Professional Documents
Culture Documents
employment gaps
July 2014
About Shaw Trust
Less than half of people with a disability, health To successfully bridge local disability employment
problem or impairment are in work. Compared gaps, LEPs and local government leaders must
to nearly eighty per cent of those without a take full advantage of new powers and funding.
disability, this stubborn gap in employment Clear plans to improve the employment
between disabled and non-disabled people prospects of people with disabilities, health
remains too large. problems and impairments must be placed
at the heart of local economic strategies.
This is a familiar element of the disability This report shows that local social enterprises
employment debate, but rightly so. Despite a providing ‘stepping stone’ employment
return to economic growth and rising overall opportunities have the potential to play a central
employment, in the past year the number role in achieving this aim.
of disabled people in work has fallen.1
Wide variation between local areas illustrates
the urgent need for new local solutions to
complement national efforts to support more
people with disabilities, health problems and
impairments into work.
The opportunity for local solutions community wellbeing and the environment.4
There is a further opportunity for local enterprises
LEPs are preparing to access over £15 billion to be tailored to address local skills gaps and
of pooled central funds in the next parliament. meet the needs of local job markets.
These new powers and funds available to local
economic areas represent a major opportunity A number of Shaw Trust Enterprises are
to remove barriers to work faced by people with developing and implementing this stepping stone
disabilities, health problems and impairments on approach across the UK, from Portsmouth to
a local level. It is essential that local economic Perth. Business activities range from gardening
areas take full advantage of this opportunity and wood recycling to catering and community
to bridge local disability employment gaps; to cafés. The early signs are positive: at Shaw
promote a more inclusive society and realise their Trust Enterprise Greater London, a wood
full economic potential. recycling centre in Bromley, sixty per cent
of trainees who have undertaken stepping
Robust policies to improve outcomes for stone opportunity have since progressed into
people with disabilities, health problems and mainstream employment.5
impairments must therefore be a central feature
of new local economic strategies. New local Through strong local partnerships with
solutions must be closely aligned with existing local authorities, employers and others, social
and future national specialist disability enterprises can make a significant contribution
employment support, which remains essential to bridging local disability employment gaps,
as new local services are developed over time. promoting community wellbeing and driving local
economic growth and prosperity.
Community-based social enterprises have the Shaw Trust Enterprise Clamp Hill
potential to play a significant role in bridging Shaw Trust Enterprise Greater London
local disability employment gaps, through the Shaw Trust Enterprise Hampshire
Employment opportunities for people with This opportunity must be grasped with robust
disabilities, health problems and impairments policies at the heart of local economic
remain too limited. Less than half of people with strategies, which effectively complement
a disability in the UK are in work, compared to 79 national provision. Chapter four presents a new
per cent of non-disabled people: a stubborn gap model of community-based stepping stone
of over thirty per cent.6 We know a substantial support, exemplified by a new network of local
proportion of those out of work do want a job, Shaw Trust Enterprises, with the potential to
but are currently deprived of the opportunity to play a central role in achieving this aim. With
gain independence, empowerment and inclusion local authorities and local enterprise partnerships
through employment. Our economy and society set to receive substantial new funds and powers
is further deprived of this significant potential within months – contingent upon demonstrating
contribution. clear plans to improve local outcomes – the time
to act is now.
The environment in which improved outcomes for
people furthest from the labour market are sought This report builds on Shaw Trust’s major
is fast changing. This report argues that there 2013 research project Making Work a Real
now exists a major opportunity for local areas Choice, (MWaRC) which laid out the case for
to exploit new powers and funds to bridge improving specialist employment support for
disability employment gaps locally, including people with disabilities, health problems and
through new ‘stepping stone’ employment impairments.7 Since Shaw Trust published
opportunities rooted in local communities. MWaRC, the Government has committed to
maintaining and enhancing a distinct national
Chapter two shows that disability employment specialist programme of personalised support
rates vary widely across the country on a local for people with disabilities, health problems
enterprise partnership level, suggesting a broad and impairments, and introducing a new needs
range of local barriers faced by people with assessment to better target provision; two key
disabilities, health problems and impairments recommendations from the final report.
across the country. Clearly, local solutions are
needed to complement national efforts to Getting the detail of these proposals right in
address barriers to work. the coming months will be crucial.8 This report
represents a further contribution to the debate,
Chapter three argues that there is now a major at a time when all the major parties – and newly
opportunity to identify and break down local empowered local economic areas – are seeking
barriers through newly devolved powers and new ways to improve the employment prospects
funding. Whilst £223 million has so far been of people with disabilities, health problems and
devolved through City Deals, in the next impairments across the UK.
parliament the major parties have pledged
at least £15 billion to local economic areas
through new combined funding pots. Crucially,
this will include funds for employment and
skills related provision. There is therefore clear
potential for local areas to make significant
progress in bridging disability employment gaps.
6
ONS Labour Force Survey, May 2014, Table A08
7
Shaw Trust (2013), Making Work a Real Choice: Where next
for specialist disability employment support?, final report
8
Shaw Trust’s response to DWP’s Disability and Health
Employment Strategy discussion paper is available at
http://bit.ly/1qDVu9g
People with disabilities, health problems There are wide local variations in disability
and impairments are not sharing in the employment rates
economic recovery.
For this report Shaw Trust analysed the
As the UK economy has returned to growth the employment rate of people with disabilities or
number of people in work increased by 722,000 health problems on a local enterprise partnership
in the year to March 2014.9 Yet people with (LEP) level – new partnerships between local
disabilities or health problems have not shared government and businesses assuming increasing
in this upturn. In fact, whilst the overall workforce influence over employment, skills and other
grew substantially in the past year, the number growth-related policies. Figure A on the next
of people with disabilities or health problems page illustrates these findings, showing the
in work has decreased by nearly 29,000.10 disability employment rate of England’s 39 LEPs
During this period the disability employment alongside the devolved nations of Scotland,
gap – the gap in employment rates between Wales and Northern Ireland,14 grouped into
disabled and non-disabled people – widened by seven colour-coded bands. Full data is available
a percentage point.11 in Annex A.
19 20 18
15
22 28
3 14
8
32
36 12
21
1 24
13
41
38 6 26
31
11 2
27 17
23
37 35
33
10
30
29 4
16
9
5
*National-level data has been used for
Northern Ireland, Wales and Scotland
Source: ONS Annual Population Survey, Jan-Dec 2012. Full data available in Annex A
80
70 78 77 77 77
75 75 75
60
50
52 52
40
40 44
30 39
34
20 27
10
0
Cumbria LEP Cheshire and Dorset LEP Oxfordshire Enterprise Buckinghamshire Hertfordshire
Warrington LEP LEP M3 LEP Thames Valley LEP
LEP
The potential of new local powers There is therefore a major new opportunity
for local economic areas to pro-actively
New powers flowing to local economic areas break down barriers to employment faced by
represent a major opportunity to improve people with disabilities, health problems and
outcomes for people with disabilities, health impairments.
problems and impairments through tailored
local solutions. The creation of new strategies for the adoption
of devolved funds has already begun through
Underpinned by cross-party consensus, recent LEPs’ Strategic Economic Plans and interlinked
progress in the devolution of central government strategies for control of new EU Structural and
funds to local economic areas looks set to be Investment Funds. It is essential that these are
followed by a substantial expansion in the next built upon with robust policies to bridge local
parliament. New powers are also flowing to the disability employment gaps. For the social and
devolved administrations in Wales, Northern economic reasons laid out in chapter two – and
Ireland, and particularly Scotland, in the context crucially to meet the terms of the public sector
of its upcoming referendum on independence. equality duty – these policies should be at the
heart of new local economic strategies. This
In England, 24 City Deals, agreements between will further enable LEPs and local authorities to
city regions and central government for the demonstrate the necessary ‘readiness’ to assume
devolution of new powers, have already been new powers, as areas are increasingly required
finalised. Yet whilst spending on City Deals by central government to ‘earn’ autonomy
totalled £223 million in their first four years, through the presentation of robust plans for
26
local enterprise partnerships will be able growth.
to access funds worth at least £15 billion in
the next parliament through pooled EU funds
worth €6.2 billion27 and a new Single Local
Growth Fund worth at least £10 billion.28 Labour,
Recommendation two: LEPs and
local authorities should take full advantage
meanwhile, has written to local authorities and
of newly-devolved powers and funding by
LEPs pledging access to at least £20 billion of
placing robust policies for bridging local
pooled central funding in the next parliament,
disability employment gaps at the heart
building on its plans for a new ‘English Deal’.29
of their economic strategies. This will be
Though some national programmes are likely essential to ensure fulfilment of the public
to remain, central to these efforts will be new sector equality duty, as required by the
local powers to control employment and Equality Act 2010.
skills provision. The Coalition has pledged
to give LEPs ‘real influence over local skills
delivery’, while Labour has promised local areas
‘greater control over skills budgets’, control of
‘funding for apprenticeships’ and the power 26
Public Accounts Committee (2014), Sixtieth Report, Promoting
economic growth locally, p.9
to ‘lead on delivering the Work Programme’.30
27
Department for Business, Innovation and Skills (June
2013), Written Statement to Parliament, European Regional
Development Fund and European Social Fund: allocations 2014
to 2020
28
HM Treasury (2013), Investing in Britain’s Future, p.57
English cities
30
Ed Miliband and Ed Balls letter to Local Government leaders
& LEPs (April 2014), available at http://bit.ly/1kN904h
one, adviser-led support to build confidence Annex One: an independent chapter by Inclusion
and motivation.35 The independent evaluation of DWP (2013), Evaluation of the Work Choice Specialist Disability
36
and providers.36 Indeed over forty per cent of Market: A tool for tackling long-term unemployment, Joseph
Rowntree Foundation
For example, a major study for DWP by back into their communities.
Professor Paul Gregg highlighted ILMs
as a particularly useful means of tackling In designing policies to bridge local disability
barriers to work faced by those furthest from employment gaps, it is essential that local
the labour market, and recommended their economic areas embrace interventions
adoption by providers.39 A study by the Joseph which the evidence indicates have the
Rowntree Foundation further found a typical greatest chance of improving outcomes. This
ILM programme to achieve “at least fifty per includes variations on ILM and social enterprise
cent higher job outcomes for the long-term approaches, which successfully provide
unemployed than other programmes”, and can individuals furthest from the labour market
provide “at least as good or better value for with the experience, confidence, skills and
money” than alternatives.40 ILMs were found personalised support needed for progression into
to be particularly effective when they were sustainable employment. Chapter four outlines
progression-focused, provided transferable one example of this model being implemented
skills, closely mirrored real labour market on the ground across the UK by Shaw Trust, in
conditions, and made jobsearch integral.41 the shape of eight community-based Shaw Trust
DWP’s evaluation of the Future Jobs Fund, a Enterprises.
major ILM programme for young people, also
However, it is firstly important to highlight
found a significant and enduring positive impact
an additional challenge which will be crucial
on the employment prospects of participants.42
to improving local outcomes for people with
More recent research has highlighted strong disabilities, health problems and impairments in
results achieved by ‘ILM social enterprises’, the emerging environment.
which implement an ILM approach for the most
disadvantaged jobseekers in social enterprises
that both trade within local communities and
provide additional social benefits. For example,
a review of 143 academic studies from the
UK, US and Australia highlighted that although
more research is needed, available evidence
“consistently shows that ILM social enterprises
can achieve their stated goals”.43
assistance, and other support from dedicated market social enterprises, p.6
case-workers.45 Social enterprises also 44
Ibid, pp.5-6
provide extra community benefits through their 45
Ibid, pp.7-9
sustainable business practices and reinvestment
highlighted that Work Programme customers in Pensions Select Committee Inquiry into the Youth Contract, p.7.
Available at http://bit.ly/1yi49Ap
Wales and Scotland have been unable to access
ESF-funded support, available to customers in Inclusion (2013), Hidden talents: national programmes for young
47
people
England.49
Shaw Trust (2013), Making Work a Real Choice: interim report
48
Wales, p.21
In CPA16, 27 specialist providers were identified in the City of
50
Bridging local disability employment gaps: Whilst at different stages of development since
Shaw Trust Enterprises beginning to implement the stepping stone
throughout the past year, each enterprise
Improving employment outcomes for people with seeks to offer unique work placements with
disabilities, health problems and impairments integrated training and support to individuals with
in diverse local economic areas will require disabilities, health problems and impairments
determined action to accurately identify local facing severe barriers to work. They also have
barriers to work. This must be followed up by the potential to deliver additional social and
robust, locally-tailored policies to effectively environmental value through their trade and
break them down, closely aligned with national investment in local communities.
provision.
The business activities of Shaw Trust Enterprises
Within this context, community-based social range from plant nurseries to grounds
enterprises have the potential to play a maintenance services and wood recycling, to
central role in bridging local disability kitchen catering services and community cafés.
employment gaps through the provision The early signs are positive: for example at
of unique ‘stepping stone’ employment Shaw Trust Enterprise Greater London in
opportunities. Bromley, a wood recycling centre, out of 28
participants with a disability, health problem or
The previous chapter outlined the available impairment who have so far undertaken a paid
evidence on common barriers to employment work placement with integrated training and
alongside research on ‘what works’ to support support, 17 have progressed into external
more people with disabilities, health problems employment; a sixty per cent progression rate.
and impairments into jobs. This highlighted
positive findings from approaches which closely
integrate work, skills training and personalised
support with a clear focus on progression into
mainstream employment. When operated out of
social enterprises, the evidence shows strong
results for achieving not only sustainable
employment outcomes in the mainstream
labour market, but also improving participants’
confidence and social skills; reducing
recidivism for ex-prisoners; and improving
community wellbeing and the environment.51
Westbank Enterprises:
Perth, Scotland.
Horticultural centre and plant nursery run in partnership with
Perth and Kinross Council. Soon to offer additional grounds
maintenance services, wood recycling, a retail store and
community café.
After spending some time as a volunteer tending Before the end of his paid placement, Lee saw
to local gardens, Lee’s Work Programme a carer role advertised at a local dementia
adviser suggested he volunteer on Shaw Trust home where he was looking after the garden.
Enterprise Hampshire’s 12-week work-based Lee applied for the role and was successful. He
training programme. Lee successfully signed begins work at the care home shortly.
up and completed the work placement and
training course, gaining a new qualification in the Lee says: “I’ve learned so much from
process. my time with the enterprise. I didn’t
do anything before, just stayed on the
He was then interviewed for a six-month settee. The experience helped me to meet
paid contract as a gardening assistant at the different people, get used to being in work,
enterprise, and was successful. This involved and improved my confidence. It’s a very
assisting his colleagues and team members to worthwhile scheme. It has brought me out of
provide grounds maintenance services to local my shell.”
schools, housing associations and hospitals,
helping with regular garden care, clearances and
landscaping.
This integrated and flexible stepping stone in Perth, for example, has been designed,
approach has the potential to make a funded and remains managed through an active
considerable contribution towards bridging local partnership between Shaw Trust and Perth and
disability employment gaps. Key to the model’s Kinross Council.
success will be:
Designed, funded and managed through a strong As a social enterprise, Westbank also brings
partnership between Shaw Trust and Perth and wider community benefits through the goods
Kinross Council, the project is a fully functioning and services it provides to local businesses and
commercial plant nursery producing and selling residents, environmentally friendly operations,
hanging baskets, plants, internal displays and and its continued investment into the community.
other items locally. However, it also provides Future plans for expansion include a new
unique ‘stepping stone’ employment opportunities community shop and café, grounds maintenance
for local people with disabilities, health problems services, wood recycling and biomass heating
and impairments, and others facing disadvantage – all of which will grow Westbank’s community
such as ex-offenders. impact and allow even more people in Perth and
Kinross to access stepping stone opportunities
By uniquely integrating work experience, and progress into work.
training and support, participants with serious
barriers to work are able to gain the confidence,
skills and experience to move into mainstream
employment. Opportunities are flexible and wide-
ranging to account for individual needs: from
low-skilled roles such as planting and picking, to
Jamie’s story
higher skilled work such as machine operation, Jamie Ferguson, from Perth,
managing deliveries, commercial sales and had been out of work for
environmental controls. two years after being made redundant.
His dyslexia and dyspraxia made writing
Alongside on-the-job guidance and training from
a CV, cover letters and application forms
nursery supervisors, participants complete basic
very difficult, compounded by not having
skills training courses and can work towards a
a reference from his previous job. Upon
formal horticultural qualification to bulk up their
joining Westbank Enterprises Jamie carried
CV. Additional personalised support, such as
out two days a week of work experience,
confidence-building, CV-writing and jobsearch
completed an employability skills training
assistance is provided by the on-site employment
course, and received extra support from
adviser, Giovanna. Each trainee agrees an action
Giovanna to write his CV and apply for
plan with Giovanna, focused on progression into
jobs. Thanks to the experience, training
mainstream employment.
and support received at Westbank, Jamie
has since been successful in gaining a
six-month job at the local council recycling
centre, which he hopes to make permanent.
52
Nockolds, D (2012), Exploring success
Rising employment across the UK is not filtering Finally, there remains a pressing need to further
through to people with disabilities, health build the evidence base to establish the most
problems and impairments. Policy makers effective innovations to support people with
must take urgent action to ensure a return to disabilities, health problems and impairments into
economic growth benefits this wide-ranging work. Research in this area remains insufficient,
group through clear strategies for bridging the making the identification of best practice and
disability employment gap. There is a clear moral its dissemination across the industry hard
imperative to break down the barriers to inclusion to achieve. Testing and evaluating different
and independence currently faced by thousands approaches, combining the collective efforts
of individuals with disabilities, health problems of the public, voluntary and private sectors, is
and impairments who want to work, while the therefore essential.
economic and social advantages to be gained
nationally and locally are too great to ignore. This report highlights a clear opportunity to
make significant progress on bridging local
Local areas have a clear opportunity to capitalise disability employment gaps. But it can only be
on new powers over employment and skills realised through a major collaborative, cross-
provision. But this will require concerted efforts sector effort to respond to local needs and
by local government leaders and LEPs to identify enhance support for people with disabilities,
local barriers to work faced by people with health problems and impairments across the UK.
disabilities, health problems and impairments.
Robust policies to bridge local disability
employment gaps must be placed at the heart of
local economic strategies, closely aligned with
national-level provision.
3. Integrating local and national provision The variety of barriers to work faced by
The design of new local solutions to bridge people with disabilities, health problems and
local disability employment gaps must impairments across the UK illustrates the
involve clear steps to integrate and align urgent need for locally tailored solutions to
local and national provision, through joint complement national provision. There is now
working between agencies and co-design a major opportunity – and clear social and
of services where appropriate. This will economic imperatives – for local economic
be essential to avoid service duplication areas to step up to this challenge.
and inconsistencies in support provided to
people with disabilities, health problems and
impairments furthest from the labour market.
52
Hertfordshire LEP 77
Buckinghamshire Thames Valley LEP 52
77
44
Thames Valley Berkshire LEP 76
44
Enterprise M3 LEP 77
43
Solent LEP 74
New Anglia LEP 43
76
Worcestershire LEP 42
76
Greater Cambridge & Greater Peterborough LEP 42
75
41
Gloucestershire LEP 77
41
York, North Yorkshire and East Riding LEP 76
Coast to Capital LEP 41
75
Oxfordshire LEP 40
78
40
West of England LEP 73
39
Greater Lincolnshire LEP 70
South East Midlands LEP 39
75
Heart of the South West LEP 39
74
39
Dorset LEP 75
South East LEP 38
72
37
Derby, Derbyshire, Nottingham and Nottinghamshire LEP 70
Leicester and Leicestershire LEP 36
71
35
Northamptonshire LEP 76
35
Swindon and Wiltshire LEP 74
35
Cornwall and Isles of Scilly LEP 69
35
Stoke-on-Trent and Staffordshire LEP 72
The Marches LEP 35
73
34
Cheshire and Warrington LEP 75
Humber LEP 33
69
Leeds City Region LEP 32
70
Lancashire LEP 32
70
32
London LEP 69
31
Scotland 71
31
Greater Birmingham and Solihull LEP 65
31
Coventry and Warwickshire LEP 72
30
Sheffield City Region LEP 68
29
Wales 67
29
Black Country LEP 66
28
Greater Manchester LEP 67
27
Cumbria LEP 75
27
North Eastern LEP 67
25
Tees Valley LEP 64
25
Northern Ireland* 67
24
Liverpool City Region LEP 66
0 10 20 30 40 50 60 70 80
Source: ONS Annual Population Survey, Jan-Dec 2012 (latest available data). The disability employment rate refers
to the percentage of 16-to-64 year olds with a DDA-defined and/or work-limiting disability who are in work.
Innovation European
Fund Social
New pilots Fund (ESF) European
for ESA programmes Regional
claimants Department
Development
for Work and Fund
Pensions
DWP/ESF
Families
Community Residential contracts
Troubled Budgets training EU Structural
families colleges and Investment
programme Funds
New Help to
Enterprise Work
Fair Allowance
Chance
Fund
Department for Single Local
Communities Growth Fund
and Local
Government
Local
government-led
employment
Local employment
pilots
and skills schemes
such as IPS
programmes,
Local authority NEET provision
NOMS/
The funding and LEP-led
programmes
and supported
employment
ESF
contracts Ministry of
‘spaghetti junction’
Justice Employment and skills
initiatives Youth
Cabinet Engagement
Fund
Transforming Office
Rehabilitation
contracts
NHS and
CCGs City Deals
Department for
Education
Jobs Growth
Wales Big Lottery
Devolved
nations National
Opportunities Citizen
Department Employee Service
for All – for Business, Ownership of
Scotland Skills support
Talent Match for Work Innovation and Skills
Programme Skills/Skills
leavers Funding Agency
Community
Jobs
Scottish Apprenticeships
Scotland
apprenticeship and
programme FE/training traineeships
programmes
National Supported
Careers Internships
Service