Appendix: Government response
Introduction
1. The Government welcomes the first report of the
Work and Pensions Select Committee (Session 201011) on youth
unemployment and the Future Jobs Fund. Young people must be supported
to find employment and to gain the work experience and skills
they need to successfully compete in the job market. That is why
this Government's response to youth unemployment is focused on
support that is tailored to individuals' needs and that will prepare
them to find sustainable work in the private sector.
2. From the first day that a young person claims
benefit they will receive job search support from Jobcentre Plus;
this kind of help can be vital for a young person entering the
labour market for the first time. For those who have never had
a job Jobcentre Plus is working with employers to identify suitable
work experience opportunities. Those with a skills gap can access
fully-funded, employment-focused training. Most will be ready
to go straight into a job and can access help to find an apprenticeship
and to apply for the latest vacancies. To minimise the risk of
lasting damage from long-term unemployment, all those aged 1824
who have not succeeded in finding a job after nine months will
go into the Work Programme, with earlier entry for the most disadvantaged.
3. Elements of the Young Persons' Guarantee will
continue to be delivered until transition to the Work Programme.
New Deal for Young People contracts will be extended to June 2011
to ensure continuity of support during transition to the Work
Programme. In Flexible New Deal areas, referrals to the Community
Task Force will continue to June 2011 to maintain the Young Person's
Guarantee nationally until the Work Programme starts.
Conclusions and recommendations
OUTCOMES FOR YOUNG PEOPLE
[Paragraph 29] Despite falling behind its initial
target, the Future Jobs Fund created a significant number of temporary
jobs for unemployed young people on a national scale.
However, it is too early
to assess the extent to which the programme has supported young
people in finding permanent employment.
[Paragraph 30] It must be borne in mind that the
FJF was an emergency measure to tackle a particular peak in youth
unemployment. We regard the wider benefits which many young people
gained from the programme in terms of work experience, confidence
and self-esteem and the likely consequent impact on their future
employability, as another indicator of the effectiveness of the
programme.
The Department for Work and Pensions is conducting
an evaluation of the Future Jobs Fund, which includes qualitative
analysis of customers' experiences of the Fund and an assessment
of the programme's impact on the length of time customers spend
in employment and benefit.
The qualitative analysis will gather feedback on
their experiences of and views about the Future Jobs Fund including
the skills and work experience gained; job search support received;
impact on aspirations and current work activities. The Department
expects to publish results in spring 2011.
Evaluation and monitoring arrangements
[Paragraph 34] We believe that DWP should conduct
a robust and comprehensive evaluation of the FJF and publish the
findings. We recommend that the evaluation include an analysis
of the experiences of local implementation of the programme, an
assessment of the impact of the FJF on long-term employment and
benefit payments (as recorded in DWP databases) and a detailed
cost-benefit analysis. The evaluation method should also be published
to ensure the transparency and credibility of the process.
[Paragraph 38] We believe that ongoing assessment
of the FJF programme at a local and national level may have been
more informative if effective systems had been available to monitor
participation and employment outcomes from the outset.
The Department will conduct an impact assessment
to estimate the difference that the Future Jobs Fund has made
to participants' employment and benefit receipt outcomes. This
will be used to inform future youth employment policy. To enable
participants' outcomes to be tracked for a sufficient period,
analysis will be undertaken from autumn 2011 with findings published
in early 2012. Results from the impact assessment will inform
a cost-benefit assessment of the Future Jobs Fund. Details on
the evaluation methods will be published.
The Department used internal management information
to monitor participation in the Fund and published the first set
of participation statistics (i.e. starts on the Future Jobs Fund)
in May 2010. The Department has published analysis tracking the
outcomes of FJF participants and is exploring publishing analysis
of FJF destinations as soon as is feasible based on robust methodology,
availability of reliable administrative data and the duration
of the programme.
Effectiveness and value for money
[Paragraph 48] A robust evaluation of the FJF
has yet to be undertaken. While we accept the Government's need
to make savings to address the public spending deficit, it is
our view that insufficient information was available to allow
the Department to make a decision to terminate the FJF if this
decision was based on its relative cost-effectiveness. It is important
that DWP carries out cost comparisons for welfare-to work programmes
on a like-for-like basis. In particular, statistics should clearly
show what payments, including benefit payments, individuals on
each programme are receiving, to reflect the full cost to government.
The Committee is right that the main factor driving
the decision was the high cost of the Fund. Faced with the largest
public spending deficit in the UK's history, it was imperative
that the Coalition Government identified areas to reduce expenditure.
The Future Jobs Fund was identified as an area where savings could
be made, whilst maintaining the support available to young people.
At a gross cost of £6,500 per start (£5,000 net), the
Future Jobs Fund is considerably more expensive than other comparable
interventions such as the New Deal for Young People (£3,480
net cost per job in 200405 terms).
The decision is supported by the early analysis that
the Department has published on the benefit outcomes from the
first two months of Future Jobs Fund starts. This analysis suggests
that 50% of Future Jobs Fund participants were on benefit seven
months after starting the programme. The evaluation and cost benefit
analysis will provide further clarity. The cost benefit methodology
will take into account the amount that would have been paid to
an individual had they remained on benefits for the duration of
the programme.
[Paragraph 52] While many graduates gained valuable
experience through participating in the Future Jobs Fund, it is
not clear to us that such an intervention is as cost-effective
for this client group as it might be for those facing significant
personal barriers to finding work.
[Paragraph 53] We accept that interventions like
the FJF represent a more expensive option, even when adjusted
to take account of the fact that Jobseeker's Allowance is not
paid to FJF workers. However, despite the relatively high cost,
programmes such as the FJF may still be a cost-effective option
for young unemployed people who are furthest from the labour market,
and who are less likely to benefit from other less intensive approaches.
The Government agrees with the Committee's analysis
of the targeting of the Future Jobs Fund. Programmes like the
Future Jobs Fund are best employed on a temporary basis to avoid
stifling growth in the economy and best targeted at those who
are furthest from the labour market and therefore unlikely to
be able to find their own job.
Despite this evidence the previous Government chose
to bring forward the eligibility point for access to the Future
Jobs Fund (and Young Person's Guarantee). This meant that, whilst
the programme did support many disadvantaged young people, it
will also have spent public funds paying Future Jobs Fund employers
to take on some young people who would have found work of their
own accord. The evaluation will provide further evidence on the
employment impact of the Future Jobs Fund.
[Paragraph 59] Comparing the effectiveness of
welfare-to-work programmes is complex, given the differences in
approach, funding, labour market circumstances and the characteristics
of previous programmes. The evidence is limited and does not offer
a clear consensus. We expect the Government to use the findings
from the Future Jobs Fund evaluation to contribute to the wider
evidence base used to assess which types of programmes are most
effective in tackling youth unemployment.
The Department will use findings from the Future
Jobs Fund evaluation to learn lessons about the impact of the
programme on the young unemployed and how to work with this group
in future.
Benefits for employers and communities
[Paragraph 64] Overall, employers were impressed
by the young people they recruited through the FJF and believed
that they had benefited significantly from the contributions made
by these individuals. As a result of the programme, recruitment
methods in some organisations have already been altered to make
it easier for employers to recruit young people who lack experience.
The Government, working through Jobcentre Plus and its Work Programme,
should consider how it can encourage more employers to open up
their recruitment processes to young people who lack experience
but who have the capacity to make a valuable contribution.
There is no question that the experiences gained
through the work undertaken by Jobcentre Plus staff in delivering
the Future Jobs Fund will prove useful when it comes to advising
employers on recruiting young people in the future. Jobcentre
Plus encountered a number of significant issues in administering
Future Jobs Fund vacancies, which they had to quickly resolve
in order to help Lead Accountable Bodies to meet their profiled
number of Future Jobs Fund starts.
For example, some employers were not routinely taking
on young people so the experience of a more diverse workforce
was a positive for many. One industry that benefited in particular
was the cultural sector. Traditionally recruitment into this area
is felt to be the preserve of a narrow socio-economic group who
are able to work as unpaid interns. It was felt that the Future
Jobs Fund enabled young people from a more diverse range of backgrounds
to gain skills to help them pursue a career in the cultural sector.
Jobcentre Plus has and will continue to work with
employers to help them tailor their vacancies to young people,
where appropriate. A number of vehicles have been developed for
supporting young people. Work experience and work trials provide
opportunities for young people to acquire an experience of work
to help them in future applications and for both employers and
prospective employees to test the fit of jobs prior to offer/acceptance.
Pre-apprenticeship programmes will prepare young people to enter
apprenticeship jobs. Jobcentre Plus advisers will continue to
ensure that young people get the support they need to prepare
for and enter work.
[Paragraph 67] It is clear that communities and
community organisations benefited significantly through their
employment of FJF workers. The programme had a positive impact
across the country in terms of enhancing the scale and the quality
of services in the voluntary and community sector. We welcome
these positive outcomes and regard it as unfortunate that the
benefits may be lost with the withdrawal of the FJF. However,
the community benefits must be considered in the context of the
overall cost of the programme. Moreover, it should be borne in
mind that the Future Jobs Fund was designed to be a temporary
measure and these benefits were only ever intended to be experienced
over a short period.
The Government agrees that the Future Jobs Fund had
a positive impact on the voluntary and community sector and recognises
the importance of these organisations in the successful delivery
of employment programmes both now and in future. Getting Britain
back to work very much depends on good partnership working that
embraces the talent, ideas and good practice that can be found
within the voluntary and public sectors, local service providers
and the wider community.
Jobcentre Plus is working across a range of partners
and sectors to enhance the support that remains at the heart of
the Government's commitment to tackling unemployment. This includes
the development of a number of Get Britain Working measures such
as Work Together which offers the chance to develop work skills
through volunteering; Work Clubs to encourage people who are out
of work to exchange skills and share experiences; and Work Experience
to gain greater insight into the world of work. The Department
will also be formally engaging with employers as part of the Get
Britain Working agenda.
Involvement of the private sector
[Paragraph 77] It is important that EU state aid
rules are not perceived as a barrier to private sector involvement
in employment programmes. The Department should clarify exactly
what is and is not allowed under state aid rules for employers
in the private sector when employing young and disadvantaged people
using a government subsidy, and produce a simple guide to help
build confidence of employers.
The Future Jobs Fund was not intended as an employment
subsidy; it is a grant to create an extra job that will not compete
with the private sector, substitute for real employment or lead
to someone losing their job. That was the reason all Future Jobs
Fund jobs had to be "additional" and of benefit to the
community, as opposed to economic activities. On the one hand
the Department wanted to make the jobs as real as possible so
that they gave people the right skills and led to jobs; on the
other hand if the Fund had simply subsidised private sector employment
it might have led to jobs being lost elsewhere in the economy
and distorted competition. The Department managed this through
the bidding criteria—emphasising sustainability and supporting
people to find unsubsidised work.
Generally, to ensure that the Future Jobs Fund complied
with State Aid legislation and the requirements of additionality
and community benefit, the Department required each non-public
body grant recipient to be a Social Enterprise.[1]
Alternatively, where a grant recipient was not a Social
Enterprise, they were required to channel funds through a Community
Interest Company (CIC) or equivalent, for example, a Special Purpose
Vehicle (SPV). The CIC/ SPV option also included an asset lock
clause requirement.[2]
The Government ensured that the approach was compliant
with State Aid legislation, avoiding a situation where the Department
was giving illegal aid.
The Department recognises that the state aid conditions
limited the extent of Future Jobs Fund participation amongst private
sector organisations; however this was necessary to ensure the
legality of the grants. The private sector was not excluded or
prevented from participating in the Future Jobs Fund. The Department
provided advice and guidance for private sector organisations
which wanted to be involved. This included a "How to"
guide for Lead Accountable Bodies which were considering partnering
within the private sector. Future grants which the Department
makes will need to take account of the state aid regulations,
with compliance measures incorporated into the design. However
achieving compliance for grants which are not specifically aimed
at creating jobs may prove to be less difficult and, therefore,
less restrictive to private sector involvement.[3]
[Paragraph 81] We accept that the Department felt
obliged to design and implement the FJF programme rapidly, given
the labour market conditions at that time. However, we believe
that the Department needs to take into account that engaging private
sector organisations requires more time than was allowed for within
the FJF programme. In future welfare-to-work programmes, a balance
needs to be struck that takes advantage of the different strengths
of the public, private and voluntary sectors. Given the proposed
severe cut backs in public sector jobs, the Government will be
much more reliant on the private sector to provide the jobs necessary
to meet its targets for moving people off benefits and into work.
The Government's aim is to help return the economy
to sustainable growth, extend social inclusion and build the big
society. To do this it is vital that private-sector employers
have ready access to a pool of labour with the skills they need
to grow their business. As the Department develops and implements
the Work Programme, Universal Credit and other policies it is
vital that the needs of employers are taken into account if they
are to provide jobs for people seeking work. Jobcentre Plus will
work locally with employers and local bodies such as Local Enterprise
Partnerships to identify the kind of skills needed in order to
influence the training offered to unemployed people so that it
meets the demands of employers and is easy for employers to access.
In some areas, training providers and Jobcentre Plus
will offer Service Academies in collaboration with local employers.
These will offer the opportunity for unemployed people to access
short, sector-specific training followed by a work experience
placement. Employers will be able to influence the training component
and try out a person's skills during the work experience component
in return for offering them a guaranteed interview at the end
of the placement.
The Work Programme will be delivered by the private,
public and voluntary sectors. They will be given the freedom to
innovate and do what works, rather than follow a top-down, Whitehall-knows-best
approach. It is recognised that many voluntary and community sector
organisations are particularly well placed to deal with specific
local customer needs and the Department wants them to play an
important part in the successful delivery of the Work Programme.
The extent to which prime providers are able to build suitable
partnerships will be evaluated as part of the competition to deliver
the Work Programme.
Lessons learned from the programme
[Paragraph 89] We accept that the FJF programme
was, by necessity, implemented at speed, and that some teething
problems were inevitable. The recession meant that Jobcentre Plus
offices were already under significant pressure at the time the
scheme was rolled out. Nevertheless, many provided an admirable
service in delivering the FJF programme and we congratulate those
JCP staff on this achievement.
[Paragraph 90] We do however have some concerns.
Some young people were not properly prepared for the application
and interview process. Jobcentre Plus has a clear role to play
in supporting candidates in the application process, including
the preparation of CVs and developing interview skills, and in
ensuring that employers receive accurate information about candidates.
DWP must ensure that JCP has the necessary resources and support
to provide this service.
The Department welcomes the Committee's recognition
of the efforts of Jobcentre Plus staff in delivering the Future
Jobs Fund programme. During the delivery of the Fund, Jobcentre
Plus took the opportunity to review its processes and to work
with employers to understand how it could increase young people's
chances of making a successful application. Products such as the
"How to Guide" on vacancy filling will remain relevant
to Jobcentre Plus staff involved in advising employers on recruitment
issues for young people.
The Department recognises that some young people
need more intensive support in their search for employment and
offer additional help with job search techniques and in developing
CVs from the start of their claim. This more intensive support
is primarily available through contracted providers through the
Support Contract which was introduced in December 2009. This includes
specific modules to address job broking skills including CV development
and improved interview skills.
There is scope to do more and alongside the introduction
of the Work programme, the Department is developing a new back-to-work
model that gives Jobcentre Plus managers and advisers the maximum
flexibility to work with customers to give them the best available
support. Jobcentre Plus advisers will have more flexibility to
work with young people to help them make the transition into employment.
[Paragraph 91] Jobcentre Plus will be required
to play a significant role in implementing the Work Programme.
The Department must ensure that managers and frontline staff are
properly prepared for this and other new programmes so that support
is delivered to a high and consistent standard across the network
of JCP offices. We will return to this issue as part of our forthcoming
inquiry into the contracting arrangements for the Work Programme.
Jobcentre Plus operational staff will receive awareness
sessions and learning products so that they can prepare customers
to enter the Work Programme. This will be in line with the more
personalised service that Jobcentre Plus will provide to support
customers in returning to work as quickly as possible so that
the majority of jobseekers do not require referral to the Work
Programme. Jobcentre Plus advisers will also be equipped with
the right information to give to customers entering the Work Programme.
Jobcentre Plus will be working at a local level with
providers to ensure a smooth transition to the Work Programme.
In addition, Jobcentre Plus is committed to making its premises
available to their local strategic and service delivery partners,
when and where space capacity exists. Where a provider's service
delivery model includes use of premises they may wish to consider
use of Jobcentre Plus premises and initiate discussions with the
Jobcentre Plus Manager.
Termination and transition arrangements
[Paragraph 103] We are concerned that the transitional
arrangements between FJF ending and the Work Programme being fully
established will mean that young people are not offered targeted
employment programmes for some time. It has been demonstrated
that periods of unemployment are detrimental to young people's
future prospects and that the longer the period out of work, the
more serious the damage to their job prospects. The cancellation
of the FJF has also coincided with increased levels of unemployment
amongst young people. It is therefore essential that addressing
youth unemployment is given appropriate prominence within the
Government's welfare-to-work policies. We intend to pursue the
issue of the continuation of provision in our Work Programme inquiry
[Paragraph 104] We expect DWP to ensure proper
transitional arrangements are in place and to monitor provision
for young people in the period before the Work Programme is fully
implemented. We recommend that it record, and publish on its website
in October 2011, the following information in relation to unemployed
young people who would have been eligible for the Future Jobs
Fund:
- the number receiving welfare-to-work services
between January 2011 and the introduction of the Work Programme;
- the number receiving services for the first
three months after the introduction of the Work Programme, showing
how these numbers vary across geographical areas (to indicate
variations between areas which currently do and do not have Flexible
New Deal contractors); and
- the actions the Department has taken in mitigation
if the numbers are substantial or if there is significant variation
across regions.
The Government recognises the need to ensure that,
until the Work Programme is introduced, there is continuity of
provision, and that the transitional arrangements between the
end of existing legacy programmes and the start of the Work Programme
should not leave any customers unsupported. New Deal for Young
People (NYDP) contracts will be extended to June 2011 to ensure
continuity of support during transition to the Work Programme.
In Flexible New Deal areas, referrals to the Community Task Force
will continue to June 2011 to maintain the Young Person's Guarantee
nationally until the Work Programme starts.
The Department is currently developing its plans
for publishing official statistics on the Get Britain Working
measures, including the Work Programme. The Department expects
to publish headline official statistics on Work Programme starts
from December 2011 followed by job outcomes from summer
2012, allowing time for job outcomes
to be achieved and recorded. Detailed National Statistics, including
lower level geography information, are expected to be published
from late 2012. The official and National statistics will be produced
in line with UK Statistics Authority guidance.
The Department will continue to publish information
on the Six Month Offer and Young Person's Guarantee on its website.
The Department has previously announced that for technical reasons
the NDYP National Statistics can only report up to spring 2010.
[Paragraph 108] Ensuring contracted employment
programmes meet the needs of those furthest from work, as well
as the easiest groups to place, has been a challenge for governments
in the past and this will be equally true under the Work Programme.
The Government must ensure that the differential payments arrangements
within the Work Programme create a sufficient incentive for providers
to deliver appropriate support for longer-term unemployed young
people, including the low-skilled and those without any work experience,
who are currently targeted by the Future Jobs Fund. We will pursue
this as part of our forthcoming inquiry into the contracting arrangements
for the Work Programme.
The Department is breaking new ground in the way
it will pay providers delivering the Work Programme. For the first
time, the Department will be providing clear incentives to providers
to focus their resources on the hardest-to-help customers so that
it is financially attractive to ensure all customer groups are
appropriately supported.
Jobseeker's Allowance (JSA) customers who face disadvantage
in the labour market will be able to enter the Work Programme
as part of a higher rate payment group. These customers will include
18 year olds who have not been in education, employment or training
(NEET) for the previous six months.
The point at which different customer groups enter
the Work Programme will also vary. Young jobseekers, customers
aged 1824, will enter the Work Programme from nine months
into their JSA claim, compared to an entry point of 12 months
for jobseekers aged 25 plus. Disadvantaged customers, including
18 year olds who have been NEET for six months, will enter the
Work Programme from three months; this early entry will be on
a voluntary or mandatory basis, depending on the particular disadvantage
that a customer faces.
Full details of the Work Programme pricing model
and customer groups can be found in the Work Programme Invitation
to Tender.[4]
[Paragraph 113] Valuable local partnerships have
been built up under the Future Jobs Fund which draw on knowledge
of local labour markets and the needs of communities. The Government
has promised that it will ensure that this expertise is not lost
as the Work Programme is rolled out. We will use our forthcoming
inquiry into the contracting arrangements for the Work Programme
to explore how the Government plans to meet this commitment.
The Department is keen to ensure the continued involvement
of smaller, specialist organisations as part of our employment
programmes. There will be lots of opportunities for small organisations
to work with larger delivery partners as sub-contractors. In future
contracted employment support, including the Work Programme, will
be commisioned through the newly-established Framework for Employment
Related Services. Small organisations had the opportunity to bid
as consortia to gain access to the Framework.
The Framework will allow communities to build relationships
with a small and stable group of providers, to ensure that the
Work Programme meets the needs of the community and employers.
To support the development of local relationships, providers'
plans to work with local partners will form part of the qualitative
evaluation of Work Programme tenders.
The Department will rigorously assess the capacity
and capability of potential prime providers tendering for Work
Programme contracts including their ability to manage and
develop their supply chains. The DWP Code of Conduct and
the Merlin standard set out clear standards and expectations for
how prime providers should treat their sub-contractors. Support
delivered through the Work Programme will not be specified by
central Government, but will be designed by individual providers
to best meet the needs of individuals in localities which means
that local partners have an unprecedented opportunity to work
with providers and influence the support that is put in place.
Apprenticeships
[Paragraph 119] We welcome the increased funding
for and increased number of apprenticeships and expect the Government
to ensure that, where appropriate, these opportunities are made
available to unemployed young people previously targeted by the
FJF.
Skills provision, policy, funding and delivery are
devolved. The Devolved Administrations are responsible for apprenticeships
in their respective countries. The information below refers to
England only.
As the Committee has recognised, the Government has
committed to significantly increase the number of apprenticeship
places in England. Apprenticeships offer valuable opportunities
for people who are already ready for work to train in a particular
occupation. Unemployed people with the right skills and experience
can compete on a level playing field for apprenticeship vacancies.
In June 2010, Jobcentre Plus agreed with the National
Apprenticeships Service in England to feature the apprenticeship
vacancies logo and link on the JCP intranet, effectively enabling
around 14,000 JCP advisers to access Apprenticeship vacancies
and signpost unemployed individuals to apply for apprenticeships.
From spring 2011, customers will also be able to directly access
apprenticeship opportunities via the Jobcentre Plus area on the
Directgov internet site.
[Paragraph 120] We recommend that, in response
to this Report, the Government provides us with statistics on:
- the number of apprenticeship starts planned
for January to June 2011 compared with the corresponding period
in 2010; and
- the number of these apprenticeships expected
to be taken up by 18-24 year olds who were previously unemployed
for six months or more.
Apprenticeships are a demand-led programme for young
people and adults. In England Government funds apprenticeship
training, in full for 16 to 19 year olds and in part for adults
but relies on employers and providers to work together to offer
sufficient opportunities, in the context of the greater freedoms
and flexibilities that have been created in the further education
system. Therefore, Government does not plan apprenticeship places
but provides funding and forecasts the number of places that may
be afforded as a result. These forecasts do not differentiate
the employment status of individuals before they enter apprenticeships.
The Government has recently set out indicative forecasts
of apprenticeships in England in documents published by the Young
People's Learning Agency (YPLA) and the Department for Business,
Innovation and Skills. For 16 to 19 year olds, the YPLA document
16 to 19 Funding Statement, published in December, states
that 131,200 apprentice starts are planned in 201011.
The BIS documents Skills for Sustainable Growth
and Investing in Skills for Sustainable Growth set
out the abolition of central targets and increased freedom and
flexibility for further education colleges and training organisations
in England to respond effectively to the needs of employers, learners
and their communities. It will be for individual colleges and
training organisations, working directly with their local partners,
to determine the offer that best meets the needs of their communities.
In this context, Investing in Skills for Sustainable
Growth offers an indicative forecast for apprenticeship learner
numbers, including apprentices expected to continue learning from
the previous year. It does not provide a direct comparison in
starts for adult (19 plus) apprentices and does not differentiate
by age band. Officials have converted the learner numbers to starts
for comparison, so the indicative forecast is for 220,900 adult
(19 plus) starts in 201011.
[Paragraph 121] We are concerned that apprenticeships
may not be the most suitable route into employment for those young
people at the highest risk of long-term unemployment. These young
people may have left school with no qualifications, have no experience
of work, or have difficult family circumstances, and in some cases
they may not be ready to start an apprenticeship. We are keen
to ensure that alternative provision (for example, personal support,
training and work opportunities) should be available to help those
who are not ready for an apprenticeship.
[Paragraph 125] The DWP and Work Programme providers
should consider how to attract those furthest from the labour
market to apprenticeships and how to encourage employers to take
on such individuals as apprentices. We recommend that the Government
looks closely at the lessons to be learned from the Future Jobs
Fund in terms of the most effective ways to prepare such individuals
for apprenticeships.
The Government recognises that apprenticeships may
not be the immediate answer for all young people, particularly
those who are furthest from the labour market. Nor will an apprenticeship
necessarily be of interest to all young people whose employability
could be enhanced with skills training. To help these individuals
into work the Government will provide a state subsidy for training
provision that is targeted at helping people on active benefits
to obtain work. This provision might be single units from the
Qualifications and Credit Framework or full qualifications below
apprenticeship level, depending on what the individual needs to
help them obtain work.
The Government's aim is to ensure that those on active
benefits are supported to improve their labour market relevant
skills, to help them enter sustainable employment. In support
of this aim, DWP and BIS are working closely together to ensure
the incentives in both the skills system and the employment system
are aligned. Colleges and training providers will have greater
freedom to tailor their provision to the needs of the local community
and economy. Jobcentre Plus will have a vital role to play in
shaping skills provision locally through engagement with local
colleges and providers.
The Government is committed to developing a "ladder"
of training so that individuals can readily understand progression
routes. As part of this, the Government will create clear paths
into apprenticeships, to widen access to the programme for young
people who have the potential to benefit. The Government is also
exploring options for an "Access to Apprenticeships"
strand within the programme itself, but other education and skills
measures have a part to play too, underpinned with sound careers
advice to help people plan ahead and make the right choices. Professor
Alison Wolf's review of vocational education for 1419 year
olds is likely to have a significant impact on options that might
prepare young people for apprenticeships.
1 A business with primarily social objectives whose
surpluses are principally reinvested for that purpose in the business
or in the community, rather than being driven by the need to maximise
profit for shareholders and owners. Back
2
CICs are limited companies with special additional features, created
for the use of people who want to conduct a business or other
activity for community benefit, and not purely for private advantage.
Back
3
A guide to State Aid is available from the Department for Business,
Innovation and Skills: http://www.bis.gov.uk/assets/biscore/consumer-issues/docs/10-951-state-aid-beginners-guide
Back
4
http://www.dwp.gov.uk/docs/work-prog-itt.pdf Back
| 
