Liverpool City RegionCity Region Deal for Jobs and Skills

http://www.lcrskillsforgrowth.org.uk

Skills for Growth

The Liverpool City Region

Liverpool City Region

• 6 Council areas – 1 LEP and 1 Jobcentre District• £20 billion economy• 37,000 Businesses• 1.5 million residents• Over £12 billion of planned investments• 43% of businesses report skills shortages• 54,000 people on JSA• 103,000 on IB/ESA

City Deals Background

• A process of negotiation• Present a coherent view of economic

transformation• An opportunity to state how things can be

improved• Opportunity to devolve power and funding• But not for the sake of it• Some bold and radical proposals• Some cautious steps

Our Starting Point• LEP leads economic growth• Up to 100,000 new jobs over the next decade• ESB oversees skills system response• Over 300 different colleges and providers• Up to £200m of investments• Complex competitive landscape• Sectoral balance of training changes little• High levels of unemployment• Significant lags in skills at all levels• Huge opportunities

Our Skills GapsIf the Liverpool City Region mirrored the England average it would have approximately:

•29,150 more people qualified to level 2+

•73,270 more people qualified to level 4+

•32,900 fewer people with no qualifications

Liverpool City Region Deal

• Signed by DPM in September 2012– International Festival for Business– Regulatory pilot to support low carbon linked

developments– Clean river task force– Jobs and skills – Skills for Growth– Transport– Science– Investment

The Liverpool City Region has a jobs deficit of around 90,000

but it also has the potential to create 100,000 new jobs over the coming decade

If we do not get the skills of our workforce right businesses will either not create these jobs or have to import the skills they need.

Why Skills for Growth?

The most demand-led and responsive employment and skills system in the country

Employment And Skills

Board

Colleges & Providers

ResidentsBusines

ses

Governance Arrangements

Liverpool City RegionEmployment and Skills Board

Employers Public agencies & funders

Skills and employment

providers

Civic Leaders

Liverpool City RegionCabinet

Employment and Skills Board• Private sector-led• Reporting to the LEP and City Region Cabinet• Bringing Supply and Demand together• Lead shared strategy, governance and funding• Lead the City Region Deal for Jobs and Skills• Devising ESF proposals for 2014-2020• Many key activities and initiatives• Working with a radically changing economic

backdrop

Net Change in Proportion of Public / Private Sector Employment, Liverpool City Region (2008-2011)

Public Sector Private Sector ( 30,000 )

( 20,000 )

( 10,000 )

-

10,000

20,000

30,000

22,500 fewer people in pub-lic sector jobs

23,500 more people in private sec-tor jobs

- 12%

+ 5%

The structure of our economy is changing

A City Region with opportunities

Source: Cambridge Econometrics – LCR Policy On Forecast to 2025

SuperPort projects will create up to 24,000 jobs

Source: Cambridge Econometrics – LCR Policy On Forecast to 2025

The Visitor Economy will create up to 14,000 jobs

• Top 5 UK destination • ‘Cruise Turnaround’ facilities• Improved ‘destination’ promotion• International Festival for Business

2014• the ‘Grand National’• The Open Championship 2014• New Exhibition Centre in Liverpool

linked to the existing Arena and Convention Centre

• Political Party Conferences

Advanced Manufacturing will create up to 12,000 jobs

How sensitive has skills funding been to changing demand?

Sector 2008/9 Starts 2009/10 Starts

2010/11 Starts

Adult Social Care/ Healthcare 8,590 6,760 7,850Construction 6,280 4,980 5,040Hair and Beauty 4,550 4,720 4,120Creative/Cultural & Media 5,070 4,660 4,180Science, Engineering & Manufacturing Technologies 3,100 3,080 5,130*

Active Leisure, Learning & Well-being 3,580 3,300 3,400Children and Young people 2,590 2,500 2,260Retail 1,170 1,570 1,870Freight, Logistics and Wholesale 1,490 1,440 1,470Maritime 140 120 120

Source: Enrolments, Starts and Achievements by Sector and Home Postcode 2010/11, SFA Statistical First Release* Science, Engineering & Manufacturing Technologies had a change in definition from 09-10

Why is this?

• Lack of clarity from demand-side (employers)• Lack of involvement of demand-side (employers)• Supply-side choices (individuals)• Supplier push of existing capacity (providers)• Provider freedoms still embryonic (providers)• Funding incentives (government)

Our Jobs and Skills City Region Deal:

1. Skills for Growth Bank & Funding Devolution

2. Labour Market Information Service

3. Payment by Results in Adult Skills

4. Customer Choice in the Work Programme

5. Youth Unemployment Task Force

Skills for Growth Bank• £32m Project – part funded by Employer Ownership• Awarding grants for training in return for outcomes

– 4,000 Apprenticeships– 6,000 people trained and helped into work– 3,000 other qualifications

• Invested alongside businesses own training budget• Allows employers to decide exactly what training they require• Provider comparison website• Providers and Employers to register on

www.skillsforgrowthbank.org.uk

Labour Market Information Service• Research and articulation of labour market needs• Annual Skills for Growth Report• Labour market data and analysis• Skills for Growth Agreements• Jobs for Tomorrow• Dissemination events• Ensure everyone is on the same page• Now driving SFA funding allocation• Reshaping curricula• IFB 2014 - Skills Show Proposals

http://www.lcrskillsforgrowth.org.uk

Our Five Key Challenges1. Raise skill levels at all ages

2. Increase employer ownership and involvement

3. Involve employers in curriculum reviews

4. Improve the relevance and consistency of Careers Education and IAG

5. Work together to tackle youth unemployment

Payment by Results in Skills

“Design, test and pilot a “payment by results” system within elements of Adult Skills Funding in the Liverpool City Region: this will link the payments providers receive to the progression learning; employment; and/or wage gains of the individuals to whom they provide services to. Movement from designing and testing to full scale will require Ministerial and City Region agreement in advance of the 2013-14 academic year.”

Background Research

• Social Market Foundation ‘Britain’s Got Talent’• 7 other PbR models• SFA ESF projects• Other SFA projects and pilots• Consultation with providers and partners

Payment by Results in Skills• Initial pilot based on increasing ‘Job Gains’ in training for

the unemployed• Increasing the demand-sensitivity of courses• Ability for providers to earn more or less • Modelling, modelling, modelling• Technical questions resolved – short and long term• Ministerial Submission• Awaiting final green light• Subject to above, pilot commences in August• Wage Gains & link to HMRC

Customer Choice in the Work Programme

• Random allocation as a potential disincentive• Targeting specific groups• Payment Group 3• Technical and legal challenges• Ongoing work with DWP• Ahead of final Ministerial Submission• Informing Work Programme 2.0

Youth Unemployment Task Force

• High level target – Halving long term youth unemployment in three years

• Task Force primarily young people and businesses

• Primary research and scrutiny• Comprehensive set of recommendations• Implementation of these underway• 1/3 of target met in first 12 months

Task Force Methodology

Young Person Survey Aug/Sept 12

Task Force Inductions Oct 12 to Jan 13

Business Survey Sept/Nov 12

Desk Based Research Review Sept 12 to Feb 13

Task Force Meetings Nov 12/Feb 13

Wider Consultation Group Dec 12

Stakeholder Survey Dec12/Jan 13

Question Time Event Jan 13

1:1 Structured Interviews Feb 13

YUTF Recommendations• Maximise Talent Match

• Champion Work Experience Opportunities

• Review Financial Incentives

• Create a Youth Policy Campaign

• Develop Guidelines for Provision

• Increase Prevalence of Vocational Skills

• Overhaul Careers Support

• Consider higher level skills and integration of work experience

• Consider costs of transport for young people

Where to next?• 2014 – 2020 EU Programme being written

• Sharing learning with Wave 2 City Deals

• Sharing learning with Community Budget Pilots

• Embedding experience in Core Cities proposals

• ‘Single Pot’ proposals