In May 2008 Stephen Houghton, Leader of Barnsley Council was asked to chair a Tackling Worklessness Review Team to look into how English local authorities and their partners better work together to tackle worklessness. On 27 November 2008 the Review Team published its interim report examining how all levels of government could work in a more integrated manner with voluntary and private sector bodies.

The structure of this briefing will be divided into two parts. Part one will briefly summarize the emerging economic context and findings of the interim report, while part two will underscore the authors’ salient recommendations.

1. Economic context and report findings

Since the Tackling Worklessness Review Team was first commissioned, global and national economic conditions have worsened considerably. Although unemployment, as measured by claimant counts, remains comparatively low set against previous downturns (see footer note), the unemployment and the Jobseekers Allowance claimant count have risen sharply since the beginning of the year. Most analysts predict rising unemployment (a lagging indicator) will continue throughout 2009. 2008 has already seen an increase, for the first time in three years, in the number of Incapacity Benefit claimants.

The work of the Tackling Worklessness Review Team offers timely assistance to central government, local authorities and partners on how they can better work together to address the current economic climate. A basic principle in the document is that local authorities and their local partners can and should be expected to do more to help alleviate the worst effects of the economic recession in their localities. Local authorities and partnerships are critical to government’s ambitions to tackle worklessness and stimulate activity.

The Review Team has gathered its evidence utilising three approaches. First, it has undertaken a number of local partner visits across the country. Second, the team have received written responses from local authorities and LSPs and third, Councillor Houghton and others have held central government discussions with a range of civil servants.

A number of pressing issues arising from the Review Team’s consultations were highlighted. These findings have helped inform the interim report and include:

• the need to ensure the Working Neighbourhood Fund is used innovatively to maximise its benefit
• government needs to evaluate the benefit that black and minority ethnic groups receive from all employment skills funds
• more radical measures are needed in those areas which have suffered from longer economic decline
• there is a need to complement mainstream employment service provision with more locally provided support to better assist long term claimants – local authorities and partners are best placed to provide this ‘wraparound’ provision
• the short-termism associated with ‘stop, start’ funding regimes is unhelpful when successful interventions with workless people and communities rely on sustainability
• concerns from small providers that Flexible New Deal commissioning will cause them to lose out

2. A ‘new framework’: the report recommendations

To address the above issues the authors of the report believe there should be clarity about the role of local authorities and partners in tackling worklessness. In short there is a need for a new framework encompassing greater connectivity across and beyond all levels of government to work smarter, more locally and use resources flexibly. Moreover, such a joined-up approach should be targeted to assist disadvantaged communities.

Resulting recommendations: the ‘next steps’

Step 1: All top-tier local authorities, as part of their economic assessment duty, have responsibility to provide local labour market and worklessness assessments

Step 2: Identification of priority areas and work commenced on planning and integrated response to rising unemployment

Step 3: Establishment of a National Task Force that reports to the National Economic Council, with a duty to spearhead responses to unemployment in priority areas and for priority groups

Integrating the support through the ‘work and skills plan’

The report recommends the creation of a Work and Skills Plan to enable direct and flexible responses to local economic conditions. As part of the Plan, a Work and Skills Integrated Budget could be established that incorporates other funding streams such as the Working Neighbourhood Fund. Furthermore, the Integrated Budget could also allow for co-commissioning with the Department for Work and Pensions and Department for Innovation, Universities and Skills.

If such Plans are to work they will require stronger commitment to share performance and management information between local partners. The report understands this requirement and calls for Jobcentre Plus and Flexible New Deal providers to share regular labour market information and analysis with local authorities and their partners. RIEPs should help local partners with formulating Work Plans and worklessness assessments. Central government too should make more progress in sharing information on individual benefit claimants with local authorities.

Focusing on the needs of disadvantaged communities

To lessen the socio-economic impact of recession in deprived communities, the report advocates for the implementation in 2009 of a new targeted ‘National Challenge Fund’ that would be used in ‘priority’ (deprived and disadvantaged) local areas. The Fund would be used to stimulate local economies and provide new temporary employment opportunities.

Local authorities, as place-shapers or shielders, are viewed as being best positioned to coordinate (along with voluntary and private organisations) temporary job creation schemes of public benefit. Utilising local employment partnerships and social enterprises, all work should contribute to local economic, social and environmental aims. A principal objective should be improving the employment prospects of long-term benefit claimants.

The National Challenge Fund would invite priority areas to bid for funds to complement their local resources. Expectations are for all proposals to be weighted towards meeting local needs and those from black and minority ethnic communities.

Greater use of the public sector as employers and procurers

The report acknowledges that during the economic recession people will become more dependent on (permanent and temporary) job opportunities available to them through the public sector. Indeed, during the downturn, as private sector employment retracts, there is a need for public bodies to act more pro-actively as employers of first resort. Furthermore, the report highlights the need for central government to require public sector organisations to provide a ‘basic offer’ to local people in how they recruit and procure services. In particular, the offer should include:

• minimum offer for apprenticeships
• local Employment Partnerships to notify Jobcentre Plus about public sector vacancies
• public sector employers to be incentivised to employ long-term unemployed
• public sector to use its procurement power to encourage bidders and suppliers to offer more opportunities to ‘workless’ people

Conclusion and next steps

This interim report outlines the authors’ current thinking on the role local authorities and their partners should play in effectively tackling worklessness. It argues that there should be the establishment of a new framework that more closely involves local authorities and other local agencies. A central and urgent task is to ensure the integration or ‘wraparound’ of government commissioned or provided employment services with locally controlled provision.

The report therefore calls for a combination of smarter working practices (with local authorities coordinating central and local provision) with additional, more flexible resources. Local authorities should also seek to actively demonstrate the impact they are already making in tackling longer-term unemployment. The final report is expected to be published in March 2009.

Source

Footer note: For example, in January 1994 the percentage of the working age population claiming unemployment benefit stood at 18 per cent. In January 2008, the figure is less than 6 per cent (although as unemployment is regarded as a lagging indicator of economic performance, this figure has increased throughout 2008 and is expected to continue to do well into 2009 and possibly beyond).

Further Information

The Local Government Employers (LGE) August 2009 edition of its Focus Newsletter provides additional information on the theme of Tackling Worklessness. Access the full newsletter together with presentations on the issue from the LGA annual conference.