Winning Ways to Improve skills Welfare to Work Convention 30 June 2011 Peter Loosley and Florence Orban

2 Those who leave school with no or low qualifications tend to go on to suffer a significant labour market disadvantage. Improvements in basic skills leads to improvements in productivity and growth; can help reduce child poverty and crime; and improves health and job satisfaction. A lack of qualifications has a greater impact on young people. People who are 16- to 24-years-old with no or low qualifications have an unemployment rate that is, on average, at least double that of people in older age groups with a similar level of skills. Formal qualifications are not the only important issue for employability. Employers also value ‘soft’ skills such as motivation, punctuality, and communication skills when recruiting unemployed and inactive workers Increasing the level of skills in the workplace can lead to higher wages for employees and a more competitive workforce Why skills matter

3 Unemployment Rates by qualification level - Between Q and Q2 2010, the unemployment rate has increased across most of the qualification levels, except for Level 3 and Level 4. *In line with ONS, data from Q includes individuals aged Data for previous quarters includes men aged and women aged 16-59

4 The new skills/training approach in England From August the new approach for pre Work Programme entry will:- Be locally driven, flexible and simplified Offer short units from the Qualifications and Credits Framework as well as full qualifications. Provide full funding for JSA and ESA (WRAG) claimants Trial employment outcome payments for training providers Focus on local labour markets to meet employer needs and those of the individual After entry to the Work Programme, providers will be responsible for addressing any remaining skills needs.

5 Sector-based work academies Combine sector-based training with a work experience placement with an employer in that sector; Established in sectors with high volumes of current local vacancies – with participants receiving a guaranteed interview on completion of a sector-based work academy; Available to Jobcentre Plus claimants on active benefits who are close to the labour market and who would benefit from participation to help them find work; Last for up to six weeks, with the individual remaining on benefit during that time and receiving additional support with travel and childcare costs and reasonable adjustments if required; Include accredited provision – leading towards units on the Qualifications and Credit Framework as appropriate to the entry requirements for intended jobs.

6 Skills Conditionality Skills conditionality introduces a requirement for JSA and ESA (WRAG) claimants to attend training where a skills need has been identified as a barrier and for sanctions to be applied for failing to do so without good cause Government policy is that it is right to ask some claimants to do more in return for their benefits and drop out rates are currently high on many courses We will be building on both the lessons learnt from piloting and the responses to our public consultation. We have spoken to providers and Jobcentre Plus staff to seek their views on implementation. Need to make sure that customers understand why they have been referred to training and what the potential benefits are. Need to ensure that customers are aware of the implications of a mandatory referral and the consequences of failing to attend

7 Conclusion Need to ensure that training provision is flexible and meets the needs of our client group Training provision should be related to the world of work and meet employer needs Partnership working between Jobcentre Plus and training providers is going to be crucial to shape provision Now let’s hear about how this can work in practice

Winning Ways: Into Employment

Winning Ways: Into Employment The National Skills Academy Working with Employers Meeting Employer Needs Welfare to Work Case Studies - developing suitable job roles - routes into employment - pre-employment training - volunteering opportunities - utilising physical activity Future Interventions 1

To transform the delivery of skills for sport and leisure in order to help create a highly skilled workforce fit for current and future purpose To complete the continuum from workforce development planning, through qualifications, to training provision Skills Active National Skills Academy To provide a one-stop shop for quality-assured training provision for employers and individual learners To provide sport and active leisure employers with access to ‘Better, Cheaper and Easier’ training The National Skills Academy 2

Led by employers: –National Board –Consultation Groups –Network relationships –Employer ‘solutions’ led Working within SkillsActive Group to provide: –Workforce planning –Roles, Competencies & Qualifications –Analysis of training needs Quality assured training solutions –Fit for purpose –Responsive to employer need –OFSTED plus other QAA Reduced Costs –Economies of Scale / aggregated demand –Increased access to public funding Working with Employers - Easier - Better - Cheaper 2

National network of quality assured training providers Online Academy Apprenticeships Funded programmes Innovative targeted programmes Active Passport system Registers Learner Management Systems Meeting Employer Needs 2

Future Jobs Fund –Contract size - £38 million –5,000 jobs created –150 contract partners involved in bid (87% SMEs) –Programme of interventions: Constructive relationship with JCPs Stimulate sustainable entry level jobs Advise on job specifications Create and deliver pre-employment training Provide on the job vocational training programmes Support employers from recruitment to retention Exit routes into further training (Graduate Gateway) Welfare to Work Delivery 3

Case Studies 4

Issues –Ensuring employers understood and bought-in to the programme –Creating job roles suitable for long term unemployed / disenfranchised candidates AND employers Solutions –Worked closely with JCP network to understand target groups and most attractive job roles –Targeted employers who work with hard to reach groups –Provided ‘example’ job roles / job descriptions across employer sectors –Created direct links between employers and JCPs Impact – Roles created matched the skill level of potential candidates –Allowed candidates to ease back into employment –Easier recruitment and greater sustainability Case Study 1: Developing Suitable Job Roles 4

It was especially good to have an Academy person in our region to go through the benefits and challenges of adopting the government-funded programme, and our specific issues as a business, That definitely cut down on paperwork. Sport For Life 4 “ “

Issues –Attracting candidates to available roles – Providing meaningful employment and progression opportunities – Ensuring sustainability Solutions –‘Promotion’ to candidates at JCPs –Easy access to recruitment days –Motivational recruitment process –Ensuring roles delivered business objectives Impact –Higher percentage of applicants taken on –Candidates have visisble long term progression route –Franchise model offers opportunity for low skilled candidates to grow business Case Study 2: Routes into employment 4

We’ll also be helping them develop a business plan and action plan, and provide them with any other support they need. 4 Premier Sport “ “

Issues – No skills = No job and No job = No skills –Long term unemployment eroding job ready skills –Unemployed young people not a homogenous group – no ‘one size fits all’ approach Solutions –Pre employment assessment to identify candidates skills gap –Interventions created to meet both individual candidate need AND employer expectation –Training packages include basic skills, employability skills and early job relevant skills Impact –Candidates given basic transferable skills as needed –Candidates job ready at entry point –Sustainability of employment improved by early investment in pre -employment interventions Case Study 3: Pre-employment training 4

Every one of the 120 young people we have taken on have just been looking for a chance to make something of themselves. At the time of writing not one person has dropped out of the Future Jobs Fund programme working for Fit for Sport 4 Fit For Sport “ “

Issues –Long periods without meaningful activity has negative impact on likelihood of employment –Long term unemployment eroding self confidence and skills Solutions –Provide volunteering opportunity as part of route to employment –Tie in volunteering / work placement to job opportunity –Guarantee interview as part of process Impact –Helps the candidate develop / retain / improve job skills –Opens door to potential employment –Increases sustainability through experience - ‘try before you buy’ Case Study 4: Volunteering Opportunities 4

Attractive for Candidates I was going for about four job interviews a week but not getting anywhere so I thought I’d see what the Academy could do for me. Attractive for employers I’ve never employed anyone straight from unemployment before but I was pleasantly surprised. The four we selected were enthusiastic and reliable young men, wanting to work and willing to learn. They have been excellent. 4 Mayor’s Legacy and Sport For Life “ “ “ “

Issues –Lack of life structure, lower confidence and self esteem are factors of long term unemployment –Poorer health / lack of physical activity reduces learning ability –Significant impact on readiness for employment Solutions –Provide physical activity as part of wider training interventions –Carry out all types of training in leisure centre and fitness venues Impact – Candidates more motivated, fitter and more work ready –Greater impact of training interventions and long term retention of learning –Greater likelihood of recruitment and ‘lasting the course’, i.e. sustainability of employment Case Study 5: Utilising Physical Activity 4

I work with a programme coordinator to shift the boys’ focus from crime to football and help them see all the other possibilities available to them in life. The boys are at a very impressionable age and, if even a handful of them listen to us, we’ve achieved something. 4 Case Study 5: Charlton Athletic “ “

Future Interventions 5

The Work Programme Development of pre-employment training Pre-Apprenticeships Work Academies Targeted funded programmes –ESF funding for engagement of NEETS –Sport England Volunteer support programmes –Regional funding; Mayor’s Legacy Regional Growth Fund Future Interventions 5