SKILLS & EMPLOYMENT IN LONDON Michelle Cuomo Boorer Director – Skills & Employment Greater London Authority
Mayor’s Vision for Skills A City for all Londoners – making sure Londoners, employers and business get the skills they need to succeed in a fair, inclusive society and thriving economy.
Strategies overview – Draft Economic Development Strategy (EDS) Economic published and consulted on until 13 March 2018. Development Strategy – Final EDS published in autumn 2018 ( statutory) – Skills for Londoners Strategy published on 6 th June 2018 Skills Strategy (non-statutory) – Skills & Employment Framework published end of June 2018; consultation closed in August – Discussions with Grant providers begins June 2018 Skills & Employment – ESF and AEB procurement starts autumn 2018 Framework - Draft Funding Rules published October 2018 - Final Funding Rules published Spring 2019 AEB Funding Rules – AEB & ESF commences delivery 1 st August 2019
AEB and Skills for Londoners Governance Structure
Skills for Londoners Strategy • First stand-alone strategy for London Empowering Londoners • First time London will see true devolution of part of the skills system Meeting • Greater focus on outcomes. economic Strategic & city-wide • employer Greater focus on inclusion, diversity and approach need social mobility. • Collaborative and strategic approach between London government, employers, skills providers, unions and key stakeholders. • Widely consulted on between November and January with skills providers, boroughs, employers and Londoners
Programmes/ initiatives underway Ski Skills for Lond ondoners Str Strategy Adult Skills for European Londoners Education Social Fund Budget Capital Fund Digital Mayor’s Apprenticeship LEAN Talent Construction s Pilots Expansion Programm Academy e Wider 16-18 Mayor’s All - Post-16 Devolution Brexit and Education SEND age Careers UKSPF/ LIS Automatio Research Offer Action Review n Plan
Digital Talent Programme £7m programme launched in February 2018 to plug the growing digital skills shortage in the digital, creative and technology industries with diverse, home-grown talent. Mayor’s Construction Academy £9m programme launched in spring 2018 to help more Londoners train in the skills they need to access construction-sector vacancies on the capital’s housing and construction sites
Skills for Londoners Capital Funding Round 1 - £40m made available - £35.7m successful applications - £25.4m committed - SfLCF £20.5m - Development Support Fund £1.3m - Small Projects and Equipment Fund £3.6m Skills for Londoners Capital Funding Round 2 - £82m - Grant investment requests from £200k -£10m - GLA OPS Further Education Capital projects - MCA - £7.2m ringfence Skills for Londoners projects - IoTs Development Support Fund projects
Apprenticeship action plan & pilots • The Mayor’s aim is ‘to promote the development and take -up of relevant and high-quality apprenticeship opportunities to support the needs of employers and achieve social mobility objectives’. • City Hall’s forthcoming £1.3m apprenticeship pilot programme will support employers in London’s key sectors to use levy funds to develop skills in their business, sector and supply chain, including through use of levy transfers. • The Mayor is also supporting apprenticeships through: – Good Work Standard – London Growth Hub – Extension of the London Enterprise Adviser Network – Coordination of apprenticeship ambassador activities – 5 Cities apprenticeship diversity initiative
Adult Education Budget (AEB) • AEB is being delegated to the Mayor from 2019/20 • DFE gave indicative 19/20 budget of £311 million for London. Final figure to be confirmed in Jan 2019. • Distribution to follow similar pattern to ESFA programme initially • Minimal policy change in the first two years. • Around 90% provision allocated to grant providers – Will not be ESF compliant; and – Will not require a competitive tendering process • Around 10% competitive provision allocated to ITPs Will be used to match £71m additional ESF provision Will be competitively tendered over 4 years
AEB implementation timeline Phase 1 Phase 2 Phase 3 Phase 4 Evaluation of Programme Transition plan Moving into the deal clarification implementation delivery Determining Determining the Putting the Assuming whether the operational requisite responsibility for offer from govt. structure, structures and the devolved AEB is acceptable in system and systems in place principle: resourcing - Readiness requirements: conditions - Funding settlement Feb – Sept April – Nov Nov 2017 – Aug Aug 2019 2017 2017 2019 Acceptance of devolution deal in principle
London’s AEB allocation AEB 2015/16 notional allocations - by devolved authority 1.3% 5.7% 3.9% Cambridgeshire & Peterborough Greater Manchester Liverpool City Region 21.9% 45.3% London Sheffield City Region Tees Valley West Midlands 8.4% West of England Non Devolved AEB 1.7% 7.5% 4.4%
London adult skills providers (2015/16) 410 approved prime 110 approved prime providers providers located in London Of which: Of which: 292 grant funded 71 grant funded 118 contracts for services 39 contracts for services (Independent Training (ITPs) Providers (ITPs) Totals do not include an unspecified number of sub-contractors working beneath the primes
Challenges & Opportunities But, opportunities to: Still many unknowns : • Align the budget to the Mayor’s • Tolerances for out of priorities and needs of London delivery Londoners and London’s businesses • Data - detail of how existing budget is spent • Develop a holistic skills system and what it buys – hampers our ability to • Move to more outcome based model future allocations to commissioning – getting the providers results London needs • Audit – who will lead on • Utilise most of London’s this remaining ESF by matching it at 50% with the devolved AEB
European Social Fund £71m programme focused on the following: Adult programmes: Youth programmes: • Occupational skills • Continuing participation • ESOL • Gangs prevention • English and maths • SEND • Parental employment • Targeted support for • Targeted employment NEETs support • Careers clusters
SKILLS FOR LONDONERS FRAMEWORK Type of organisation Number of responding written – Framework set out the Mayors intentions responses Local Authority 16 for funding for a range of Skills and Further Education 8 Employment Funding Streams College Other 6 Education/Training – Relatively few changes will be made to Provider Education Provider 8 AEB in 2019-20 Representative Body • Ensures provider stability Sub-regional 4 • Smooth handover of a complex programme partnership Campaign 2 Organisation • Consultation ran from June to 17 th Charitable 2 organisation August Business 1 Business 1 Representative Body • Responses positive with the majority of Think tank 1 respondents in favour of proposed Other 7 changes
OUTCOMES • Move towards outcomes related funding • Sub-group of the Skills for Londoners Board is being established to lead the work. • Development and implementation will be incremental in consultation with the sector • Three strands: – What outcomes should we measure – How will these be measured – Ooutcomes related funding pilots
TIMETABLE: AEB GRANT PROGRAMME July 2018 Framework published Initial engagement with existing grant providers Dec 2018 Publish draft funding and performance management rules Jan 2019 Final AEB allocation from the DfE confirmed Mar 2019 Publish final funding and performance management rules Final allocations confirmed to providers Apr-Jul 2019 Award Funding Agreements Aug 2019 Delivery starts
DELIVERY APPROACH • Strong working relationships with the sector and FE Colleges in particular • Single point of contact within the GLA o Responsive and nimble o Better understand your area, need and provision o Support through transition • 7 contracts per project manager o Focus on quality not volume o Lia Teski, will be point of contact for all 4 Hertforshire LEP Colleges
FUNDING & CONTRACT VALUES In the short term the GLA will: • Retain minimum contract values for AEB/ESF provision (£100,000 per year) • Annual minimum contract value of £100,000 • We may offer AEB grants lower than £100k in exceptional circumstances if providers can make a case for why • Having a 20% cap on sub-contracting fees, unless a provider can demonstrate that a higher fee is justified
TIMETABLE: PROCURED AEB July 2018 Framework published Aug 2018 Prior Information Notice issued Mid-Oct 2018 Publication of Contract Notice and tender documentation Mid-Dec 2018 Deadline for tender submissions Dec 2018 - Mar 2019 Scoring, moderation, due diligence etc. Apr-Jun 2019 Contract award, standstill period, clarifications. Aug 2019 Delivery starts
Forward Look AEB & ESF Procurement launch Building the case for wider devolution/ Local Industrial Strategy Apprenticeships pilot launch Access to skilled talent post-Brexit The Skills and Employment Knowledge Hub The Mayor’s 100 year vision for Adult Skills
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