Unemployment and Worklessness Sheffield Executive Board 10 th August 2011

The purpose of today’s meeting Brief summary and question time on: – The statistics: What does unemployment and worklessness look like in Sheffield – What Works! Key findings of what works analysis – Welfare reform: Overview of national changes to benefits and welfare to work support – What does this means for Sheffield? A refreshed strategy Focus of the meeting: – Overview of work to date and actions to follow – Detailed discussion on the priority areas for action

The Statistics What does unemployment and worklessness look like in Sheffield 23,500 economically active people in Sheffield are unemployed and seeking work Of these approximately 16,225 are currently claiming Job Seekers Allowance (June 2011). In addition there are people who are not actively seeking work. This includes those who cannot work due to health problems or social circumstances (acting as carers or single parents). 24,700 are claiming Employment Support Allowance or Incapacity Benefit 6000 claiming Lone Parents benefit. In total then there are approximately around 47,000 people claiming JSA, IB or lone parent support in Sheffield.

In work support What Works? Employer Engagement Early Engagement Critical Key Worker Role Tailored Support to Individual - whole person approach Removing barriers to work and providing skills for employment Critical Job Broker Role The core components of back to work programmes

The Work Programme Mandatory for most benefit claimants - up to 2 years of support Access from ESA or IB from 3 months Access from JSA 12 months (with exceptions) Prime contractors are in direct competition – contracts are at South Yorkshire level and last for up to 7 years Predicted volumes for first year 8000 for SY (3500 Sheffield) for each contractor Sheffield ‘prime contractors’ = A4E and SERCO A4E are delivering 70% of their programme directly, subcontracting the minimum 30%. Their programme has seven stages; introduction, action planning, agreed actions, review and support, into work, in work support and sustainability / recycle. SERCO are subcontracting 100% of the delivery and taking a ‘managing agent’ role. Their programme is based around a ‘provider refresh’; a concept where individuals are moved to a different provider if they have not secured work at 16 weeks and then 44 weeks.

What does this mean for Sheffield The delivery landscape has changed New delivery partners working in new ways There are still many people who need support Benefit changes alone do nothing to reduce the numbers on benefit More job seekers needing support A new strategic approach to unemployment and worklessness is timely and necessary

A strategic approach needs; The strategic aims the city is working towards The city’s priority areas for action (underpinned by evidence) The principles by which the city will work (based on best practice) The governance and infrastructure needed to deliver The targets needed to underpin aims / areas for action

The strategic aims for the city Increase the employment rate by; Stimulating Job growth Moving more local people into work Ensuring more equality of opportunity in labour market

The strategic aims for the city Labour Demand The Employer / Job Labour Supply The Individual The labour market Barriers to work

In work support Principles under pinning the strategy taken directly from best practice Employer Engagement Early Engagement Critical Key Worker Role Tailored Support to Individual - whole person approach Removing barriers to work and providing skills for employment Critical Job Broker Role Day One Support PersonalisationJob in MindSustainable outcomes The core components of back to work programmes

Developing Priority Areas for Action Where have these priority areas developed from? Data Analysis, Lit review, Gap analysis, expert advice, consultation with stakeholders and partners. Why should we focus on them? Represent local issues Not provided in ‘mainstream’ support Remove underlying barrier to work Fill gaps in delivery Focus on areas which need progress Reduce inequality Support most vulnerable

Better connection of economic development Available jobs is central to achieving employment outcomes for unemployed people. - As key agencies in the city we work to support businesses to growth - We undertake economic development - We are large purchasers from the local economy Explore co investment with Prime Contractors Enterprise as a route into the labour market All these other activities could be and should be used to yield more employment outcomes, work opportunities for unemployed or workless individuals

Improving Employer Engagement Employers should benefit from ‘personalisation’ as well as the individuals – appropriate workers with appropriate support Need to develop positive employer attitudes and flexibilities to provide suitable jobs As a city we need to involve business in a more coherent way. A range of programmes and projects are contacting businesses separately -This is confusing and frustrating for businesses. Projects which are business focused, with businesses working as partners on projects or projects which were focused on sectors, delivered good job outcomes. A better relationship with business is needed, where they are involved earlier on in an individual’s journey to work and are contacted in a more coherent, systematic way is needed.

Removing and managing health barriers to work - strong evidence that ill health is a significant barrier to work. mental health is one of the primary conditions which are preventing people from work -- Seek to embed ‘ good work ‘ cab be part of recovery -scaling up of work to date with health and employability programmes working together across the board. - managing health conditions in the work place to maintain employment is important as it prevents unemployment and worklessness. The benefits which a ‘good’ job and work can bring, need to be recognised as part of an individuals recovery and employability support be dovetailed with health interventions

Providing skills for work and progression Skills are central to employability. This includes employability skills and as well academic and vocational qualifications. Work experience as part of skills package is important Adult skills funding available and is increasingly being directed towards benefit claimants – need to work with providers to connect people (new legislation on ‘skills conditionality’ which can mandate people to skills provision to remove barriers to work) Training and development by employers for those in work Ensuring that individuals have access to the skills training they need, needs to be an integral strand of any employment strategy.

Supporting vulnerable groups / households There are groups within the labour market which face inequalities, have higher barriers to work and higher unemployment rates. These groups are often overlooked by ‘mainstream’ provision; this is due to the often complex nature of their barriers to work. Focus on workless families with multiple issues Employment as wider benefit – enriching lives and giving confidence (it can also save money in forgone support) The task group would recommend that it is right that these groups are explicitly targeted with the employment strategy to mitigate against inequality.

Work opportunities for young people Young people with no work experience may find it difficult to secure employment as there is increased competition for jobs Young people can become ‘trapped’ without job opportunities. More young people are remaining on JSA for longer. More information for young people to help them make good choices – ex. careers advice, labour market education Focus on work experience, apprenticeship and graduate opportunities for young people Do we need to focus on young people who may face more barriers to employment – those with mental health difficulties, BME youth? The jobless cycle for young people must be stopped and prevented, with work and progression opportunities for young people.

What's next? ActionActivity and Timeline Identify more detailed actions to focus activity within each of the identified priority areas Underway - Task group feeding in virtually Key milestone - Task Group tbc early September Set up appropriate governance and delivery structures The task group will discuss and make final recommendations on governance by September. Current proposals involve setting up a new governance infrastructure, made up of; a strategic board, bringing together budget holders, private sector representation and a SEB representative. This group would hold the delivery board to account. a delivery partnership (closing old ones) to bring partners together to take strategy forward by focusing and influencing delivery and resources into the priority areas for action. Draft and consultation of new strategyEnd Sep 2011 Shadow Governance arrangements in placeEnd Sep 2011 Finalise and adopt new strategyEnd Nov 2011 New Governance arrangements in placeEnd Nov 2011

What will this achieve? Renewed focus around the key themes Basis for single investment plan for city partners Refreshed partnership approach Single source of commissioning Clear accountability