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CIPD Coronavirus webinar series
Youth employment and skills post-COVID-19
30 July 2020
Welcome
Katie Jacobs, Senior Stakeholder Lead, CIPD
Katie Jacobs
Senior Stakeholder
Lead,
CIPD
Lizzie Crowley
Policy Adviser -
Skills,
CIPD
Today’s speakers
Karen Kelly
Apprenticeship
Adviser, Strategic
Development
Network
Kevin Brady
Director of HR,
Openreach
#StrongerWithCIPD
cipd.co.uk/memberbenefits
Covid-19 resources
NEW Well-being helpline
Employment Law helpline
Communities and branches
People Management
Knowledge and content
Free learning Careers support
Professional creditability
Financial support
ContextLizzie Crowley, Research Adviser, CIPD
Forecasts predict an uncertain but challenging economic context…
Source: OECD Economic Outlook , June 2020
Sharp rise in unemployment expected…
0
2
4
6
8
10
12
14
% o
f la
bo
ur
forc
e
Source: OECD Economic Outlook June 2020
Unemployment rate: trend and forecast (single hit scenario)
Young people have been hit hard by lockdown and are likely to bear the brunt of economic fallout …
Under 25s two and a half times more likely to work in sectors that were shut down compared with other employees (IFS)
Over 500,000 young people now claiming work related benefits – up 276,000 since March 2020 (ONS)
Leading to long-term employment and wage scarring
Impact of unemployment on employment prospects of school leavers 3 years later:
• a 13% lower likelihood of a graduate being in employment
• a 27% lower likelihood for those with mid-level (some higher education or an A-level-equivalent education)
• a 37% lower likelihood for those with lower-level (GCSE-equivalent or below) qualifications.
• 7% reduction in real hourly pay two years out from leaving education
Source: Resolution Foundation, Class of 2020
Alongside wider socio-economic long-term consequences…
Impact of youth unemployment in 1981 recession persists two decades on, research shows:
• Decreased life and job satisfaction
• Higher incidence of poor physical and mental health
• Increased likelihood of future spells of unemployment
Young People and the Great Recession IZA DP No. 5674 April 2011 David N.F. Bell David G. Blanchflower
The Government’s response so far…
A Plan for Jobs 2020
Kickstart Scheme
£2 billion funding for 6-month job placements at 100% of the NMW for a minimum of 25 hours.
For UC claimants aged 16-24 years
Traineeships
£111 million to triple the number of traineeships
to over 30,000
£1,000 bonus for each traineeship up to a
maximum of ten
Apprenticeship incentives
£2,000 bonus for recruiting under 25s, £1,500 for over 25s.
On top of existing incentives, which include
a £1,000 payment to take on 16-18 year olds.
CIPD viewpoint:
• How effective are measures likely to be?
• Any lessons from last recession?
• What's the role of the people profession?
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 13
SDN Karen Kelly, Apprenticeship Adviser
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 14
About SDN
• A team of impartial workforce development specialists
• Helping you launch and improve apprenticeships and other training,
aligned to your business and your people
• Work closely with government and employers on new training and work-
based placement initiatives
How do we work with employers?
• Through consultancy, staff training and resources
Link: www.strategicdevelopmentnetwork.co.uk/employers
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 15
Make business driven not incentive
driven decisionsBig picture
• Moment of opportunity to consider workforce strategies and ways of working
• What are we aiming to achieve, and over what timescales?
Skills needs and gaps
• What are the strengths and weaknesses in our workforce?
• Where are the gaps, now and (likely) in the future?
• What do we need to be successful in terms of skills, knowledge, experience and diversity?
Action
• How might we fill these gaps? Through development, recruitment or maybe other external
resources?
• When do we need to fill these gaps?
• Are there initiatives that could match our requirements?
Could you develop your own internal Plan for Jobs?
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 16
Work experience options
Age-group Minimum
HoursProgramme Student Payment Employer payment Progression
INDUSTRY
PLACEMENTS
Technical
Programme -
linked to T
Levels
16-19 315
2-year full-time
course
(equivalent to 3 A
Levels)
No
(unless by choice
or expenses)
**NEW** £750 to
employer if linked
to a T Level
- Higher / degree
apprenticeship
- Skilled
employment
- Further study
(UCAS)
TRAINEESHIPS
Skills
development
programme
16-24
(25 with
EHCP)
70
6 weeks to 1 year
L3 and below
No
(you may support
expenses such as
transport / meals)
**NEW** £1,000
incentive for up to
10 trainees for
new or expanding
employers
- Apprenticeship
- Employment
- Further study
Committed for 20/21 academic year – starting September 2020
Partner and Design with an Approved Training Provider
PLUS – Sector Based Work Academies (pre-employment training, 18+, guaranteed
interview)
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 17
Employees / Job creation
APPRENTICESHIPS – a Job with Training
• Can be new roles / recruits or used to upskill / retrain existing staff
• 568 apprentice standards available. Level 2 (GCSE) to level 7 (masters degree)
• Aged 16+
• Employed status for at least 12 months +
• Committed time to study / off the job training, 20% of working hours
• Pay salary, unlikely to pay employer NIC if apprentice is under 25
• Training programme paid through the levy or maximum 5% contribution
**NEW** Incentives only for new employees – all employers, all new apprentices starting between 1st Aug 20 and 31st Jan 2021
**NEW** £2,000 for 16-24 year old, £1,500 for 25+
Partner and Design with an Approved Training Provider
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 18
Apprenticeship Covid-19 flexibilities
• Imminent launch of a support service for redundant apprentices
• Universal Credit for redundant apprentices
• Furloughed employees can continue apprenticeship training and end-point
assessment (EPA), or start an apprenticeship
• Employer can report and initiate a break in learning where the interruption to
learning is greater than 4 weeks
• The Level 2 suspension of the rule on Functional Skills assessments extended
until 31 December 2020
• Any End-point assessment flexibilities introduced during the pandemic (approx.
100 standards) will continue until at least the start of 2021. There will be 12
weeks notice when future changes are announced.
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 19
Employees / Job creation
**NEW** Kickstart – (DWP policy) – await details
• new high quality job for 6 months
• 16-24 year olds on Universal Credit and at risk of long-term
unemployment
• 100% of the relevant National Minimum Wage for 25 hours a week
plus the associated employer National Insurance contributions and
employer minimum automatic enrolment contributions
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 20
Potential Benefits to Employers
Industry Placements, Traineeship, (Kickstart) and Apprenticeships:
• are flexible, can be sector focused and training is funded or heavily supported by the
government
• free to advertise positions (find an apprenticeship / traineeship) or be matched (Industry
placements & Kickstart)
• offer your current employees experience in training and mentoring
• allow you to design a programme that suits both the needs of your business and the needs of
the individuals
• can help you increase capacity and productivity
• can help you develop a loyal, talented and more diverse workforce
• allows you to help to tackle youth unemployment and skills shortages
• streamline recruitment processes through progression routes into and within your organisation /
succession planning
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 21
Considerations for Employers
Industry Placements, Traineeship, (Kickstart) and Apprenticeships
require:
• Investment in time to plan and maximise the opportunities
• Investment in relationship building with training providers
• Staff time to induct, supervise, mentor and give feedback
• Cost of resources in the workplace for work experience or new
employee, IT, equipment, tools, uniform, PPE
• Salary or expenses
Incentives can be used to support any of these
© 2020 SDN. No portion of this presentation may be reproduced without permission of SDN Enterprises Ltd. Please contact [email protected]
Slide 22
Key Links:
Contact
W: www.strategicdevelopmentnetwork.co.uk/employers
Links
Apprenticeships https://www.apprenticeships.gov.uk/employer
Apprenticeship
Coronavirus flexibilities
https://www.gov.uk/government/publications/coronavirus-covid-19-
apprenticeship-programme-response/coronavirus-covid-19-guidance-for-
apprentices-employers-training-providers-end-point-assessment-organisations-
and-external-quality-assurance-pro
Traineeships https://www.gov.uk/guidance/traineeship-information-for-employers
Industry Placements
/ T Levels
https://employerindustryplacements.com
Kickstart (await detail
from DWP)
https://www.gov.uk/government/topical-events/a-plan-for-jobs-2020
Sector Based Work
Academies
https://www.gov.uk/government/publications/sector-based-work-academies-
employer-guide/sector-based-work-academies-employer-guide
Supporting over 600 service providers
35,000 employees 25,000 engineers 16 years average service
31.8m UK customers
Kevin BradyDirector of HR Openreach
Questions
Please use the Q&A function to submit your questions
Please submit your questions for:
• Lizzie Crowley, Senior Policy Adviser, CIPD
• Karen Kelly, Apprenticeship Adviser, Strategic Development Network
• Kevin Brady, Director of HR, Openreach
#StrongerWithCIPD
cipd.co.uk/memberbenefits
Covid-19 resources
NEW Well-being helpline
Employment Law helpline
Communities and branches
People Management
Knowledge and content
Free learning Careers support
Professional creditability
Financial support
*New* Wellbeing Resources
• The resource provides:• Legal information
• Debt and financial information
• Manager consultancy and support
• Information on work and home issues
• Factsheets, advice, information and self-help tools
• Links to specialist support organisations
• A resources area with; programmes, videos, webinars, medical information and mini health checks.
• We’ve partnered with Health Assured to support members mental health and wellbeing
• Unlimited free 24/7 confidential telephone helpline, online portal & Health e-Hub app
Further information
NEW wellbeing helpline for CIPD members
CIPD coronavirus hub
Making apprenticeships future fit
CIPD community
Gov.uk/coronavirus
