Angeliki Stogia

Social Enterprise Project Lead

European Social Fund: 2014-2020

Aim of the session

• Greater Manchester landscape

• Raise awareness of European Structural Investment Fund

• Outline European Social Fund priorities

• Where can the Sector enhance/deliver/develop activity?

New EconomyPeople &

Communities

Place

Research Policy

Strategy

Europe & International

Innovation & Business

Public Service Reform

Growth and Prosperity

for Greater

Manchester

What we do for GM:

• Research & Analysis• Policy & Strategy• Economic Think Tank

The Greater Manchester Economy

93,000 businesses2.7m people

Gross Value Added Source: ONS, GVA estimates 2012

GM ECONOMY, 2011

£48.2bn

WALES ECONOMY, 2011

£47.3bnNORTH EAST ECONOMY, 2011

£41.6bn

NORTHERN IRELAND ECONOMY, 2011

£29.9bn

Source: ONS

1.14m jobs

Skills and Employment in GM

• GM is the largest city based economy outside SE England – GVA of £48 billion

• Local Enterprise Partnership leads the drive for growth

• Skills and Employment Partnership:• Enabling discharge of statutory 16-19 duties• Maximising the impact of skills and employment policy

and delivery on growth• Membership: employers, colleges, providers, local

authorities, funding agencies, JCP, unions

Labour Market IssuesFor young people:

• High unemployment (21%) and NEETs

• Poor employer perceptions of young peoples’ job readiness in UK

• Falling 16-18 apprentices but vacancies persist

For adults in work:

• Two fifths of employers struggle to recruit to associate professional roles

• One in seven employers report that staff are not proficient in their role

• 230,000 GM working households claim tax credit

For adults out of work:

• Sustained high levels of worklessness for past two decades

• Low attainment: 38% of unemployed and 42% of economically inactive adults do not have a level 2 qualification

• Growing issues around low pay, no pay and quality of available work

Greater Manchester Strategy “By 2020, GM will have pioneered a new model for

sustainable economic growth…where all residents are able to contribute to and benefit from sustained prosperity”

Preventing and reducing youth unemployment

Employer-led skills system

An integrated skills and employment offer

• GM Growth and Reform Plan – programmes that respond to GMS priorities

• Skills and Employment Partnership – responsible to developing and delivering S&E programmes

The role of LEPs

• Autumn Statement 2012: The Government agreed that LEPs would have a new strategic influence over skills policy. LEPs will be responsible for setting local skills strategies and will work with the FE providers to agree how those priorities will be delivered.

• From the Partnership’s Terms of Reference: The LEP and

Providers have a clear shared interest. For the LEP supporting the most efficient and effective skills and employment system will help to maximise growth.

• Significant rise in devolution of influence and resource to LEPs – greater control over our destiny. (E.g. ESF 2014-20, £178m + match). LEP role is not marginal.

Background• New EU programme 2014 -2020• GM LEP allocation (not regional or national)• Alignment with

• GM Growth and Reform plan, implementing GMS• Other funding, especially ERDF

• January 2014• Submission of EU Structural and Investment Fund Strategy

(ESIF)• February-December 2014

• Agree opt ins• Agree none opt in match funding• Engage with partners• Design, develop calls for tender

The Greater Manchester ESIF• GMS defines activities, ESIF implements• Part of wider growth and reform plan• Match via SFA, DWP, Big Lottery, local & private

• Responding to three EU thematic objectives:

• Employment & supporting labour mobility

• Education, skills & lifelong learning

• Social inclusion & combating poverty

• Funding allocation

• In July 2013, BIS allocated the GM LEP €415m for the 2014-20 Programme

• This is approximately £356m which is split as follows

- £195m ERDF (55%) / £161m ESF (45%)

• Minimum 20% dedicated to social inclusion

• Challenges/Issues

• Eligibility – ESF won’t fund everything

• Additionality – delivering the best, most impactful programme for GM

• Links to GM Growth & Reform Plan – GMS strategic alignment

• Match Funding – need this to access ESF resource

ESF

The ESF will deliver the Growth Programme’s objectives to

promote employment, social inclusion and skills.

The main investment priorities will be:• helping more unemployed and inactive people to enter and progress

in employment; • increasing the number of young people who are in education,

employment or training; • tackling barriers to work faced by the most disadvantaged groups; • helping more people improve their skills; • making skills provision more responsive to the needs of the local

economy.

ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020

INVESTMENT PRIORITIES

A: Access to employment for jobseekers and inactive people (TO8: Employment)• Will help unemployed and inactive people enter, progress in and sustain employment• Examples of actions may include:

• Additional / innovative approaches to pre-employment training; training to upgrade or learn new skills; help people access / benefit from Apprenticeships; use self-employment as a route out of worklessness; projects which add value to the National Careers Service.

B: Sustainable integration of young people (TO8: Employment)• Will help young people, particularly NEETs (or those at risk of becoming NEETs) participate in

the labour market and learning• Examples of actions may include:

• Additional literacy, numeracy, ICT and employability provision; training & vocational qualifications; progressive community and informal learning; ILM activity; use self-employment as a route out of worklessness.

• Early intervention• Support and enhance Traineeships/apprenticeships

C: Active Inclusion (TO9: Social Inclusion)• Will help people who are some distance from the labour market and who may face multiple

disadvantages, to tackle their barriers to moving towards and progressing in employment• Examples of actions may include:

• Basic skills / ESOL training; financial / digital & internet literacy courses to aid job searching, access to benefits and progress in work; local ‘community grant’ type activity; first contact engagement activities; local networks / groups to support job access; softer skills development and volunteering initiatives.

• Capacity building for CVS to enable them to deliver ESF activities• IAG for social enterprises and collaboration between SE/CVS and businesses.

ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020

INVESTMENT PRIORITIES (p53-68 of consultation)

D: Enhancing equal access to lifelong learning (TO10: Skills)• Will help more people gain the skills they need to meet their goals and the needs of the

economy. This is primarily about training, advising or supporting individuals• Examples of actions split between lower level and advanced skills which may include:

• Lower Level – basic skills interventions for existing workforce; innovative vocational approaches to support those with low level skills in Maths, English and ICT; support for intermediate, technical skills for specific industries

• Advanced Level – link to ERDF, growth and widening participation

E: Improving the labour market relevance of education & training systems (TO10: Skills)

• Will improve employer participation and engagement in learning so that it is responsive to the needs of the local economy and help individuals progress into or within learning. This is primarily about improving partnerships and systems:

• Examples of actions may include:• Support for placements / internships or other activities with SME’s that enable students / graduates

to gain industry experience & skills; promoting apprenticeships; building capacity in SME’s to provide opportunities and enhance contribution of advanced skills of SME growth; developing better links between business and schools, FE and HEI’s to equip students with skills to start and grow a business

SKILLS, EMPLOYMENT & REFORM covering TO8/TO9/T10 - £161m plus match

Support for those furthest away from the labour market or that require additional intensive interventions: PSR principles to support all projects where appropriate

A. Sustainable integration of young people (15-23)

B. Access to employment for jobseekers and inactive people (24+)

C. Improving the labour market relevance of education and training

D. Enhancing equal access to lifelong learning

Lot 1 - Early intervention programmes for 15-18 yr olds (particularly NEET) 20% of the beneficiaries supported will be 15-16

Lot 1 – The purpose of the provision is to support GM residents to enter, sustain and progress into employment or towards a pathway of economic activity through integrated provision

Lot 1 - Skills provision is more responsive to the needs of the local economy and helps more individuals progress into or within skills provision, through increased employer engagement and participation in the planning, design and delivery of vocational education provision

Lot 1 – Provision to up-skill the existing workforce: Including Restructuring of the economy, inward investment and business competitiveness Support programmes for those facing redundancy or requiring new skills to change career or sectors: Particular focus on 50+, women

Lot 2 - IAG and career provision including NCS for young people aged 14-18 with a focus on those 14-16.

Lot 2- Innovative programme for marginalised groups to help bring them to and support them towards economic activity:

Lot 2 - Support for Providers of education, employment and training services to better meet the needs of residents and employers: include capacity building in the form of training, networking measures and activities.

Lot 2 - Increase access to advanced (higher level) skills for the most disadvantaged

Lot 3 - The purpose of the provision is to support GM young residents to enter, sustain and progress into employment or towards a pathway of economic activity through integrated provision:

Lot 3- Support for Working Well (ESA WP Leavers only) 

 

Lot 3 - Skills investment and provider staff development to increase engagement with business and wider community: Enabling organisations to increase and widen participation from local disadvantaged communities  

Lot 3- This investment priority will provide skills support at entry level / L1 jobs for GM priority and growth sectors; support for those unemployed with higher level skills and support ERDF priorities in competitive places / business, science and technology and low carbon.

Lot 4- Youth Contract extension (specific cohort: enhancement of GM Programme

Lot 4 - Structured progression into & in sustainable employment with enhanced Information, advice and guidance through NCS with particular focus on disadvantaged / priority groups

Lot 4 - Develop recruitment & responsible business practices with GM businesses to ensure they are not restrictive to those furthest away from the labour market

Lot 4: Skills provision which will relate to removing the barriers some people face when entering employment: (Growth Deal)

Lot 5 - Employability and ‘work ready’ skills for young people including those leaving further education at level 3 or university with a degree, includes self employment , higher level apprenticeships, support towards traineeships

Lot 5 In work support for those at risk of falling out of work onto benefits (need to ensure this enhances the Government HWASS)

Lot 5- Helping to grow SE to adapt to the needs of GM: Particularly around Public Service Reform. Lot 6- Developing the capacity of CVS to participate in the delivery of services to those furthest away from the labour market.

. 

SKILLS, EMPLOYMENT & REFORM covering TO8/TO9/T10 - £161m plus match

Support for those furthest away from the labour market or that require additional intensive interventions: PSR principles to support all projects where appropriate

A. Sustainable integration of young people (15-23)

B. Access to employment for jobseekers and inactive people (24+)

C. Improving the labour market relevance of education and training

D. Enhancing equal access to lifelong learning

Match Funding: Opt In & MoUESF 2014-2020 £161m

 Opt Ins: BIG £10m

SFA £90m

DWP £21m

Local/Private match/ £40m

Other National Public outside opt in

Total Match £161m

GM is seeking an MoU with each Opt In organisation. The main elements GM is trying to ensureinclude

Retains control of GM’s ESF allocation and, where possible, the associated match

By opting-in there must be no hindrance to GM’s ability to use its ESF allocation to meet priorities, or to using its ESF to invest where Government may not invest itself. e.g .second level 2s, higher level skills etc

Controls project identification, ITTs and allocation of funds

GM’s ESF allocation is not penalised if poor performance is not managed by the opt in.

Is involved in project appraisal and sign off Timely data is provided at both contract and LEP level

Ongoing monitoring involvement Management fee is either waived or negotiated dependent on which elements of the management offer that GM may be best equipped to undertake

POINTS TO CONSIDER

• Operational Programme having to be re-submitted to Europe• Partnership Agreement not signed so will push back start date.• The design and development of tender specifications have included partner• comments and experience and will be market tested in late 2014/early 15• Development of tenders still in draft form.• ESF provision must be additional: looking at provision across GM to

ensure no• duplication• Larger contracts are expected: both geographically and scale: Consortium

bids, lead applicants?• Looking more at PbR, Unit cost basis to reduce audit risk for providers.• LEP will hold no contracts so this will be via the Opt In Organisation or• Managing Authority• Continued involvement from GMLPN during development stage.

Next Steps• Refining plan: July/Sept 14• Agree LEP roles and responsibilities: Sept 14• Agree Opt In MoU: Oct 14• Market testing – your views/knowledge matter: Nov-Feb 15• Design & development of draft tender specifications: June 14 onwards• Work with Opt in organisations to develop calls for tender: Aug 14 onwards• Calls for tender likely to be mid 2015• Procurement is expected to be a mixture of larger projects managed via the

opt in organisations, smaller ad hoc projects and projects who are able to bring their own match funding.

• Appraisals at a local and national level• Successful programme begins: Likely to be mid 2015

Thank you

• Any Questions?