Corporate Powerpoint Presentation Template Option 2

Report
Steps to Work – New Deal
Recontracting Seminar:
Limavady, 24 January 2008
The Northern Ireland Labour Market
Dave Rogers, Analytical Services, DEL
What I am going to cover
1. Northern Ireland Labour Market in Context
2. What matters – employment,
unemployment, inactivity
3. Reconnecting people with the labour
market – DEL’s Skills Strategy
4. What Research tells us
The NI Labour Market - GOOD NEWS
 Fifteen Years ago - unemployment 100,000 plus: today
less than one third of that
 Fifteen Years ago - 50,000 long-term unemployed: today
less than one third of that
 Fifteen Years ago - 600,000 jobs in NI: now more than
770,00 - up by well over 150,000
 Most net expansion in private sector services
 GVA (formerly GDP) per head up by more than a third
(faster than UK as a whole)
Ire ly
la
n
Fr d
a
G nce
er
m
an
y
Ita
N
Ita
N
UK
Ja
pa
n
US
A
Unemployment
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Ire ly
la
n
Fr d
a
G nce
er
m
an
y
80%
70%
60%
50%
40%
30%
20%
10%
0%
UK
Ja
pa
n
US
A
Employment
NI has a relatively healthy labour market in an
international context
The NI Labour Market – Unemployment
 NI unemployment rate – 4.3%
 UK – 5.2%
 Austria – 4.3%
 Italy – 5.9%
 France – 8.1%
 Poland – 8.8%
 Republic of Ireland – 4.4%
 EU27 – 7.0%; Eurozone – 7.2%
Data at Autumn 2007
Source: DETI
Claimant Unemployment – Limavady
Northern Ireland
7.0%
Limavady DC
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
1998
1999
2000
2001
2002
2003
2004
2005
The NI Labour Market - Employment
 NI employment rate 67% (Eurostat definition)
 UK – 71%
 Austria – 72%
 Italy - 59%
 Germany – 69%
 France - 64%
 Poland – 57%
 Republic of Ireland – 69%
 EU27 – 65%; Eurozone – 66%
Lisbon Target – 70% (2010)
Data at Apr-Jun 2007.
Source: DETI
The NI Labour Market – NOT SO GOOD NEWS
 NI still has lowest employment rate in UK (70% vs 75%)
 This means we have proportionately fewer people in work
than the rest of the UK: if we matched the average, we
would have 60,000 more people in jobs
 The employment rate is a key government target – high
employment rates are a sign of a healthy economy – and
the UK has an aspiration of an 80% employment rate
 NI Programme for Government has target of 75% by 2020
 Unemployment is low – but many of those who are
unemployed have either never worked or have not had
sustained employment for a long time and have been on
programmes such as New Deal two or more times
NI Labour Market – Challenges
 Unemployment is low, and therefore increasing the labour force
must look to other sources.
 Unemployment in other UK regions has begun to rise: could this
happen here?
 High level of economic inactivity
 Sickness-related benefit claimants up by 14,000 since 1999
 Low wages (= benefit trap)
 Still high dependence on public sector (c 32% of employment cf
20% in UK as a whole)
 Still relatively weak Private Sector. Median private sector wages
only 83% of UK. Risen faster than rest of UK in recent years – but
slowdown last year – possibly suggesting weaker demand side?
 Some evidence of buoyancy (house prices) but many economists
beginning to be more pessimistic at global, UK, RoI, and NI level
 Recession??
Issue - Economic Inactivity
 The economically inactive comprise those who are out of
the labour market altogether – not working and not
looking for work
 NI has the highest Economic Inactivity rate in the UK –
27% of our working age population is inactive (cf UK 21%)
 We have nearly 300,000 people of working age who are
inactive
 Thus we have ten times more inactive people than we
have unemployed
JSA and IB Claimants; 1971-2007
140
120
100
80
60
40
20
0
71
73
75
77
79
81
83
85
87
89
JSA Claimants
91
93
95
IB Claimants
97
99
'01 '03
'05 '07
Reasons for Economic Inactivity, Spring 2005
Other, 13,000, 4%
Retired, 14,000, 5%
Student, 84,000,
28%
Sick/disabled,
101,000, 34%
Family/home,
87,000, 29%
The big problem is inactivity, not unemployment
70%
ILO unemployment
60%
Inactivity
50%
40%
30%
20%
10%
0%
Disabled
No Qualifications
Lone Parents
Older Workers
Total
TL
ER
EA
CA
RR A G H
IC NT
K
R
BA FE IM
LL RG
YM U
S
O
NE
Y
NE BA LAR
W L LY N E
TO
M
W EN
NA A
BB
LI EY
SB
U
AR RN
M
AG
NO
H
RT AR
H DS
CR DO
AI W
N
G
AV
O
DO N
W
M
AG OM N
HE AG
RA H
FE
LT
BA
N
BR NI
NE
C
W
O ID G
LE
R
E
Y
& RA
I
M
O NE
U
RN
B
DU EL E
NG FAS
AN T
N
O
DE N
ST R
R
Y
CO RA
B
AN
O
KS
E
T
LI OW
M
FE AV N
RM AD
AN Y
AG
H
CA
S
Economic Inactivity Rate
Economic Inactivity by District Council, 2006
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
No data for Moyle DC due to small sample size
Persistence of Economic Inactivity (?)
50. 0%
Inactivity Rate
40. 0%
30. 0%
Total
Male
20. 0%
10. 0%
0. 0%
84 85 9 86 9 87 9 88 9 89 9 90 9 91 9 92 9 93 9 94 9 95 9 96 9 97 9 98 9 99 0 00 0 01 0 02 0 03 0 04 0 05 0 06
19 19
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
Female
Focus on Inactive
 These figures explain why there is increased focus on the
inactive, especially (but not entirely) those on benefit
 This translates in policy terms largely to those claiming
Incapacity Benefit – of whom there are more than
110,000 in Northern Ireland
 UK target – to reduce IB claimants by 1 million (long term
goal)
 The NI equivalent to this target would be to reduce IB
claimant numbers by around 45,000 to about 65,000
Other Factors




Economic Inactivity is not always “bad” eg students
Many people are inactive by choice or decision
Around 10-15% of the inactive would like to work
Many inactive have been out of the labour market for a
long time, have no or poor qualifications and are
operating at low levels of literacy and numeracy
 but not all of them – the inactive also contain a
proportion of well qualified people
Action is more important than desire: it’s more
important to look for work than to want it
Percent
Flows from inactivity in one quarter into employment in the next quarter
40
35
ILO unemployed
Inactive; not seeking, wanting work
Inactive; actively seeking
Inactive; not seeking, not wanting work
30
25
20
15
10
5
ws
93
sa
93
ws
94
sa
94
ws
95
sa
95
ws
96
sa
96
ws
97
sa
97
ws
98
sa
98
ws
99
sa
99
ws
00
sa
00
ws
01
sa
01
ws
02
sa
02
ws
03
0
DEL’s Skills Strategy:
“Success Through Skills”
Aim
To help people progress up the skills ladder in order to:
lift the skills levels of the whole workforce;
raise productivity;
improve competitiveness; and
enhance the employability of those currently excluded
from the labour market.
DEL’s Skills Strategy
Target Groups
 New entrants to the labour force;
 Those already in the workforce; and
 Those who are inactive but could
be re-engaged.
Future Employment Trends - Summary
 Sectors: services will continue to increase –
manufacturing to decrease
 Occupations: managerial/supervisory occupations will
increase – elementary occupations to decrease
 There will be increasing demand for workers with high
levels of skills and qualifications
 On the other hand, the demand for workers with few or
no skills and low levels of qualifications will fall
 This understanding is one of the drivers of the new NI
Skills Strategy: hence importance of re-engaging
those who are disconnected from labour market
Future Employment Trends:
Projected Employment Change by Qualification, 2002-2012
Issue – Literacy and Numeracy
 One key issue for many of those out of the labour market is lack of
essential skills of literacy and numeracy
 We know from the Adult Literacy Survey (dated – 1996 – but still
likely to be indicatively correct)
 18% of those employed are operating at lowest literacy level
 30% of those unemployed
 41% of those economically inactive
 21% of those with some sort of qualifications are at the lowest
literacy level compared to
 46% of those with no qualifications
Research
 DEL has carried out a considerable programme of
research into JSA and IB claimants and the effectiveness
of interventions in this area
 There also exists a considerable body of evidence from
elsewhere
 This has been used in order to shape the design of
Steps and also other, related programmes
 Research projects in NI include a study of New Deal
Returners; a New Deal Leavers Survey; and research
into IB claimants
 Summaries will be published shortly in DEL’s Labour
Market Bulletin
Some Findings
 Reality check – research confirms that many clients in this group
will be very difficult to help…
 … but not all. Significant minority really want to work and also
think that they will work at some time in the future
 Many differences between clients (especially in older age group)
suggesting a more tailored approach needed (“Anna Karenina”
syndrome - "All happy families are alike; each unhappy family is
unhappy in its own way.“)
 Fairly high levels of satisfaction with New Deal (eg in 25+, 63%
either very or fairly satisfied ) – so need to build on this “goodwill”
 Perceptions of the labour market are very important – and tend to
be negative (arguably, too negative). This is an important area for
clients – and for those trying to help them
Overview
 Background
 Customer Base
 Approach
 Provision
Background
 NEW DEAL - Introduced 1998
 Mainstream New Deals
18 to 24
25+
 Voluntary New Deals
Lone Parents
Partners
Disabled Persons
50+
New Approach
 Building on New Deal (BoND)
Local solutions meeting individual needs
 Delayed until 2009
Steps to Work (Pilot)
Aim
To test a Flexible Menu-based approach with
existing and extended customer base
Steps to Work (Pilot)
 Pilot commenced 2 April 2007
 Introduced Menu-based approach
 Extended Customer Base
Economically Inactive -(Incapacity Benefit, Income Support
clients and those on other benefits or none)
 Open to customers aged 25 or over
Trends
 Increase in Voluntary participation
 Increase in Economically Inactive participation
 Increase in numbers entering Employment
Steps to Work (Roll out)
Replaces New Deals
18 to 24
25+
Lone Parents
Partners
Musicians
Self-Employed
Steps to Work (Roll-out)
 Fresh approach to delivery of Provision
 Available to all age groups (18+)
 Flexibility central to success with both Advisers and
Providers key players in assessing and identifying
client’s barriers to employment
Steps to Work – Key Features
 Modular based provision
 Tailored to individual needs using a “pick ‘n mix” and
variable length approach
 Voluntary participation (non-sanctionable)
Steps to Work – Key Features (cont’d)
 Mandatory clients must participate or risk benefit
sanctions
 IB/IS participants remain on benefit
 Training Premium for all participants
 Focus on Employment Outcome
Structure
Step 1
Short duration intervention aimed at those closest to
the labour market
Step 2
Relevant to those who are further from the labour
market who require additional help in finding work
Step 3
Follow-up support and advice for those who have not
found work after participating in Step Two provision
Eligibility
 Step 1
- day one of unemployment/economic inactivity
 Step 2
- unemployed in receipt of benefit for 13 weeks
- in receipt of benefit (IB/IS)
- economically inactive and out of work for 6 months
Step 1
Provision
Gateway
 Short Accredited Courses
 Basic Self Employment Awareness
 Start a Business Programme
 Music Industry Adviser
Step 1 (cont’d)
Core Gateway Course
 Essential Skills Assessment
 CV Building
 Employability Skills
 Interview Skills
 Jobsearch Skills
 Intensive Jobsearch for Returners (mandatory 3 days)
 Confidence/Motivation Building
Step 2
Provision
 Back to Work (inc Work Exp., VRQs)
 Essential Skills
 Qualifications
NVQs (26 wks to complete)
NVQs (52 wks Full)
 Self-employment Test Trading
 Subsidised Employment (up to £100 p.w.)
 Enhanced Support
Enhanced Support
 Mentoring
 one-to-one support
 improve prospects of gaining and sustaining
employment
 Pre employment (12 weeks)
 In-Work settings (12 weeks)
 Only available in conjunction with provision
Step 3
Follow-up
 Adviser review Interview/s
 6 weeks duration
 Avail of Step 1 provision not accessed
during the Gateway process (e.g. Short
Accredited Courses, Core Gateway modules)
Summary
 Builds on New Deal (Delivered under New Deal legislation)
 Accessible to a wider customer group
 Introduces greater flexibility
 Single menu approach
Steps to Work Delivery
Arrangements
Brian McVey
Programme Management and Development Branch
Overview
 Model of Delivery
– How will provision be delivered?
 Contractual Areas
– Number and scale of contract areas
 Tendering Arrangements
– Planning and Timescales
Background to the Re-contracting process
 Expiry of existing contracts
 Stakeholder feedback
 Approval and extensions
 Mitigating Factors
Review Process
 Composition of Working group
 Wider considerations
 Ministerial Clearances
DELIVERY MODEL
 Existing model
– Consortium based
 Issues
• Historical influence
• Management of consortia
• Membership
• Referrals
• Clarity of roles
• Legal dimension
Developing a Delivery Model
 Options considered
– Consortia Model
– Single Contractor Model
– Prime Contractor Model
– Hybrid Model
Option Chosen
Prime Contractor
• Single Contract Provider
or
• Partnership with a nominated Prime
Contractor
PRIME CONTRACTOR MODEL
“Prime Contractor” describes an arrangement where DEL
contracts with a single service provider:
(a) to provide directly a substantial proportion of
services
(b) to sub-contract some service delivery; and
(c) to manage the performance of the subcontractors.
The prime contractor model can also include an
arrangement where one organisation acts as lead
contractor on behalf of a number of providers in
partnership / consortium
Contracting Areas Review
OBJECTIVES
 Reduce the Number of Contract Areas.
 Reduce the Administration burden.
 Create a viable package for the delivery and maintenance of
services.
 Ensure longer term sustainability of the contracts.
Existing Contracting Environment




26 Consortia
A Number of Core Gateway Providers
NDSE, NDLP, NDP and NDfM contract holders
Review of Public Administration
– 26 District councils reducing to “Super Councils”
– 12 HSS Trusts reducing to 7 Local Commissioning Groups
– 16 F.E. Colleges merging into 6 “Super Colleges”
Options available








26 District Councils
18 Parliamentary Constituencies
35 Jobs and Benefits Offices / JobCentres
7 DEL Districts
3 DEL Regions
6 Social Security Agency Districts
6 Counties
5 Cities
Considerations
 New Local Government Boundaries
 Financially viable
 Retain a strong local identity
 Equitable spread of numbers
 Mapping Processes
Decision
 Parliamentary Constituencies
 10 Contract Areas
 Issue
– Contract Areas do not always coincide with DEL
office catchment areas
Parliamentary Constituencies
Contract Areas
Re-Contracting Timeline






Mid January - Information Sessions
Early March – Issue Invitation to Tender
Late April – Deadline for return of Tenders
May – Evaluation of Tenders
June – Award of contracts
1st September - Contract renewal date
Steps to Work – Funding
 Increased focus on job outcomes.
 Steps to Work is not about putting numbers through a Welfare to
Work programme.
 Streamlined funding model.
 Unified funding model.
 Shift balance of funding towards results.
 Subject to DFP approval.
Steps to Work – Gateway Funding
 Core Gateway
£40 per day (maximum 10 days)
 Short Accredited
Training Courses
£30 per day plus actual travel costs
(maximum 10 days)
 Self-employment support
Basic awareness session
£25
Additional Support on SABP £150
 Advice and guidance –
music industry employment
£150
Steps to Work – Funding
Back to Work Provision
3/4 weeks
5/6 weeks
7/8 weeks
9/10 weeks
11/12/13 weeks
£
£
£
£
£
420
550
550
550
550
-
-
140
320
550
420
550
690
870
1,100
ORF – Job (13
weeks)
1,000
1,000
1,000
1,000
1,000
ORF – Job (26
weeks)
500
500
500
500
500
Total Funding
Available
1,920
2,050
2,190
2,370
2,600
Start Fee *
Week 6 ** Fee
* payable subject to minimum of 2 weeks attendance.
** payable following 6 weeks attendance.
Note: No further funding where participation extends beyond 13 weeks (up to a maximum of 13 weeks).
Participant continues to receive BBTA and Provider remains responsible for ongoing
review/management.
Steps to Work – Funding
NVQ Units **
(up to 26 weeks)
Essential Skills
(up to 26 weeks)
NVQs
(up to 52 weeks)
£
£
£
1,100
1,100
1,100
Week 13 Fee
500
750
Week 20 Fee
-
-
1,000
1,600
1,850
2,100
400
500
600
2,000
2,350
2,700
ORF – Job (13 weeks)
1,000
1,000
1,000
ORF – Job (26 weeks)
500
500
500
3,500
3,850
4,200
Start Fee *
ORF – Qualification
Total Funding Available
-
* payable subject to minimum of 4 weeks attendance.
** also payable for support with self-employment (excluding qualification ORF element of £400).
Steps to Work – Funding
 Enhanced Support on provision (pre-employment)
Start fee on production of LDP
£300
Week 6 Fee
Payable after 6 weeks attendance on provision.
Week 12 Fee
Payable after 12 weeks attendance on provision.
£150
£150
 Above funding model also applicable for specialist support to participants
interested in music industry employment opportunities.
Extension of up to 6 weeks (where appropriate)
£150
Not applicable to music industry support element.
 Enhanced Support (in employment) fees from
£150 to £600
Quality Improvement
Department for Employment and Learning
Quality Improvement Strategy
Background and Scope
 Department seeks to ensure funded provision is of
excellent quality;
 Provision incorporates all providers within the NI
further education and training system;
 Department is committed to improved strategic
approach to quality and performance; and
 Enhanced emphasis and priority given to its role
relating to monitoring of funding and contracting.
The Vision
An excellent further education and training system that is:
 Responsive to meeting the needs of learners,
employers, the wider community and ultimately
providers;
 Committed to continuous self-improvement through
well-embedded, and rigorous self-assessment and
development planning; and
 Able to access easily a coherent framework of support
and guidance that focuses on self-improvement, high
quality leadership and management, and continuous
professional development (CPD).
Principles
• Develop and embed culture of self-improvement (continuous selfdevelopment and excellence);
• Development of clear and coherent systems of support to ensure that
inspection findings are addressed effectively and efficiently;
• Ensure that the national standards for lifelong learning meet the needs
of teachers, trainers, and tutors;
• Develop strong, innovative and creative leadership and
management;
• Align the programmes of work, protocols, procedures and standards of
key partners (ETI, LSDA(NI) and LLUK); and
 Establish a Quality and Performance Branch. The branch will provide
advice to the funding divisions of the Department’s business areas on
how to improve or remove poor quality provision.
Contract Management Function
 Quality and Performance Branch – ensure consistent
and centralised approach to management and
monitoring of contracts focusing on high quality and
improved performance
 Holistic vieof quality improvement and contract
management – advice to business areas regarding
improving or removing poor quality provision
 Take appropriate follow-up action in line with ETI &
FAST findings and recommendations
Conclusion
 Improving quality and performance is Department’s top priority.
 Strategy is aimed at developing capacity for all providers to become
successful self-improving organisations.
 Quality Improvement cannot be imposed.
 The Strategy outlines the key actions that need to be achieved by all key
partners including the Department to ensure its success.
 Focus on the best processes, programmes of support and resources that
will improve teaching, training and learning, and leadership and
management, and provide professional development opportunities for all
staff.

similar documents