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National Worklessness Learning Forum

Date of speech	4 February 2010
Location	Holiday Inn, Bloomsbury
Event summary	National Worklessness Learning Forum

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Transcript of the speech as delivered.

Introduction

It is very good to see so many people here today. I would also like to thank you, Steve, for all the work you have done on tackling worklessness.

It's a great honour to be invited to the inaugural meeting of the Forum - thank you to the Improvement and Development Agency for all their work in organising the event today.

Setting up this Forum was one of the key recommendations from Steve's review. It is all about learning from each other and exploring how we can work together to tackle worklessness. That is one of this Government's top priorities.

We don't want this just to be local authorities sharing best practice. What I envisage is you saying to Government: 'This is what you need to do to respond to the challenges that we are facing in delivering these policies.' I think that frank relationship is vital.

We absolutely do need that feedback from you on where there might be more we can do. Because, although we have made good progress since 1997 in getting people back into work, we certainly know there are still some groups of people who face particular challenges in joining the jobs market.

And of course the global recession has had a real impact on so many of our communities over the past 18 months. And it has often been those places already struggling with disadvantage that have been hit the hardest.

But, as a Government, we were not prepared to allow the recession to leave behind a generation of people who would then be plunged into long-term worklessness, as happened in previous recessions. I think many local authorities shared our view - 90 per cent of Local Area Agreements have at least one target to tackle the causes of unemployment.

I am pleased we are again heading in the right direction. Unemployment has now fallen for four months consecutively; the economy is starting to grow again. But there is absolutely no room for complacency.

Some communities are still suffering the effects of the long-term worklessness left behind by previous recessions. And the recovery is still very fragile. So it's more important than ever that we find new ways of helping individuals - including people excluded from the labour market for a long time - to find work.

It's getting that combination right - doing what we still need to to reach out to those people who have been long-term unemployed; while ensuring that we step in so we are not repeating the mistakes made during previous recessions.

Houghton review and Future Jobs Fund

Steve's review set out many recommendations on what we can do to take forward this agenda. One of the key ones was the formation of a challenge fund to focus on tackling the effects of long-term deprivation.

The £1 billion Future Jobs Fund was our response to Steve's call, with partnerships, headed by local authorities and Jobcentre Plus, being asked to take the lead in implementing it.

Local authorities know their areas, they know their people, so they do need that freedom and flexibility to make sure that national objectives make sense locally. The Fund is a demonstration of our belief in that principle.

It is designed to help young people and other groups who are especially vulnerable to long-term unemployment. But it's also important to remember that it is a challenge fund - so councils should use it as a springboard to finding imaginative local solutions. And you won't be surprised to hear me say that Barnsley has been a brilliant example of how to do that.

The Fund is expected to create 170,000 jobs nationally, and already it stands to create 104,000 jobs.

And I don't think we should forget that the Future Jobs Fund is in addition to the Working Neighbourhoods Fund, which is providing £1.5bn over three years to authorities with high levels of unemployment. This was topped up in November with a further £40 million, to be shared by 61 local authorities. So taken together, they add up to a substantial funding package to deal with entrenched worklessness.

To measure the impact of the Working Neighbourhoods Fund - and to help spread best practice throughout local government, another of Steve's main recommendations - we commissioned independent research from Cambridge University. Which we are publishing today.

It shows that the WNF has been a powerful weapon for local authorities in fighting back against the recession, giving them the flexibility to respond quickly to changing local circumstances.

Having a fund that can be targeted to fill gaps in existing provision has been crucial, with the fund being harnessed in many areas to stimulate demand for employment.

The study also emphasises the importance of innovative and effective partnerships between Jobcentre Plus, the council and other local agencies. I think it's that kind of imaginative thinking that can generate a long-term change in local worklessness levels.

Backing Young Britain and Apprenticeships Week

But of course, this is not just a question of money - important though that is. It is also about creating pathways into work for people who have not yet found a way in.

That's why we launched the Backing Young Britain campaign. We all have to make sure that young people, embarking on their working lives, can enter the labour market and move up the ranks.

It is an issue that employers need to focus on. As the workforce ages, we need to recruit and train new generations with skills needed for the future.

I think there is a big issue here about getting the private sector to step up to the mark. As well as being Local Government Minister, I am also Minister for Regional Economic Co-ordination and Minister for Yorkshire and the Humber, and I meet a lot of businesses.

We do need them to understand that this has to be a joint effort. And we need businesses to understand - big employers and small employers - that their workforces have to be renewed. That means taking new people in on training apprenticeships.

That's a message that we need to be much clearer about. It's about getting employers to enter into a dialogue, and saying: 'These are the type of people we're looking for, how do we jointly ensure that we are helping to train those people locally?'

So we are asking public bodies and private companies to pledge their support for young unemployed people. That means offering a young person an apprenticeship; a job; or other forms of work experience, such as an internship.

Apprenticeships are one of the best ways of meeting our long-term skills needs. We have increased the number on offer from around 60,000 in 1997 to around 250,000 today.

This week was the start of National Apprenticeships Week. On Monday, we formally launched the Apprentice Grant for Employers scheme, which will give a £2,500 grant for each 16 or 17-year-old apprentice taken on by a firm.

And all 18–24 year olds unemployed for six months will be guaranteed a job, training or work placement, under the Young Person's Guarantee.

We simply cannot afford to squander the skills and talents of our young people. If they do not get the opportunity to join the labour market there is a danger they will be excluded for the long-term - and our economy will suffer.

So I am delighted that almost 500 organisations - including many local authorities - have already signed up to Backing Young Britain. And many of these will be offering apprenticeships. Local government has pledged to create 15,000 apprenticeships so I want to say a big thank you for showing that leadership.

There is good evidence to show that apprenticeships help businesses, too. The Learning and Skills Council recently did a survey, and 81 per cent of employers said their apprenticeship programme boosted overall productivity; while 66 per cent said it had made them more competitive.

Work and Skills Plans - Next Steps

But, of course, it's not just young people at risk of long-term unemployment. We are witnessing fundamental changes in the global economy. We want everyone to have the skills they will need to take their place in the modern workforce. If not, they are at risk of being shut out.

So we have overhauled our approach to skills planning and provision. Our Skills Strategy outlines plans to ensure everyone can develop the right skills for the jobs of the future, and, crucially, the flexible skills that employers find invaluable. As growth returns, we need to make sure that people with a history of exclusion from the jobs market are helped into work.

The Skills Strategy will also ensure that training meets the needs of local employers and matches the jobs available. This adaptability is crucial to ensure that efforts to tackle worklessness are closely linked with the drive to boost economic growth.

We have tasked the Regional Development Agencies with drawing up a Regional Skills Strategy. At the same time, all top-tier authorities will need to conduct a Local Economic Assessment from April. And once they have, we are strongly encouraging every council to draw up a Work and Skills Plan.

These plans will provide a strong basis for local Leaders' Boards when collaborating with the RDA on skills and regional strategies. They will allow them to build coherent economic delivery plans for each region, which harness the region's growth to deliver economic inclusion and job opportunities.

I believe that Work and Skills Plans must be the cornerstone of every local authority's strategy for tackling long-term worklessness and entrenched deprivation.

So I can announce today that we are publishing a new policy statement that sets out the key principles which should underpin the plans.

As Work and Skills Plans - Next Steps makes clear, each plan should outline the steps that councils will take in conjunction with Jobcentre Plus and local employers.

Crucially, it also asks for a legacy plan, so the gains generated by the investments that we have made under the Future Jobs Fund, and others, are secured for the long-term. As many local labour markets extend beyond the council's boundaries, we are also encouraging collaboration on plans which reflect that reality.

Economic Prosperity Boards and Combined Authorities, which we have recently legislated to introduce, will be a valuable tool in this respect. They will enable groups of local authorities to improve decision-making and better co-ordinate economic development across a sub-region. So today we are also launching draft guidance for consultation, which sets out their main characteristics and the process for setting one up.

Broader policy framework

The plans and the boards build on other developments, such as the DWP's recent commitment, in its White Paper Building Britain's Recovery, to give local authorities and Jobcentre Plus greater involvement in commissioning employment services.

I think that Work and Skills Plans are the ideal vehicle for partnerships to demonstrate how they can deliver effective services that tackle local worklessness.

But, of course, we understand that we cannot just leave it to local service providers to tackle it on their own.

That's why this Government has put a relentless focus on economic recovery at the heart of everything we do. There can be no lasting solutions to worklessness without economic growth - in every part of the country.

So through our 'Going for Growth' strategy, published last month, we are building on our existing industrial strengths and investing to develop new capabilities. That means focusing on new key sectors, such as low carbon technologies; advanced manufacturing; healthcare and education; the creative industries - all of which can drive our growth in the new global economy.

Then targeting strategic investments in the regions and areas where they can have most impact, to boost the regional and local economies.

But the success of that vision rests on two things. Effective local leadership - and frankly only councils can truly provide it, whether directly at the local level or by working with the RDAs. And it depends on a proper regional approach.

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Councils know their areas and residents better than anyone, so we need to harness that expertise. Because economic opportunities do not just happen by themselves.

Conclusion

So I want to end by laying down a challenge - which is to ensure that everyone plays an active role in sharing that expertise. It's fantastic there are so many people here today showing that commitment. We need to spread the word about what really works. It's absolutely crucial if we are to succeed in tackling worklessness. Because knowledge-sharing needs to happen every day, which is why the advisory panel is so important.

The IDeA has used Government funding to create an online, interactive hub, which is your forum for sharing best practice. It will also enable people to access a wealth of data and other resources to increase understanding of these very complex issues. There is an invitation to join the Worklessness Community of Practice in your packs, so I would encourage everyone to take part.

And, please, also use this to suggest issues that the Forum should explore in future and which you want to pass on to Ministers. This should be your event, exploring your agenda, and it should be your chance to bring your message to the heart of Government.

Because it's vital that we work together to create the jobs and growth that will deliver prosperity - and prosperity for all our communities, not just some - in the years ahead.

I hope this is an enjoyable day and I look forward to working with you all on an ongoing basis. Thank you.