REGENERATION AND PLANNING SERVICES SCRUTINY FORUM FINAL REPORT EMPLOYMENT AND TRAINING OPPORTUNITES FOR YOUNG PEOPLE AGED 19-25 APRIL 201 2 Cabinet 16 April 2012 CABINET 16 April 2012 Report of: Regeneration and Planning Services Scrutiny Forum Subject: FINAL REPORT – EMPLOYMENT AND TRAINING OPPORTUNITIES FOR YOUNG PEOPLE AGED 19- 25 1. PURPOSE OF REPORT 1.1 To present the findings of the Regeneration and Planning Services Scrutiny Forum following its investigation into Employment and Training Opportunities for Young People Aged 19-25. 2. SETTING THE SCENE 2.1 At the meeting of the Regeneration and Planning Services Scrutiny Forum on 21 July 2011, Members determined their work programme for the 2011/12 Municipal Year. The issue of ‘Employment and Training Opportunities for Young People Aged 19 to 25’ was selected as the topic for consideration during the current Municipal Year. 2.2 Youth unemployment in Hartlepool continues to be above the regional and national average; Hartlepool 16.2%, North East 9.9% and Great Britain 7.5%. The percentage of young unemployed is 32% of the total unemployed in Hartlepool. The Government have introduced a range of measures under the ‘Get Britain Working’ Campaign to support the unemployed back into work, including specific measures for young people such as the Work Programme, the New Enterprise Allowance Scheme, Work Experience and Sector based academies. 2.3 At the meeting of the Regeneration and Planning Services Scrutiny Forum on 1 September 2011, during the scoping of the investigation into ‘Employment and Training Services for 19-25 Year Olds’ Members agreed that the concept of ‘Social Return on Investment’ should also be explored as part of the Forum’s investigation. In order not to impact on the main investigation, Members agreed that a focus group of the Regeneration and Planning Services Scrutiny Forum would be tasked with looking specifically 1 HARTLEPOOL BOROUGH COUNCIL Cabinet 16 April 2012 at the social return on investment of the Connexions service for 19-25 year olds, with the results being taken as evidence by the main scrutiny forum. 3. OVERALL AIM OF THE SCRUTINY INVESTIGATION 3.1 The overall aim of the Scrutiny investigation was to explore and evaluate the issue of training and employment opportunities in Hartlepool for young people aged 19 to 25. 4. TERMS OF REFERENCE FOR THE SCRUTINY INVESTIGATION 4.1 The Terms of Reference for the Scrutiny investigation were as outlined below:- (a) To gain an understanding of the issue of training and employment opportunities for young people aged 19 to 25, with particular reference to the very vulnerable who fall in to this category; (b) To explore/evaluate the services currently provided in Hartlepool to young people aged 19 to 25, not in employment, education or training and the effectiveness of these services. To include details of:- (i) services provided by the Local Authority (including 19+ Connexions services); (ii) areas of partnership working and service provision; (iii) transition arrangements for those moving from Connexions; (iv) potential gaps in service provision. (c) To consider the views of the young unemployed in Hartlepool, those in training or who have successfully used services available, and also the views of local employers on the effectiveness of service provision; (d) To gain an understanding of the impact of current and future budget pressures, future funding streams and the potential development of local enterprise zones on the opportunities for employment and training open to this cohort of young people; (e) To explore and consider how support for young people aged 19 to 25 not in employment, education or training should be provided in the future (giving due regard to term of reference (d)) . 5. MEMBERSHIP OF THE REGENERATION AND PLANNING SERVICES SCRUTINY FORUM 5.1 The membership of the Scrutiny Forum was as detailed below:- 2 HARTLEPOOL BOROUGH COUNCIL Cabinet 16 April 2012 Councillors Barclay, Cook, Cranney, Gibbon, Lawton, A Marshall, McKenna, Rogan and Turner. Resident Representatives: Ted Jackson, Peter Joyce and John Maxwell 6. METHODS OF INVESTIGATION 6.1 Members of the Regeneration and Planning Services Scrutiny Forum met formally from 1 September 2011 to 2 February 2012 to discuss and receive evidence relating to this investigation. A detailed record of the issues raised during these meetings is available from the Council’s Democratic Services. 6.2 A brief summary of the methods of investigation are outlined below:- (a) Detailed Officer presentations and reports supplemented by verbal evidence from the Employment Development Team, Integrated Youth Support Services and the Community Services Team; (b) Evidence from the Authority’s Elected Mayor; (c) Presentations and verbal evidence received from representatives from Jobcentre Plus, Avanta, North Tees and Hartlepool NHS Foundation Trust, Hartlepool College of Further Education and Redcar and Cleveland Council; (d) The views of local residents, employers and young people who use services; and (e) The report of the Regeneration and Planning Services Scrutiny Forum Social Return on Investment Focus Group. FINDINGS 7 ISSUES AFFECTING TRAINING AND EMPLOYMENT OPPORTUNITIES FOR YOUNG PEOPLE AGED 19 - 25 IN HARTLEPOOL 7.1 The Regeneration and Planning Services Scrutiny Forum met on 1 September 2011 where Members received detailed evidence from the Economic Development Manager and the Employment Development Officer from Hartlepool Council regarding:- • the numbers of young people aged 19 – 25 in Hartlepool who are not in education, employment or training; • local economic trends and factors that affect employment and training opportunities; and • where Hartlepool sits in comparison to regional and nation figures. 3 HARTLEPOOL BOROUGH COUNCIL Cabinet 16 April 2012 Unemployment statistics and trends in Hartlepool 7.2 The Forum was informed that it was difficult to obtain exact figures for the 19-25 cohort as the ‘Nomis’ system, which is used to obtain such information, uses 16-24 and 18-24 categories. Members were advised of the following figures:- Hartlepool Population • Total = 91,300 • 18-24 year olds = 8,300 Unemployment (July 2011) • Hartlepool = 7.1% (4,143 residents) • North East = 5% • Great Britain = 3.8% Youth Unemployment (18-24 July 2011) • Hartlepool = 16.2% (1350 residents, 930 male and 420 female) • North East = 9.9% • Great Britain = 7.5% 7.3 The Forum was provided with a table of 18-24 claimant rates between the years 2000 – 2011:- Table 1 18-24 Claimant Rates Year Job Job Incapacity Income Employment Seekers Seekers Benefit Support Support Allowance Allowance Allowance 6 months plus 2000 890 175 450 900 - 2001 825 160 510 990 - 2002 840 165 470 950 - 2003 845 210 500 870 - 2004 695 100 490 860 - 2005 780 120 480 790 - 2006 870 175 440 760 - 2007 840 80 400 750 - 2008 895 115 400 790 - 2009 1190 170 290 780 70 2010 1095 260 190 760 130 2011 1350 345 130 720 180 7.4 Members queried the effect of the closure of the Garlands call centre on the figures but were advised that this did not show as a major trend due to the majority of staff finding alternative employment relatively quickly. 4 HARTLEPOOL BOROUGH COUNCIL Cabinet 16 April 2012 7.5 Members also noted the increase in those claiming job seekers allowance (JSA) in 2009 and a reduction of the number claiming incapacity benefit in the same year. Member were advised that the former was due to the downturn in the economy with the loss of a number of jobs, particularly in the retail sector, and the latter was due to changes in the benefits regime with a number of people being moved from incapacity benefit onto employment support allowance. 7.6 The Employment Development Officer advised Members that government policies meant that approximately 75% of incapacity benefit claimants nationally would be moved from disability benefit to more work focused benefits. The Employment Development Officer also highlighted the large number of young people on long term incapacity benefit, with 50 young people being on long term incapacity benefit for more that 5 years in 2011. Members recognised that technological advances meant that people were reaching adulthood who might not have previously, and that this would only increase. 7.7 The Forum was provided with statistics for 19-25 year old ‘NEETS’ (not in education, employment or training). These were as follows:- Activities of 19 year olds in January 2011 – Total Cohort = 1417 - Education Employment and Training (EET) Total = 890 - NEET Group Total = 112 - Not EET or NEET, i.e. in Custody Total = 2 - Not known Total = 413 Activities of 20-24 year olds with a statement of Special Educational Needs in January 2011 – Total Cohort = 155 - EET Total = 56 - NEET Group Total = 32 - Not EET or NEET Total = 2 - Not known Total = 65 7.8 Members were also informed that 8.9% of 16-24 year olds in Hartlepool had no qualifications, compared to 9.3% in the North East and 9.6% countrywide. 7.9 The Forum noted that there were now 14 JSA claimants per unfilled vacancy advertised with Jobcentre Plus, compared to 4.5 claimants per vacancy in 2007. Members were advised that the majority of jobs advertised were unlikely to be permanent contracts. Members raised concerns that there was now competition from skilled workers applying for unskilled jobs, which would push unskilled workers even further from the jobs market. 5 HARTLEPOOL BOROUGH COUNCIL Cabinet 16 April 2012 Welfare Reforms The Work Programme 7.10 The Forum learned that in May 2010 the Coalition Government published a ‘Welfare to Work Agreement’ to tackle worklessness and benefit dependency. From April 2011 Jobcentre plus has had the power to decide locally how and when to support claimants (it was noted that Jobcentre officers had a target of 92% of unemployed people being helped into work before programmes were needed).