« Previous | Contents | Next »
Listen
CHAPTER ONE: INTRODUCTION
1.1 In 2006, BMG Research was commissioned by the Scottish Executive's Social Inclusion Division to undertake an evaluation of two Glasgow based projects - one delivered by One Plus and the other by the Wise Group - which support lone parents and others to sustain employment. The evaluation aim was to explore the nature and effectiveness of the particular approaches used by both organisations, using a primarily qualitative methodology.
1.2 The projects are funded by the Scottish Executive, and are designed to improve job entry, retention and progression within employment. These aims are an integral part of the government's focus on tackling poverty through work, and breaking the cycles of disadvantage and, thus, an evaluation of the effectiveness of these types of focused pre and post employment support programmes makes an important contribution to the evidence base of 'what works'.
Context
1.3 As a context to the evaluation, this section briefly reviews the UK and Scottish labour market context, including recent policy and programme developments that have been introduced to assist those distanced from the labour market to move into sustained employment.
The UK labour market
1.4 Tackling unemployment is central to increasing economic growth and raising living standards. Providing an 'employment opportunity for all' was part of the UK government's strategy to tackling poverty and deprivation, encouraging social inclusion and ensuring that Britain is competitive in the global economy by virtue of a skilled and flexible labour force. The UK labour market has been characterised in recent years with relatively low unemployment rates, and relatively successful labour market activation programmes which have been established during a relatively buoyant economy. However, the apparent success of such programmes for many people has highlighted the plight of what has been termed the 'hardest to help' - those who face significant barriers to labour market entry and job retention and who require more intensive and innovative support - both at the initial job entry stage and later on in their working lives. It is known that there are some groups that face particular difficulties in both getting a job and staying in work - notably the long term unemployed or 'inactive', lone parents, people with health problems, ex-offenders, those with a history of alcohol or drug abuse, the low skilled and people aged over 50. Often, their chances of 'success' are further compounded by repeated and/or prolonged spells of unemployment which itself brings increased poverty and insecurity, greater reliance on means tested support, poor health and social exclusion (Kellard, 2002 1).
1.5 Furthermore, job requirements, even for entry level employment at the lower end of the labour market, have risen, with employers expecting certain levels of literacy and numeracy and basic computing skills, as well as softer skills such as communication and team working (Kellard et al, 2001 2). This not only affects the ability of individuals to obtain work, but their ability to remain in a job or to progress in the labour market. Labour market programmes such as those delivered by One Plus and the Wise Group can potentially play an important role in equipping individuals with the kinds of skills that will enable them not only to enter work, but also to sustain employment over the longer term.
The Scottish labour market
1.6 As with the UK as a whole, total employment has continued to grow in Scotland over the last decade, with the service industry remaining as the dominant employment sector, accounting for around three quarters of Scottish employees. Most employees are in full-time permanent jobs, although there has also been an increase in the number of part-time workers. Demand is predicted to rise with approximately 500,000 job opportunities to 2008, including an estimated 40,000 new jobs (Futureskills Scotland, 2006 3), suggesting a greater number of opportunities for those who can move into work. Such opportunities are likely to shift towards more skilled jobs with those with higher-level qualifications having more opportunities than those without, or with low level, skills.
1.7 Nevertheless, there remain groups of individuals and families who have not benefited from the strengthening labour market, and commentary concludes that 'there are still serious challenges to be met to improve the employability of those currently outside the labour market' (ibid). Indeed, a review earlier in 2005 also highlighted that too many people were still reliant on government benefits, too many employees were ending up in 'dead end' jobs - low paid low skilled work, with no career ladder and too many children were still leaving school with too few qualifications - preventing them from entering education, training or employment (European Conference on Social Exclusion, Glasgow, October 2005).
1.8 Furthermore, there are significant sub-regional variations. For example, around one in ten of the working age population claim Incapacity Benefit in Scotland, but in Glasgow this rises to one in six (Fothergill, S, 2006 4). Glasgow also has a lower rate of labour market activity than Scotland as a whole (mostly accounted for by higher proportions of 'inactive' rather than 'unemployed', particularly the proportions who have long term health problems), despite having the largest economy in Scotland. Furthermore, those reliant on means-tested benefits in Glasgow are generally concentrated in the wards with the most deprivation.
1.9 In recognition of the variations in sub-national areas, and the associated ineffectiveness of a 'one size fits all' approach, resources have been targeted on specific local areas, including remote and disadvantaged communities (see Policy Developments, below).
1.10 Evidence has also highlighted the difficulties employers have faced with regard to both filling positions and retaining staff. Research conducted for Futureskills Scotland found that employers reported that soft skills (such as team working, oral communication and problem solving) were the most likely skills that were hardest to find in both applicants for jobs (skill shortages) and amongst their existing employees (skill gaps) (Futureskills Scotland, 2005).
Welfare Reform - Labour Market Policy Developments
1.11 To the UK government, work is at the heart of efforts to tackle poverty and social exclusion, while ensuring security and support for those who cannot work. There are continued high levels of economic inactivity particularly among disabled people, lone parents, partners of benefit recipients and older workers. The strategy for welfare reform, as outlined in the 2006 Green paper 'A new deal for welfare: empowering people to work', has as key objectives to: reduce the number of people claiming incapacity benefit by 1 million in 10 years; to get 300,000 more lone parents into work; and to increase the number of older workers by 1 million. Furthermore, there is a widespread commitment to the eradication of child poverty
Policy developments in the UK
1.12 Reforms of the welfare regime in the UK have been far reaching, including the introduction of a range of labour market activation programmes under the New Deal programmes and reforming the delivery of welfare services through the new Jobcentre Plus agency. The commitment to 'making work pay' has been enhanced through the introduction of the national Minimum Wage, financial assistance through the system of tax credits and support for childcare. Further measures of reform being proposed through the Welfare Reform bill include reforming incapacity benefits and housing benefits as well as allowances and specific initiatives targeted towards groups including lone parents, disabled people and older people.
Policy developments in Scotland
1.13 Following devolution in 1999, the Scottish Executive made a commitment to tackle poverty and disadvantage under the auspices of its Social Justice Strategy, led by the Minister for Communities. The Closing the Opportunity Gap ( CtOG) approach announced in 2004, was the result of a cross cabinet review of the Social Justice Strategy and brought new targets to replace the social justice milestones, the aims of which are to:
- Prevent individuals or families from falling into poverty
- Provide routes out of poverty, and
- Sustain individuals or families in a lifestyle free from poverty.
1.14 The Scottish Executive shares the UK government's view that work is the best route out of poverty. As a result, particular attention is being paid to the CtOG objectives (both of which have direct relevance to this evaluation) to:
- Increase the chances of sustained employment for vulnerable and disadvantaged groups in order to lift them permanently out of poverty and
- Regenerate the most disadvantaged communities to help its residents take advantage of the employment opportunities.
1.15 The Executive also shares the UK government's aspiration to eradicate child poverty by 2020 - and indeed has met its first target to reduce child poverty by a quarter by 2005.
1.16 The Scottish Executive's Employability Framework - Workforce Plus - has recently been published, again with a particular focus on continued employment. The framework, which has been designed to support CtOG targets, seeks to work with particularly vulnerable people and disadvantaged groups including people who face multiple barriers to gaining work and need additional help, people who are in low skilled and/or low paid jobs and people who are in work but are at risk of leaving because of health difficulties.
1.17 Within Scotland, there has been a range of both national and locally targeted initiatives, which are being implemented to support the overarching CtOG objectives. Those notable for their focus on job retention and sustainability include Working for Families, Working Neighbourhoods Pilots and the Employment Retention and Advancement Demonstration Project. Working for Families is of particular note here, as it tackles the problem of childcare for parents trying to access training or employment opportunities, with the primary objective of adult employment outcomes. Scottish Executive funding of £50 million during 2004-08 has been allocated to 20 local authorities that have the highest levels of parents in need of support towards employment, largely based on the numbers of children living in workless households. For many parents in the sample for this evaluation, having access to support through the Working for Families played a key role in their return to the labour market - and in particular for lone parents, which is a particular focus of the One Plus project.
1.18 Overall in Scotland, there is an estimated annual funding figure of £515,000,000 for employability services based on the 2004/05 financial year (Employability Framework for Scotland, 2006), demonstrating the commitment to tackle poverty, exclusion and disadvantage. Much of this support is from the Scottish Executive, through a range of funding streams including those for community regeneration, skills development, careers advice, literacy and numeracy, homelessness, social inclusion and employability in areas of multiple deprivation.
1.19 What is also clearly evident is the range of different organisations working towards achieving CtOG targets, and the recognition of the need for the statutory, voluntary and private sectors to pool both their resources and expertise to provide the best possible services and support to those who are most in need. There is a relatively complex funding environment for employability and employment retention initiatives, with the delivery of these services being characterised by a large number of organisational players. Glasgow, for example, is estimated to have 125 organisations and 325 individual programmes, projects and services involved in the delivery of employability services to jobless people (Workforce Plus - an Employability Framework for Scotland, 2006).
Job Retention and Sustainable Employment - a developing policy agenda in the UK
1.20 The previous section highlighted the challenge for policy makers, in helping the so called 'harder to help' who have not benefited from the raft of support introduced as part of the government's welfare reform packages. Whilst the success of UK wide programmes such as the New Deals has been lauded, there remain groups of people who find it hard to both secure employment and remain in the labour market.
1.21 For those who have been away from work for some time - or indeed never worked - the early weeks or months in work (the 'transitional' period) are likely to be the most fragile, hence the longer someone remains in work, the less likely they are to return to benefits. Depending on the group in question, estimates range from between 15 and 30 per cent or more of new entrants to employment leaving work prematurely to return to unemployment or economic activity within a year - and this is more likely to be the case among those entering work from inactivity than from employment (Kellard, 2001 5.)
1.22 In recognition of the difficulty some groups have in remaining in work, or progressing in the labour market, policy in the UK and elsewhere is now placing an increased emphasis on sustaining work and advancing in employment. This is a reflection of increasing concerns about the repeated 'cycling' for some groups between work and economic inactivity, and the damage or 'scarring' this can do to people's employment prospects, as well as the financial and non-financial costs to society as a whole (Gregg, 1999 6). Many of the UK's employment policies now include a focus not just on work preparation and job entry, but also on job retention. For example, the New Deal for Disabled People included specific targets for sustained employment, to encourage Job Brokers to work with their clients post-placement to provide whatever support they perceive is necessary to help the client remain in work, and other New Deal programmes include a measure of retention (albeit at a relatively short-term 13 week measure).
1.23 The Department of Work and Pensions ( DWP) has developed the Employment Retention and Advancement Demonstration project, which uses an experimental design to assess the effectiveness of different types of intervention on longer-term outcomes, through a combination of pre and post-employment case-worker support and financial incentives. The Demonstration ends in June 2007, and is the subject of comprehensive process, implementation, impact and cost benefit analysis. What tentative evaluation evidence there is to date suggests that take-up was lower than anticipated, particularly from those already in work, and that a focus on advancement was particularly challenging (Hall et al, 2005 7).
1.24 The 2006 Green Paper from the UK government on welfare reform also increases the focus on retention and advancement as well as on job entry. For example, providers who are being asked to tender for the delivery of Pathways to Work (focusing on Incapacity Benefit recipients) in the newest areas of the roll-out are being asked to focus particularly on improving job retention. The DWP have also announced changes in the form of a new Employment and Support Allowance, placing more emphasis on returning to work for those with health problems. For lone parents, additional focus on job retention is evident through the development of new ways for Jobcentre Plus to provide support for lone parents who have moved into employment, including an in-work credit and access to an in-work emergency fund. Nevertheless, critics of the paper have argued that the proposals do not go far enough to preventing the early returns to benefit that many people, including lone parents, continue to make (see for example, Working Brief, Feb 2006).
1.25 Thus, a key task for both policy and programme delivery is to work with clients to raise both their employability and resilience to change. Equipping individuals with employability skills enables them to be sufficiently resourced to enter the labour market, to remain in a job and to progress in employment through the development and utilisation of their skills - both hard and soft skills. Evidence indicates that a common reason for leaving employment prematurely is because of a change or 'event' in an individual's personal circumstances (Kellard et al, 2001 8), for example, a family change or housing or domestic crisis. Developing skills to manage and withstand change or life transitions to ensure that they are able to remain in stable employment is also important and something that providers are keen to encourage (Lewis et al, 2005 9). Such support may be provided through the workplace, through a case management approach (for example, through a personal adviser model) or through equipping the individual with the practical and emotional support to minimise the impact of changes. It is these kinds of issues that the two programmes under study in this report are attempting to address, through both individually tailored support and group work as well as enhancing links with employers.
1.26 It is also known that for many who have successfully negotiated the transition into employment, often with significant support from the statutory and/or voluntary sectors, often this support diminishes after the first few weeks, so that there is a lack of support for the individual as they move to progress within employment (Kellard, 2002 10). Nevertheless, for progression to occur, individuals often need support to navigate their move beyond the initial 'entry' job to progress to work with better pay, better prospects and better long term opportunities to lift them out of low income onto a sustained progressive employment route. Again this is a key role for both The One Plus Sustainable Employment Project and the Wise Group who are both committed to providing longer-term post-employment support.
« Previous | Contents | Next »