Transcript ESF 2014 – 2020:
ESF 2014 – 2020: Briefing Event: 17
th
February 2015 Greater Manchester Overview Theresa Grant Chief Executive Trafford Council
The Greater Manchester Economy 2.7m
people
Source:
ONS
Gross Value Added
1.14m
jobs
93,000
businesses
Source:
ONS, GVA estimates 2012
GM
ECONOMY, 2011
£48.2bn
WALES
ECONOMY, 2011
£47.3bn
NORTH EAST
ECONOMY, 2011
£41.6bn
NORTHERN IRELAND
ECONOMY, 2011
£29.9bn
ESF will contribute to our capacity to achieve the growth and reform ambition set out in the GM Strategy
• Our ambition is to achieve sustainable
economic growth, where all residents contribute and benefit from sustained prosperity
• Connecting our people and neighbourhoods
to growth
• Transforming services to meet the needs of local residents and to meet the financial challenge of 2015/16 and beyond • Becoming financially self sufficient, recognising the role public service reform, as well as growth, will play in achieving this goal
Growth & Reform Plan
The Growth & Reform plan sets out how GM will respond to the challenges and opportunities highlighted in GMS.
Greater Manchester is currently a “cost centre” for the UK, requiring over £22 billion of public spending but only generating £17.8 billion in taxes. The cost of providing public sector services is becoming increasingly unsustainable, with a greater proportion spent on the costs of dependency and less on opportunities to increase growth and reduce the demand for reactive services .
The vision is for Greater Manchester to become a financially self-sustaining city, closing the gap between the tax that is generated through growth and the cost of delivering public services
GM needs to support all residents
Worklessness and low-skill levels persist across GM
• • Across GM, around 227,000 people are claiming out-of-work benefits… ESA/IB: 26% have no skills, 67% have L2 or below JSA: 12% have no skills, 47% have L2 or below
29% JSA 72,280
The cost of worklessness and the impact of low-pay has now reached over £2 billion
£1.1bn
Working Tax Credits
Claimants: 206,500 families
£601.2m
ESA/IB
Claimants: 139,540
JSA Claimants:
72,280
£429.0m
£290.3m
£114.2m
Out-of-work Tax Credits
Claimants: 75,200 families
Lone Parent IS
Claimants: 27,740
But there also Growth Opportunities…
• • • • • • • •
Fastest Growing Economy Outside of London. (Grant Thornton 2014) Europe’s most cost competitive business location (KPMG 2014). A workforce of 7.2 million within 50 miles A population of 11 million within an hour’s drive 97,520 businesses A cost efficient and sustainable location – 30% to 40% operational savings vs. London Gateway to Europe – most major European cities within a 3 hr flight. London is 2 hrs by train Best UK City to Live (EIU 2013)
• • • • • •
GM Devolution Objectives
The signing of the GM devolution agreement in November 2014 provides GM with a range of new responsibilities across the employment and skills landscape. A core objective of these reforms will be to deliver greater alignment between different elements of employment and skills provision: Supporting an increasing proportion of the 250,000 out of work residents across GM to enter and sustain work; Ensuring skills provision is appropriate to the needs of different learners across GM, increasing the numbers of high-skilled residents and contributing to increased GVA; Ensuring employment and skills provision and infrastructure is aligned to the requirements of the current & future labour market and the skills required from employers; Ensuring there are clear pathways through the system and that where appropriate, residents are supported through integrated packages of support from a range of local services; and Delivering value for money, reducing duplication and ensuring GM does not pay multiple times for outcomes.
Maximising and incentivising an integrated employment and skills system.
ESF will play a key part in delivering on Growth & Reform.
GM’s devolution deal as well as supporting
Greater Manchester ESF 2014-2020 Gemma Marsh: (acting) Director of Skills & Employment New Economy
GM 2014-20 European Structural & Investment Funds
National Update & Key timings
The GM Investment Plan was submitted to Government in January 2014.
At the national level the English Operational Programme (OP) and UK Partnership Agreement (PA) is being agreed with the European Commission and was originally anticipated by the end of 2014.
The UK Partnership Agreement has been signed off by the European Commission, but it is looking increasingly likely that the Operational Programmes (OPs) for ERDF and ESF will not be signed off until June 2015 at the earliest.
This is a later start date than anticipated and could mean the prospect of a real gap between the 2007 and 2014 programmes.
The potential for an informal agreement of the OP in February, with formal adoption in June would hopefully allow GM and DCLG to agree projects, at risk, from February onwards, with contracts formally issued after formal adoption of the OPs.
ESF & Devolution
• • • • • GM’s overall EU funding allocation for 2014-20 is £356m, £161m of which is European Social Fund.
GM’s overall European Structural Investment Fund (ESIF) plan was submitted to Government earlier this year, outlining six themes for investment to achieve a range of outputs. This plan responds to the GM Strategy and the subsequent GM Growth and Reform Plan, working within EU funding rules throughout.
To date, the preparation of our ESF offer has been predicated on the availability of match funding, much of which was to be drawn from a number of sources with up to 70% coming from Opt-ins to national organisations rather than locally sourced public match.
GM’s ambition was to ensure projects fully supported an integrated pathway of employment and skills support, which included removal of barriers for people at each stage of their progression. This has not been possible given the Opt in’s inability to merge funding streams – for example DWP (who fund employment support) will not allow SFA funded provision (mainly around skills support) within a DWP procured project.
This has led to more complicated so as to ensure activity is additional and targets the right residents. A number of additional ‘lots’ are being split out and the ESF breakdown looking overly ‘lots’ have also been created to ensure ESF can be added to GM won contracts which have already been procured in an ESF compliant way (such as Working Well, Youth Contract and National Careers Service), without the need for further tendering.
Through devolution and the current time delays being experienced with the approval of the Operational Programme and the Financial Framework, GM now has an opportunity to rethink and simplify our ESF calls and lots given there is potentially more funding within our control
GM 2014-20 European Structural & Investment Funds
GM EU Structural and Investment Funds 2014 – 2020 Types of investment Competitive Places (£22m ERDF) Science & Innovation (£52m ERDF)
Sites / premises Critical infrastructure Science tech assets Tech business base Science Tech Skills
Competitive Business (£70m ERDF)
Start up & Growth Business Finance Internalisation Leadership & Management
Low Carbon (£50m ERDF)
LC investment vehicle LC infrastructure e.g. Heat Networks LC transport Low Carbon skills Whole building efficiency
European Social Fund (£161m ESF)
The following summarise the key thematic objectives (TOs) proposed by Government for ESF activity 2014-20: •Promoting employment and supporting labour mobility •Promoting social Inclusion and Combating Poverty: Active inclusion in particular with a view to improving employability •Investing in education, skills and lifelong Learning
Includes supporting reform and those furthest away from the labour market or that require additional intensive interventions. PSR
SKILLS & EMPLOYMENT covering TO8/TO9/T10 - £161m plus match ESF Lots relating to GM Devolution Agreement and Growth / City Deals
Through this ‘lot’ GM is seeking to deliver targeted, tailored support to a range of GM residents within the context of their family or social networks, enabling them to develop the skills, attitude and experiences needed to be resilient in the labour market. The purpose of the programme is to: Support referrals to the Programme to find and sustain employment, with a minimum of XX% of programme participants finding sustained work for 12 months. Provide: a o o
principles will support all projects where appropriate.
More intensive support and lower caseloads from a single ‘key worker’ who has the skills to bring together integrated ways of working and support into work. Additional integration, coordination and sequencing of support from mainstream public services to develop bespoke packages for individuals and their families. Deliver a more personalised welfare & skills service for those who have been referred with a minimum service guarantee. More effectively integrate and sequence the range of public services available to support the cohorts in Greater Manchester, including skills, health, housing and local government services Particular focus will be expected around the following groups: Troubled Families 2 Integrated Offender Management Intensive Community Orders Women Offenders NW Resettlement Consortium PSR Cohorts Operation Challenger (OCG) Family Nurse Partnership Universal Partnership Plus ESA WRAG Work Programme Leavers (under 55) ESA WRAG Work Programme Leavers (Over 55) JSA Work Programme Leavers * requires JCP/DWP decision JSA 1 year post Work Programme Lone Parents (child aged 4+) Low-pay, no-pay cohort
Other ESF lots Lot A2 - Early intervention programmes for 15-18 year olds (particularly NEET)
20% of the beneficiaries supported will be 15-16
Lot C3 - Increase access to advanced (higher level) skills for the most disadvantaged, Support retention and reduce dropout rates for the most disadvantaged, improve employability for graduates Lot B2 - Structured progression into & in sustainable employment National Careers Service disadvantaged / priority groups with enhanced Information, advice and guidance through the with particular focus on
including low pay no pay and young people aged 14-18.
Lot C4 - Support for activities to start and grow a business
from promoting entrepreneurship (including SE) self-employment, to promoting leadership and management training/advice to SMEs to develop and growth: (particularly linked to GM growth & ERDF sectors)
Lot C1
–
This provision is to support sustainable employment and promote the in-work progression of employed individuals including those with low skills through the delivery of work related skills training
. GM is seeking to fund provision that will raise the level of attainment and also in work progression achieved by these individuals, enabling them to improve their employment status and wage levels and to move them on to undertake higher levels of training.
:
- - Support to ensure ‘good quality’ employers that support progression and wage improvements Support that increases wage levels
Lot D1
– Ensuring Skills provision is more responsive to the needs of the local economy and helps more
skills provision, through increased employer engagement and their participation in the planning, design and delivery of vocational education individuals progress into or within
provision including: - Training needs of business so GM can respond better to current and future skills requirements - Support for low pay, low skills employees - Develop recruitment & responsible business practices - Meeting employability and soft skills gaps to tackle with GM businesses to ensure they are not restrictive churn in labour marker in low skills, low pay to those furthest away from the labour market - - - - - -
LOT THEMES:
A. Sustainable integration of young people (15-23) B. Access to employment for jobseekers and inactive people (24+) C. Enhancing equal access to lifelong learning D. Improving the labour market relevance of education and training E. Active Inclusion Licence to practice and sector specific qualifications Progression to L2 to meet identified skills gaps Progression to L3/L4 especially in priority sectors / meet replacement demands from ageing workforce Restructuring of the economy, Support programmes for those facing redundancy or requiring new skills to change career or sectors Capacity building in the form of training, networking measures and activities
Lot E1 - Innovative
-
programme for marginalised groups to help bring them to and support them to be more socially included, which may include:
targeting specific communities, groups or ethnic minorities with high level of poverty (pre support):
Lot E2-Social Innovation Driver
NB: These ‘lots’ will embed skills support at all levels including entry level / L1 jobs for GM priority and growth sectors; support for those employed & unemployed with higher level skills and support ERDF priorities in competitive places / business, science and technology and low carbon.
Lot C2 - Skills provision which will relate to removing the barriers some people face when entering employment:
)The pilot will deliver a programme of activity to support those aged 18+ who face multiple barriers to entering the labour market and sustaining employment. Su pport will be bespoke according to the individual’s needs and will include employability and vocational skills training together with wrap-around support to motivate and build confidence and self-esteem. Learners will be referred from other GM programmes including GM Troubled Families, GM Working Well and the Mental Health and Employment Pilot. Support will be brokered from other service providers to help individuals tackle non-skills barriers to work including health, debt or housing issues.
Match Funding
• ESF needs to be matched 50% • Variety of sources include an ‘Opt in’ model • Organisations offering ‘opt in’ are DWP, SFA & Big Lottery • Memorandum of understandings to be signed • Given the risk associated with managing an ESF Programme, it makes sense to opt in for the first 3 years of the programme so GM can gain from past experience of SFA and DWP, in particular, in managing these programme • Local options for match funding
Memorandum of Understanding
GM is seeking an MoU with each Opt In organisation. The main elements GM is trying to ensure include: • • • • • • • • • • Retains control of GM’s ESF allocation and, where possible, the associated match Controls project identification, ITTs and allocation of funds Development of financial models Is involved in project appraisal and sign off.
Can flex the amount of match it secures according to GM needs and can extend that to include employability skills and higher level skills as required subject to ESF eligibility.
By opting-in there must be no hindrance to GM’s ability to use its ESF allocation to meet priorities, or to using its ESF to invest where Government may not invest itself. e.g .second level 2s, higher level skills etc.
GM’s ESF allocation is not penalised if poor performance is not managed by the opt in.
Timely data is provided at both contract and LEP level.
Management fee is either waived or negotiated dependent on which elements of the management offer that GM may be best equipped to undertake That secondments of staff to GM are considered
Governance & Process
• Call timetable to be developed once Operational Programme and Government process is clear.
• Likely that 2/3 calls will be ready for April 15 • Tender specifications are being developed between GM EU team and Opt in • Market testing on all tenders: Comments from partners critical part in the process • Procurement will be on a GM footprint • Appraisal completed between Opt in & GM • Ongoing GM monitoring
ESF Next Steps
• Finalise tender specifications – some revised and simplified in light of Devolution • Calls issued once OP programmes have been formally adopted – June 15 • Procurement is expected to be a mixture of larger projects managed via the opt in organisations, smaller ad hoc projects and projects who are able to bring their own match funding • Appraisals at local and national level • Successful programmes begin – Aug/Sept 15
Overview of first identified ‘lots’
Early Intervention Programme for 15-18 year old (NEETS) Nicola McLeod Head of 14-19: New Economy
• The NEET picture for 16-19 year olds across Greater Manchester is improving, but there are still around 4000 NEET young people in this age group. In particular NEET at 17 and 18 is twice that of those at 16 and Not Known's is a growing concern.
• This ‘lot’ can support early intervention programmes for 15-18 year olds across GM to prevent them from becoming NEET or to re engage them quickly thus reducing the risk of becoming long-term unemployed at a later point in the future.
Skills Support for those in work
• This provision is to support sustainable employment and promote the in-work progression of employed individuals with low skills through the delivery of work related skills training. GM is seeking to fund provision that will raise the level of attainment achieved by these individuals, enabling them to improve their employment status and to move them on to undertake higher levels of training .
• • • • • • • •
The purpose of this provision is to:
respond to local skills priorities, identified by Local Enterprise Partnerships(LEPs) meet the needs of employed adults in the local workforce by adding value to existing provision - including Adult Skills Budget (ASB) increase participation by employed adults in education, employment or training (including Apprenticeships) through locally defined, delivered and where appropriate innovative interventions.
Increase progression in work for employees Provide responsive training for employers to help them improve employee productivity and wage levels Target low pay, low skilled employees to progress to L3 qualifications or work relevant level.
Respond to risk of redundancy by re skilling Respond to the needs of older workers.
Local Growth Fund: Skills to Support Reform
• The programme will offer a bespoke package of support according to the referral route (to recognise the support already provided to different types of learner through the above programmes).
employment.
health.
The programme will offer high quality, individualised pre- and post employment skills support delivered in an innovative manner designed to engage individuals over a significant period of time during which they will progress from having little confidence and low skills levels to holding the skills necessary to gain and sustain Support could include both accredited and non accredited learning, Functional Skills, ESOL, vocational skills, employability skills, confidence-building and motivational activities and complementary support to tackle wider barriers e.g. debt or • Payments will be based more around outcomes.