EXTRAORDINARY MEETING

Cornwall and Isles of Scilly

Employment and Skills Board (ESB)

Date Wednesday, 15 January 2014

Time 14:00 – 16:00

Venue 2N.04, New County Hall, Truro, TR1 3AY

Please note, this is an ‘extraordinary’ Board meeting to focus on the EU

Structural Investment Funds Strategy, to allow amendments before the LEP Board meeting on 23rd January, and submission at the end of January

2014.

Item

No. Agenda Items

Document

Ref No.

1

Introduction to the session – TD Verbal Update

2

Summary of work to date and feedback – JH Verbal Update

3

Agreement of programmes - ALL Action Paper

4

Agreement of funding – ALL Action Paper

5

Agreement of ‘opt in’ decisions - ALL Action Paper

6

Agreement of output numbers - ALL

7

Timeline and interaction with LEP - TD Verbal Update

8 Agreement of next steps - ALL ESF Development post Programme development leads

Membership of teams

Verbal Update

9

Strategic Economic Plan and Growth Deal - JH Verbal Update

10

AOB

11

Next meeting and future meetings

17 February 2014 – Venue to be confirmed

Summary:

The Employment and Skills Board has been asked to produce the Employment, Skills and Social Inclusion activity for the EU SIF. This paper details the information required by the LEP for the submission of the EU

Structural Investment Funds Strategy at the end of January. The Board are asked to read the paper and, through discussion at the meeting, agree the items details below.

Action:

1. Agree the three outlined programmes 2. Agree funding levels against each of the programmes

3. Agree Opt In Decisions 4. Agree Output numbers against the three programmes

Prepared by:

Judith Hann Cornwall Council

(with support from a wide range of partners and individuals)

Action Paper Paper No:

European Structural Investment Funds

Strategy Employment, Skills and Social Inclusion

Purpose:

For Action Date: January 2014

Introduction

The draft EUSIF (found here) was submitted to Government in October with the next

iteration needed by the end of January 2014. There has been substantial work by a wide range of organisations to firm up the likely activity to be bought by the European

programme and this document seeks to summarise that and identify further work needed.

The EU SIF has activity across three key themes:

This paper identifies the activity that the Employment and Skills Board and partners have discussed and how it fits under this structure. It also identifies the components

of the ‘Logic Chain’ that are required for our investment proposals which include an assessment of the funding, the match funding options, and the likely outputs, results

and outcomes.

The Programmes

A previous paper outlined 14 different programme areas which, whilst helpful to stimulate discussion, have been refocused into four key areas of activity for inclusion in the EUSIF. These areas link to both the three themes above and the European

thematic objectives, and therefore are the proposed approach for the LEP.

The diagram overleaf shows theses linkages:

Investment Area 12: Progression into the Labour Market

I Can (IAG & Support) (ESF £4m) Enhanced Flexible Support Fund

(ESF £15m) Young People First (Talent Match 2)

(ESF £3m)

Investment Area 11: Develop economically, socially, sustainable and resilient communities Smart Money

(ESF £10m) Growing Families

(ESF £15m; ERDF £5m)

Investment Area 8: Digital Investment and Digital skills

Superfast Business Skills (ERDF £5m; EARDF £0.5m)

Digital World (ESF £10m)

Investment Area 11: Develop economically, socially, sustainable and resilient communities Enterprising Communities – Community Led Local Development

(ESF CLLD £6m; ERDF £10m)

Investment Areas 1 & 2: Smart Specialisation

Higher Skills CIoS (ESF £5m)

Investment Area 3: Building business capacity

Smarter, Healthy Work (ESF £6m) Investment Area 7: Progression through the Labour Market

I Can (IAG & Support) (ESF £6m)

Investment Area 5: Growth through Innovation Future Peninsula (Social Innovation)

(ESF £10m; ERDF Infrastructure possibly £5m)

Investment Area 5: Growth through Innovation

Higher Skills CIoS (ESF £15m; ERDF £10m) Investment Area 4: Business Support for Growth

Stronger Social Enterprise (ESF £2m; ERDF £3m) Investment Area 7: Progression through the Labour Market

Employer Led Skills (ESF £10m; ERDF £5m; EAFRD £2.5m)

Innovative Finance and Financial Engineering Instruments

1 Social Impact Fund (ESF £10m)

Inclusive CIoS Programme (TO9)

Employability Programme (TO8)

Skills and Enterprise Programme (TO10)

Total ESF: £

Funding Summary

The amount of funding available to the LEP and the anticipated breakdown between ESF and ERDF is as follows:

Of this amount, approximately 5% has been identified for the Community Led- Local Development (£6m ESF; £19m ERDF) and a further £3m from EAFRD will be added to

the skills and enterprise programmes.

Taking the information about the programmes identified above, the following indicates

the proposed split of ESF spend across the themes and programmes:

(£m’s)

Fu

ture

Eco

no

my

Gro

wth

for

Bu

sin

ess

Co

nd

itio

n

s f

or

Gro

wth

Totals

Total

ESF

Match

Employability (TO8) 12 23 35 7 42

Inclusive CIoS (TO9) 10 27 37 7.4 44.4

Skills and Enterprise (TO10) 5 25 8 38 7.6 45.6

Community Led Local

Development 7 7

1.4 8.4

Financial Instrument (Social Impact Fund) 10 10

2 12

Total 5 47 75 127 25.4 152.4

This compares with the current Convergence programme as follows:

Convergence Programme Funding Breakdown

ESF Match Total

Tackling Barriers to Employment

£50,758,530 £16,919,510 £67,678,040

Improving the Skills of the Local

Workforce

£80,145,047 £26,715,016 £106,860,063

Technical

Assistance

£2,671,503 £890,501 £3,562,004

Totals

£133,575,080.00 £44,525,027.00 £178,100,107.00

Please note that in the new programme, ESF Technical Assistance is not coming out

of area allocations as it has been accounted for at source. Therefore the direct

delivery ESF amounts are shown below for comparison purposes

Direct delivery £130,903,577 £43,634,526 £174,538,103

Action:

The ESB to agree the split of funding against the three key programmes and make that recommendation to the LEP,

The Opt In Offers

As ESB members will be aware, one way of securing match funding at source is to

agree to the nationally available ‘opt ins’. For Employment, Skills and Social inclusion activity the potential ‘Opt In’ providers are:

Skills Funding Agency (SFA) Department of Work and Pensions (DWP)

The Big Lottery (BL) The Princes Trust (PT)

4.1 Summary of Opt In / Match amounts

Based on the discussions outlined above and the detailed work on activity contained in Appendix 1, the current suggestion for opt in funding agreement has been produced:

(£m's)

Opt In provider ESF Match from

Opt In Total

SFA 47 9.4 56.4

DWP 23 4.6 27.6

Big Lottery 31 6.2 37.2

Princes Trust 1 0.2 1.2

Private/HEI/ Other 25 5 30

Totals 127 25.4 152.4

There are still areas of further discussions to be had with each of the Opt In providers as a part of the ongoing work.

4.2 Timelines of Opt Ins

One overarching issue is the length of time that we recommend the LEP take the Opt In for. Originally, there was consideration to agreeing an ‘opt in’ for half the programme (i.e. 2014 – 2017) as a three year contracting period is considered a

sufficient period to develop run and learn from activity. However, the ESB may wish to recommend that an Opt In is accepted for the full period of the programme, with

the ability to ‘break’ arrangements contracts managed through the Memorandum of Understanding/Agreement mechanisms

ACTION: ESB to agree the approach to determining the length of an Opt In

There have been numerous discussions held with the Opt In providers which are

summarised below.

The Skills Funding Agency

The SFA are offering a ‘technical service’ which would be agreed with the LEP through a Memorandum of Understanding (a draft copy of which has been seen.)

This service will provide a tendering / procurement mechanism that the LEP can use to procure the various skills programmes required.

One amendment to the original ‘Opt In’ is the need for LEPS to agree to use part of their allocation to support the National Careers Service:

There is clear fit between the National Careers Service and the proposed ‘I Can’

activity (recognising that the NCS could form one small part of that activity). There is the opportunity to opt in for part or whole of the programme period (i.e. up

until 2020 or for a shorter period) and a draft Memorandum of Understanding has been received by the LEP for comment.

ACTION:

The ESB recommend the LEP accepts the Opt In from the SFA The ESB members to have small group of 3 plus JH to go through the

SFA MoU for comment/alteration.

The National Careers Service currently benefits from ESF funding to support its priority groups and this will cease in March 2015. This will significantly reduce the ability of the National Careers Service to respond to local need and to support adults, particularly those who are unemployed or facing redundancy, newly redundant or distant from the labour market. The current programme of ESF will provide the funding for both the current contract and the new contract up until March 2015. However following this period the decision whether to include ESF funding will rest with LEPs to include provision for careers advice as part of their ESIF Strategies. Procurement for the new service is underway. The following describes the new focus

The National Careers Service procurement is designed to be a broad framework for funding with a stipulation to work with and respond to the demands of LEPs to reach the right client groups and provide accurate and informed advice about local opportunities, plans and growth.

There is also funding ring fenced within each area budget for providers to deliver a brokerage function between employers and educational institutions and establish partnerships with key local stakeholders including LEPs.

The National Careers Service specification is intended to accommodate the needs of LEPs, providing a framework through which LEPs can use ESF funding to procure careers services focused on local priorities.

Through the Agency Opt-in service LEPs will be able to contribute the ESF funding to the mainstream National Careers Service contract. In order to give an indication of the level of ESF funding involved, in 2013/14 and 2014/15 planned ESF spending amounts to £345k pa in Cornwall/IoS. This should be a helpful guide if the LEP wishes to maintain and improve the careers advice service in the area.

Department of Work and Pensions

The DWP Opt In details have been scant, with one telekit and two short papers being

received. However, the approach seems to be similar to the current co-financing offer

DWP are indicating the LEP would be involved throughout the contracting process

including the development of ITTs, the setting of appraisal criteria, in the evaluation process and the performance management.

Contracting process:

DWP are suggesting the funding of administration costs will come from within each project and will come from the LEP ESF budget. There is no indication of the level at this stage. It will be detailed in the draft MoU that is currently being produced (but we

have not yet seen)

ACTION: ESB to recommend the LEP accepts the Opt In from DWP

The ESB members to have small group of 3 plus JH to go through the DWP MoU for comment/alteration (when received).

Overview

DWP has agreed to provide opt-in support to LEP’s in the delivery of local employment priorities to support local growth and has set out the service offer in the DWP Prospectus. Where you choose to opt-in with DWP, our role will be to tender, procure and manage employment programme contracts on your behalf, in line with ESF requirements. We will provide for your ESF Match requirements alongside the ESF provision you commission us to deliver for you.

DWP can support you in identifying provision opportunities and will help you design this to meet your local requirements. Provision would be locally driven and focused on your priorities. The decision whether to opt-in with DWP is entirely your choice, there is no pressure for you to take this option.

Based on our understanding of LEP requirements to date, our current preferred option would be to offer open competitions for individual contracts. Alternatively, with LEP agreement, contracts could be tendered via the current DWP Employment Related Services Framework (ERSS), where this is appropriate. Using a Framework approach enables individual procurement exercises to be conducted more quickly, which has obvious advantages in meeting spend targets and getting the help to those who need it. For the longer term, the DWP ERSS Framework will be re-let from January 2015 and we will ensure that the new Framework builds in your local requirements.

The Big Lottery

There has been more involvement with the Big Lottery than with other Opt In

providers – there have been at least 5 separate meetings with colleagues from the Big Lottery and a number of partners. This has also been the less clear Opt In as it is new

territory for both the Big Lottery and ESF. However, there is a clear commitment to make this process work.

Key aspects: The Big Lottery will only use ‘grant making’ mechanisms and are not interested in

other financial products/approaches. They will be seeking synergy with existing or large programmes (i.e. using national programmes in the main to meet local needs)

LEP’s will be able to be involved and steer the procurement processes There is a clear project development process that BIG follows, which involves local

potential partners from the start - There will be an ‘Agreement’ which is currently being developed and will include details of the match (expected to be around 5% and from the match amount)

The majority of delivery partners are expected to be from the third sector, but larger

organisations (such as those in the Public sector) can act as lead partners for bids

ACTION: ESB to recommend the LEP accepts the Opt In from Big Lottery

The ESB members to have small group of 3 plus JH to go through the Big Lottery ‘Agreement’ for comment/alteration (when received).

The Princes Trust

This possible Princes Trust Opt In is minimal compared to others, and will secure a small amount of funding to enhance the existing enterprise activity currently running

in Cornwall and the Isles of Scilly. It is proposed that this activity is run alongside the other Young People focussed activity (Young People First – Talent Match 2)

Their offer could provide a specific set of activities around Youth Enterprise. An initial meeting with then South West partnership manager suggests that a level of £1million

of funding will buy an increased level of current activity, but there is more development to happen as we develop the ‘Youth Enterprise activity’

ACTION: ESB to recommend the LEP accepts the Opt In from Princes trust

The ESB members to have small group of 3 plus JH to meet the

Princes Trust to develop activity as part of the project pipeline.

Outputs

This work is ongoing and will be presented to the group on Wednesday.

Breakdown of Activity

In the paper before Christmas a summary of the potential activity was circulated for comment. The table overleaf shows these activity areas under the appropriate

programme, with the Opt In provider and the funding allocated to that activity at the current time. The colour shading indicates whether the activity is in Future Economy, Growth for Business or Conditions for Growth, and the table provides a more detailed

summary of the diagram on page 3.

During the project pipeline and development phase, it is these ‘activity areas’ that will be developed with members of the Employment and Skills Board, the Opt In Providers and others to enable activity to start as quickly as possible in the new programme.

Thought will need to be given to which activities start immediately and which can start slightly later in the programme, but this will be partly determined by ongoing

conversations with Government about the profile of spend across the programme period.

It is anticipated that the majority of the ESF spend will be continuous throughout the programme period, with some programmes such as the ‘Future Peninsula’ social

innovation work requiring longer set up prior to delivery.

Table: Areas of Activity

Programme ESF

£m

ERDF

£m

EAFRD CLLD Opt-In (ESF) Opt In

Match

Total

Funding

Employability Programme (TO8)

35 0 0 0 0 7 42

Smarter, Healthy

Work

6 0 0 0 DWP 1.2 7.2

I Can Cornwall 6 0 0 0 SFA 1.2 7.2

I Can Cornwall 4 0 0 SFA 0.8 4.8

Enhanced Flexible

Support Fund

15 0 0 0 DWP 3 18

Young People First

(Talent Match 2)

4 0 0 0 Big Lottery plus £1m Princes Trust

0.8 4.8

Inclusive Peninsula Programme (TO9)

37 13 0 0 0 7.4 44.4

Future Peninsula 10 5 0 0 Big Lottery (6) SFA (4)

2 12

Smart Money 10 0 0 0 To be determined

(£3m training SFA)

2 12

Stronger Social

Enterprise

2 3 0 0 SFA 0.4 2.4

Growing Families 15 5 0 0 Big Lottery 3 18

Skills and Enterprise Programme (TO10)

38 20 3 0 0 7.6 45.6

Higher Skills CIoS 5 HE Institutions 1 6

Higher Skills CIoS 15 10 SFA 3 18

Employer – Led

Skills

10 5 2.5 SFA 2 12

Superfast Business

Skills Programme

0 5 0.5 Private sector match

0 0

Energy and Carbon

Skills

1 0 0 SFA 0.2 1.2

Digital World 7 0 Big Lottery 1.4 8.4

Future Peninsula

Local Impact Fund

10 0 Private match through Investment provider

2 12

Enterprising

Communities

(CLLD)

7 10 7 CLLD - £2m SFA

/ £2m DWP /

£3m Private

1.4 8.4

TOTAL 127 43 3 7 25.4 152.4

Next Steps

The LEP will be presented with a summary of the whole EU SIF on Thursday 23rd January. Part of the presentation will be the proposed ESF programme. Therefore any

final comments from ESB Board will need to be received by Friday 17th 2014.

ACTION:

ESB members to send any final comments to JH by Friday 17th 2014

JH to send updated description of Activity Areas to all members by 22nd January

The ESB meeting in February to discuss and agree the project development process for the activity areas

Minutes

Action

1. Welcome and Apologies

Attendees introduced themselves and Apologies noted above. TD welcomed members to the meeting and explained that the ESB

had been convened to consider the European Strategic Infrastructure Framework (EU SIF) Strategy submission, before

being signed of by the LEP board at the end of January. JH apologised for tabling the revised version of the ESF proposal

and explained that the document included updated outputs, additional data focussing on business support and research and

innovation. The LEP submission will help to form the basis of the national operational programme.

Meeting Title: Employment and Skills Board (ESB) – Extraordinary Meeting

Date: 15 January 2014

Time: 1400 to 1600

Location: 2N:04, New County Hall Truro

Chaired by: Trevor Doughty, Cornwall Council - Interim Chair (TD)

Attendees: Matt Borne, Cornwall College (MB) Peter Childs, A&P Falmouth (PC)

Angela Coleman, ESFD (AC) Kim Conchie, Cornwall Chamber of Commerce (KC)

Judith Hann, Cornwall Council (JH) Rachel Jones, Fit and Fun Kids (RJ) Tarn Lamb, Cornwall Neighbourhoods for Change (TL)

Paul Lucock, Cornwall Council (PL) Paul Massey, Absolute Software (PM)

Ben Rom, Cornwall Council (BR) Charli Styles, Combined Universities in Cornwall (CS) Matthew Thomson, Fifteen Cornwall (MT)

Jackie Vosper, Skills Funding Agency (JV) Mark Wardle, Truro and Penwith College (MWe)

Terri Whitten, JobCentre Plus (HM) Paul Wickes, Cornwall Marine Network (PW)

Mark Williams, Cornwall Training Provider Network (MW)

Apologies: Dawn Aunger; Peter Cloak; Raoul Humphries; Carrie Mann;

Gail Muchajer; Ashley Shopland.

Minutes

Action

2

and

3

Summary of Work to Date and Programme Discussion - JH

JH ran through the three key themes identified on page three (Future Economy, Growth for Business and Conditions for Growth)

and highlighted that there are three strands of predominantly ESF activity running across the themes (Employability Programme,

Inclusive CIOS Programme and Skills and Enterprise Programme). Beneath the main programme themes and strands sits two

separate elements; Financial Engineering Instruments (FEI’s) and Community Led Local Development (CLLD). FEI’s concentrate on

access to finance whilst the CLLD has a geographical focus for project funding, this amounts to 5% of the programme value.

Members commented that the strategy is more advanced at this stage than in previous programmes and this is testament to the

hard work and Officer support on the strategy development. Golden Threads can be seen which align strategies which helps to backup the strategy.

Concerns were raised as to the lack of Cultural references and how

people and places are fitting in to the strategy, the opt-in (as discussed in agenda item 5) should work together to support these areas.

The chair highlighted some of the key young people issues and

explained that Cornwall and Isles of Scilly (CIoS) is looking good on NEETS targets in comparison to the South West. Young people should continue to be a high priority for funding. Members

responded that there are complexities defining the themes and the strands that sit beneath. A collaborative approach must be taken

within the next programme to minimise compartmentalisation. The younger people that EU funding can support the better for CIoS.

The commission have stated that EU funds can’t support those aged under 15, this has been taken to national government for a

view. Officers explained that although NEETS can’t be younger than 15, the EU programme may still be able to support younger

individuals dependant on need. ESB member’s sought clarity on their specific role within the

current submission and the need to ensure that outputs for ESF sync with ERDF outputs. Officers responded that additional joint

funding between ESF, ERDF and EAFRD will play a key part in the next programme.

The chair advised the board that the outcome of the meeting will be to broadly agree the tabled version of the ESF proposal.

Minutes

Action

4. Funding Discussion – JH

The chair explained that the current proposal ensures that funding amounts aren’t locked in and amounts can be changed at this

stage. Members responded that this will be key to responding to emerging priorities over the duration of the programme.

Infrastructure pots are available through ERDF with additional funds available to support business growth through employment

using the ERDF fund. The group discussed the need for ESF and ERDF to align with mainstream programmes, thus to maximise the

impact of the funding. Members questioned how the funding amounts were decided.

Officers responded that a number of approaches had been taken and evidence collated to support the funding profile. Conversations

have been underway with partners involved in the current programme, reports developed and evaluation undertaken to feed into the process.

Members referred to the workshop that took place at Eden in

September which help to influence the funding allocations, the ESB subgroups supported the proposal through a range of activities.

Officers will be attending the LEP board meeting to represent the ESB.

Funding split The explanation was given that a broad breakdown had been

produced using current programme figures. The group made reference to the sizable ERDF percentage of funding and

recommended that the application process for ERDF should include skills investment elements embedded within it, JH responded that

the 75% ERDF to 25% ESF split had been decided by the LEP and there would be no movement on the split.

ESB members were reminded that a proposal was put forward to the LEP asking for 28% of the pot to be allocated to ESF; this was

rejected by the LEP board.

5. ‘Opt in’ Discussion – JH

Officers highlighted that all funding allocations will also be supported by match.

The match funding intervention rate being requested by the LEP is 20%, whilst the current rate is 25%. The group suggested that this

shows low aspirations for CIoS and would like to see the gap closed nearer to the national intervention rate of 50%.

Minutes

Action

JH explained that due to the LEP having minimal capacity, opt-ins offer a way to contract out services and processes. The four opt-in

providers for ESF in CIoS are; the Skills Funding Agency (SFA), Department for Work and Pensions (DWP), Big Lottery and Princes

Trust. It is the responsibility of the ESB to support the LEP in deciding

which opt-ins will be supported in CIoS. The chair recommended that due to the levels of match available from Cornwall Council,

they should be considered as an opt-in provider, it would be sensible to link the SFA and DWP working group as one and include a Council working group.

Board members questioned whether the ESB will have control over

specifications for opt-in providers. JH responded that the LEP holds the EU SIF strategy and that conflicts of interest must be considered within spec development and commissioning processes.

The ESF Technical Assistance (TA) team offer capacity to ensure

that programmes are currently commissioned following EU guidelines, it has not yet been confirmed whether TA will be available directly to LEPs in the next programme..

MW asked members to remember that we are still working under

Convergence and a large amount of unspent funds are available. The board agreed to setup four tasks and finish groups to look

at each of the four opt-in provider Memorandum of

Understanding’s (MOU’s) and decide how the LEP should work

with them. The four groups are, SFA and DWP, Big Lottery,

Princes Trust, Cornwall Council. Board members to send names

of attendees for working groups to Judith Hann. NB since the

meeting the Princes Trust have now been removed as an opt in.

SFA opt-in – The SFA will act in a programme design and

development role and manage skills related projects. It seems that the SFA have one of the more advanced opt-in prospectuses and

will act in a technical role, managing procurement and delivering to meet the LEP priorities.

The SFA will support the National Career Service through its payment schedule. The SFA representative explained how the

National Career Service supports information, advice and guidance delivery for the 15+ age range.

Minutes

Action

Officers highlighted that the National Career Service will require support; this will be through commission on the SFA contract. The additional support for the Careers service may allow for additional

say over how the service is shaped in the future.

6. ‘Outputs’ Discussion

Technically Europe offers the funding to purchase a set of interventions from CIoS which will in turn improve the economy. CIoS must highlight the numbers of individuals it will support

through the funds. These figures shown on page ten have been worked out using existing data are conservative estimate. The

group discussed the results that have arisen from Convergence and the need to evaluate what has worked will.

The board discussed the figures and agreed that it is likely to cost more per head to support individuals using ESF. The ESB was in

support of the LEP’s proposal and supported the TA team to complete the outputs for the submission.

12. Date of next meeting

17 February 2014 – Cornwall Marine Network, 7 Bickland Water

Rd, Falmouth, Cornwall, TR11 4SZ

13. Next Steps

The board agreed to setup four tasks and finish groups to look at each of

the four opt-in provider Memorandum of Understanding’s (MOU’s) and

decide if the LEP should work with them. The four groups are, SFA and

DWP, Big Lottery, Princes Trust, Cornwall Council. Board members to send

names of attendees for working groups to Judith Hann.

Revised paper to be taken to the LEP, integrating comments from ESB.

A programme of ESF fundable projects to be developed through discussions

with the ESB in a 2014.

An ESF Project Development post to be funded.

Additional resources to be obtained through Councils CSF department.

Future Discussions to include; Exchange Rates and State Aide.

V3 – 05 Feb 14 Paul Lucock Cornwall Council