PAPER NO 4: JCU STRATEGY BOARD 11th February 2015
Skills Provision and Commissioning
Working Group / EBWG
Sponsor / Jan Lloyd
Report Author / Phil de Montmorency – JCU Manager
Recommendations / Recommendations
- To agree the three phases for the Skills Strategy for NEV as presented.
- To agree commissioning structure and to commission in line with the strategy and the common aim to have good quality provision available on a call off basis as described in Option 1 for both:-
- Phase 1 - pre-employment provision for 2015-16
- Phase 2 –pre-vocational provision for 2015-16
- Option 1 – is to jointly procure a panel of providers that we are able to ‘call off’ as and when budgets and opportunities allow.
- Option 2 - is to jointly procure a panel of providers to deliver according to defined 15/16 profiles.
- Option 3 – is to individually procure providers against individually determined local authority priorities.
Executive Summary / The purpose of the discussion paper is to seek agreement for:-
- The skills strategy and actions developed by the JCU and its partners &
- A commissioning process for 2015-16 utilising New Homes Bonus funding alongside any existing S106 and other funding sources as per recommendations above.
Contents
- Skills Strategy and Actions
- Resources / New Homes Bonus
- Commissioning & Spend rationale
- Quantifying NEV Construction Funding / outputs 15/16
1.0Skills Strategy & Actions
With the level of labour requirements on NEV projects, the opportunity exists to introduce a significant number of local job seekers into the market notwithstanding the skills mismatch. Pre-employment and pre-vocational training remains the best route to achieve this until a more targeted and effective trade-offer is developed.Recent analysis by QTS undertaken for Lambeth, Southwark and three local colleges identifies further justification for our strategy. There is £7.7m spent on construction training across the 3 FE colleges, an annual intake of 1,266 candidates onto Construction relevant training courses with only 10% of candidates progressing into relevant Construction opportunities after FE College courses. Current local apprenticeship provision only meets 10% of the skills gap and there is much capacity building needed to support business development. Adapting provision to better meet NEV requirements is therefore likely to be a longer term goal, requiring further planning and resource.
The following table summarises the current high level strategy; key actions; and milestones achieved:-
Strategy / Priority actions / Milestones
NEV demand / Labour Forecasting, & dissemination / lobbying; employer engagement / LFT Complete – Mar 14
Employer Event – May 14
Presentation to LEP – Jun 14
Phase 1 – pre-employment (CSCS / Tickets) / Employer engagement; FE College pilots; other providers engaged; JCP referral capacity building; / JCU staff in post – Aug 14
FE Pilots delivered – Sep 14
JCP workshops – Oct/Nov 14
Other providers – Nov 14
Phase 2 - pre-vocational (gaps / new trade areas) / Form Work pre-apprenticeship; drylining pre-apprenticeship; Plant training; cladding pilot / Form work pilot – Jul/Aug14
Drylining Pilot – Sep 14
Plant training – Nov 14
Cladding Pilot – Dec 14
Phase 3 – Response to Top 10 trades / College engagement; Training Partnership; NHB QTS study; engagement with SFA / CITB / Training Partnership - May 14
QTS supply data – Dec 14
SFA meeting – Oct 14
SFA meeting – Jan 15
Informing and capacity building the marketplace / Engaging Agencies (preferred supplier); Built specification for SFA / SEIF; Informed QTS brief; CLF brokerage; NHB pre-employment priorities; LEP CITB bidding / Ongoing development work
Phase 1 – Pre-employment - In the absence of a focused vocational / apprenticeship offer, short focused pre-employment interventions are a priority in the short term as having the greatest ability to get local people into jobs. This will involve both working with the FE colleges to focus on improving conversion rates into the industry for those already in learning; and equipping local jobseekers with the necessary safety training & certification (namely CSCS / tickets).
Fig 1
Phase 2 – Pre-vocational training - we are capitalising upon the escalating project demand with targeted S106 being used for pilot pre-vocational training developed with industry partners where no available mainstream funded offer exists. i.e form Work, drylining, cladding and fenestration. Funding will change from S106 to New Homes Bonus & SEIF funding going forward.
Fig 2
Client Journey
The JCU has prioritised development activity with CSCS and tickets. We will be working over the coming period with the FE colleges to embed construction related employability, bringing together the skills and work routeway (See Fig 1 above). The brokerages will be responsible for managing on flows to CSCS in consultation with the JCU according to anticipated vacancies. The JCU will fund tickets where there is a case to add value. The JCU is also working closely with JCP offices to build capacity and enable referrals to the brokerages.
Fig 3 – RAG Caseload and Pathway
Brokerages JCU
Phase 3 – Top 10 trades and apprenticeship routeways – This is the most pernicious and tricky area to develop due to skills mismatch with industry needs.
Whilst there are traditional trade frameworks available, they need to be made employer responsive and this will require significant industry engagement. The relationships developed through phase 1 & 2 will help this develop. If we present motivated and reliable candidates then the rationale is that we can move them on using the employment training route way through to ‘in work training’ whether NVQ or apprenticeship. This will require that provision is relevant, onsite assessors understand the key workplace learning objectives, college day release is flexible (day / blocks), and that there is an option for ATA support where direct employment is not an option.
The JCU and borough Officers have met again with the SFA given that we now know the extent of the skills mismatch. A development process will be put into place and fleshed out with milestones which seek to identify:-- A review of Top 10 trades against QTS report on supply.
- Where existing apprenticeship frameworks can be used / tweaked
- Where there are new Standards available and which can be adopted by a local provider (or sub-contracted).
- Where there are gaps and where we need to bring employers together todevelop new standards (target trades and development period to be identified)
1.1Strategic Engagement
Phase 1 & 2
In relation to realising the strategy for phase 1 & 2, the JCU has been working to capacity build and shape the strategic response with partners to the supply side skills challenges with all relevant partners and to influence the use of flexible funds (ESIF SFA / ESF, New Homes Bonus, CITB / LEP) where flexible funding can be used to fill gaps and in order to replace S106 funds (as above).Phase 3
The CITB and SFA need to recognise the strategic of role of local authorities as holders of S106 agreements; as funders of the employer engagement infrastructure that is in place; and the extent of the locally accountable activity with our partner FE Colleges and providers. There are 35% cuts to adult skills budgets 15/16 whilst apprenticeship funding is safeguarded with the control of content and purchasing moving towards employers. We need the SFA to work with us to develop a fit for purpose apprenticeship offer (as above) with NEW Apprenticeship Standards (previously frameworks) which are relevant to the employers on NEV.The next sections look at New Homes Bonus and how we may approach commissioning for Phase 1 and Phase 2 to replace / or in addition to any S106 funding.
2.0 Resources / New Homes Bonus
2.1 Local Authority
£70m of New Homes Bonus funding is being managed and allocated by the London Local Enterprise Partnership from 2015. The majority is being channelled to Local Authorities based on the submission of applications in line with LEP priorities. Both Wandsworth and Lambeth have received NHB allocations of which a portion is allocated to skills training.3.0 Commissioning and spendrationale
3.1 Procurement
The opportunity for further money for construction related training brings into focus the need to give thought to the manner in which the money will be spent and the process for procurement.This funding has the capacity to help make a material difference to the employability of local residents in the short term. This will therefore be a high priority for the JCU and the Boroughs to consider in the coming months.
Consideration needs to be given to the structure through which a strategic vision could be shared and a process agreed across the two boroughs. Commissioning could take place independently or jointly as appropriate or required. It is hoped that such an approach as recommended in Option 1 would bring consistency and structure accommodating flexibility and responsiveness whilst acknowledging the needs and opportunities elsewhere within the boroughs beyond the NEV developments.
The source of funding should be flexible for boroughs to decide whether NHB or more dedicate S106 funds should be used.
3.2 Spend Rationale
The commissioning responsibility is to achieve value for money and the greatest impact upon the skills and perhaps more critically, the employment status of local people.3.3Commissioning Structure to be agreed by Boroughs
3.4Rationale for the focus of funding
Funding will be focused on Phase 1&2 priorities: –- Pre-employment
- Pre-vocational
3.5Pre-employment
Pre-employment training spend is intended to make provision for short interventions and accreditations which can make the difference between a candidate getting a start in the industry or not, even when they may have studied for a craft skill. It is generally the case that SFA funding is used to offer longer accredited vocational courses and does not, as a rule, fund courses which are considered to address industry compliance. The evaluation of the FE pre-employment pilots has allowed us to draft a tight and targeted specification.3.6Pre-vocational
Where we engage with sub-contractors around their recruitment needs, and there is no relevant funded skills offer available, we will use funding either to fund specialised industry providers. E.g. Astins Pilot or develop short vocational courses with the local FE College using their facilities drawing down some SFA funding against framework units if available, but utilising the NHB funding to meet the gap, to develop and fund non-accredited units where required. E.g. Cladding Pilot. Funding may also be used to pay for materials / help leverage other resources to do so where costs require and benefits accrued make this worthwhile. Likewise, having undertaken and evaluated a couple of pre-vocational pilots, this has enabled us to identify and develop a set of key requirements. Though interest and take up from the industry may be patchy.4.0Quantifying NEV Construction Funding 15/16
4.1Scoping the funding requirement
Preliminary analysis has been done to help inform the local JCU funding requirements and outcomes for 15/16 which a commissioning process might deliver. However, it should be noted that this is ‘indicative’ as the picture is fluid:-- 15/16 ESP profiles to be finalised
- Post pilot FE Colleges are using SFA
- Brokerages using 3rd party providers for CSCS
- CLF pre-employment funding £800k to be prioritised when comes online
- Tickets (not fundable) are dependent upon changing recruitment needs
- Labour market demand for construction changing
- Leakage to other sites
4.2Pre-employment
Key considerations:-
-FE Colleges using SFA for (Introduction to Construction L1 and Health and safety L1)-Opened up links with Renaisi and Learning & Skills Solutions using SFA employability and key skills to pay for CSCS)
-Also, have CLF topslice £800k
Assumptions for throughput:-
-If we have the FE colleges deliver 8 cohorts each across the year each delivering 10 successful candidates = 160 (referred by brokerages)-3rd party providers = 100 successful candidates (referred by brokerages)
-75% get jobs = 195
-1 in 3 get jobs on NEV = 65
Outstanding Cost requirement - £45k max. per annum to be used for:-
- Cost of Cards £13k
- Self-employment training £tbc
- Tickets (locally responsive) £15k
- Support paid work placements £tbc
- 200 receiving construction specific advice
- 150 tickets funded
- 65 Unemployed or economically inactive entering employment - new jobs measured by job starts
- 50 unemployed or economically inactive people sustaining employment (Job sustainment 40 at 16 weeks & 30 at six months.)?
4.3Pre-vocational
Key considerations:-
-Important to use as pump priming for SEIF.-Hard to anticipate take up from sub-contractors.
-Costs for this provision can vary according to trade requirements / industry investment.
-Materials costs are a barrier to set up.
-Again, as above but use some funds to support travel and subsistence costs (traineeships / paid placements) Support LLW for those who may move onto apprenticeships £60k
Assumptions for throughput:-
-60 learner starts – 75% pass rate = 45 completions-40 work placement starts
-20 into jobs
-10 into apprenticeships
Outstanding Cost requirement - £115k max. per annum to be used for
- 60 starts at £1000 per candidate = cohorts of 10 x 6 courses per annum = £60k
- £15k materials
- £40k paid placements – (higher investment than pre-employment as route to apprenticeship)
- 80 receiving construction specific advice
- 60 tickets funded
- 45 learner completions (non-accredited)
- 40 work placements
- 20 Unemployed or economically inactive entering employment - new jobs measured by job starts
- 15 unemployed or economically inactive people sustaining employment (Job sustainment 40 at 16 weeks & 30 at six months.)?
- 10 apprenticeships starts
Paper 4: Pre-employment and skills provisionPage 1