Brighton & Hove
Economic Partnership
Consultation on a new
City Employment and
Skills Plan
1 December 2015
Geoff Raw
Chief Executive Brighton & Hove
City Council
1 December 2015
Understanding the Brighton story
A City Employment & Skills Plan for 2016-20
• Building on Brighton & Hove’s economic strengths
• Putting employers at the heart of the Plan
• Agreeing and tackling what’s not working
• Complementing other related initiatives
• Identifying Brighton & Hove’s contribution to the wider economy
• Making public resources go further in support of the Plan
• Exploiting opportunities of devolution from central government
• Being realistic about what’s achievable
Brighton and Hove
Economic activity and out of work benefits among working
age (16 - 64) residents
Reasons for Economic Inactivity:
 Student
 Looking after family / home
 Temporary sick
Other economically inactive people,
17.1%
 Long term sick
3%
 Retired
3%
5%
1%
DWP Working Age Client
Statistical Typologies
 Other *
Others on income related benefit,
0.2%
Lone parent, 0.8%
4%
8%
ESA and incapacity benefits, 6.6%
5%
Job seeker***, 1.8%
Unemployed, no benefits**, 1.5%
*Other economically inactive people: most of these are not claiming
benefits but includes some claiming non-income related benefits or
other benefits (carers, disabled, bereaved)
** This figure is based on a UK wide estimate that 33% of
unemployed are not claiming benefits (eg if between jobs). Based on
2009/10 national estimate of take-up of JSA(IB), see
https://goo.gl/e6dj2t
*** This figure includes some people who are not unemployed, but
working on average less than 16 hours per week.
Sources: Annual Population Survey, Jan 2014-Dec 2014. Averaged
quarterly data from DWP Work and Pensions Longitudinal Study, Feb
2014, May 2014, Aug 2014, Nov 2014.
More information about statistical groups is found here:
https://goo.gl/nqm8aC
Source: NOMIS annual population survey – economic activity
Economically inactive
45,800
23%
Unemployed
9,000
5%
Employed
140,200
72%
72%
England
Economic activity and out of work benefits among working
age (16 - 64) residents
Reasons for Economic Inactivity:
 Student
 Looking after family / home
Other economically inactive people,
15.7%
 Temporary sick
 Long term sick
3%
2%
5%
 Retired
Others on income related benefit,
0.3%
Lone parent, 1.2%
DWP Working Age Client
Statistical Typologies
 Other *
ESA and incapacity benefits, 6.0%
0%
6%
6%
4%
Job seeker***, 2.1%
Economically inactive
7,625,100
22%
Unemployed
1,518,100
4%
Unemployed, no benefits**, 1.5%
*Other economically inactive people: most of these are not claiming
benefits but includes some claiming non-income related benefits or
other benefits (carers, disabled, bereaved)
** This figure is based on a UK wide estimate that 33% of
unemployed are not claiming benefits (eg if between jobs). Based on
2009/10 national estimate of take-up of JSA(IB), see
https://goo.gl/e6dj2t
*** This figure includes some people who are not unemployed, but
working on average less than 16 hours per week.
Sources: Annual Population Survey, Jan 2014-Dec 2014. Averaged
quarterly data from DWP Work and Pensions Longitudinal Study, Feb
2014, May 2014, Aug 2014, Nov 2014.
More information about statistical groups is found here:
https://goo.gl/nqm8aC
Source: NOMIS annual population survey – economic activity
Employed
25,039,400
73%
73%
Ensuring no one is left behind . . .
supporting the most marginalised
ESA: Generally higher claimant rates in B&H than England
Higher skills - growth of economically active
people with degree-level qualifications
Proportion of economically active people aged 16-64
by highest qualification
100
90
% of economically active with
degree or equivalent and
above - aged 16-64
80
70
% of economically active with
GCE A level or equivalent aged 16-64
60
50
% of economically active with
GCSE grades A-C or
equivalent - aged 16-64
40
30
% of economically active with
no qualifications (GCSE) aged 16-64
20
10
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: NOMIS annual population survey – workplace analysis
Some indication of LSOAs further from city centre
becoming relatively more deprived
Source: Reproduced directly from provided local information “Briefing: English Indices of Deprivation 2015 and
the Index of Multiple Deprivation 2015”
Supporting young people in their
journey from learning to earning
Many young people are not well prepared for work
Preparedness for work of 16 year old school leavers
Very well or well prepared,
33%
Brighton and Hove
Poorly or very poorly
prepared, 62%
Very well or well prepared,
59%
England
0%
10%
20%
30%
Poorly or very poorly
prepared, 36%
40%
50%
60%
70%
80%
90%
100%
Preparedness for work of 17-18 year old school leavers
Very well or well prepared,
47%
Brighton and Hove
Poorly or very poorly
prepared, 31%
Very well or well prepared,
66%
England
0%
10%
20%
30%
40%
Poorly or very poorly
prepared, 29%
50%
60%
70%
80%
90%
Source: UKCES Employer Skills Survey 2013
100%
Most reported skill gaps are soft skills
What skill shortages are identified by employers
17-18 year old school leavers
16 year old school leavers
0%
10%
20%
30%
40%
50%
60%
70%
80%
Lack required skills or competencies
Literacy/numeracy skills
Poor education
Lack of common sense
Poor attitude / personality or lack of motivation
Lack of working world / life experience or maturity
Other
90%
100%
There are fewer Apprenticeships started each year in
Brighton and Hove compared to the national average
Percentage of working age population starting Apprenticeships every year
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2005/06
2006/07
2007/08
2008/09
2009/10
Brighton and Hove
2010/11
2011/12
2012/13
2013/14
England Total
Source: ONS mid-year population estimates
2014/15
Harnessing the employment
opportunities in key growth sectors
Brighton and Hove – dominant sectors
11,600, 8%
Public admin, education and health
13,000, 9%
Banking, finance and insurance
46,100, 33%
Distribution, hotels and resaurants
Transport and communication
18,700, 14%
Other industries
Other Services
21,800, 16%
28,200, 20%
Source: NOMIS annual population survey – workplace analysis July 2014 – June 2015
Brighton and Hove has the second highest recorded skills gap
in England according to employers
Source: UKCES Employer Skills Survey 2013
Skill gaps are not consistent across occupations
Density of skills gaps in Brighton and Hove by occupation
16%
Elementary staff
7%
4%
Machine operatives
5%
13%
Sales and customer services staff
8%
3%
Caring, leisure and other services staff
4%
3%
Skilled trades occupations
5%
6%
Administrative/clerical staff
5%
2%
Associate professionals
5%
4%
4%
Professionals
4%
Managers
3%
0%
2%
4%
6%
Brighton and Hove
8%
10%
12%
14%
16%
England
Source: UKCES Employer Skills Survey 2013
18%
Skill gaps in the Creative, Digital and IT industry
“Not only has the problem not improved, it has actually worsened, and this is in spite
of the one increase in innovation over the last three years: internal staff training. The
provision of skilled talent to work in these high growth businesses is not a simple
process to remedy.”
Brighton Fuse Second Wave Firms Survey
Skill gaps have.....
Lowered, 18%
0%
20%
Remained the
same, 55%
40%
Increased, 27%
60%
80%
100%
…since the last Fuse survey
Recent shift towards self-employment
22.0
20.0
18.0
16.0
14.0
12.0
10.0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
% in employment who are self employed - aged 16-64
Source: NOMIS annual population survey – workplace analysis
Brighton & Hove
Economic Partnership
Consultation on a new
City Employment and
Skills Plan
1 December 2015
Consultation – nine table topics
1.
Ensuring No One’s
Left Behind
2.
From learning to
earning: transitions
to work
over 50
6.
Group
Training
18-24
NEET
In school
Year 9/10
8.
Mid Career
Changer
Entry level
employer
m/health
5.
7.
Harnessing
economic growth
ESA
In-work
Low pay
4.
3.
micros/SMEs
9.
Graduate
Underemployed
New
investor
Consultation – table discussions
• Each of the nine tables will focus on one of the three priority issues:
 Ensuring no one is left behind
 Supporting young people’s transition from learning to earning
 Harnessing the growth in key sectors of the city-regional economy
• Approach the issue by considering the experience of either the
resident of the City, or the business(es) whose case you have been
assigned
• Describe their situation “as is” at December 2015 . . . ie the current
employment and skills offer for that individual/business
• How does the situation need to change for this individual or
business(es) in the context of this Plan, 2016-20?
• Facilitator will keep you to time, focused on the task and
record the discussion
Employment and Skills
Devolution: lessons and
implications from Greater
Manchester
1 December 2015
Greater Manchester Narrative
Manchester - 511,000 people
Greater Manchester – 2.55m people
Greater Brighton City Region
Brighton & Hove - 280,000
Greater Brighton – 700,000
Greater Manchester Narrative
Across GM, around
227,000 people are
claiming out-of-work
benefits…
57% ESA/IB
139,540
The cost of
worklessness and the
impact of low-pay has
now reached over £2
billion
11% LPIS
27,740
29% JSA
72,280
JSA
Claimants: 72,280
£1.1bn
Working Tax Credits
Claimants: 206,500 families
£601.2m
ESA/IB
Claimants: 139,540
£429.0m
£290.3m
£114.2m
Out-of-work Tax Lone Parent IS
Credits
Claimants: 27,740
Claimants: 75,200
families
What role devolution?
• Reduce the fiscal gap and drive productivity through a
devolved, integrated employment and skills eco-system
• Create significantly enhanced performance and impact from
investment in the employment and skills system
• Develop a future workforce with the skills to support growth and
increased levels of productivity
• Shift commissioning strategies to deliver against city region
priorities with local accountability
• Ensure Government agencies and contracted services operate
consistently on the right footprint
Conditions for devolution?
 Governance – a Combined Authority (probably)
a pre-requisite for a significant devolution deal
 Informed political and officer leadership on the
work and skills agenda
 Investment in capacity and capability –
analytical; commissioning; policy; partnerships
 Narrative – avoiding a zero sum game ‘give it to
us and it will be better’
 Pragmatism – identifying gaps & solutions to
government policy
 A consistent development framework
Consistent development framework
1. Joint
Accountability
over decisions /
commissioning
2. Transfer of power
/ decision making
3. Financial
devolution
(transfer existing
budgets)
4. New money
1. Articulate the
system problem(s)
Government
Asks
Devolution
Proposals
2. Cohort(s)
3. Investment Model
and System CBA
4. Delivery Model
5. Evaluation Model
Devolution Considerations
• Clarity on the end game and roadmap to
get there. What do you want and why?
• Think through the How - What is your
role? Commissioner? Provider?
Integrator?
• Understand government (and your) red
lines and departmental appetite – where
are the opportunities?
• Market engagement to test
assumptions, stimulate interest and bring
providers with you
• Service user voice and innovation in
service design
• Having “skin in the game” and an
appetite for risk = serious player
Devolution delivered?
• Very early days in terms of delivery and impact
on the ground
• 4 levels of devolution – sufficient focus at each
level? What role communities and the VCS?
• Danger of the same delivery models and
providers doing the same things – but
commissioned locally
• Gaps in knowledge and understanding e.g.
Behaviour change models?
• Ongoing investment in evaluation
• More radical and ambitious reform proposals
including Fiscal Devolution?
Whitehall
City Region
?
Local Authority
?
Communities
Potential asks of Government?
No One Left
Behind
Learn to Earn
Harnessing
Growth Sectors
• Developing a Health and Work Pilot (£40m fund announced within
Spending Review)?
• Align ESF funds with the Work and Health Programme and cocommission?
• Pilot programmes that address under-performance with existing
programmes / cohorts?
• Explore public health budget as match and re-design substance misuse
provision alongside ESA focused interventions?
• Explore opportunities to test contribution and connectedness reforms?
• Housing Benefit / Houses with Multiple Occupancy reforms?
• Devolution of the AGE grant (short term measure)?
• Devolution of post 19 vocational education, delivered through a shared
outcome based agreement via a multi-year financial settlement?
• Influence over 16-18 vocational education, developing a shared outcome
based agreement with the EFA?
• Vocational pathways, increasing role of local employers from priority local
sectors?
• Tracking and monitoring wage progression (not just job placements)?
• Integrate business support, skills and investment funds?
• Explicit alignment of skills funding to economic growth and
creation of “good quality” jobs?
• “Skills Bank” pilot model – more flexible, demand led brokerage
• Differential business rates?
Brighton & Hove
Economic Partnership
Consultation on a new
City Employment and
Skills Plan – QnA
1 December 2015
QnA / Discussion
• Reflecting on your table discussions, what are the
key priorities/actions which the City Employment
and Skills Plan will need to include?
• How could you use the opportunity of greater
devolution of employment and skills budgets to
make a difference to outcomes for Brighton and
Hove residents and employers alike?
Brighton & Hove
Economic Partnership
Consultation on a new
City Employment and
Skills Plan
1 December 2015