Gemma Marsh
Head of Skills and Employment Policy
European Social Fund: 2014-2020
Aim of the session
• Greater Manchester landscape
• Raise awareness of European Structural Investment
Fund
• Outline European Social Fund priorities
• Big Lottery Opt In
• Where can the Sector enhance/deliver/develop
activity?
New Economy
What we do for GM:
People &
Communities
• Research & Analysis
• Policy & Strategy
• Economic Think Tank
Europe &
International
Growth and
Research
Policy
Place
Prosperity
for
Greater
Strategy
Manchester
Innovation &
Business
Public
Service
Reform
The Greater Manchester Economy
2.7m people
1.14m jobs
93,000 businesses
Source: ONS
Gross Value Added
£48.2bn
BIGGER THAN
GM ECONOMY, 2011
Source: ONS, GVA estimates 2012
WALES
ECONOMY, 2011
NORTH EAST
ECONOMY, 2011
£47.3bn £41.6bn
NORTHERN
IRELAND
ECONOMY, 2011
£29.9bn
Collaboration History
Manchester
City Deal
Prosperity
for
Business
Leadership
Council
Established
From
1986
2008
All: The
Community
Greater
Budget Pilot
Manchester
Strategy
2009
2010
GMS
refresh
2011
Publication
of the MIER
Formation of
AGMA
GM LEP
2012
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 Issues
For 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-September 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 continued
The ESF programme is split into two sections:
The first theme entitled Skills; Employment & Social Inclusion consists of £137m of grant support. This
incorporates a wide spectrum of activities ranging from those furthest from the Labour Market (linked
to the Supporting Reform agenda) to the highest level skills (linked primarily to the Science and
innovation agenda). There are also clear linkages with other ESIF themes particularly Science,
Innovation and Knowledge Economy, Competitive Business and Low Carbon where the provision of
appropriate skills will be essential to success.
The Supporting Reform theme consists of £24m of GM ESF support, matched against local and
national public funds. The activities will complement the above theme for those who are furthest away
from the labour market by offering additional targeted support for certain cohorts. This is closely
aligned with the Public Sector Reform agenda in GM.
GM LEP ESIF 2014-20 Programme - ERDF
FUNDING
Evergreen - £13m
Evergreen– Grant - £9m
TOTAL - £22m
COMPETITVE PLACES - ACTIVITIES
1.Sites and premises
2.Town Centres
3.Critical infrastructure
FUNDING
Evergreen- £25m
Grant - £27m
TOTAL - £52 m
SCIENCE & INNOVATION - ACTIVITIES
1. Science/technology Assets
2. Science & tech businesses base
3. Societal challenges
4. (Science & tech skills)
FUNDING
NW Fund - £32m
Evergreen - £2 million
Bus Supp Rev- £36m
TOTAL - £70m
COMPETITVE BUSINESS - ACTIVITIES
1.Start up & growth businesses
2.International competitiveness
3.Access to finance (North West Fund)
4. Supporting companies with tech developments
5.(Leadership, management & mentoring skills)
FUNDING
LC Inv Veh - £15m
Evergreen - £10m
Grant – £25m
TOTAL - £50m
LOW CARBON - ACTIVITIES
1. Low Carbon investment vehicle
2.Whole place LC infrastructure/ transport
3.Whole building energy efficiency/LC generation
4.Support SMEs in the low carbon sectors
5.Energy/resource efficiency in all sectors
6.(Low carbon skills)
OUTPUTS
4.4ha land developed
£13m private match
380 Jobs
OUTPUTS
500 Co’s supp
100 new Co’s
1425 new jobs
120 Co’s with Res Orgs
£31m Priv Match
OUTPUTS
4370 new jobs
6870 Co’s supp
1469 New Co’s supp
70 Co’s new markets
340 Co’s with Res Orgs
OUTPUTS
420 new jobs
1600 Co’s supp
120 co’s new products
£25m Private Match
17,000t GHG reduction
GM LEP ESIF 2014-20 Programme - ESF
FUNDING
Grant - £137m
Social Innov - £3m
TOTAL - £141m
FUNDING
Grant - £24m
TOTAL - £ 24m
SKILLS, EMPLOYMENT & INCLUSION ACTIVITIES
1.Support young people
2.Empl support to LT unemployed
3.Employer-led workforce development
4.Support training providers
5.Innovative models for comm/social entreprise
SUPPORTING REFORM - ACTIVITIES
1. Employment/skills linked to Public Service Reform
2. Support those affected by Welfare Reform
3. Support those with health related barriers
4. Tackling other barriers to work/low skill
OUTPUTS
92538 people trained
30322 unemployed
23516 inactive
33249 15-24
39000 employed
OUTPUTS
24000 people trained
10833 unemployed
10833 inactive
7440 15-24
2333 employed
Match Funding
Match funding is to be drawn from a number of sources and will be a mixture of Opt ins to national
organisations and locally sourced public match. Given the risk associated with managing an ESF
Programme, it makes sense to opt in for the first 3 years of the programme so GM can gain from past
experience of SFA and DWP, in particular, in managing these programme.
Opt In Organisations
•
•
•
DWP
SFA
Big Lottery
Other sources of Match
•
•
•
•
Local Authority
CVS
Employers
HEI
Memorandum of Understanding
GM is seeking an MoU with each Opt In organisation. The main elements GM is trying to ensure
include:
•
•
•
•
•
•
•
•
•
•
Retains control of GM’s ESF allocation and, where possible, the associated match
Controls project identification, ITTs and allocation of funds
Development of financial models
Is involved in project appraisal and sign off.
Can flex the amount of match it secures according to GM needs and can extend that to include
employability skills and higher level skills as required subject to ESF eligibility.
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.
GM’s ESF allocation is not penalised if poor performance is not managed by the opt in.
Timely data is provided at both contract and LEP level.
Management fee is either waived or negotiated dependent on which elements of the management
offer that GM may be best equipped to undertake
That secondments of staff to GM are considered
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
Next Steps
•
•
•
•
•
•
•
•
Refining plan
Agree LEP roles and responsibilities
Agree Opt In MoU
Consultation – your views matter
Design & development of potential programme & projects
Work with Opt in organisations to develop calls for tender
Calls for tender likely to be end of 2014/early 2015
Procurement is expected to be a mixture of larger projects
management 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 2015