MERTHYR TYDFIL COUNTY BOROUGH COUNCIL Civic Centre, Castle Street, Merthyr Tydfil, CF47 8AN Main Tel: 01685 725000 www.merthyr.gov.uk CABINET REPORT Date Written 25 th March 2011 Report Author Sue Hughes/Ian Benbow Service Area Social Regeneration Committee Division Portfolio Committee Date 13 th April 2011 To: Chairman, Ladies and Gentlemen Department of Work and Pensions – Work Programme PURPOSE OF THE REPORT: The purpose of this report is to update Cabinet on the developments of Department of Work and Pensions – Work Programme and gain approval on the way forward. 1.0 INTRODUCTION AND BACKGROUND 1.1 In 2010, the Coalition Government started to withdraw all Welfare–to-work programmes with a plan to incorporate all programmes into one overall ‘Work programme’. It is planned to award a contract to two prime contractors who will have responsibility for developing provision across Wales. It is envisaged, that two prime contractors covering the same area will generate competition and improve outcomes. Funding for the Department for Work and Pensions (DWP) ‘Work Programme’ will be based on outcome based payments. 1.2 Reducing unemployment within Merthyr Tydfil is critical to achieve the stated goals within the Community Plan and the local authority’s Corporate Plan. It is an area the local authority has strengthened over the last 5 years to combat unemployment. In terms of the numbers unemployed within Merthyr Tydfil, as of December 2010 there were 1,941 claiming Job Seekers Allowance (Appendix A shows regional position). Whilst the figures show Merthyr Tydfil as above the national average it should be noted that the approach Merthyr Tydfil has developed has resulted in the number claiming any benefit as falling by 1.4% (from 2006 to May 2010), Wales on the other hand has increased by 2.5% and the UK is up by 8%. 1.3 As can be seen from Appendix A, the current employment position is of concern especially when compared with the number of vacancies that exist within the HOV area. To ensure that Merthyr Tydfil residents are well placed to access the limited amount of employment places, there needs to be careful consideration as to what positive role the local authority can play in supporting the introduction of the new DWP ‘ Work Programme ’. 2.0 CONTENT 2.1 The New Work Programme 2.1.1 The new ‘Work Programme’ will be replacing the following programmes: Ø Flexible New Deal Ø The New Deal’s Ø Pathways Ø Employment Zones Ø Young Persons Guarantee including the Future Jobs Fund. 2.1.2 The ‘Work programme’ plans to have a focus on 5 main customer groups, these being: Ø Young people 18-24 JSA claimants (6 months + unemployed) Ø Adults 25+ JSA claimants (12 months + unemployed) Ø ESA claimants Ø ‘Stock’ Incapacity Benefit claimants Ø Fast track i.e. ex-offenders, ex-service personnel etc 2.1.3 The planned Welfare Reforms will seek to transfer a large number of individuals from health related benefits onto a universal credit system, with the aim of supporting them into employment related activities. Concerns have been raised whether employment opportunities exist to accommodate the additional numbers who will be deemed as actively seeking work. 2.1.4 The DWP have shortlisted 9 Prime Contractors who have been invited to submit a tender for the Work Programme for Lot11- Wales. These being: Ø BTCV Ø Eaga Ø Groundwork Ø Reed in Partnership Ø Rehab Group Ø Remploy Ø Serco Ø Shaw Trust Ø Working Links 2.1.5 On 1 st April the successful contractors for Wales were announced as Working Links and the Rehab Group. 2.2 The Role of the Local Authority 2.2.1 At a conference facilitated by the Local Government Association (LGA) and the Centre for Economic and Social Inclusion in January 2011, it was identified that all local authorities have a positive role to contribute to the “work programme”. There were a range of different roles for each of the local authorities, depending on individual circumstance. From an analysis of Merthyr Tydfil County Borough’s position five key areas have been identified for consideration. These five areas can either be viewed as discrete individual areas of development or a combination of one or all of them. 1) Delivery - The Local Authorities to become a sub contractor to deliver parts of the work programme. Rationale: A robust structure that links all employment focused initiatives has already been developed by the local authority. Regarding delivery, the Bridges into Work programme and the Transition into Employment programme are already well placed to take on the additional DWP activity. In terms of planning the worklessness/employability steering group which acts as a multi agency steering group overseeing development in the area is a firm foundation on which to go forward and is led by Merthyr Tydfil County Borough Council. MTCBC is also working regionally through Bridges into Work and JobMatch and has led the development of a draft regional structure that is linked to all the prime contractors. Challenges: With the two contractors operating in Merthyr Tydfil, there would be a need for MTCBC to support both organisations. Also the HOV authorities have indicated that they would wish to participate in a coordinated approach. Income generation from the Work programme is currently unclear and therefore it is difficult to finalise a planning and operational structure until such time as the new contractors are appointed. Furthermore, once this information is known, the Prime contractors will require a quick decision on proJect planning with partners and it is anticipated the local authority will need to respond with very little notice. Proposed Future Actions: a) Continue to liaise with the contractors and respond to their requests for information in planning their local service delivery. b) Develop a Local Authority structure and a regional Local Authority structure inline with the agreed finance profile provided by the successful prime contractors. c) Liaise with finance and legal departments to ensure proJect progresses with limited liabilities to the local authority. 2) Scrutiny - The Local Authority to work with Prime Contractors to establish local scrutiny arrangements. Rationale: Employment is a key focus within the new Community Plan and the Councils Corporate Plan. The local authority needs to be aware of, and influence, developments that are occurring locally and nationally that impact on the employment opportunities for its residents. The multi agency steering group that currently operates can provide the structure for communicating and scrutinising developments. Challenges: The current multi agency arrangement is based on mutual cooperation and trust. Maintaining that infrastructure that builds the trust of all key stakeholders including contractors, Local authorities and other potential sub contractors to scrutinise developments with an obJective focus will be challenging. Proposed Future Actions: a) Develop the local and regional process for collaborative working, through the Local Service Boards infrastructure. b) Submit an application for the Convergence Priority 4 allocation for collaborative working. 3) Align Local Provision - Complementary services such as Family support, childcare, housing, transport SMAT services should be reviewed with the view to ensure alignment to the strategic approach. Rationale: It is important that a Job opportunity or training is not seen as discrete activity with no impact on other services. There needs to be a holistic approach to supporting an individual gain employment and then sustain that employment. This holistic approach will mean the need to ensure other services such as childcare, debt counselling, transport, housing, are all in line to meet the needs of the individual. Challenge: Gaining commitment from a wide range of service professionals to embrace the employment agenda and the impact for development on other services will challenge traditional operating systems. Proposed Future Actions: a) Encourage other services to participate in the Worklessness Steering Group. b) Identify potential gaps in provision for supporting individuals back into employment. 4) Identifying skills needs for the local economy - Ensuring economic development priorities are linked with priorities with Employment related activities. Rationale: Local authorities need to work with Prime Contractors to establish evidence based research on skill requirements and support the development of activities to address any skill gaps. Challenge: Economic Regeneration within each of the HOV local authorities have a key role in sharing and developing information which allows for a greater understanding of the market place, business development opportunities and changes in the environment which are impacting on businesses. Proposed Future Action: a) Agenda the item for discussion on a future Regeneration Meeting within the local authority. 5) Information for prime contractors and individuals Rationale: The local authority holds a considerable amount of data/information which would be useful for planning activities and sharing with individuals who are interested in employment opportunities. Marketing provision available to service users and complimentary services available to the work programme staff would allow for a more successful introduction of the DWP programme within Merthyr Tydfil and support the individual in a successful employment outcome. Challenge: The sharing and coordination of information has always proved challenging to local authorities, particularly when data protection issues are