Promoting in-work progression in city regions Employability and Skills Scotland 2016 8 th September 2016 Kathryn Ray Learning and Work Institute
Why in-work progression? • In-work poverty is an increasing share of all poverty. This has economic as well as social costs • Economic benefits to improving pay through a reduced social security bill and increased economic activity • In-work progression is key to tackling in-work poverty • Low pay is key driver of household poverty • Low pay is not just a temporary phenomenon; three in four people in low pay in 2001 were still low paid a decade later • Policy changes have put the spotlight on in-work progression • In-work conditionality under UC will require low earners to take steps to improve their earnings (hours or pay)
Challenges to progression • Progression outcomes shaped by range of factors • Personal and household circumstances; Access to learning and skills development; Employer practices; Local labour markets; Welfare policies • Progression opportunities are sector-specific • Hospitality and catering, personal services, retail and residential care sectors are closely associated with low pay and persistent low pay • Compressed wage distribution means limited opportunities for increased earnings • Limited support for progression • Employment support focuses on out of work • Skills system focuses on young people with fewer qualifications
What works? The evidence base on in- work progression … • … is limited • One RCT in the UK – the Employment Retention and Advancement (ERA) Demonstration , delivered by JCP 2003-7 • Improvements in earnings for long-term unemployed group, as a result of increased work entry and work retention (not progression in work) • Improved uptake of skills provision for lone parents but not ‘converted’ into earnings progression • Weak employer (and sectoral) focus may have limited the programme’s impact
The evidence base on in-work progression • Review of mainly US studies by Anne Green et al (for JRF). Not conclusive, but suggests that: • Findings on career ladder programmes suggest potential of sector-based workforce development programmes • Some evidence of wage impact from skills provision. More likely if: targeted on low-paid workers, focus on transferable skills, clearly linked to progression routes • Personalised support including careers guidance and wraparound holistic support is important facilitator, as is IAG to support decision-making on learning and skills take-up • Trade union can play a key role in enabling access to progression routes in workplace • Employer engagement easiest where clearly linked to business need (eg skills shortages, recruitment/retention difficulties
An integrated approach at city-region level • Evidence supports need for integrated approach, supporting individual skills and capabilities but also strengthening progression pathways in low-paid sectors • Based on labour market analysis, establish delivery partnerships, development of engagement models Package of initiatives for Leeds LCR (Green et al, 2016)
CURRENT IN-WORK PROGRESSION TRIALS
West London Alliance: Skills Escalator Pilot • Part of West London’s Whole Place Community Budget pilot • Delivered by West London Alliance (LB Hounslow and Harrow) funded through Transformation Challenge Award • To redesign frontline services for people working on low incomes by providing access to better paid and more stable employment through personalised advice and skills acquisition Entry point Adviser service Skills escalator Online service • Money, debt, • Civic centre • Triage service • Guidance housing, etc • CAB • Advice/assess • Skills • NCS • Library • Action plan • Job brokerage • Childcare • Employer • Advocacy • Skills •Children’s • Follow-up centre • Credit union
Trust for London and Walcot Foundation: Step Up • Grants for pilots to support in-work progression • Target beneficiaries – individuals paid below London Living Wage working an average of 14 hours a week for the last 12 months • £200,000 available per year in total • Individual grants of up to £40,000 per year • Oct 2015-Sept 2017 – Year 1 “test & learn”, Year 2 “steady state”
Step-Up Projects Creative Society - supporting low paid young people in creative/cultural sectors High Trees Community Development Trust - supporting low paid workers in Tulse Hill (with focus on lone parents and over 50s) Indoamerican Refugee and Migrant Organisation (IRMO) - supporting low paid Latin American workers Springboard UK – supporting low paid young people in the restaurant and hospitality sector; employer-focused Thames Reach/Clean Slate – using digital engagement, alongside more conventional approaches, to support low paid workers Women Like Us – supporting low paid parents (mostly women, including many lone parents)
Ambition London Ambition London seeks to test and trial a range of interventions to engage, train and support people to change their lives with the support of Advanced Learner Loans We aim to develop models and approaches that can be rolled out more widely to: • support employers and people to meet their skills needs and demonstrate the impact • provide people with career advancement support, aligned to their needs • increase individual (and employer) investment in their skills and learning • support people to progress from low pay
Examples of tests and trials • Supporting individuals become • Job Coach support model informed customers with sector • Modular training offer specific IAG and case studies • Flexible training approaches; online and blended • Supporting individuals become informed customers via • Engagement via employers development of an app • Co-investment model • Employability IAG and support • Modular training offer • Supporting individuals become informed customers with a sector toolkit • Additional employability support • Modular training offer
Glasgow In-Work Progression in the care sector pilot • Part of the Glasgow City Region City Deal - enabling greater self-reliance among people on low wages by testing ways to boost incomes • To devise, deliver and refine a sustainable model of employee progression to improve the skills and earnings potential of care sector employees • Budget of £600,000 over two years, half from DWP local budget and matched from Glasgow City Council Target: 40 employers in social care sector • Co-production of action plan • Employee interventions, eg: • Co-ordinate interventions • Career progression plans • Ongoing support • Business interventions, eg: • Formal qualifications • Post-intervention assessment • Business diagnostic • Job rotation • Operations management • Mentoring support • Pitching and procurement • Financial & debt advice • Business sustainability • Leadership & management Delivered by business development Target 400 social care advisers in City Council staff DRS
THA HANK NK YO YOU QU QUES ESTIONS TIONS
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