Youth Unemployment and the Future Jobs Fund

Written evidence submitted by Barnsley Metropolitan Borough Council

1. Introduction

1. Barnsley Council is pleased to have the opportunity to respond to your enquiry into Youth Unemployment and the Future Jobs Fund (FJF) and at the same time explain why our innovative scheme is a success.

2. Barnsley has been hit hard by the recession and the FJF programme is part of our response to its effects. It is providing some of our most disadvantaged young people as well the older long-term unemployed with work experience, skills and knowledge which are raising motivation levels and engendering a work ethic which was lacking in some cases.

3. We believe there are many lessons to be learnt from FJF particularly as the country starts to emerge from the recession and many unemployed people of all ages are seeking to get back into the labour market. We also strongly believe that the innovative programme put together by Barnsley Council and its partners can provide many of those lessons.

4. As well as this written evidence Councillor Stephen Houghton who chaired the Tackling Worklessness Review (Tackling Worklessness: A Review of the contribution and role of English local authorities and partnerships March 2009) would like the opportunity to give oral evidence to the Work and Pension Committee Inquiry

Background

1. Like many other local authorities the number of people claiming Job Seekers Allowance in Barnsley increased steeply in 2008 and 2009 and young people have been particularly affected. In addition, there are 16,000 people claiming Incapacity Benefit/Employment Support Allowance. Two thirds have been claiming for over 2 years, over a half are less than 35 years of age and an increasing number present with mental health issues.

2. Councillor Stephen Houghton the Leader of Barnsley Council, was instrumental in the establishment of the Future Jobs Fund, which was one of a number of recommendation in his report The Review of Worklessness, established by the previous administration. Many of his findings have been taken up by Barnsley and other authorities as a way of tackling worklessness, addressing the structural difficulties that faced partners as they struggled to deal with the large numbers of out of work claimants and sought ways of working with long-term unemployed people to re-integrate them back into the labour market.

Summary

1. Key to the success of Barnsley’s Future Jobs Fund programme was the personalisation of the service to the individual achieved through the initial assessment which ensured people were placed with the right employers and then provided with a personal journey while on the programme

2. Individuals were given a real taste of work experience through the offer of up to twelve months on the programme and the opportunity to obtain a level two qualification. This offer was possible because all partners agreed to match fund the government funding.

3. Genuine partnership working was instrumental in ensuring the success of the programme, maintained through monthly strategic and operational meetings.

4. A variety of job roles ensured we had a wide menu of opportunities from employers to match the capabilities of people with a range of skills and work experience from those with no/low skills to graduate level attainment.

5. The impact of ending the programme a year early will result in the loss of employment opportunities, particularly in the private sector which is where we need to work and support businesses to create more jobs.

6. FJF is a locally based programme. Designed and managed locally by those organisations who know the area and its people. The Work Programme will be managed by national prime contractors who must genuinely engage local partners who have many years experience of their particular area.

7. It is vitally important that lessons learnt/best practice from FJF are transferred into the new apprenticeship programme.

8. Where apprenticeships are filled by mainly younger people, there should be scope to address the issue of older long-term unemployed people moving from sickness benefits to Job Seekers Allowance.

The Barnsley Future Jobs Fund Programme

1. We believe that we have created an innovative FJF programme and have taken the opportunity to describe the key points below as a programme held up by many as a beacon of good practice before dealing with the questions posed by the Inquiry.

2. Like other programmes, the Barnsley FJF is predominantly a programme for 18-24 year olds, unemployed beyond 39 weeks plus residents of any age living in areas of high unemployment within the borough. Councillor Houghton went to great length to have it agreed that we could operate a 50/50 split between young people and hotspot residents in recognition of the high numbers of IB claimants. The core objective of the programme is to create employment opportunities with training for candidates for 6 months.

3. We knew from knowledge of our clients and their multiple barriers that we needed innovative approaches to ensure motivation, participation and retention. That is why Barnsley committed to creating real jobs for up to 12 months to benefit the local community. Government funding for the Future Jobs Fund programme has been match-funded by the council and other partners. This means that all FJF employees will be able to remain in their jobs for up to 50 weeks, thereby significantly increasing their employability with local private sector businesses

The principles of our innovative approach to making the programme a success can be summed up as:

1. A range of different types of employers and employment opportunities sufficiently broad enough to cater for a range of people with no, or low skills to those with more advanced skills and qualification such as graduates.

2. Agreement by all employers to match fund and facilitate up to 50 weeks employment and experience

3. All partners have agreed to use a simple, single application form with generic terms and conditions which are adapted to suit individual organisations requirements. This has provided people with the motivation to apply for multiple jobs – with the consequence that they have received multiple job offers.

4. Advertisement of vacancies and initial interview with Job Centre Advisers.

5. Pre-recruitment training for all candidates prior to start dates funded by Barnsley TUC Training Ltd. Provided to all candidates at job offer stage just before they begin work the sessions help the candidate with the transition from long-term unemployment into a job and provide an opportunity for them to have any last minute questions answered.

6. Initial assessment of skills to allow a bespoke training package to be developed; both Skills for Life and Vocational.

7. In- work training and Day release to study for vocational qualifications up to NVQ level 2incorporating basic literacy, numeracy and information technology where required.

8. Pastoral care through individual mentoring to address ongoing barriers to work to help the client address any in work problems or barriers and help broker solutions. Assignment of a personal mentor funded by Working Neighbourhoods Fund

9. Mandatory half day per week job search, training in CV building and interview skills, including how and where to look for jobs ensuring people leaving the programme are equipped with the necessary skills and qualifications to compete in the jobs market, thereby increasing the legacy of FJF.

10. IT based tracker system, updated in real time to show destinations and outcomes.

11. In short our extensive wraparound care and 12 month job guarantee have ensured wide participation; competitive interviews for every job advertised and are crucial to Barnsley’s successful FJF programme.

Outcomes and impact

1. The scheme went live in October 2009. By December 2009, 164 people had been recruited to FJF jobs.

2. Over 430 will have been employed by October 2010; over 100 of these will have gained an NVQ level 2, 150 will have achieved Skills for life qualifications and over 100 will have moved into full time employment by March 2011 possibly increasing as new employers are committing to job outcomes.

3. Barnsley has achieved a 50/50 split between young people and hotspot employees, this in real terms equates to a minimum of 322 young people. As a Lead Accountable Body we will look to recruit more young people than hotspot participants.

4. The partnership set a target of six weeks from job advert to employment and to date that target has been met. .

5. Over the two years, 412 jobs will be created within the Council, 162 in the wider public and voluntary sectors and 40 jobs in the private sector.

6. The pre-employment day has been the principal key to helping people deal with the difficult transition from long-term unemployment into a job

7. A positive working relationship with Job Centre Plus and delivery partners has been in place from the start of the programme. Monthly strategic and operational meetings are held.

8. The benefit to participants is the offer of a real job for up to a year, with quality training and wraparound services. This has been the single biggest success factor.

9. The Barnsley FJF programme has proved that local partnerships working closely together are able to deliver real benefits to local areas, based on their in-depth knowledge and expertise built up over many years.

The following sections sets out Barnsley’s response to the specific questions the Committee have for their inquiry.

1. The extent to which the FJF has succeeded in matching new work experience opportunities to young unemployed people.

1. We have offered a wide and varied job portfolio increasing the range of opportunities as new employers have joined the partnership. We have developed low skilled entry level jobs through to more complex roles to meet the expectations and skill levels of clients.

2. Each candidate has the opportunity of up to 50 weeks employment and the opportunity to gain relevant qualifications including NVQ’s and Skills for Life (Literacy, Numeracy and Computer Skills) which they would not have the chance to get under the 6 months offer. This additional 6 months therefore makes them more attractive to an employer.

3. Our programme is successful because of its unique nature to other FJF programmes. Barnsley’s FJF starts with a long term job at least minimum wage which raises the applicant’s confidence and esteem. The programme is individualised to the employee by an initial assessment which personalises the individual’s journey with us. The other wrap around care has been instrumental in a low drop off rate designed to lessen the impact of long term unemployment in to employment. During their employment they are encouraged to seek employment off the programme; over 100 will have been successful by March 2011. Over 400 employees will have gained a relevant NVQ level 2 and over 150 gaining skills for life qualifications which alongside the work experience will enhance their employment opportunities.

4. The Barnsley programme has been successful and will have created 644 new work experience opportunities through a wide sectoral mix of organisations involved in the programme and a strong partnership working

2. 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.

Strengths

· Local knowledge of the clients and their needs/barriers

· Experience of managing previous work programmes

· Strong relationships with social enterprises and Third Sector organisations.

· Strong partnership working and partnership commitment.

· Good relationship with Job Centre Plus

· The ability to be flexible and innovative

· Variety of job roles

· Variety of training opportunities with industry recognised qualifications.

· Regional networking and sharing of best practice

· Barnsley’s "wraparound" care.

1. A particular strength of Barnsley’s FJF programme has been the genuine partnership working, particularly from the third sector and social enterprises, who increased their capacity, strengthened their sustainability and delivered more services to the community through their participation and commitment to the programme.

2. The different public sector organisations (NHS, PCT, Local Authority) have worked together to provide a wide variety of work experience and training opportunities to some of the more disadvantaged individuals across Barnsley which has increased their employability.

3. Young and older unemployed people have been given the opportunity to motivate themselves through gaining valuable work experience, obtain a relevant qualification and increase their job search skills by learning where and how to look for jobs in the future with increased confidence.

4. We have many testimonials from the people we have worked with and the two case studies below are a reflection of what people have told us and how the programme helped to turn people’s lives around.

Case study 1

1. Joanne had been unemployed for six years before joining FJF last October. "I didn’t have the confidence, or the skills, to apply for work. But FJF doesn’t discriminate against your background and I found that everyone was very supportive – from the engagement team and managers I worked with to the local Councillors I met.

2. She completed the scheme this summer, gaining a NVQ2 in Customer Service, IT skills in word processing, spreadsheet and email applications, plus English and Maths qualifications. Her FJF post involved community engagement work followed by a spell at the Central Library where she helped people with no previous experience get to grips with computers and the internet.

3. Her time on the programme and experience gained ensured she was successful in applying for a permanent post within the Library Service. Her new role includes helping customers use the internet for tasks like job search and travel enquiries, and answering general enquiries.

Case study 2

1. Sharon was an unemployed single mum who hadn’t worked since having the first of her three children in 2000. Despite the personal rewards of raising a young family, the demands on her time and energy had left her feeling isolated at home and lacking the confidence to tackle paid employment.

2. Now, she has benefited from the confidence of eight months’ paid employment with FJF – achieving the first formal qualifications of her life – to secure a permanent, full-time job as a care assistant at a nursing home as well as an NVQ level 2 in customer Care. "After you’ve been out of the workplace for so long, the programme gives you the confidence to think, ‘Yes, I can do this,’ while the income means you start to get your financial independence back."

Weaknesses:

1. The restrictions of creating posts that must be additional, of community benefit and lack of engagement with the private sector for the same reason has proved difficult for partners to fully engage. Many organisations have indicated that they would have liked the opportunity to create new posts supporting existing operations.

2. We have not been able to provide opportunities within the programme for continued employment other than through learning job search techniques and applying for vacancies within partner organisations and the private sector.

3. Early closure of the programme minimises the chance of the programme reaching its full potential.

3. The likely impact of the decision to end the FJF in March 2011 rather than March 2012.

1. Partners and Lead Accountable Bodies have had to bring opportunities forward to meet the new deadline, this will restrict opportunities as developing new and innovative roles will be hindered.

2. As efforts switch elsewhere resources will inevitably follow and there is the danger that outputs and outcomes will not be met

3. We would have had time to increase the number of private sector partners (and roles) to replace jobs opportunities lost in the public sector.

4. W e would welcome the opportunity to work with the new government to influence changes to the programme, building on our innovative and successful programme and taking ideas forward into the Single Programme, in anticipation that best practice could have been replicated.

5. Uncertainties and lack of information over the "Single Programme" will encourage organisations to work in isolation rather than partnership.

6. Partners in the voluntary, community and third sectors would have had time to build capacity in their organisation to be able to take on contracts becoming available from the new programme.

7. If the programme had run to 2012 we could have influenced changes to the programme to engage the private sector to create jobs in growth areas. Partners would have been able to vary roles reflecting changes to the public sector reductions.

4. 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.

1. FJF has been a locally based programme whose successes or otherwise have been linked to local design and management. The work programme will fall to national bidders who may decide to deliver a "one size fits all" programme. This will not work

2. FJF partners will lose some autonomy as prime contractors are likely to be major organisations and local partnerships will contract through the primes instead of directly with DWP.

3. FJF provided six months funding to organisations that participated in the programme. Consideration could be given to some type of subsidy for SMEs that take on apprentices.

4. DWP must take note of what has worked and where it has worked on FJF to avoid replicating previously failed schemes.

5. If the apprentice posts are predominantly filled by younger people there is an argument to continue with a quality work programme for older long term unemployed clients moving from sickness benefits to Job Seekers Allowance.

6. The lessons learned from FJF should be transferred to the apprenticeship scheme. The importance of a pre work information session to allay fears re the transition from benefit to employment and in work mentoring for both the participants and their employers.

7. Apprenticeships will remove one of the main obstacles to FJF; it will be open to private sector employers without the restrictions based on community benefits.

8. Apprenticeship should be marketed to all ages. In areas of high deprivation there are significant numbers of people on sickness related benefits (16,000 in Barnsley). The introduction of the capability assessments for existing recipients will lead to many needing support into work. An FJF experience would have offered that transitional support and given them a work record to help remove the doubts of new employers recruiting someone who has a history on a long term sickness benefit.

10 September 2010