Liverpool City Region
City Region Deal for Jobs and Skills
Skills for Growth
http://www.lcrskillsforgrowth.org.uk
The Liverpool City Region
Liverpool City Region
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6 Council areas – 1 LEP and 1 Jobcentre District
£20 billion economy
37,000 Businesses
1.5 million residents
Over £12 billion of planned investments
43% of businesses report skills shortages
54,000 people on JSA
103,000 on IB/ESA
City Deals Background
• A process of negotiation
• Present a coherent view of economic
transformation
• An opportunity to state how things can be
improved
• Opportunity to devolve power and funding
• But not for the sake of it
• Some bold and radical proposals
• Some cautious steps
Our Starting Point
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LEP leads economic growth
Up to 100,000 new jobs over the next decade
ESB oversees skills system response
Over 300 different colleges and providers
Up to £200m of investments
Complex competitive landscape
Sectoral balance of training changes little
High levels of unemployment
Significant lags in skills at all levels
Huge opportunities
Our Skills Gaps
If the Liverpool City Region mirrored the England
average it would have approximately:
• 29,150 more people qualified to level 2+
• 73,270 more people qualified to level 4+
• 32,900 fewer people with no qualifications
Liverpool City Region Deal
• Signed by DPM in September 2012
– International Festival for Business
– Regulatory pilot to support low carbon linked
developments
– Clean river task force
– Jobs and skills – Skills for Growth
– Transport
– Science
– Investment
Why Skills for Growth?
The Liverpool City Region has a jobs deficit of around
90,000
but it also has the potential to create 100,000 new jobs
over the coming decade
If we do not get the skills of our workforce right
businesses will either not create these jobs or have to
import the skills they need.
The most demand-led and responsive
employment and skills system in the country
Employment
And Skills
Board
Governance Arrangements
Liverpool City Region
Cabinet
Liverpool City Region
Employment and Skills Board
Employers
Public agencies
& funders
Skills and
employment
providers
Civic
Leaders
Employment and Skills Board
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Private sector-led
Reporting to the LEP and City Region Cabinet
Bringing Supply and Demand together
Lead shared strategy, governance and funding
Lead the City Region Deal for Jobs and Skills
Devising ESF proposals for 2014-2020
Many key activities and initiatives
Working with a radically changing economic
backdrop
The structure of our economy is changing
30,000
+ 5%
20,000
23,500
more
people in
private
sector jobs
10,000
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- 12%
( 10,000 )
22,500 fewer
people in public
sector jobs
( 20,000 )
( 30,000 )
Public Sector
Private Sector
Net Change in Proportion of Public / Private Sector Employment, Liverpool City Region (2008-2011)
A City Region with opportunities
SuperPort projects will create up to 24,000 jobs
Source: Cambridge Econometrics – LCR Policy On Forecast to 2025
The Visitor Economy will create up to 14,000 jobs
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Top 5 UK destination
‘Cruise Turnaround’ facilities
Improved ‘destination’ promotion
International Festival for Business
2014
the ‘Grand National’
The Open Championship 2014
New Exhibition Centre in Liverpool
linked to the existing Arena and
Convention Centre
Political Party Conferences
Source: Cambridge Econometrics – LCR Policy On Forecast to 2025
Advanced Manufacturing will create up to 12,000 jobs
How sensitive has skills funding been
to changing demand?
Sector
Adult Social Care/ Healthcare
Construction
Hair and Beauty
Creative/Cultural & Media
Science, Engineering & Manufacturing
Technologies
Active Leisure, Learning & Well-being
Children and Young people
Retail
Freight, Logistics and Wholesale
Maritime
2008/9 Starts
2009/10
Starts
2010/11
Starts
8,590
6,280
4,550
5,070
6,760
4,980
4,720
4,660
7,850
5,040
4,120
4,180
3,100
3,080
5,130*
3,580
2,590
1,170
1,490
140
3,300
2,500
1,570
1,440
120
3,400
2,260
1,870
1,470
120
Source: Enrolments, Starts and Achievements by Sector and Home Postcode 2010/11, SFA Statistical First
Release
* Science, Engineering & Manufacturing Technologies had a change in definition from 09-10
Why is this?
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Lack of clarity from demand-side (employers)
Lack of involvement of demand-side (employers)
Supply-side choices (individuals)
Supplier push of existing capacity (providers)
Provider freedoms still embryonic (providers)
Funding incentives (government)
Our Jobs and Skills City Region Deal:
1. Skills for Growth Bank & Funding Devolution
2. Labour Market Information Service
3. Payment by Results in Adult Skills
4. Customer Choice in the Work Programme
5. Youth Unemployment Task Force
Skills for Growth Bank
• £32m Project – part funded by Employer Ownership
• Awarding grants for training in return for outcomes
– 4,000 Apprenticeships
– 6,000 people trained and helped into work
– 3,000 other qualifications
• Invested alongside businesses own training budget
• Allows employers to decide exactly what training they
require
• Provider comparison website
• Providers and Employers to register on
www.skillsforgrowthbank.org.uk
Labour Market Information Service
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Research and articulation of labour market needs
Annual Skills for Growth Report
Labour market data and analysis
Skills for Growth Agreements
Jobs for Tomorrow
Dissemination events
Ensure everyone is on the same page
Now driving SFA funding allocation
Reshaping curricula
IFB 2014 - Skills Show Proposals
http://www.lcrskillsforgrowth.org.uk
Our Five Key Challenges
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Raise skill levels at all ages
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Increase employer ownership
and involvement
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Involve employers in
curriculum reviews
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Improve the relevance and
consistency of Careers
Education and IAG
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Work together to tackle youth
unemployment
Payment by Results in Skills
“Design, test and pilot a “payment by results”
system within elements of Adult Skills Funding
in the Liverpool City Region: this will link the
payments providers receive to the progression
learning; employment; and/or wage gains of
the individuals to whom they provide services
to. Movement from designing and testing to
full scale will require Ministerial and City
Region agreement in advance of the 2013-14
academic year.”
Background Research
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Social Market Foundation ‘Britain’s Got Talent’
7 other PbR models
SFA ESF projects
Other SFA projects and pilots
Consultation with providers and partners
Payment by Results in Skills
• Initial pilot based on increasing ‘Job Gains’ in training
for the unemployed
• Increasing the demand-sensitivity of courses
• Ability for providers to earn more or less
• Modelling, modelling, modelling
• Technical questions resolved – short and long term
• Ministerial Submission
• Awaiting final green light
• Subject to above, pilot commences in August
• Wage Gains & link to HMRC
Customer Choice in the Work Programme
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Random allocation as a potential disincentive
Targeting specific groups
Payment Group 3
Technical and legal challenges
Ongoing work with DWP
Ahead of final Ministerial Submission
Informing Work Programme 2.0
Youth Unemployment Task Force
• High level target – Halving long term youth
unemployment in three years
• Task Force primarily young people and
businesses
• Primary research and scrutiny
• Comprehensive set of recommendations
• Implementation of these underway
• 1/3 of target met in first 12 months
Task Force Methodology
Young Person Survey
Aug/Sept 12
Task Force Inductions
Oct 12 to Jan 13
Business Survey
Sept/Nov 12
Desk Based Research Review
Sept 12 to Feb 13
Task Force Meetings
Nov 12/Feb 13
Wider Consultation Group
Dec 12
Stakeholder Survey
Dec12/Jan 13
Question Time Event
Jan 13
1:1 Structured Interviews
Feb 13
YUTF Recommendations
• Maximise Talent Match
• Champion Work Experience Opportunities
• Review Financial Incentives
• Create a Youth Policy Campaign
• Develop Guidelines for Provision
• Increase Prevalence of Vocational Skills
• Overhaul Careers Support
• Consider higher level skills and integration of work experience
• Consider costs of transport for young people
Where to next?
• 2014 – 2020 EU Programme being written
• Sharing learning with Wave 2 City Deals
• Sharing learning with Community Budget Pilots
• Embedding experience in Core Cities proposals
• ‘Single Pot’ proposals