Youth Unemployment and the Future Jobs Fund

Written evidence submitted by Barnardo’s

1. Executive Summary

1.1 Barnardo's is working with the Department for Work and Pensions (DWP) to create over 700 employment opportunities for 18 to 24 year olds through the Future Jobs Fund (FJF). Barnardo's has been awarded four grants as Lead Accountable Body (LAB) and holds several subcontracts with Local Authorities where they are LABs for FJF. We are working in partnership with charities, social enterprises and corporate partners to create real jobs for six months, supporting young people to achieve sustained employment.

1.2 In preparing this response we have consulted over 100 employers that we are working with through the 8 partners in our London FJF project in which we both manage the supply chain and undertake direct delivery. We have also consulted young people we have supported through FJF.

1.3 Large national employment initiatives for young people, delivered by the voluntary sector can create meaningful programmes that help to kick start the careers of young people Most of the young people we work with come from disadvantaged backgrounds and have left school or college lacking the qualifications, skills and confidence that they need impress employers. Barnardo's and the third sector has shown that it has the capacity and expertise to deliver these initiatives on a large scale, working successfully with young people from vulnerable and disadvantaged backgrounds in particular. We would welcome another opportunity to help many more young people to make a successful transition to work, giving them hope and real opportunities to aspire to something more than a life on benefits.

1.4 We have found that incentivising employers to take on young people and give them a chance to see what they can achieve and contribute has been extremely positive. Barnardo's recommends that a national programme to encourage employers to recruit young people, supported by specialist providers, should be continued and expanded to include apprenticeships.

1.5 Barnardo's was disappointed that it was not given the opportunity to extend its FJF agreements with the DWP for another year. By ending the programme without a clear, structured replacement in place, there is a danger that the momentum, relationships and the goodwill of partners created through this programme will be lost during a period of rising need due to rapidly increasing youth unemployment.

1.6 Longer term contracts or funding agreements offer better value to Government, providers, employers and young people. Performance and efficiencies improve over time, and time allows providers to fine tune delivery and encourages suppliers to invest and build further links with employers to source vacancies.

1.7 The FJF scheme could have been rolled over into an Apprenticeship programme to include accredited training and aligned to Skills Funding Agency priorities, to coordinate employment and skills provision for young people. Barnardo’s would like the DWP to consider options for Prime Contracting for the 16-24 age group in the new the Work Programme to ensure that expert suppliers can support young people, who remain the hardest hit by the recession.

1.8 Presently, it is unclear whether Apprenticeships will be included within the Work Programme or through separate funding streams. One of the strengths of the Future Jobs Fund is that not all young people consider themselves or are suitable for an apprenticeship, some just want a job they enjoy and they can progress in, something the FJF has provided them with.

1.9 Barnardo's supports the Government’s plans to expand apprenticeship placements for young people. Barnardo's recommends:

a) Pre-Apprenticeship programmes – in the workplace, supported by charitable training providers like Barnardo’s for young people who are apprenticeship-ready, but represent more of a risk to employers due to disadvantaged and chaotic backgrounds

b) Incentives should be given to employers for giving young people an opportunity to work and learn

c) Access DWP programmes for unemployed people should be widened to include the 16 and 17 year olds, who have already left school or college because they want to work and learn in the workplace, but who often kept waiting to access these programmes.

2. Introduction

2.1 Barnardo’s has extensive experience of helping unemployed young people to gain qualifications and find work. We have been helping young people work towards sustainable employment since the late 1800s, when Dr Thomas Barnardo opened training centres to give young people the skills they would need to enter trades,

2.2 Today, working in partnership with local employers, schools, colleges, and other charities, we train and support over 2,500 young people every year. We work across the UK in a range of sectors including construction-related trades, catering, vehicle maintenance, business administration, horticulture, retail, and warehousing.

2.3 Barnardo’s provides a wide range of services to support young people through the transition back to education, training or into work, where necessary offering intensive support to meet the needs of young people. Key to their success is a strongly personalised approach, working flexibly with each young person and ‘sticking with them’, even when difficulties occur.

2.4 Barnardo's is working with the Department for Work and Pensions (DWP) to create over 700 employment opportunities for 18 to 24 year olds through the Future Jobs Fund (FJF). Barnardo's has been awarded four grants as Lead Accountable Body (LAB) and holds several subcontracts with Local Authorities where they are LABs for FJF. We are working in partnership with charities, social enterprises and corporate partners to create real jobs for six months, supporting young people to achieve sustained employment.

2.5 In preparing this response we have consulted over 100 employers that we are working with through the 8 partners in our London FJF project in which we both manage the supply chain and undertake direct delivery. We have also consulted young people we have supported through FJF.

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

3.1 In Barnardo's experience the FJF has been very successful in matching new work experience opportunities to unemployed young people. This has been achieved through effective recruitment processes such as job fairs, meet the employer events, straight forward and easy to understand job adverts and job descriptions. In London, our partners have worked with employers collaboratively and successfully, creating a huge variety of jobs in sectors including film production, finance, catering, hospitality and services for children and young people.  This has offered considerable choice for candidates, meaning that they are more likely to find a match for their skills and interests.

3.2 The Future Jobs Fund has developed the employability, skills, confidence, and career aspirations of young people whilst providing a tangible benefit to the community. The community benefit aspect of the FJF has enhanced the reputation of the voluntary and community sector as a rewarding career pathway for young people.

3.3 Key Recommendations - Large national employment initiatives for young people, delivered by the voluntary sector can create meaningful programmes that help to kick start the careers of young people Most of the young people we work with come from disadvantaged backgrounds and have left school or college lacking the qualifications, skills and confidence that they need impress employers. Barnardo's and the third sector has shown that it has the capacity and expertise to deliver these initiatives on a large scale, working successfully with young people from vulnerable and disadvantaged backgrounds in particular. We would welcome another opportunity to help many more young people to make a successful transition to work, giving them hope and real opportunities to aspire to something more than a life on benefits.

4. 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

4.1 Barnardo's is involved in delivery of the Future Jobs Fund at many levels; we are an employer, a provider, a Lead Accountable Body through which we manage supply chains and we are a sub-contractor in several areas of Scotland, Wales and England. Having consulted a range of partners and stakeholders and young people, the response to FJF has been very positive. Its strengths lie in the engagement of employers, who have seen the value young people can add to their organisation, the quality of jobs created for young people, and the experience and progress they have made.

Employer Perspective

4.2 The Future Jobs Fund has enabled Barnardo's to create an entry platform for young people to gain work experience and paid employment in social care roles, including Play Workers and Community Support Workers. These jobs were created specifically to be filled by young people, who would not have been considered for standard vacancies as they didn’t meet the threshold criteria to apply for our usual positions. After six months, the training and experience gained by the young people has put them in a position to apply for standard positions within Barnardo's and other social care organisations. The employers we have worked with externally had their expectations surpassed by the quality and motivation of the young people taking part in FJF.

Young Persons Perspective

4.3 During a Barnardo’s consultation event held in London for young people in a wide variety of FJF roles. The common views of young people were very positive:

· Increased confidence and understanding of the world of work and feeling like achieving something ‘real’ through paid employment.

· Increased ambitions for their career and future employment

· Training and development opportunities have enabled young people to develop essential and specialist skills that make them more competitive in the job market

· Increased understanding of available jobs and opportunities/possible career paths

· Sense of purpose and responsibility because being relied on in a role

Provider Perspective

4.4 Referrals onto FJF are reliant on the knowledge, ability and attitude of the JobCentre Plus Advisers.

4.5 Our partnership work allows us to work alongside other charities and social enterprises to share best practice and to create positive experiences for young people.

Partner Perspective

4.6 Our experience as a partner has been mixed; some LABs allow £5700 per employee, another £6,485 and the rest somewhere in between.

4.7 Key Recommendations - We have found that incentivising employers to take on young people and give them a chance to see what they can achieve and contribute has been extremely positive. Barnardo's recommends that a national programme to encourage employers to recruit young people, supported by specialist providers, should be continued and expanded to include apprenticeships.

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

5.1 Barnardo's was disappointed that it was not given the opportunity to extend its FJF agreements with the DWP for another year. By ending the programme without a clear, structured replacement in place, there is a danger that the momentum, relationships and the goodwill of partners created through this programme will be lost during a period of rising need due to rapidly increasing youth unemployment.

5.2 The initial impact of the decision to end Future Jobs Fund in March 2011 has already been reflected in the work of JobCentre Plus, where attitudes and priorities have changed. For example, in Blackpool, a fulltime FJF coordinator’s priorities had changed and their workload, meaning that they now spend less than a third of their time on FJF. This has impacted negatively on the ability of providers and employers to fill vacancies, and in some cases, increased the period of unemployment for young people.

5.3 Barnardo's concern is that there will be a gap in provision for young people, at a time when the youth labour market, particularly at the unskilled/low skilled end, is rapidly receding. The Future Jobs Fund comes to an end on March 2011, with the roll out of the Work Programme due to commence in June 2011. There is a danger that young people will be left drifting as the FJF falls away as it gets nearer to its end date whilst the Work Programme is not fully up to speed until some time after June 2011. Experience from previous recessions demonstrates the long-term scarring effect of unemployment at this age1.

5.4 Key Recommendations - Longer term contracts or funding agreements offer better value to Government, providers, employers and young people. Performance and efficiencies improve over time, and time allows providers to fine tune delivery and encourages suppliers to invest and build further links with employers to source vacancies.

5.5 The FJF scheme could have been rolled over into an Apprenticeship programme to include accredited training and aligned to Skills Funding Agency priorities, to coordinate employment and skills provision for young people.

6. 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.

6.1 The Work Programme will bring together client groups from very different backgrounds, with complex and varied needs and issues, such as long term IB claimants who may be moving on to ESA or JSA, lone parents, ex offenders and young people. Britain is currently at risk of creating a 'lost generation' of young people falling into long-term unemployment because of the recession unless action is taken now.2 In our view unemployed young people are the longest term risk and targeted specialist interventions now can realise the greatest savings for the public services and spending over their lifetime.

6.2 Due to the gaps in funding between the end of the Future Jobs Fund in March 2011, and the roll out of the Work Programme in June 2011, in effect, there won’t be a transition. Young people will cease to be referred to FJF and will move onto mainstream welfare to work provision, such as the old New Deal provision.

6.3 Key Recommendations: Barnardo’s would like the DWP to consider options for Prime Contracting for the 16-24 age group in the new the Work Programme to ensure that expert suppliers can support young people, who remain the hardest hit by the recession.

6.4 Presently, it is unclear whether Apprenticeships will be included within the Work Programme or through separate funding streams. One of the strengths of the Future Jobs Fund is that not all young people consider themselves or are suitable for an apprenticeship, some just want a job they enjoy and they can progress in, something the FJF has provided them with.

6.5 Barnardo's supports the Government’s plans to expand apprenticeship placements for young people. Barnardo's recommends:

d) Pre-Apprenticeship programmes – in the workplace, supported by charitable training providers like Barnardo’s for young people who are apprenticeship-ready, but represent more of a risk to employers due to disadvantaged and chaotic backgrounds

e) Incentives should be given to employers for giving young people an opportunity to work and learn

f) Access DWP programmes for unemployed people should be widened to include the 16 and 17 year olds, who have already left school or college because they want to work and learn in the workplace, but who often kept waiting to access these programmes.

10 September 2010