1. Review of Local Employment Initiatives in Middlesbrough Presentation of Shared Intelligence findings Mark Evershed 15 April 2005

2. Objectives of the research assess current and future needs – supply and demand scan current/future policy & delivery at national, regional & local level identify ‘preferred model’ of provision for supporting access to the labour market evaluate current provision & identify gaps/opportunities develop strategy/action plan

3. Methodology Stage 1: Assessment of need and overview of provision Stage 2: Develop preferred approach Stage 3: Develop strategy and action plan

4. Context Shifting focus from unemployment to worklessness Middlesbrough one of worst 6 concentrations in England new DWP Strategy changes to benefits regime Increased flexibilities & freedoms for mainstream programmes

5. Background - key statistics demographic change - 17-44 age group to decline by 11% to 2016 demographic change - 17-44 age group to decline by 11% to 2016 educational attainment improving but still poor educational attainment improving but still poor 39% of pupils achieve 5 GCSEs A-C 39% of pupils achieve 5 GCSEs A-C poor literacy (29% of adults) & numeracy (31%) well above England average (24%) poor literacy (29% of adults) & numeracy (31%) well above England average (24%) widespread deprivation widespread deprivation Middlesbrough ranked 4 th worst local authority in 2004 IMD (concentration of deprivation) Middlesbrough ranked 4 th worst local authority in 2004 IMD (concentration of deprivation) four SOAs in worst 100 (out of 32,382) in England (Middlehaven x2, Gresham, Clairville) four SOAs in worst 100 (out of 32,382) in England (Middlehaven x2, Gresham, Clairville)

6. Background - key statistics economic transition …. economic transition …. modest growth since ‘97 modest growth since ‘97 shift towards service sector employment & part-time jobs shift towards service sector employment & part-time jobs skills shortages & hard to fill vacancies skills shortages & hard to fill vacancies employment rate (63.5% very low (cf GB 74.3%) employment rate (63.5% very low (cf GB 74.3%)

7. Worklessness 22.4% of Mbro working age population on some form of benefit (GB 13.5%) 22.4% of Mbro working age population on some form of benefit (GB 13.5%) 16 of Middlesbrough’s 22 wards are in worst 20% for employment deprivation 16 of Middlesbrough’s 22 wards are in worst 20% for employment deprivation

8. Unemployment JSA claimant count unemployment high – 4.6% Jan 05 (GB 2.4%) - but fell by 35% since January 2001 JSA claimant count unemployment high – 4.6% Jan 05 (GB 2.4%) - but fell by 35% since January 2001 51.3% of claimants aged 25-50; just 12.8% are 17-19 51.3% of claimants aged 25-50; just 12.8% are 17-19 45% have been claiming JSA for more than 26 weeks 45% have been claiming JSA for more than 26 weeks wards with highest % unemployment are: wards with highest % unemployment are: North Ormesby/Brambles Farm (11.2%) North Ormesby/Brambles Farm (11.2%) Beckfield (8.1%) Beckfield (8.1%)

9. Incapacity benefit/Income Support 13% of Mbro working age population on sick/disabled benefits (GB 8.6%) 13% of Mbro working age population on sick/disabled benefits (GB 8.6%) just over 20,000 residents on IB/IS – more than 5x no of JSA claimants just over 20,000 residents on IB/IS – more than 5x no of JSA claimants IB/IS claimant count has remained static since 2002 IB/IS claimant count has remained static since 2002 50% of IB claimants have been claiming >12 months 50% of IB claimants have been claiming >12 months

10. A view from the sharp end (1) Qualitative research with 50 individuals to consider needs, barriers, effectiveness of current support: young people lone parents BME residents long-term unemployed people with disabilities reinforced perceptions of key barriers to work: health childcare transport postcode discrimination Benefits System skills levels housing

11. A view from the sharp end (2) …but also highlighted impact of low self-esteem, confidence and aspirations mismatch between career aspirations and available employment – poor quality of entry level jobs constraints on JC+ resources; still perceived as ‘benefits police’ complex progression routes - ‘customer journey’ is often unclear limited recognition of overseas qualifications

12. Current provision – what’s working well? more than 50 separate initiatives, ranging from national programmes/pilots to locally funded/targeted projects: more than 50 separate initiatives, ranging from national programmes/pilots to locally funded/targeted projects: Employment Zone/WiN/Action Team – flexibilities & freedoms to tailor mainstream provision Employment Zone/WiN/Action Team – flexibilities & freedoms to tailor mainstream provision projects engaging hard to reach groups (e.g. MiLE, Grange Rd) projects engaging hard to reach groups (e.g. MiLE, Grange Rd) Job brokerage – complements mainstream provision Job brokerage – complements mainstream provision Hemlington Works – holistic approach to service provision Hemlington Works – holistic approach to service provision sector-based approach – Building Bureau sector-based approach – Building Bureau

13. Current provision: working less well? some (limited) evidence of duplication of provision some (limited) evidence of duplication of provision often funding regimes do not promote progression often funding regimes do not promote progression lack of in-work support/mentoring lack of in-work support/mentoring not enough IAG advisors not enough IAG advisors stronger links required between Connexions and employers? stronger links required between Connexions and employers? many neighbourhoods currently access extensive support – but some programmes/funding streams due to end in 2006 many neighbourhoods currently access extensive support – but some programmes/funding streams due to end in 2006

14. Learning from good practice Learning from good practice Research has examined a range of initiatives: Research has examined a range of initiatives: Full Employment Areas (Liverpool, Renfrewshire) Full Employment Areas (Liverpool, Renfrewshire) Streets Ahead (Liverpool) Streets Ahead (Liverpool) New Futures Fund (Careers Scotland) New Futures Fund (Careers Scotland) health projects (Compass Project, Healthy Working Lives, Starting Well) health projects (Compass Project, Healthy Working Lives, Starting Well) Strive (Harlesden) – US model Strive (Harlesden) – US model

15. Learning from good practice freedoms and flexibilities – e.g. EZ/Action Teams – reduce barriers strong focus on engaging the hard to reach independent personal advisors/key workers who broker support and handhold flexible provision – purchased when needed deal with “person first “ deal with “person first “ holistic approach (health, family, confidence) holistic approach (health, family, confidence)

16. Local Employment Strategy: Aim: ‘to achieve full employment in Middlesbrough by 2015

17. Local Employment Strategy Full employment: Everyone who wants to work can quickly find a job No groups are excluded or disadvantaged in the labour market There are real prospects for progression at work Poverty in work is eradicated defined as GB average JSA claimant count and employment rate of 80% Achieving GB average today would require 8,600 more Middlesbrough residents in employment; local economy currently growing at 500 jobs p.a. LES is focused on supply-side – recognise demand-side is critical making mainstream

18. Objectives build consensus on local needs & priorities and develop provision to address gaps provide a framework to coordinate and target delivery influence and add value to delivery of mainstream programmes

19. Partnership a stronger, focused partnership involving JC+, Council, Network of Intermediaries and others; this would clearly define delivery roles & responsibilities work with other partners (social work, health etc) to strengthen referral routes and promote progression align funding and resources; move towards joint commissioning and re-commissioning of projects provide capacity building and support to local organisations maintain overview of local needs/priorities - monitor, evaluate and update Local Employment Strategy

20. Partnership Local Strategic Partnership Integrate with community strategy Economic Vitality Group updating the LES defining roles and responsibilities Delivery partners Project delivery Executive Middlesbrough Works aligning funding and resources direct commissioning and performance management

21. Proposals (1) seek to influence delivery of mainstream programmes more emphasis on engaging/supporting hardest to reach in the community – key worker approach holistic view of client needs – ‘person first’; stronger focus on in-work support widen flexibilities/freedoms in most employment deprived wards, building on DWP strategy

22. Proposals (2) extend EZ/Action Team flexibilities/freedoms to enhance mainstream support in 12 wards: minimum eligibility criteria – unemployed or economically inactive increased no of personal advisors to broker support all individuals to benefit from full range of support offered funding to follow the individual, rather than the provider stop the clock' allowing individuals to address key barriers without penalty in-work support for a minimum of 26 weeks built into all programmes rewards for effective partnership working enhanced travel subsidies and support with childcare costs

23. Proposals (3) commission new local initiatives to plug gaps: support for long-term IB/IS claimants (pre P2W) strengthen role of public sector in providing apprenticeships, work placements etc sector-specific customised training sector-specific ILMs enhanced employment support for 16-19 year olds work-based ESOL

24. Group discussion: is full employment the right aspiration for the strategy? is the Partnership vehicle right? views on proposals Extending flexibilities and freedoms for mainstream provision in target wards local projects to address gaps what – if any – are the risks and barriers to delivery?