped her develop important administration and project management
skills. As a result of her experience in the participation team,
Sarah has been offered a permanent post in Centrepoint's volunteering
team, helping to establish a peer mentoring programme.
"I have really enjoyed my placement at Centrepoint
and feel that schemes like this will become more and more important
as the number of graduates entering the labour market increases.
The Future Jobs Fund helps bridge the disconnection between education
and employment and effectively mitigates the catch-22 of no experience-no
work. Without the Future Jobs Fund it was becoming likely that
I would need to take out a graduate loan to fund either an unpaid
internship or enrol on a post-graduate course to stay competitive.
However, with the skills and training I have gained on my current
placement I am more confident in my own ability and feel that
application to a similar position is much stronger." - Phil.
"The FJF has given me the opportunity to get
a job where I could learn new skills, rather than being stuck
in the same jobs using the skills I already had. In my role I
have been given responsibility and have gained experience that
has made me more confident when looking for future employment.
If the scheme was scrapped, people like me who had little experience
will struggle to find employment at a time when experienced workers
are also looking for jobs." - Steve.
"I have found the programme very beneficial.
It has given me the chance to broaden my knowledge and experience
in what I want to do. I now have something more up-to-date to
put into my CV and feel more employable and confident within myself,
and am ready for long-term employment!" - Jasmin.
"I think its amazing and they shouldn't scrap
future job funds as it has given me confidence in wanting to work
more and how to speak to people. If this works for me I believe
that others that have the experience to participate in a future
job fund role will also gain confidence and become more organised
in time keeping and working environments. Some people need this
to give them the experience they need to make them feel as if
they can move into permanent work." - Tony.
10 September 2010
28 Centrepoint statistics
2008-09. Back
29
The young person's name has been changed to protect her identity.
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