West Midlands European Social Fund Regional Strategic Framework

Transcription

1 West Midlands European Social Fund Regional Strategic Framework

2 Contents 1) Overview Background to RSP Status of Framework Process undertaken to develop Framework How the Framework will contribute to the National OP How the Framework will be reviewed and updated 2) Regional Context and ESF Programme Priorities Strategic context Regional analysis Regional targeting Indicative activities Indicative Activities - Regional Focus Table 2(a): OP Objectives and Regional Priorities to be addressed through ESF in the West Midlands from (Priority 1) Table 2(b): OP Objectives and Regional Priorities to be addressed through ESF in the West Midlands from (Priority 2) Linkages Delivery mechanisms 3) Cross-cutting Themes Sustainable development Gender equalities and equal opportunities Innovation Transnational activity 4) Regional financial allocations 5) Indicators, outputs and results 2

3 1. Overview Background to the Regional Skills Partnership The West Midlands Regional Skills Partnership has been established to lead the skills agenda in the West Midlands and act as a catalyst for real change. It aims to create a simple demand-led approach to skills that aligns supply with the needs of employers, individuals and the regional economy. The West Midlands Regional Skills Partnership comprises a mix of employers, skills providers, public bodies and representatives from civil society. It is working to ensure that: Every adult and young person has basic employability skills and opportunities to progress. Every employer has the skilled people they need, is making effective use of their skills and is investing in workforce development. The West Midlands has a growing number of high performing organisations, a knowledge-based economy and a strong enterprise culture. Our priorities for action were first defined in January 2005 but will remain our focus for the longer term. They are: i) Base our work on sound information and analysis: We will use an evidence-based approach to ensure our plans stand up. Employers have already provided us with a lot of information on future skills needs. We need to use this to inform the analysis of the West Midlands Regional Observatory and help us further develop our strategy. ii) Ensure that employers' needs are met by appropriate training and business support: We will work to make access to business support and training easier, and to ensure that the type and style of support meets the needs of employers and individuals. iii) Encourage and enable employers and individuals to improve their performance by investing in skills: We need employers to be clear on what their current and future skills needs are, and individuals to understand which skills they require to be competitive in the job market. We also need a better understanding of what the barriers are to employers and individuals investing in skills. Status of the Framework Final Draft

4 Process undertaken to develop the Framework The document has been developed in consultation with a wide partnership in the West Midlands Region. The Regional Skills Partnership has consulted partners at various stages throughout the process. Importantly it should be noted that all stakeholders are by definition members of the Regional Skills Partnership. For further information on composition of the Regional Skills Partnership please see the website: The process has been driven by a small group of Regional Skills Partnership members since early 2006 (the ESF Strategy Group). The group has met on average every month or when required. Represented for the majority of the process have been Advantage West Midlands, Learning and Skills Council, Jobcentre Plus, Local Authorities, Higher Education, and the Third Sector. Participation in this group was widened in early 2007 to include employer representatives from the Sector Skills Councils and Chambers of Commerce as well as an additional Local Authority member. The first consultation event took place on 12 June This half day event looked at the Regional Employment and Competitiveness Programme in its entirety and involved a workshop for partners on the Better Skills and Employment element of the programme. The workshop was led by Regional Skills Partnership members. Regional skills data were presented along with a series of questions. All the views received were fed into early thinking on the new programme. The group then began to draft a strategy for regional ESF in the knowledge that it would have to fit within a national programme. The group did a considerable amount of work collecting data from the Regional Skills Partnerships Data Group and using this to inform some Regional priorities, indicative actions and client groups for attention. A further meeting was held on the 27 November as part of the Consultation on the National ESF Operational Programme. This event was well attended by regional stakeholders and all views were recorded, discussed by the group and if appropriate incorporated into the existing strategy document. The response to the consultation itself was a further crystallisation of the partnership s views and lengthy consultation resulted in the submission of two complementary West Midlands' responses: one from the Regional Skills Partnership and one from the European and International Affairs Partnership. Following this process and further guidance from ESF Division the existing ESF Strategy Group was asked by the Regional Skills Partnership to begin drafting the Regional Strategic Framework. During the drafting of the document individual organisations, regional groups and interested individuals have been consulted including: The Regional Skills Partnership Board The Regional European Funding and Policy Group The Regional Skills Partnership Progress Group 4

5 The Engineers Employers Federation The Regional European Lifelong Learning Group The Regional Working Group The Regional Economic Development Officers Group The Framework was approved by the Regional Skills Partnership Board on 14 th June 2007 How the Framework will contribute to the National Operational Programme and Regional employment and skills needs: The Framework will contribute to the National OP by achieving the outputs and results set out on pages The Framework will contribute to Regional employment and skills needs by addressing regional issues through targeting geographically, sectorally, and on the most hard to reach client groups (see regional targeting) How the Framework will be reviewed and updated The Framework will be a live document for 3 years, during the 3 year period the document will be reviewed twice a year by the Regional Skills Partnership Progress Group and once a year by members of the Regional Skills Partnership Board. The reviews will examine: progress towards National targets value for money impact on Regional Skills Partnership targets (Tier 2 and 3) relevance of strategy to changing regional employment and skills needs and its alignment with regional strategies (WMES and RSS) levels of engagement with disadvantaged individuals funding to ensure that it is being distributed in those areas where there is greatest need. The RSP in its strategic role will not monitor the delivery Agents. It will strategically review the above using management information supplied by the Managing Authority (the Managing Authority for the Programme is the Department for Work and Pensions ESF Division) and the West Midlands Regional Observatory. The RSP Board will, where necessary, make recommendations to the regional Programme Monitoring Committee. 5

6 Regional Context and ESF Programme Priorities Strategic context: Lisbon Agenda 1 : The Lisbon Agenda presents the overarching policy Framework upon which the ESF Operational Plan for England, and in turn the West Midlands ESF Plan, are based. It seeks to transform the European Union s labour, capital and product markets by: Generating stronger, sustainable economic growth. This will be achieved through an increased emphasis on competitiveness, innovation, and knowledge-intensive activities Creating more and better jobs. A stronger economy will drive higher quality job creation in the EU and policies that promote social inclusion will facilitate faster economic growth by increasing the effective labour pool. Leitch 2 : The Government commissioned the Leitch Review to identify the UK's skills mix in 2020 to maximise economic growth, productivity and social justice, and to consider the policy implications of achieving the level of change required. The West Midlands Regional ESF Framework will contribute to the following priorities identified by Leitch: Setting ambitious targets for Skills for Life; shifting the balance of intermediate skills from Level 2 to Level 3 Creating a new integrated employment and skills service locally. Route all adult vocational skills funding through Train to Gain 3 and Learner Accounts by 2010 Activities must Reflect the priorities of the Regional Skills Partnership 4 Respond to the issues raised by the West Midlands Regional Skills Assessment 5 Link to the priorities of the West Midlands Economic Strategy 6 Link to opportunities identified in the Regional Spatial Strategy Build on the experience of other programmes

7 Regional Analysis The West Midlands Regional ESF Framework has been developed using the latest research and analysis from a range of studies and sources such as the National Employer Skills Survey, the Working Futures Employment Projections, Official Statistics available from the Office of National Statistics and the recently published, Regional Skills Partnerships, West Midlands Regional Skills Assessment 7 The purpose of this section is to provide a summary of the key worklessness and productivity issues and challenges facing the region, drawing on the above. It is important to note that the summary below is purely for context. The Regional Skills Partnership expects and requires that co-financing organisations and any organisation wishing to access ESF makes themselves familiar with the data available on the West Midlands Regional Observatory (RSP research site) 8 Worklessness: There are significant problems of worklessness across the region as a whole, but worklessness is also highly concentrated in particular geographic areas and amongst some groups. There is a strong correlation between worklessness, deprivation, and other social problems. In order to estimate the extent of worklessness in the region it is important to consider both those who are unemployed (i.e. out of work and actively seeking employment) and the economically inactive (i.e those out of work but not actively seeking employment). The economically inactive are an important and growing group: It includes but is not limited to, the early retired, and those on a range of care and health-related benefits. While unemployment rates have declined, rates of inactivity have risen in recent years 9. The West Midlands has a rate of worklessness above the England average, with more than 850,000 people unemployed or economically inactive. To close this gap with the England average the figure would need to be reduced by more than 38,000. This is a particular issue in the major urban areas. In Birmingham 36% of the working age population, or almost 215,000 people, were workless in In Sandwell, Wolverhampton, Stoke-on-Trent and Walsall over 30% were workless. 7 Regional Skills Partnership, Regional Skills Assessment 2006, produced by the West Midlands Regional Observatory (WMRO) For further details see the 2006 Regional Skills Assessment produced by WMRO on behalf of the RSP 7

8 Table 1: Rates of worklessness in West Midlands sub-regions Worklessness 000s % Birmingham 213,602 36% Sandwell 56,359 34% Wolverhampton 43,247 31% Stoke-on-Trent 44,412 30% Walsall 43,781 30% Coventry 54,310 29% Solihull 27,640 23% Staffordshire 111,497 23% Herefordshire 23,260 23% Telford and Wrekin 22,637 22% Dudley 40,397 22% Worcestershire 70,189 21% Warwickshire 67,293 21% Shropshire 32,468 20% West Midlands Region Total 851,092 27% England 7,759,455 25% APS % of the Region s workless, or 502,000 people, are within the City Region (Birmingham, Solihull, Coventry, Telford & Wrekin and the Black Country) Some groups and communities are more at risk of being workless. These include those with no qualifications or only low level qualficiations. Additionally, some groups who are growing in proportion within the community are experiencing high rates of worklessness: The Pakistani, Bangladeshi, and Black Caribbean ethnic groups and older age groups are all expected to become increasingly vital to the economy but are under-engaged at present (Table 2). Table 2: Rates of worklessness among key groups/ communities in the WMidlands Worklessness 000s % Pakistani/Bangladeshi female 46,253 80% Pakistani/Bangladeshi 64,887 58% No Qualifications 280,636 52% Without a Level 2 qualification 411,453 42% Black Caribbean 25,084 41% Pakistani/Bangladeshi male 18,634 34% Female 491,588 32% Age ,348 28% West Midlands Region 857,606 27% LFS Oct-Dec 2006 The above show the absolute numbers of each client group that is workless and the % of that client group that is workless. For example 80% of Pakistani/Bangladeshi females are workless, that equates to 46,253 of the total workless population. It is well known that individuals are often likely to fall into two or more of the above groups. 8

9 Those Not in Education Employment or Training (NEET): Although the region has seen a 3% increase in participation of year olds between 2004/05 and 2005/06, there has been, over the same period, little impact on the number of young people in the Not in Education, Employment or Training (NEET) group. There has been a slight reduction in the Not Known category with a proportionate increase in the NEET figure and consequently NEET for the region is above the national levels. NEET in the Regions (16-18 unadjusted) East Midlands East of England Greater London North East North West South East South West Number NEET January 2005 January 2006 % NEET % Not Number % NEET % Not known NEET known 10, % 6.4% 11, % 6.7% 8, % 7.3% 9, % 5.6% 16, % 7.2% 15, % 6.8% 8, % 9.9% 8, % 6.7% 14, % 6.3% 19, % 3.7% 11, % 4.8% 13, % 4.7% 7, % 5.5% 8, % 4.3% West Midlands Yorkshire Humberside 11, % 9.5% 13, % 8.4% 12, % 11.1% 13, % 9.3% National 102, % 7.3% 112, % 6.1% Source: DfES 9

10 NEET in the Sub Regions (16-18 unadjusted) January 2005 January 2006 Birmingham & Solihull Black Country Coventry & Warwickshire Herefordshire & Worcestershire Shropshire Staffordshire Number NEET % NEET % Not Known Number NEET % NEET % Not Known 3, % 15.4% 3, % 17.2% 2, % 10.6% 3, % 8.1% 1, % 8.3% 1, % 5.4% 1, % 3.2% 1, % 4.7% % 2.2% % 2.6% 2, % 8.8% 2, % 5.9% West Midlands 11, % 9.5% 13, % 8.4% National Total 102, % 7.3% 112, % 6.1% While the sample sizes of national surveys are too small to allow further in-depth analysis, national and regional research 10 highlights a range of other groups that face particular issues and barriers to labour market access. These include migrants and refugees, people with a disability, lone parents and ex-offenders. Offender Learning and Skills: Worklessness is a particular issue for Offenders. Nationally it is estimated that 37% of offenders leave prison with a reading ability at or below Level 1. The provision of education and training has the potential to reduce re-offending rates by up to 10%. Offenders with good GCSE grades or their equivalent or who have participated in vocational training and community employment programmes are most likely to secure employment. The West Midlands Region had 14 prisons and around 23,500 offenders in custody in June Many re-offend on leaving prison and low skills and lack of employment opportunities are two of the key factors responsible 11. According to a sample of 5278 risk assessments conducted (mainly in three Probation Areas in the West Midlands) between April and September 2005 at the pre-sentence report stage: 42 per cent of offenders are in the high risk category; 27 per cent are in the medium risk category, and 31 per cent are in the low risk category 12 ; 42 per cent do not have any qualifications; 65 per cent have an employment history with some or significant problems; 33 per cent have reading, writing, or numeracy problems. 10 WMRO Raising Aspirations research project to be published July See Regional Skills Assessment Source: OASys data, April to September 2005 This is taken from a sample of 5278 risk assessments, using the OASys risk assessment programme conducted between January and September Low risk scores are those between 0 and 40; medium risk scores are between 41 and 70; and high risk scores are greater than

11 Risk assessment scores for offenders in the West Midlands by Probation Area The figures differ somewhat between Probation Areas; for example, only 38% of offenders assessed in Warwickshire had no qualifications, whereas over 43% in the West Midlands fell into that category. However, regardless of Probation Area the data shows that around 1 in 4 offenders have no qualifications. The evidence suggests that: Ex-prisoners with poor educational attainment who have not taken part in education or training while in prison are three times more likely to be reconvicted than their counterparts who have; Poor literacy and numeracy skills increases the risk of offending; Participation in basic skills can contribute to a reduction in re-offending; and Employment can play a major role in reducing re-offending 13 Percentage of West Midlands Offenders with work-related skills: 13 Social Exclusion Unit report,

12 Skills for Life: The overall figures for the region indicate that the West Midlands is close to the national averages in terms of adult basic skills levels. However this masks a substantial variation in levels of need between the urban areas of Birmingham, Coventry and The Black Country and other parts of the region 14. The West Midlands has the highest rates in the country of adults with no qualifications and those below Level 2. Productivity: Relatively low rates of productivity among those in work account for a significant proportion of the region s overall output gap with the England average. The region s poor skills base is one of the key contributors to this gap. At 11%, the proportion of people in employment with no formal qualifications is well above the England average. To close the gap this figure needs to be reduced by nearly 66,000. As illustrated in Table 3 this is the case in virtually all sectors of the regional economy Exact geographical locations to be identified in line with evidence of need as detailed in the national Skills for Life survey available from the Skills for Life Strategy Unit Read Write Plus website. 15 See Regional Skills Assessment

13 Table 3: Proportion of the workforce with no qualifications by sector Sector West Midlands England Agriculture etc 23% 17% Other manufacturing 22% 12% Wholesale and retail 18% 13% Transport 13% 13% Hotels and restaurants 13% 14% Miscellaneous services 13% 9% Engineering 13% 9% Construction 12% 11% Electricity gas and water 7% 5% Business and professional 7% 5% Health and social work 6% 5% Education 5% 4% Public Admin 5% 3% ICT and Telecomms 4% 2% All sectors 11% 8% LFS Spring 2006 Engagement in learning is essential if the region s skills capital and the rates of participation in employment are to be improved. However, the West Midlands has the lowest proportion of the workforce participating in training in England. In 2005, 1.3 million staff were trained, representing 56% of the total workforce. To close the gap with the national average 110,000 more employees would need to participate in training. Table 4: Proportion of staff trained by their employer in the last 12 months Region % North East 70% South East 66% Yorks & Humber 62% East of England 61% South West 60% East Midlands 60% North West 60% London 58% West Midlands 56% NESS 2005 Regional targeting: Given the limited resources available to the region through this programme regional partners have decided that it is essential that the funds are targeted and that the outputs achieved create an impact on businesses, geographical areas and client groups that are amongst the most hard to reach in the region. We have therefore agreed that the funding should be focused on the areas of greatest need geographically (see below), 13

14 individually (see priority target groups) and on the sectors of the economy that suffer must from poor productivity and a lack of qualification (see data analysis above). Our commitment to targeting of the resources is reflected in the output tables (Pages 33-35) below and will also be a key element of the review of the Framework yearly by the Regional Skills Partnership Board (Page 5) Geographical Targeting: The mix of challenges varies from place to place. The Framework will provide a regional-level strategic approach but will offer the flexibility to tackle the needs of particular groups and spatial areas. Although the Framework does not have a specific geographic focus within the West Midlands, we will focus on individuals of greatest need, and areas where the scale of need and therefore, potential for impact is greatest. Funding is expected to be concentrated in areas defined by the Regional Spatial Strategy as spatial priorities and to WMES place priority areas such as the, Regeneration Zones and High Technology Corridors. Sector Targeting: Based on the analysis in the Skills Assessment, and joint Sector Review work with Sector Skills Councils 16, the partners in the region have identified the following priority sectors for the investment of ESF money in the West Midlands region: Business and Professional Services Construction Health & Social Care Hotels and Restaurants Manufacturing and Engineering Wholesale and Retail The analysis takes into account a range of factors to determine the key priority sectors including predicted employment change (growth) and skills gaps and factors such as the proportion of the workforce with less than level 2 qualifications. The prioritisation will be re-evaluated as part of the overall review process and the range of priority sectors redefined according to need. 16 For further information on the UK Sector Skills Councils go to 14

15 Indicative activities: All ESF activities in the West Midlands must be framed by the two priority axes, or priorities, contained in the English ESF Operational Plan: Priority 1: Extending Employment Opportunities The objective of Priority 1 is to increase employment and to reduce unemployment and inactivity. It will help to tackle barriers to work faced by disadvantaged groups such as people with disabilities and health conditions, lone parents and other disadvantaged parents, older workers, ethnic minorities, and people with no or low qualifications. It will also aim to reduce the numbers of young people not in education, employment or training. By tackling and preventing worklessness, this priority will help to improve social inclusion and social mobility. In particular, by helping unemployed and inactive parents to enter sustainable jobs and make progress at work, it will help to alleviate child poverty. This priority will also contribute to the skills strategy, by helping unemployed and inactive people to gain the skills they need for employability and to make progress in the workplace. Priority 2: Developing a Skilled and Adaptable Workforce The objective of Priority 2 is to develop a skilled and adaptable workforce by: reducing the number of people without basic skills; increasing the number of people qualified to level 2 and, where justified, to level 3; reducing gender segregation in the workforce; and developing managers and workers in small enterprises. There will be a particular focus on the low skilled. By developing a skilled and adaptable workforce, this priority will help to improve productivity, innovation, enterprise and competitiveness. It will help people to develop the skills needed by business in a knowledge-based economy. By focusing on those who lack basic skills and level 2 qualifications, this priority will also promote sustainable employment and social inclusion. By improving the qualifications of low skilled and parttime women workers, it will help to promote gender equality and reduce gender gaps in the workforce. Priority 2 addresses Article 3.1.a of the ESF Regulation: increasing adaptability of workers, enterprises and entrepreneurs, with a view to improving the anticipation and positive management of economic change. 15

16 Priority 3: Technical Assistance Technical assistance funds will be available to finance the preparatory, management, monitoring, evaluation, information, and control activities of the Operational Programme, together with activities to reinforce the administrative capacity for implementing the funds, at national and regional levels. In the West Midlands, the following would be developed as part of the regional Technical Assistance strategy: Effective monitoring and evaluation systems; Support for the cross cutting themes of gender equality, equal opportunities, innovation and sustainable development; Support for voluntary and community sector network organisations to encourage participation of the third sector in the programme activities; Support for labour market monitoring and intelligence, and evaluation activities to identify best practice; and The programme s publicity and communications strategy. Technical Assistance funds will also support the development of capacity within the Regional Skills Partnership members to manage and deliver the Programme. These funds will specifically assist the ongoing work within the West Midlands Regional Observatory to inform, analyse and evaluate the skills in the region Indicative activities (drawn from OP eligible activities) to address key priorities Priority 1: The OP states that Priority 1 which is 62% of the Programme will deliver: At least 70% of ESF funding to improve the employability and skills of unemployed and inactive people, particularly disadvantaged groups such as people with disabilities, health conditions, lone parents, older workers, ethnic minorities and people with low or no qualifications. Of this amount, at least half should be aligned with and complement DWP employment programmes that focus on helping the target groups identified in the Operational Programme and described above; At least 23% of ESF funding is ring-fenced for work with young people aged 14 to 19 who are not in education, employment or training (NEET) or at risk of becoming NEET. This is the funding that has been moved from Priority 2 to Priority 1 compared with the draft NSRF, as a result of the Commission s requirement to move the NEET target group from Priority 2 to Priority 1; and Up to 2.5% (subject to further review) of ESF funding to be distributed as small grants to community groups. This is broadly similar to the proportion of funding for Global Grants in The OP Objectives and regional priorities to be addressed through ESF in the West Midlands from (Priority 1) are listed in Table 2 (a) below. 16

17 Priority 2: The OP states that Priority 2 which is 34% of the Programme will deliver: At least 35% of ESF funding to support basic skills training; At least 35% of ESF to support training at level 2; and Up to 28% of ESF to support training at level 3 and above (no more than 5% of Priority 2 ESF money should be spent on activity at level 4 and above). The OP Objectives and regional priorities to be addressed through ESF in the West Midlands from (Priority 2) are listed in Table 2 (b) below. 17

18 Indicative Activities - Regional Focus: The Indicative Activities to be funded from both Priorities are grouped under three headings: Client Engagement activities which aim to get clients to point where they are ready to receive relevant education or training. Client Intervention the development of the clients skills and competencies to improve their access to the labour market or their productivity within it. Employer led intervention activities that specifically require the involvement of employers The Regional Skills Partnership has deliberately set out the Activities within these headings as it places great emphasis on the need to achieve better alignment between the supply of training with the current and future needs of employers and the wider economy. Any activity taking place will be required to demonstrate how it aims to achieve this alignment. For example client engagement activity must be able to demonstrate how it will lead to demand led training provision and how this in turn will lead to opportunities in the work place. This does not need to link exclusively to ESF activity, but can link into other public or private funded activity to maximise the opportunities for continuous development and lifelong learning i.e. offer progression routes. The activities for action (Action Areas) are ranked as either High Priority or Other Priority Activities. The intention behind this is to create better connectivity between actions and greater impact from the programme as a whole. It is intended that Other Priority Activities will only be funded where they come as part of a package of support that includes one or more of the High Priority Activities. 18

19 Table 2 (a): OP Objectives and Regional Priorities to be addressed through ESF in the West Midlands from (Priority 1) Priority 1: Extending Employment Opportunities Target Groups: Incapacity benefit claimants; JSA claimants; Lone parents; BME; Unemployed graduates; Older potential workers; People with learning and physical disabilities; Economically inactive people including unemployed people not on benefits; carers; single wage families on low income; Disengaged young people (14-19), who are in, or at risk of going into, the NEET group; Ex-offenders Priority 1 Key Themes: Increase employment and reduce unemployment and inactivity Tackle barriers to work faced by disadvantaged groups Reduce the numbers of young people not in education, employment or training Helping unemployed and inactive parents to enter sustainable jobs and make progress at work West Midlands Regional Economic Strategy ESF Supported Activities Priorities Supported: Subject to Revision Action Areas: People: Action Area 1: CLIENT ENGAGEMENT Participating in economic activity WMES Objective: Increase levels of employment and reduce economic inactivity in the region s worst-affected target hot-spots and long-term challenges. Aspirations for skills and learning progression WMES Objective: Develop an appropriately skilled workforce that meets the growing demands of the economy by stimulating a stronger culture of learning which drives up aspirations and accelerates progression. High Priority Activities: Activities to help disadvantaged people who persistently return to Jobseekers Allowance, address barriers to their retention in suitable employment. Initiatives to help raise awareness of the world of work, enterprise and entrepreneurship among young people (from age 14), including work experience placements. Other Priority Activities: Employing a diverse and dynamic labour force WMES Objective: Respond proactively to evolving demographic patterns among the region s workforce to ensure a strong match of skills and education alongside recruitment and retention practices to create appropriate and attainable employment opportunities for all. Business: Driving up entrepreneurship WMES Objective: Increase the level of entrepreneurship and raise the region s enterprise capability particularly in groups and communities where Active and preventative measures which ensure early identification of needs, including individual action plans and personalised support. Initiatives to reform vocational routes for, and develop vocational skills among, 14 to 19 year olds, including developing the vocational curriculum to improve employability. Activities to prolong working lives by re-engaging inactive older workers or retaining older workers longer in employment, including workers who become disabled or develop health conditions. Activities to tackle specific barriers to work faced by unemployed and inactive 19

20 enterprise levels are low. Place: Regenerating our most deprived communities Regenerate and support the sustainable growth of our most deprived areas, developing links into economic and employment opportunity. people in rural areas. Activities to help lone parents, Jobseekers Allowance recipients with children and other disadvantaged parents enter and make progress at work, and so contribute to alleviating child poverty. Access to childcare and care for dependent persons, where caring responsibilities are a barrier to labour market participation. Small grants for voluntary and community organisations to support their capacity to mobilise unemployed and inactive people who are disadvantaged or excluded and to facilitate their integration into the labour market (ESF community grants, formerly known as global grants). Action Area 2: CLIENT INTERVENTION: High Priority Activities: City and other area-based strategies and initiatives to tackle worklessness in urban areas. Activities, including vocational training and preventative work, for young people at risk of becoming NEET to provide pathways to employment. Activities to engage 14 to 19 year olds not in education, employment or training, tackle their barriers to learning, and help them access mainstream provision. Activities to reduce youth unemployment by developing the employability and skills of young people. Vocational training and qualifications for employability. Activities to increase participation by people from ethnic minorities in employment, including where appropriate, training to meet Basic English language skills needs. Other Priority Activities: Skills for Life, including the basic skills of literacy and numeracy, English for Speakers of Other Languages, ICT skills and, and financial literacy skills. Activities to develop the employability and skills of offenders and ex-offenders to facilitate labour market entry and, thus, contribute to reduced re-offending. Early interventions to help people at risk of redundancy to adapt their qualifications and skills for other employment opportunities. Activities to help unemployed and inactive people with disabilities or health 20

21 conditions to enter and remain in work, and appropriate support to retain in employment people who become disabled or develop health conditions. Activities to provide pathways to employment such as pre-vocational and access training, community based activities. Volunteering, environmental activities, practical soft skills (such as improving aspirations and motivation), work skills, and workplace skills (such as team working). Mainstreaming and specific action to improve access of women to employment and increase sustainable participation and progress of women in employment, and to help men and women access occupations or sectors where they are underrepresented. Job-search help, advice and guidance Advice and support for self-employment, entrepreneurship, business creation and social enterprise. Action Area 3: EMPLOYER-LED INTERVENTION High Priority Activities: Improving job brokerage to enable a better match between supply and demand. Other Priority Activities: Work search and work preparation activities, including labour market orientation and work experience placements. 21

22 Table 2 (b): OP Objectives and Regional Priorities to be addressed through ESF in the West Midlands from (Priority 2) Priority 2: Developing a Skilled and Adaptable Workforce Target Groups: People in employment with no formal training (in particular young people and older workers), Graduates (and individuals with high level skills in low skill employment), Workers with low skills, pre Level 2, those at risk of redundancy, Self employed individuals, Business start ups and entrepreneurs, Individuals in SMEs in priority sectors, with a focus on current growth sectors in the economy, who can progress to associate, technical or professional levels, Underemployed, those under utilising their skills, Company Managers and leaders Priority 2 Key Themes: Develop a skilled and adaptable workforce Reduce the number of people without basic skills Increase the number of people qualified to level 2 and re train people to hold relevant level 2 qualifications where necessary; and where justified to level 3 Reduce gender segregation in the workforce Develop managers and workers in small enterprises West Midlands Regional Economic Strategy Priorities Supported: Subject to Revision Business: ESF Supported Activities Action Area 1: CLIENT ENGAGEMENT Stimulating employer investment in skills and training. WMES Objective: Increase employer investment in skills training and raise employer awareness of the business case for training for their entire workforce. Other Priority Activity: Initiatives by the social partners to promote lifelong learning and skills in the workplace. Driving up entrepreneurship. WMES Objective: Increase the level of entrepreneurship and raise the region s enterprise capability particularly in groups and communities where enterprise levels are low. Capitalising on low carbon opportunities WMES Objective: Stimulate a proactive and ambitious business response to the economic opportunities of the low carbon agenda by exploiting new markets and responding ambitiously to the challenges of energy and resource efficiency. Improving business competitiveness Action Area 2: CLIENT INTERVENTION High Priority Activities: Activities to support access to and provision of Apprenticeships. Skills for entrepreneurship, self employment and social enterprise. Activities to support access and progression from foundation level up to level 3. Lifelong learning and training for managers and workers (at any level, including level 4 and above) in small enterprises (up to 50 employees), including training and development in leadership, management, enterprise and technical skills needed for 22

23 WMES Objective: Improve regional competitiveness by building an entrepreneurial and innovation culture in all tiers of all our businesses. Exploiting markets and sectors with the most wealth and employment potential WMES Objective: Develop those sectors and markets with the potential to generate the most wealth and employment over the long term, exploiting the region s distinctive strengths in both manufacturing and services. People: Aspirations for skills and learning progression WMES Objective: Develop an appropriately skilled workforce that meets the growing demands of the economy by stimulating a stronger culture of learning which drives up aspirations and accelerates progression. Extending leadership and management WMES Objective: The West Midlands will develop and attract the best leadership and management skills to drive innovation, enterprise and growth in the region s businesses. Employing a diverse and dynamic labour force WMES Objective: Respond proactively to evolving demographic patterns among the region s workforce to ensure a strong match of skills and education alongside recruitment and retention practices to create appropriate and attainable employment opportunities for all. Place: Regenerating our most deprived communities Regenerate and support the sustainable growth of our most deprived areas, developing links into economic and employment opportunity. sustainable business development, business growth, innovation and productivity. Training leading to level 3 qualifications in sectors where there are skills shortages at level 3, in small and medium sized enterprises (up to 250 employees), and for women and ethnic minorities in sectors and occupational areas where they are under-represented at level 3. Lifelong learning and vocational training for low skilled and low paid women workers to improve their progression. Other Priority Activities: Training leading to level 2 qualifications (especially for people without current or relevant level 2 qualifications, part-time workers and workers in sectors with weak training records). Skills for Life including basic literacy and numeracy skills, ICT skills and English for Speakers of Other Languages and ICT skills. Training older workers in order to update their qualifications and skills and prolong their working lives. Training for workers who face redundancy or have been made redundant. Activities to prepare people from disadvantaged groups to access Higher Education (but not Higher Education provision itself). Training, mentoring and supporting men and women in occupations or sectors where their gender is underrepresented, in order to tackle gender segregation. Training in ICT and e-learning skills. Training of childcare and other care workers. Training in environmental management and protection skills and in eco-friendly technologies, including training which supports renewable energy sectors, energy efficiency and recycling. Training trainers in the public, private or voluntary sector (at any level, including level 4 and above) to deliver basic skills provision and above. Action Area 3: EMPLOYER-LED INTERVENTION High Priority Activity: Initiatives to ensure the supply of skills are relevant to employers needs 23

24 Linkages ERDF: It is important that linkages between ESF and ERDF are developed, ensuring the potential benefits arising from the complementary nature of interventions are realised. This includes the approach to strategic design, implementation and management. Key areas for consideration include: Linking access to employment actions to the jobs being created, both in terms of sectors/occupations (and their skills requirements) and spatial areas; Targeted, holistic and innovative programmes of employment creation in prioritised regeneration areas characterised by low employment rates; Support for enterprise in deprived areas and among disadvantaged groups, including social enterprise. Opportunities for linking people into work experience and placement opportunities created through ESF and ERDF investments Local Area Agreements: Activities should complement Local Area Agreements (LAAs). LAAs facilitate a more effective delivery of public services and improve relationships between central and local government through more efficient use of various funding programmes that have common outcomes, and reduced bureaucracy and enhanced partnership work at a local level. An important element of the LAAs is the Economic Development and Enterprise Block which identifies the following key drivers of growth: Employment Skills Investment Enterprise Competition Innovation European Lifelong Learning: The European Lifelong Learning Programme ( ) has a total budget of 6.970bn could equate to a pro-rata distribution 70 million euros for the West Midlands Region over the seven year period. It is likely that future funding in this programme area will increase post 2013 as the importance of education is recognised under the Lisbon Agenda. The programme therefore offers a long-term access to funding and significant opportunities for crosssectoral partners to help promote and lead regional lifelong learning initiatives for disadvantaged adult learners, schools, vocational education and training and higher education. 24

25 West Midlands in Europe has produced a fact sheet on the European Lifelong Learning Programme which can be found at: Employment and Skills Boards: Employment and Skills Boards are being set up across the West Midlands to develop and ensure the delivery of an integrated Employment and Skills strategy. It will be essential that ESF delivery builds upon the work of the Employment and Skills Boards across the West Midlands. Business Support Simplification: The national Operational Framework for ESF made clear that Government expects ESF to be aligned with and support the emerging strategy for the simplification of business support. It is anticipated that a full consultation on the Simplification Programme will be published toward the end of June It is therefore important that where ESF funds initiatives which make an offer to, or require engagement with, existing or potential businesses, these initiatives are designed from the outset to align with the national and regional effort to simplify business support. European Agricultural Fund for Rural Development (EAFRD): EAFRD funding is focussed on supporting diversification of rural economies at the local level. EAFRD is delivered through the Rural Diversification Programme for England (RDPE). This is a national programme, managed by DEFRA. However, within the West Midlands, day to day management of Axis 1 and Axis 3 will be delivered by Advantage West Midlands. The RDPE programme includes a small provision for knowledge transfer in land management skills and training in basic and technical skills for the agricultural, food and forestry sectors. The ESF Programme will address rural skills priorities as part of wider regional activity to reduce unemployment and inactivity, and develop a skilled regional workforce. Both programmes have been developed within the policy framework set out within the West Midlands Economic Strategy. This brings increased complementarity, ensuring greater focus with both instruments contributing to shared regional goals. Demarcation between the funds will primarily be by type of beneficiary. The beneficiary of the RDPE programme will be restricted to land-based business, principally farming and forestry businesses. The RDPE has 18.2 million to be invested in skills across the region over 7 years. Delivery Mechanisms: Activities may be delivered by any relevant public, private, or Third Sector providers. Third Sector organisations are particularly well placed to engage people who are excluded from or at a disadvantage in the labour market. The Regional Skills Partnership requires that the decisions about where future funding should be delivered from are based on clear evidence of effective delivery and the ability to have a real impact on the client groups. 25

26 Birmingham, Coventry and Black Country, City Region: The City Region in the West Midlands includes 8 Local Authority areas covering the main urban areas of the West Midlands. As part of the development work in the City Region, a Joint Investment Plan has been developed looking at issues of worklessness (City Strategy proposals), workforce, and the knowledge economy (especially graduate retention). All partners in the City Region want to ensure a coherent and joined-up approach to tackling issues in this area. Joint commissioning is key to this. The Partnership therefore proposes a City Region ESF plan for delivery to meet the needs of this area. This will not exclude or disadvantage other areas of need in the region (such as North Staffordshire or other urban or rural areas with individuals of greatest need) but will ensure a concentration of support in a defined area. City Region joined-up initiatives are supported as a Regional delivery mechanism. 2. Cross-cutting Themes Sustainable Development: The UK National Strategic Reference Framework states that environmental sustainability should be a cross cutting theme in all future Structural Funds Programmes, building on the success of the current Programmes. All Structural Funds Programmes will include integrated strategies for addressing environmental concerns and respecting the principles of sustainable development. In particular all future Programmes must take account of the goal to reduce the UK s emissions of carbon dioxide by 20% by 2010 and 60% by 2050 in order to tackle climate change. The National Operational Programme sets out how sustainable development will be integrated into the Programme at both a strategic and operational level. This includes clear roles for the Regional Skills Partnership and Co Financing Organisations. Integration will ensure that: The Programme meets ESF regulatory requirements The Programmes key strategic aims in terms of promoting employment and skills are delivered in a way which uses resources and energy as efficiently as possible and in ways which can also help to enhance or protect the physical and natural environment It contributes to the UK Sustainable Development Strategy. It takes account of the Regional Sustainable Development Framework and its regional sustainability priorities. WMES actions on the low carbon economy are addressed. A central feature of all the EU Programmes in the West Midlands is an aim to invest in the drivers of a low carbon economy, both to help address environmental challenges and help position the region positively to take advantage of increasing demands for the new and developing products and services that will emerge in response to these challenges, and a rapidly changing regulatory framework. The West Midlands Regional ESF 26

27 Framework will complement ERDF investment in relation to moving towards a low carbon economy. It will do this in a number of ways: Ensuring all training activity is delivered in such a way that is consistent with the UK Sustainable Development Strategy, ensuring good practice in delivery in keeping with the objectives of the UK Sustainable Procurement Action Plan Addressing the region s skills needs in relation to developing the environmental technology sector, complementing ERDF investment in this area Ensuring that the region benefits from a workforce that has the skills to enable businesses to address their own environmental challenges, and increase their competitiveness. This will include training employees in environmental management Co-financing plans will show how they will contribute to these aims. Further work will be undertaken to develop the ESF Sustainable Development Toolkit and link it with specific project level targets that will enable its contribution to the sustainable development aims of the Programme to be monitored. Gender Equality and Equal Opportunities: Gender equality and equal opportunities is a cross cutting theme of the Regional ESF Framework. The Operational Programme maintains the dual approach to promoting gender equality and equality of opportunities by funding specific activities which target women and disadvantaged groups as well as integrating equal opportunities into the planning, implementation, monitoring and evaluation of the programme as a whole. The theme will be under-pinned by a number of requirements. These are: All partners associated with the programme will be required to maintain their public duty to promote equal opportunities The principle of accessibility for people with disabilities will be taken into account during the various stages of implementation All projects will have to take account of the needs of people with disabilities Technical assistance will be available to support gender and equal opportunities training The Equal WORKS digital repository will be promoted and maintained A balanced participation of women and men in the management and delivery of the Regional ESF Framework. The Regional ESF Framework has set a number of targets relevant to Gender and Equal Opportunities in each of the two main Priorities. These include targets with regard to women, ethnic minorities and people with disabilities. The weight and emphasis with regard to these targets are: Women not economically active, particularly lone parents and those with care responsibilities, and women from ethnic minority groups with low levels of economic participation. 27