D2N2 Technical Assistance Workshop ESFA opt in call specifications

Transcription

1 D2N2 Technical Assistance Workshop ESFA opt in call specifications This project is part-funded by the European Social Fund as part of the European Structural and Investment Funds Growth Programme in England

2 D2N2 ESFA opt in What s on offer? Community Grants NEET Supply of skills for the workforce and redundancy

3 D2N2 SEP Supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme This project is part-funded by the European Social Fund as part of the European Structural and Investment Funds Growth Programme in England

4 Why review the SEP? Changes to the D2N2 economy Productivity Innovation Inclusivity Changes to the potential future economic trajectory BREXIT Changes to regional and national Government policy Industrial Strategy A Local Industrial Strategy Midlands Engine The Shared Prosperity Fund

5 A Growing Economy Private Sector Job creation 7.0% 5.0% 3.0% 1.0% GVA Growth rates in D2N2 England and 4.3% 5.1% 2.6% 2.6% 3.5% 3.8% 2.5% 5.2% 3.5% 3.6% 3.0% 2.2% -1.0% -1.9% -3.0% -5.0% -4.0% Supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme

6 Productivity and Incomes Gap GVA per hour worked 87.0% GDHI in D2N2 as a % of England 86.8% % 86.0% 85.5% 85.0% 86.0% 86.1% 85.1% 84.9% 84.8% 84.7%84.7% % 84.9% % % of the UK 83.5% Supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme

7 Skills and Healthy Life Expectancy Skills profile of the working age population, 2016 NVQ4+ NVQ3 Trade Apprenticeships Healthy life expectancy NVQ2 NVQ1 Other qualifications No qualifications D2N Englan d Male Female Male Female Male Female D2N2 England Supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme

8 Incapacity, sickness, housing FIGURE 291: ESA, IB AND SDA CLAIMANTS IN D2N2 ESA AND ENGLAND IB+SDA England ESA+ID+SDA trend 120,000 2,160,000 2,140, ,000 80,000 94,380 81,980 75,260 65,860 38,740 13,870 8,280 4,720 1,680 2,120,000 2,100,000 2,080,000 60,000 2,060,000 2,040,000 40,000 2,020,000 2,000,000 20,000 1,980, ,860 14,810 19,540 28,400 50,940 74,220 80,380 85,900 90, ,960,000 1,940,000 Supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme

9 Diverse Performance

10 Productivity Reviews Findings The main driver of living standards is productivity Carolyn Fairburn In D2N2 our Sector profile does not explain our Productivity Gap Supporting Productivity Growth requires a combination of interventions CBI identify four main drivers of regional productivity differences; Educational attainment of young people at 16 and skills Transport links that widen access to labour Better management practices A higher proportion of firms who export and innovate

11 SEP refresh Key issues Focus of previous SEP was private sector job creation Shift now towards driving up levels of productivity Create inclusive economy with higher value, better paid jobs quality rather than quantity

12 SEP refresh Key issues Out of 38 LEPs D2N2 4th largest population and 5th largest workforce outside London. However 9th largest economy raising business productivity is the challenge D2N2 has earnings deficit. Too many people in lower paid jobs (some 30% of people earn less than the Living Wage) and not enough in higher paid jobs Little growth in working-age population by To be internationally-competitive economy, maintain high levels of employment need to find ways to produce much more output with the existing workforce Need to enable our workers at all levels to move up the skills escalator into more productive, better-paid jobs and future proof the skills they need for the jobs of tomorrow.

13 SEP refresh Key issues Future success depends on how effective we are at managing the transition to a higher-value economy. Engaging businesses and communities will be critical, by providing opportunities and raising skills levels and recognising that local economies are starting from different positions. Some parts of D2N2 particularly disadvantaged - workplace earnings range from 118% of the England average in Derby, to 65% in Mansfield. Marked gap between the most prosperous parts of the D2N2 area and those facing the biggest economic challenges (ranging from GVA per head of 27.6k in Nottingham, 27.3k in Derbyshire Dales to 14.4k in Gedling and 16k in Erewash).

14 SEP refresh Skills for Future Skills Match & Pathways Ensure that skills supply matches business demand and future needs enabling workers at all levels to move up the escalator to more productive, betterpaid jobs of the future Ensure that the local skills system supports the skills matching ambition, through: employer engagement to address course content skills commissioning to incentivise providers to align with the demands of the labour market live, accurate data on the labour market clear gateways and pathways for people to progress

15 SEP refresh Skills for Future Job Readiness Enable young people of all ability levels to enter the labour market providing businesses with a stronger pool of indigenous talent Educational attainment at 16 is a key driver of productivity but there are areas of underperformance in some parts of D2N2. Build long longterm relationships which support schools to raise attainment levels by raising careers and employability skills required in a high performing economy

16 SEP refresh Skills for Future Skilled and Adaptable Workforce Enable the workforce to up-skill and adapt to changes in technology (including digitalisation) and working practices, through lifelong learning Roll out programmes of support particularly for SMEs across sectors to enable their workforce to acquire the skills to adapt to digitalisation of the workplace

17 SEP refresh Skills for Future Innovation Know-how Exploit and enhance our leading-edge, core specialist capabilities in the knowledge base, with the focus on Advanced Manufacturing & Engineering Digital Technologies & Data Energy & Low-Carbon Technologies Systems Integration Develop a programme of support to help businesses adopt new technologies, to innovate and drive up productivity

18 Skills Challenge 72,000 businesses in D2N2, employing nearly 1 million 82% had 9 or fewer employees Growth has been fastest among micros and micro businesses have a larger share outside the cities reduction in larger firms, in line with long-term national trend Relatively low rates of workers in high skill roles Level of qualifications held by D2N2 residents lower than UK average Jobs with low/no qualifications expected to decline from 20% to 14% of the workforce Job growth expected to be concentrated in higher level roles, half of which expected to be in professional roles

19 Derbyshire: Recruitment issues Region Q2 Q Q Attempted to recruit: 67% 61% 63% Attempted to recruit the following:- Full-time 86% 89% 83% Part-time 28% 25% 22% Permanent 40% 33% 32% Temporary 26% 20% 29% Difficulties reported in recruiting: 62% 57% 59% Skilled manual/technical posts 49% 33% 50% Professional/managerial posts 52% 36% 48% Clerical 17% 11% 2% More Derbyshire firms attempted to recruit in Q2, and slightly more found difficulties in doing so Emphasis remains of full-time positions, though many more temporary posts were being advertised in Q2 Skilled manual/technical positions overtook professional/managerial posts as being the hardest posts to fill in Derbyshire. Unskilled/semi-skilled posts 18% 33% 22%

20 Nottinghamshire: Recruitment issues Region Q2 Q Q Attempted to recruit: 67% 60% 70% Attempted to recruit the following:- Full-time 86% 86% 87% Part-time 28% 21% 28% Permanent 40% 46% 46% Temporary 26% 25% 21% Difficulties reported in recruiting: 62% 49% 63% Skilled manual/technical posts 49% 33% 48% Professional/managerial posts 52% 52% 54% Clerical 17% 18% 28% Nottinghamshire firms made a much more concerted attempt to recruit in Q2, although difficulties in doing so rose considerably. In keeping with recent local and regional norms, professional/managerial posts tend to be the hardest posts to fill in Nottinghamshire. Unskilled/semi-skilled posts 18% 21% 15%

21 4 core technical groups that deserve policy attention Engineering and planning/process/production technicians Undersupply: 900 Average advertised salary: 28,200 Metals, tools and instruments manufacturing Undersupply: 900 Average advertised salary: 25,300 Electricians and electronic trades/technicians/engineers Undersupply: 600 Average advertised salary: 32,200 IT engineers and technicians Undersupply: 390 Average advertised salary: 31,000

22 Key challenges Apprenticeships could offer solutions where skills shortages are acute 31% of L3 vacs difficult to fill due to skills shortages 19 % of L2 vacs difficult to fill (predominantly in sales and customer service) HE issues Only 31% of graduates from D2N2 HE institutions stay in the area to work Only 48% of graduates working in D2N2 had done degree in LEP area

23 Any Questions?

24

25 ESFA rules ESFA only fund organisations that have a current funding agreement (ROTO) either: as a single legal entity (college, private or public organisation), or with other legal entities (for example a consortium) All lead providers and subcontractors must register on the UK Register of Learning Providers (UKRLP) No subcontractors with a contract value of 100,000 or greater for each funding year unless listed on ROTO. All delivery subcontractors must be contracted directly by lead. No second level

26 Community Grants

27 Community Grants Overview IP 1.4 Community Grants Procure a managing agent Grants of up to 20,000 for 3 rd sector and small organisations Management fee 10% Hardest to reach individuals A successful programme

28 Managing Agent 1 contract for D2N2 worth 1,350,000 4 funding envelopes aligned to priorities in local authority areas Derby City - 175,000 Derbyshire - 418,000 Nottingham 297,000 Nottinghamshire - 459,000 Community Grant Payment unit cost - 1,282 Management cost at 10% of grant Average unit cost per learner - 1,410 Closing date 19 September 2018

29 Managing Agent Priority Groups Participants over 50 15% Participants with disabilities 22% Participants from ethnic minorities 25% Participants who are women 36% Progression conversion rates To Education or Training 14% To employment 17%

30 Managing Agent Design, implement and administer CG programme Put in place management and QA arrangements CG programme flexible, responsive to emerging priorities Complement and avoid duplication with similar existing provision, including ESF, DWP, Big Lottery, ESFA, local authorities, NCS and CEC provision Put in place conflict of interest protocols Design and implement a grant payment system ( ESF compliant, internal audit and reporting)

31 Managing Agent Management Information Develop and operate an MI system which enables submission of data to ESFA via ILR and Data Returns. Develop systems to maintain and provide evidence to support payments Provide ESFA with a monthly report by the 4th working day of each month and a quarterly report Ensure that each Recipient Organisation provides it with return ILR data for each Participant for the activity that is funded through the Grant. To include all details of regulated and non-regulated learning as well as destination data

32 Managing Agent Publicity and application process Work with partners to develop and deliver an engagement and marketing strategy to encourage CG applications Make calls for CG applications aligned to local priorities Develop, implement and administer a grant application process and timetable for CG applications Receive and assess applications for CGs using open and transparent criteria, Manage volume of applications for each geographic area Enter into a Grant Agreement with each Recipient Organisation which sets out the conditions on which the Community Grants are provided

33 Managing Agent Support to Grant Recipients Provide support to Recipient Organisations to help them manage ESF funds especially in maintaining records of actual grant expenditure to ensure a full audit trail. Ensure the Recipient Organisation keeps financial records such as invoices to support expenditure, bank statements, staff time sheets, job descriptions, expenses payments and is able to fully evidence any claims made in accordance with the Grant

34 Managing Agent Local Governance The Managing Agent must ensure that the Grant Awards panel membership includes the LEP and relevant Local Authority representative. D2N2 LEP convenes an ESF Provider Delivery Group, which meets quarterly. The Contractor will be required to attend and provide management information (both hard and soft) to the group.

35 Key priorities Community Grants To develop the capacity of the community and to meet local needs. Undertake activities that promote social inclusion. Build employment and enterprise skills through the voluntary and community sector. Provide intensive support to help upskill individuals and move towards and enter work. To engage those individuals who are the hardest to reach through innovative approaches

36 Community Grants Investment priority 1.4: Active Inclusion Evidence of need: D2N2 Social Inclusion Framework (2014) Community Programme scoping research (2015) SEP / ESIF Strategy ESF Operational Programme BBO Interim evaluations Health & Wellbeing Strategy East Midlands Inclusion Framework

37 Any Questions?

38 NEET

39 NEET Overview IP1.2 NEET Support those at risk of NEET and NEET Eligibility: NEET or at risk of NEET Unemployed or inactive Deliverables: Start and initial assessment Regulated and/or non-regulated learning Progressions (Education, Employment, Traineeship, Apprenticeship)

40 D2N1 Youth Engagement 1 contract for D2N1 worth 3,024,000 ITT closes 17 September 2018 Delivery commences 1 April 2019 Final date for participation starts 31 December 2020 All activity completed 31 July 2021 Area covered to be Derby City, Derbyshire and Nottinghamshire (excluding Nottingham) Focus on young people living in rural areas who may face a range of barriers to employment such as transport and access issues.

41 D2N1 YOUTH Engagement Support year olds NEET to reengage in education, education or training Outputs 1920 starts 192 progressions into employment 653 progressions into education 96 progressions into Apprenticeships 96 progressions into Traineeships Regulated and non regulated learning

42 D2N1 Youth Engagement Programme targets Female Participants 45% Participants from ethnic minorities 20% Participants with disabilities 10% Participants without Basic Skills 16% Participants who live in a single adult household with dependent children 4%

43 Inclusion Youth Engagement Social Mobility Index assesses the education, employability and housing prospects of people living in England s 324 LA s. Half the local authority areas in the East Midlands are social mobility cold spots. D2N2 has high proportion of cold spots Newark and Sherwood 2 nd in England Ashfield 8 th Derby 9 th Mansfield 10 th Nottingham 13 th South Derbyshire 14 th Amber Valley 23 rd Bolsover 39 th Chesterfield 40 th

44 Productivity Youth Engagement Little growth in working-age population by 2030 Need to produce much more output with the indigenous labour and talent we have within D2N2. Need to ensure that all young people are able to develop the employability and vocational skills to move up the skills escalator into more productive, better-paid jobs in a transformed economy. The Youth Engagement Service (D2N1) will target young people not engaging with the employment and skills system who are in danger of not playing an inclusive role in D2N2 s vision of a higher-value economy

45 Key priorities Youth Engagement Skills Match & Pathways equipping NEET young people to understand what skills will be required in the future workforce and motivating them to engage with employers to move up the skills escalator to more productive jobs Job Readiness Enable young people to develop the knowledge, skills and experience to successfully enter the labour market Skilled and Adaptable Workforce Enable the workforce to up-skill and adapt to changes in technology (including digitalisation) and working practices. Innovation Know-how. Providing employability support, careers advice and LMI so young people can exploit opportunities within our leading-edge, core specialist capabilities with the focus on Advanced Manufacturing & Engineering, Digital Technologies & Data, Energy & Low- Carbon Technologies, and Systems Integration

46 Key priorities Youth Engagement Partnership Working The Contractor shall ensure that the Services complement and avoid duplication with similar existing provision, including ESF, DWP, Big Lottery, ESFA, local authorities, NCS, CEC The Contractor shall work in partnership with the LEP and every local authority in D2N1 Provision aligned to local priorities existing and emerging Employer Engagement Employers involved in design and delivery of services Strong relationship with employer facing organisations particularly the D2N2 Growth Hub Be aware of issues facing employers work experience requirements as part of T levels developments (pilot in Derby)

47 Youth Engagement Local Governance D2N2 LEP convenes an ESF Provider Delivery Group, which meets quarterly. The Contractor will be required to attend and provide management information (both hard and soft) to the group. D2N2 LEP is currently undertaking a review of the skills governance arrangements in D2N2. The Industrial Strategy requires the formation Skills Advisory Panels to bring skills providers and business together to determine local growth priorities and analyse future supply and demand. The Contractor will attend or provide management information (both hard and soft) to the Skills Partnership on a regular basis.

48 Youth Engagement Local Governance The successful contractor will be required to produce a development plan with identified roles and responsibilities and named contacts. The plan will be agreed and revised with the LEP on an annual basis. Plans could include research; coordination of labour market information; proposals to respond to emerging skills needs of the LEP s priority sectors; developing provider responsiveness; innovation and employer engagement. The Contractor will support the on-going implementation of the plan and provide regular updates to the LEP as part of the governance arrangements.

49 Any Questions?

50 Skills support for the Workforce and Redundancy

51 SSWR Overview IP2.1 Skills Support for the Workforce incorporating Skills Support for Redundancy Eligibility: Aged 16 and older Employed or unemployed (must be within 3 months of being made redundant) Deliverables: Start and initial assessment Regulated and/or non-regulated learning Progressions (In Work Progression, Employment, Apprenticeships, Education)

52 SSWR Basics 2 contracts for the following lots D2 - Derby and Derbyshire - 8,370,000 N2 - Nottingham and Nottinghamshire - 8,370,000 ITT closes 17 September 2018 Delivery commences 1 April 2019 Final date for starts is 31 December 2020 All activity completed by 31 July 2021

53 SSWR Outputs for each contract 4565 starts 228 progressions into employment 457 progressions into education 228 progressions into Apprenticeships 913 progressions within work Regulated and non regulated learning LEP agreed Development plan

54 SSWR Programme targets Participants over 50 years of age 20% Participants from ethnic minorities 18% Participants with disabilities 8% Participants without Basic Skills 18% Participants who live in a single adult household with dependent children 5% Female participants 49%

55 SSWR 2 strands of activity: Skills support for the Workforce (Strand 1); Skills support for Unemployed individuals, those At Risk of Redundancy or Recently Redundant (Strand 2).

56 Strand one services Support employers to employ / develop individuals to fill intermediate, technical, high-level skills gaps. Address Basic Skills needs of employees particularly in SME s and Micro Businesses. increase the skills levels of employees to at least the next level up, to encourage progression within the workforce. increase the number of people with technical and job specific skills, to progress them into education, employment, apprenticeships to support business growth. increase the skills levels of employed women to help employers address the gender employment and wage gap. identify and promote apprenticeships to address skills gaps within the existing workforce.

57 Strand two services Support Enterprises (of any size) that are undergoing industrial restructuring by providing skills and employability support for their employees who are At Risk of Redundancy. Supporting Recently Redundant individuals(3 months) where initial contact through previous employers has not been possible.

58 Productivity SSWR Out of 38 LEPs D2N2 4th largest population and 5th largest workforce outside London. However 9th largest economy raising business productivity is the challenge Little growth in working-age population by To be internationally-competitive economy, maintain high levels of employment need to find ways to produce much more output with the existing workforce Need to enable our workers at all levels to move up the skills escalator into more productive, better-paid jobs and future proof the skills they need for the jobs of tomorrow.

59 Inclusion SSWR D2N2 has earnings deficit. Too many people in lower paid jobs (some 30% of people earn less than the Living Wage) and not enough in higher paid jobs Some parts of D2N2 particularly disadvantaged - workplace earnings range from 118% of the England average in Derby, to 65% in Mansfield. Marked gap between the most prosperous parts of the D2N2 area and those facing the biggest economic challenges (ranging from GVA per head of 27.6k in Nottingham, 27.3k in Derbyshire Dales to 14.4k in Gedling and 16k in Erewash).

60 Key sectors SSWR 8 key sectors which are important to growth and productivity in both the D2 and N2 areas. Transport Equipment Manufacturing; Life Sciences; Food & Drink Manufacturing; Visitor Economy; Low Carbon, Transport & Logistics, Creative & Digital Industries; and Construction.

61 Key sectors SSWR D2N2 LEP Science and innovation Audit identifies 3 Innovationled sectors which stand out as having a combination of highspecialism, high-gva, and high-growth prospects and in good position to exploit opportunities in the Industrial Strategy through Sector Deals: They are; Transport Equipment Manufacturing Food & Drink Manufacturing Life Sciences There are a 4 fields of cross-sector expertise where D2N2 has stand-out specialisms in the knowledge base (industry and centres of research & learning). They are; Advanced Manufacturing & Engineering Digital Technologies & Data Energy & Low-Carbon Technologies Systems Integration

62 Key priorities SSWR Partnership Working The Contractor shall ensure that the Services complement and avoid duplication with similar existing provision, including ESF, DWP, Big Lottery, ESFA, local authorities, NCS, CEC Provision aligned to local priorities existing an emerging Provide participant and employer data at ward/district level covering the referral source, the qualifications offered and delivered, the cohorts supported, the employer information, the sector of employer and sector of support provided; Employer Engagement Strong relationship with employer facing organisations particularly the D2N2 Growth Hub, Nottingham Jobs hub, Derby Apprenticeship Hub etc The Contractor shall establish links with JCP to ensure visits to public or private sector employers are made in conjunction with Jobcentre Plus and NCS to ensure a coordinated approach

63 SSWR Local Governance D2N2 LEP convenes an ESF Provider Delivery Group, which meets quarterly. The Contractor will be required to attend and provide management information (both hard and soft) to the group. D2N2 LEP is currently undertaking a review of the skills governance arrangements in D2N2. The Industrial Strategy requires the formation Skills Advisory Panels to bring skills providers and business together to determine local growth priorities and analyse future supply and demand. The Contractor will attend or provide management information (both hard and soft) to the Skills Partnership on a regular basis.

64 SSWR Local Governance The successful contractor will produce a development plan using the template development plan provided by the ESFA in response to the LEP s needs and shall meet with the ESFA and the LEP to agree and finalise the development plan prior to the Service Commencement Date. The Contractor shall implement the agreed development plan from the Service Commencement Date. The Contractor shall support the on-going implementation of the development plan and shall provide regular updates to the LEP.

65 Underlying Principles Relationship with LEP and Stakeholders Links to existing services Effective signposting Local support Performance Management Collaboration strong provider consortium Engagement Employment Skills Gateways and Pathways Joined up strategy Effective signposting Utilising the right programmes to get people into sustained employment

66 Core Delivery Principles What good looks like Impact and Scale: Delivery Readiness: Added Value Local Value Quality, Performance and Efficiency:. Strategic Partnerships and Co-ordination of Market Engagement Flexibility and Responsiveness

67 Any Questions?

68 Contact Details Richard Kirkland Rachel Quinn This project is part-funded by the European Social Fund as part of the European Structural and Investment Funds Growth Programme in England