Economic Development Partnership Meeting 24 November 2006 ... · 2a Draft Terms of Reference for Economic Development Partnership . 2b Member Profile for Economic Development Partnership

Economic Development Partnership

Meeting 24 November 2006 2-4pm

Hackney Town Hall Room 103

Agenda

1. Welcome and apologies 2. Team Hackney Review of Thematic Partnerships 2a Draft Terms of Reference for Economic Development Partnership 2b Member Profile for Economic Development Partnership 2c Representation on Economic Development Partnership 3. Hackney LAA / Economic Development Block 4. Team Hackney LAA Strategic Commissioning Framework 5. Dates of future meetings




Agenda

1.

2.00pm

Welcome and apologies

Chair

2.

2.05pm

Team Hackney Review of Thematic Partnerships 2a Draft Terms of Reference 2b Member Profile 2c Representation

Chair

3.

3.00pm

Hackney LAA / Economic Development Block

Chair / LAA Working Group

4.

5.25pm

Team Hackney LAA Strategic Commissioning Framework

Chair / Jane Woolley

5.

3.40pm

Dates of future meetings

Chair

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Agenda Item 2

Team Hackney Review of Thematic Partnerships

Background In May 2006, Team Hackney Board agreed that a self-assessment review should be undertaken to assess the fitness for purpose of the partnership structure – with a specific emphasis on the Theme Partnerships – to deliver the Local Area Agreement (LAA) and other local priorities. The review was undertaken in 2 phases. The first phase involved the development of a comprehensive questionnaire, which was sent out to a sample of those involved in the 6 partnerships. A more simplified version of the questionnaire was sent to Team Hackney Board members. In total, 12 completed questionnaires were received from the 40+ that were sent out. The response to the questionnaire provided some indication of the important issues that need to be addressed by the Board. The second phase of the review process was to hold one-to-one interviews with key people to build on the information provided by the questionnaires and to explore particular areas of concern. In total, 21 people have been interviewed – including all the Chairs and support officers for the existing partnership structure, representatives for all key agencies and the voluntary and community sector – to identify the key issues for consideration by this report. The key recommendations action plan attached identifies what needs to be improved, proposes a lead officer and a date for completion. The report was endorsed by the Building Partnership Capacity Task Group on 11th September 2006 and the Team Hackney Board on 20th September 2006.

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Formation of the Economic Development Partnership The report recommended that the Dynamic and Creative Economy Partnership be disbanded and replaced with an Economic Development Partnership, building on the work of the ED PAT. The Team Hackney Board has now tasked the new Economic Development Partnership to:

- agree Terms of Reference - agree a member profile - agree representation.

Separate papers on each of these is attached. Arts and Culture The report specifically identified culture as a key area in the LAA – both in terms of economic vibrancy and the diversity and inclusivity of the wide range of cultural and creative activities and events in Hackney. This will be taken forward by the Director Team Hackney in separate discussions, leading to the formation of an Arts & Culture Implementation and Delivery Group. This group will be tasked with bringing together a clear terms of reference and outline framework for delivery across the LAA themes. However the report does task the Economic Development Partnership with ensuring that its strategic commissioning activities explore options for commissioning specific work within the cultural and creative industries to help meet our LAA targets. This is discussed further under agenda item 3. Action Required Members are required to:

- agree Terms of Reference - agree a member profile - agree representation.

Separate papers on each of these is attached. Members should note that the Team Hackney Board has asked all thematic partnerships to undertake an annual self-assessment, and this is incorporated in the draft terms of reference.

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Agenda Item 2a

Draft Terms of Reference for Economic Development Partnership

1. Support the development of an evidence based approach towards economic

development in Hackney – involving all the key agencies including LDA, LSC, JCP, London Borough of Hackney, business, community and voluntary sectors

2. Oversee the delivery of the economic development targets contained in the Local Area

Agreement (LAA) as agreed by Team Hackney Board 3. Ensure that the objectives and delivery activities of the Economic Development

Partnership and its member agencies are known to the City Strategy Pathfinder and the Local Employment and Training Framework programmes, so that these initiatives enhance our delivery at a local level

4. Oversee the LAA strategic commissioning process for interventions relating to economic

development 5. Ensure that a Performance Management Framework is established for the Partnership

and that performance information is regularly received, reviewed and programmes supported by the Partnership are amended to reflect this performance information

6. Provide regular updates on LAA delivery and performance to Team Hackney Board,

highlighting any areas of concern 7. Ensure that a shared understanding of the local economic development context and

priorities is established, updated and reviewed at regular intervals by the Partnership and that this information is shared across Team Hackney

8. Undertake a self assessment review on an annual basis to consider membership,

discuss strategy and look at the effectiveness of delivery 9. Sign up to work within the Guiding Principles of Team Hackney

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Agenda Item 2b

Member Profile for Economic Development Partnership

1. Understanding of the regional, sub-regional and local economic development issues in

London and Hackney 2. Experience gained at a senior level of developing and delivering economic

development strategies in an urban context 3. Knowledge of recent policies and initiatives affecting the economic development

agenda for London and Hackney 4. Understanding of the priorities, mechanisms and outcomes of Hackney’s Local Area

Agreement and how this will work as the key delivery and performance vehicle for Team Hackney

5. Experience of working in partnership with other organisations and agencies to deliver

similar outcomes 6. Understanding of the barriers and obstacles affecting priority groups most adversely

affected by worklessness in London and Hackney 7. Knowledge of ‘what works’ in terms of helping to alleviate worklessness in a London

and Hackney context 8. Have access to appropriate networks to disseminate information to other partners and

organisations not directly represented on the EDP 9. Be able to make decisions on behalf of the organisation being represented including

being able to commit resources into the borough

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Agenda Item 2c

Representation on Economic Development Partnership

Background The recent review of Team Hackney thematic partnerships has recommended representation on the Economic Development Partnership. This paper lists the recommended membership and what next steps are now required to identify and agree the full membership of the new partnership. Named organisations London Borough of Hackney (Executive Director and Cabinet Member with responsibility for employment and enterprise) Learning and Skills Council Job Centre Plus London Development Agency (Business and Skills) The Learning Trust Hackney Enterprise Network ELBA Community College Hackney Other representation VCS (2 representatives)

- the member profile will be forwarded to the Hackney Community Empowerment Network, who will be asked to submit nominations. These will be circulated to EDP members for comment and agreement. If more than two nominations are received, the partnership may wish to consider holding interviews with nominees.

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NHS - it is suggested that a representative be invited from the Homerton University

Hospital Trust Regeneration Partnership

- it is suggested that a representative be invited from the City Fringe Partnership Business (2 representatives)

- members will need to discuss options for identifying suitable representatives from the private sector

Team Hackney Board (if not one of the above)

- currently both JobCentre Plus and the Learning and Skills Council are members of the Team Hackney Board

A representative from the Government Office for London will be invited to meetings of the Economic Development Partnership as an observer. Action Required Members to agree next steps for identifying the full membership of the new partnership.

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Agenda Item 3

Economic Development Block of the Hackney LAA

Background Economic development is one of the four blocks, or themes, of Local Area Agreements. Within each block partnerships are required to:

- agree performance targets (mandatory and local) - identify funding streams - identify any enabling measures (regulatory freedoms and flexibilities)

Under the former Economic Development Priority Action Team a small LAA working group was established, with members from Jobcentre Plus, Learning and Skills Council, LDA, HTEN and the LBH Economic Development Team, and supported by the Team Hackney partnership office. The first draft of the LAA was submitted to central government on 29 September 2006. A final draft must be signed off by the Team Hackney Board and submitted by 15 December 2006. The LAA, once agreed, will come into force on 1 April 2007, for a three-year period. Issues The mandatory outcome of a 1% increase in the employment rate poses a particular challenge for Hackney, where the employment rate has remained steady or in slight decline for a number of years. The LAA working group has therefore attempted to identify realistic local targets that will support achievement of the mandatory targets and, in the first draft, had not identified a stretch target in the economic development block.

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Central government has stated that the block must contain at least one stretch target, and the revised targets attached suggest a stretch target to reduce the proportion of claimants on long-term Incapacity Benefit. A copy of the revised targets is attached. Members should note there are a number of issues still in discussion on the revised targets. The LAA working group next meets on 24 November, ahead of the EDP meeting, and will provide a verbal update to the partnership meeting. Action Required Members are asked to:

- note progress on developing the economic development targets for the first Hackney LAA

- seek a verbal update from the LAA working group - note that an extraordinary meeting of the Economic Development Partnership will

be held in early December to agree this block of the LAA before it goes to the Team Hackney Board for final agreement.

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Hackney Local Area Agreement

Economic Development Block

Economic Development Partnership Board

Mandatory outcomes Mandatory Indicators Baselines

Targets 2007/08

Targets 2008/09

Targets 2009/10

Lead partner

Within that NRF district a reduction by 2007-8 of at least 2 percentage points in the overall benefits claim rate for those living in the Local Authority wards identified by DWP as having the worst initial labour market position. Note: all wards in Hackney with only two exceptions are DWP-identified

Working age benefit claimant rate – 23.6% Total benefit claimants – 32,700 NOMIS Feb 2004

Unstretched target 2% By March 08 21.6% As at Feb 06 22.9%

21.5% 20.5%


Within each NRF district, for those living in the wards identified by DWP as having the worst labour market position (as at February 2004), significantly improve their overall employment rate and reduce the difference between their employment rate and the overall employment rate for England Employment rate Hackney 55.5% (2004) 53.2% (2006) England 74.5% (2004) 74.2% (2006) Difference 19% (2004) 21% (2006) NOMIS

Within that NRF district a reduction by 2007-8 of at least 2 percentage points in the difference between the overall benefits claimant rate for England and the overall rate for the local authority wards with the worst labour market position.

Working age benefit claimant rate (LBH) – 23.6% England = 13.4% Difference = 13.2% NOMIS Feb 2004

Unstretched target 2% By March 2008 11.2% difference As at Feb 06 Hackney 23.9% England 15% Difference 8.9%

11% 10% Economic Development Partnership

Other outcomes

Other indicators Baselines

Targets 2007/08 (including any stretch targets and their annual unstretched target)



Lead partner

Increase employment rates of people aged 18-24

Number of residents aged under 25 assisted into sustainable employment of 16 hours or more per week for 13 consecutive weeks

The LAA will provide funding for new projects therefore there are no current performance / baseline figures

Unstretched target – N/A (not a current activity) Stretch target - 100

Unstretched target – N/A Stretch target - 100

Unstretched target – N/A Stretch target - 100


Increase employment rate of working age residents in Hackney

Number of economically inactive residents assisted into sustainable employment of 16 hours or more per week for 13 consecutive weeks

The LAA will provide funding for new projects therefore there are no current performance / baseline figures

Unstretched target – N/A (not a current activity) Stretch target – 100

Unstretched target – N/A Stretch target – 100

Unstretched target – N/A Stretch target – 100


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Increase in proportion of working age Hackney residents who have NVQ Level 1 qualifications

7.9% c.f. London 10.6% England & Wales 14.6% APS 2005

1% increase 1% increase 1% increase Economic Development Partnership

Increase in proportion of Hackney residents who have NVQ Level 2 qualifications

9.8% c.f. London 11.6% England & Wales 16% APS 2005


Improve strategic planning and commissioning of all 19+ training provision in Hackney to support improved skills and qualification levels among Hackney residents

Increase in proportion of Hackney residents who have NVQ Level 3 qualifications

9% c.f. London 11.9% England & Wales 15% APS 2005


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Funding Streams for block Allocation Note: In 2007/08 funding streams will be aligned to support delivery against agreed targets, and reviewed for 2008/09 & 2009/10

07/08 08/09 09/10

Jobcentre Plus TBC, majority of programme funding is contractually committed to March 2008

TBC TBC

Learning & Skills Council TBC, 2005/06 investment in Hackney was £37.6m

TBC TBC

London Development Agency TBC TBC TBC

NRF £1.5m N/A N/A

LAA Pump Priming Grant £0 £1.5m £1.5m

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Team Hackney Strategic Commissioning Framework

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ENABLING MEASURE REQUEST TEMPLATE Title of Enabling Measure Request: Extension of JCP Worktrial Provision LAA area: Hackney LA Contact Officer details: Name: Telephone: Email:

GoL Contact Officer details: Name: Telephone: Email:

Government Department contact submitted to: Name: Telephone: Email:

LAA Block enabler request relates to: Economic Development LAA outcomes(s) request relates to: Increase employment in Hackney Description in full of the Enabling Measure request: The current JCP Worktrial period is limited to 3 weeks. The request is to:

Allow this period to be extended for up to 6 weeks Allow the existing standard Worktrial beneficiary allowance being payable i.e. £3

per day for meals plus all travel costs and a £15 a week premium for New Deal Lone Parents

What is the constraint to achieving this outcome that the Enabling Measure would overcome? How would it do this? What are the implications of not agreeing the request? There are 52,100 economically inactive Hackney residents, of which 7,300 are lone parents on some form of benefit and 13,100 people are on Incapacity Benefit. There are 8,053 people claiming JSA. It is likely that Lone Parent and Incapacity Benefit claimants will be concerned about entering employment because if they were to subsequently to lose that job they would be seen as a job seeker rather than being able to claim income support or Incapacity Benefit. There is also a significant number of long-term unemployed or workless who may have concerns about entering employment. More than one third (36.5%) of the workless in Hackney have never worked. Some 19,759 working age people, including 7,430 men, have never had a job. This is shown in the table below:

Duration of worklessness

Males Females All People

Number Percent Number Percent Number Percent

Worked in last year

6,932 29.1% 6,521 21.6% 13,453 24.9%


Over 5 years 4,654 19.5% 6,141 20.3% 10,795 20.0%

Never worked 7,430 31.2% 12,329 40.8% 19,759 36.5%

The constraint to achieving this outcome is that current DWP policy restricts benefit recipients from taking up full time work placements for longer than 3 weeks without breaking benefit regulations. In the case of IB clients any move to testing out work would result in loss of IB as they would be showing that they may be capable of working. The implications of not agreeing the request is that the Economic Development Partnership would not be in a position to use the existing work trials programme as effectively to target specific sections of the workless population, who are the most reluctant to leave benefits. In the transition from benefits to work, the potential to signpost employers and beneficiaries to Train to Gain will also be lost as no aftercare contact is maintained when people are in work. Additionally in response to the barriers to employment created by the benefits trap, discretionary funded interventions are designed, which take people out of the benefits system into supported subsidised employment. Such interventions are expensive and difficult to sustain in the long term. Government Department response to the request?

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ENABLING MEASURE REQUEST TEMPLATE Title of Enabling Measure Request: Extension of JCP New Deal Self Employment Provision LAA area: Hackney LA Contact Officer details: Name: Telephone: Email:



LAA Block enabler request relates to: Economic Development LAA outcomes(s) request relates to: Increase employment in Hackney Description in full of the Enabling Measure request: Extend the Self Employment Provision to all unemployed and economically inactive Hackney residents. Currently the Self Employment Provision is available to New Deal 25+ after 18 months on JSA and New Deal 18-24 after 6 months on JSA. This extension would see Self Employment Provision made available as an option from day 1. What is the constraint to achieving this outcome that the Enabling Measure would overcome? How would it do this? What are the implications of not agreeing the request? There are 52,100 economically inactive Hackney residents, of which 7,300 are lone parents on some form of benefit and 13,100 people are on Incapacity Benefit. There are 8,053 people claiming JSA.

The Self Employment option aims to help improve claimants’ chances of finding independent self-employment by providing access to good quality advice and training; and where appropriate the opportunity to undertake a period of ‘test trading’. This allows people to experience the realities of self-employment while continuing to receive training, help and support from a provider. Main features: - A basic awareness and information session delivered by a suitable provider;

(depending on the needs of the individual, this is by one to one sessions or in a group)

- A full evaluation of the person’s business idea. The business idea is discussed and the likelihood of it leading to a sustainable business which is compatible with the person’s circumstances. This is to ensure that the person does not have any unrealistic expectation of their ability to succeed in Self-employment.

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- One to one counselling or a short course. The person receives training, mentoring and help to draw up a business plan.

- Employment Option – Self-employment – known as ‘test trading’. Where someone shows the potential to succeed in self-employment, but are unable to enter independent trading immediately, they can choose to undertake a programme of training & support known as ‘test trading’.

During the period 01/04/05 to 31/03/06 in Hackney: - New Deal For Young People (18-24 yr olds)

11 entered ‘test trading’ of which 7 successfully completed & started trading as self-employed (a 64% success rate)

- New Deal 25+ (Over 25 yrs)

89 entered ‘test trading’ of which 64 started trading as self-employed (a 72% success rate).

This is clearly a highly successful option for a relatively small number of people. Current DWP policy restricts support for claimants to receive advice and support on self-employment, and to enter test trading, to New Deal 25+ after 18 months on JSA and New Deal 18-24 after 6 months on JSA. We believe that this option should be available to all JCP clients from Day 1. While the numbers will be relatively low, JCP advisors are able to target provision to those most likely to benefit, and we anticipate that similarly high success rates would result from wider and earlier access to the offer. The implications of not agreeing the request is that we lose early opportunities to identify and support suitable claimants into self employment, and thus off benefits. If people are moved off benefits earlier, there will be overall saving to DWP. Government Department response to the request?

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ENABLING MEASURE REQUEST TEMPLATE Title of Enabling Measure Request: Pilot revised provision of Basic Skills training for non-New Deal JSA claimants with no qualifications LAA area: Hackney LA Contact Officer details: Name: Telephone: Email:



LAA Block enabler request relates to: Economic Development LAA outcomes(s) request relates to: Increase employment in Hackney Description in full of the Enabling Measure request: This enabling measure would support a small pilot group of individuals who will be able to access revised arrangements for the provision of Basic Skills provision for non-New Deal JSA claimants, so that training could be extended beyond the current A, B and C options (see below) to up to one year equivalent of guided embedded learning hours, with training allowance payable for the duration of training. The target pilot group is those people with no qualifications, with a view to them achieving Entry Level 3 (the level considered a minimum pre-requisite for employment). This will require a temporary amendment to the national LSC Basic Skills contract. What is the constraint to achieving this outcome that the Enabling Measure would overcome? How would it do this? What are the implications of not agreeing the request? The constraint Currently non-New Deal JSA claimants can access JCP / LSC approved or contracted Basic Skills Courses within the following options: A – 20 hours a week over 6-12 weeks (with training allowance) B – 9-12 hours over 8-14 weeks (without training allowance) C – 239 guided learning hours (without training allowance). These options are based on the needs of an average learner. However, our experience in Hackney suggests that we have high numbers of learners with needs well above those of the average learner. Skills levels in Hackney This broad context for the alternative provision (and the enabling measure which is

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consequently required) is the large number of Hackney residents without qualifications (29%, c.f. 23.7% across London). The most up-to-date estimation of the extent of ESOL, literacy and numeracy skills deprivation comes from the 2002 DfES Skills for Life Survey, a national survey based on samples taken at ward level. These statistics need to be treated with caution. Nevertheless, this evidence suggests that approximately half of all adults in Hackney have a lower level of literacy and would struggle to gain the Level 2 National Literacy Test. Up to 90% of Hackney adults would be unable to pass the Level 2 National Numeracy Test. According to the 2002 DfES Skills for Life survey: • 34% of Hackney households speak English as a Second Language. • 14% of Hackney residents with English as a Second Language have Entry Level skills. The churn in JSA claimants Out of a sample of 730 JSA claimants in Hackney 64% had left work and claimed JSA at least twice within one year suggesting that many people are entering into short term or unstable employment and soon return to the unemployment register. Low basic skill levels are thought to be a contributing factor to people not remaining in employment and returning to the claimant register. Success of current provision In 2005/06, the district JCP figures show that there were 1,032 leavers of Basic Employability Training (BET) and Full-Time Education or Training (FTET), of which 24% went into work from a 26 week course. Despite offering a 26 week course, and not the 12 weeks offered to most individuals, this rate is well below the 48% of leavers into jobs achieved overall under New Deal options in Hackney. To support people with no qualifications to attain Entry Level 3 will require is clearly longer than 239 hours or 12 weeks. Furthermore, if an individual has not been in employment or education for some years, or were taught and /or studied for the first time in a country where teaching and learning methodologies were very different, additional time and support is required. The time required for a Literacy or Numeracy learner to progress from one level to another is not prescribed. As a guide for ESOL, an average learner needs 100-120 hours of guided learning per level and per mode (modes are speaking, listening, writing). So, an average ESOL learner with no qualifications at Entry 1 ESOL would potentially need 600 hours to progress 2 levels (200 hours of each mode). JSA customers referred to this learning option are unlikely to be average learners and may need longer to progress. The Economic Development Partnership is committed to aligning mainstream and agency budgets to support improved Basic Skills provision that is better tailored to the needs of Hackney’s population. If this measure is agreed, the LDA and LSC will develop a pilot in Hackney to deliver work-focused / embedded Basic Skills provision that will support FTET provision. Implications if the measure is not agreed Under the existing provision 76% (or more) of individuals that are assessed as requiring

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Basic Skills support through FTET training will not secure employment and remain on benefit. With a range of employment-focused Basic Skills and FTET offered for 26 weeks in 2005/06, the impact on Hackney’s labour market was no change in employment rates and a level of residents without qualifications far above the London average. With reduced provision and with shorter duration (i.e. up to 12 weeks over 16 hours weekly attendance, and this for only a percentage of the 400 available places in Hackney) the implications are a further erosion of the employability of Hackney’s working age population. If the request cannot be agreed what other options may be available to resolve the issue? We would need to look at existing JCP/ LSC approved Basic Skills provision and explore whether some of the provision could be re-designed in line with the alternative provision described above. However this pilot scheme would usefully inform any longer-term consideration of existing provision. Government Department response to the request?

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ENABLING MEASURE REQUEST TEMPLATE Title of Enabling Measure Request: Extended In Work Housing Benefit LAA area: Hackney LA Contact Officer details: Name: Telephone: Email:



LAA Block enabler request relates to: Economic Development LAA outcomes(s) request relates to: Increase employment in Hackney Description in full of the Enabling Measure request: The enabling measure is to pilot extending Housing Benefit payments from 4 weeks to 8 weeks for eligible beneficiaries (e.g. on benefit for minimum of 6 months), Income Support (Lone Parents), Incapacity Benefit (IB) and Young People on JSA entering employment. All claimants meeting the 26 weeks criteria would be paid. By extending the in work housing benefits offer to 8 weeks, people will be encouraged to return to the labour market as there is an increased financial incentive and the financial risk associated with returning to work will be somewhat mitigated. This will support the transition into employment from benefit dependency and support retention of work and enterprise. The target groups who would be prioritised for this extension are in significant numbers in Hackney: There are 13,100 people claiming incapacity benefits or severe disability

allowance. Over 8,000 lone parents in Hackney claiming benefit Young people: There are 2,040 under 25 year olds claiming JSA, representing 8%

of the working population and 25% of all claimants. There are over 600 16-19 year olds claiming JSA.

The current systems can be hard to access. To qualify claimants must be in receipt of JSA, Incapacity Benefit or Income Support for 26 weeks continuously. There is no need to make a written claim, but the local authority needs a notification from the DWP within 28 days of the employment start date (and may state HBRO conditions satisfied). The local authority makes a decision whether to award based on this notification, which may be unclear at times. Lone Parents returning to work can currently benefit from the extended housing benefits outlined and are not always aware that they need to make an immediate in work claim, and that if they use a registered child minder, they can secure further benefit support. Further assistance can also be gained via Tax Credits system.

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DWP would need to commit the additional resources to cover the cost of the additional four weeks housing benefit payment. To complement this, the Economic Development Partnership would support the Hackney Housing Benefits team to provide advice and guidance sessions on HB entitlement and processes for Hackneys providers and IAG staff. What is the constraint to achieving this outcome that the Enabling Measure would overcome? How would it do this? What are the implications of not agreeing the request? The in work benefit policy would require a change in terms of Housing Benefit entitlement, extending the period that Housing Benefit is paid after a JSA, IB or income support claimant is in work from 4 to 8 weeks. The enabling measure would financially support the transitional process back into work for those groups that are benefit dependent by supporting one of the largest expenditures for claimants in Hackney. If this is not agreed the evidence shows that in Hackney the inactive benefit clients e.g. Incapacity Benefit and Income support are increasing and there is a lack of incentives to move people back into work. Government Department response to the request?

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Agenda Item 4

Team Hackney LAA Strategic Commissioning Framework

Background In March 2006 the Team Hackney Board adopted a strategic commissioning framework for the allocation of Hackney’s NRF grant. This has been piloted for three Floor Target Action Plans (Worklessness, Infant Mortality and Guns and Gangs), and subsequently reviewed. The Team Hackney Board Champions agreed a revised strategic commissioning framework on 7 November 2006 (copy attached). Issues This framework will now be used for all commissioning of activity under the LAA. As the body responsible for overseeing commissioning on the economic development block of the LAA, members will be involved in agreeing commissioning priorities, approving commissioning proposals, and monitoring performance of commissioned activities. Action Required It is suggested that members agree to task the LAA Working Group to bring a paper outlining possible commissioning priorities to the Economic Development Partnership in January 2007.

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Team Hackney Strategic Commissioning Framework Contents Page

Overview 2

Strategic commissioning – the ‘ten steps’ 4

The strategic commissioning process 6

Compliance with LBH Gateway Process 9

Team Hackney strategic commissioning timeline 10

Roles and responsibilities 12

November 2006

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Overview

This document sets out the role and responsibilities of Team Hackney - the Hackney Local Strategic Partnership - in identifying activities and interventions which will be funded by the Neighbourhood Renewal Fund.

Strategic commissioning is an activity that spans the whole of Team Hackney’s work. The purpose of Team Hackney is, through understanding of the local community it serves, to generate new and more effective ways of intervening to support local people in improving the quality of their lives. Strategic commissioning is a process through which the organisation will translate this commitment into action.

This requires the leadership of the Board and partners in creating an organisation which has the culture, capacity and processes to make decisions based on evidence, design actions and interventions based on a detailed understanding of the issue and of local circumstances, to set clear expectations and outcomes and then performance manage these in accountable and transparent way.

Strategic commissioning is therefore an activity designed to secure the delivery of priority outcomes based on analysis and evidence in an effective and transparent way. Strategic commissioning is not solely contracting or procurement although this is an important element of the process, and more importantly, it is not competing for funding but working together to invest public resources where they can make clear impact.

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Strategic commissioning – the ‘ten steps’

The Step Description Responsibility of One Understanding Needs

Consider the evidence base in order to understand the needs of the local community and identify the priority outcome areas and targets of the Hackney Local Area Agreement

Team Hackney Board / Performance Task Group / Thematic Partnerships

Two Setting Commissioning Priorities

Consider the baseline and direction of travel on key LAA targets and agree priorities for strategic commissioning

Performance Task Group / Thematic Partnerships

Three Designing the Brief

Produce a diagnosis of the challenge demonstrating an understanding of issues to be addressed to achieve LAA targets and develop tender specifications designed to deliver the outcomes identified

Thematic Partnerships

Four Challenging / Approving the Brief

Challenge the diagnosis and proposed action using agreed criteria, and approve briefs to go to tender

Board Champions

Five Procuring

Undertake competitive tender exercise and make recommendations to Board Champions on award of contract

Thematic Partnerships, with Team Hackney Strategic Commissioning Manager

Six Approving the Contract

Approve award of contract Board Champions

Seven Contracting

Negotiate detailed SLA with successful delivery organisation


Eight Contract Monitoring

Ensure that services are being delivered and are achieving their outcomes, performance manage and take proactive steps to address poor performance


Nine Evaluating

Evaluate performance against LAA targets


Ten Reviewing Needs and Priorities

Review LAA priorities and revise outcomes and targets through annual LAA ‘Refresh’ process



The strategic commissioning framework in detail

The Step Description Responsibility of One Understanding Needs

Consider the evidence base in order to understand the needs of the local community and identify the priority outcome areas and targets of the Hackney Local Area Agreement


The Team Hackney Board and its thematic partnerships have access to a wide range of evidence which has informed the development of the first Hackney Local Area Agreement (LAA). This evidence base will be further enriched by qualitative information gathered through additional research and through the evaluation of programme activity. The Performance Task Group considers the evidence on the current position on each of the LAA priorities identifying where and for whom the gap is widest and understanding the factors behind this. Where there are data gaps or information is insufficient the Performance Task Group may commission further research. The Team Hackney Board discusses this information and uses it as a basis to determine the priority outcome areas of the LAA using the following criteria:

- the issue is supported as an area requiring priority attention both by the current evidence provided through the local and national agencies and by the perception and experience of residents and board members;

- the issue is one in which the Team Hackney partnership is able to do something by acting with others to change. The issues identified are ones in which partnership working adds value and where an effective solution can not be identified by a partner organisation or agency acting alone;

- the activity proposed is not funded from any other funding source. Two Setting Commissioning Priorities

Consider the baseline and direction of travel on key LAA targets and agree priorities for strategic commissioning

Performance Task Group / Thematic Partnerships

The Performance Task Group looks in detail at the baseline measurements and direction of travel on key LAA targets and agrees priorities for strategic commissioning. It needs to be recognised that not all LAA targets will require activity to be strategically commissioned, as existing mainstream and other budget commitments are supporting the delivery of these. The priorities will be communicated to thematic partnerships, who will agree detailed commissioning priorities and identify those groups charged with developing the Step 3 commissioning brief.

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Produce a diagnosis of the challenge demonstrating an understanding of issues to be addressed to achieve LAA targets and develop tender specifications designed to deliver the outcomes identified

Thematic Partnerships

Thematic partnerships and task groups complete the LAA strategic commissioning template. This must provide a robust analysis of the evidence, and an understanding of the issues to be addressed in order to achieve LAA targets. The template then requires partnerships and task groups to draft the tender specifications detailing the requirements of the contract, the deliverables and the timeframe. At this point strict conflict of interest procedures are applied so that thematic partnership and task group members are not involved in the development of the brief where they or the organisation of which they are a member is perceived to be in a position to directly benefit from future commissioning and delivery. Four Challenging / Approving the Brief

Challenge the diagnosis and proposed action using agreed criteria, and approve briefs to go to tender

Board Champions

The brief is presented to the Board Champions who use the following criteria to assess the robustness of the brief:

Is there a clear evidence base that demonstrates an understanding of the nature of the problem/s and issue/s?

Is the data used recent, relevant and robust? Does the brief provide a clear statement of what will be delivered? Does the activity proposed clearly address the identified issue/s? Does the activity proposed clearly deliver specified LAA targets? Does the brief identify innovation, risks and an options analysis? Does the proposed activity add value to existing provision? Does the brief make the necessary links with other parts of the LAA programme? Are the resources required reasonable? Are there other funding streams that could support this work? Is there a clear strategy for supporting and/or mainstreaming the work post-NRF?

If the Team Hackney Board Champions are satisfied that the thematic partnership or task group has developed a good understanding of the issue and that the proposed activity directly addresses the issue it authorises the partnership or task group to go to tender.

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Five Procuring

Undertake competitive tender exercise and make recommendations to Board Champions on award of contract


All activity will be commissioned through a competitive procurement process. If thematic partnerships believe that a robust business case exists to warrant single tender action they must discuss this with the Team Hackney Strategic Commissioning Manager in the first instance. It should be noted that under the relevant Contract Standing Orders any approval for single tender action can only be given by the Assistant Director Procurement, and this would be required before any proposal was taken to Board Champions for agreement. Any approval for single tender action is subject to a value for money assessment by procurement officers. The standard procurement route will be to advertise the tender in:

- Hackney Today - Supply2gov.co.uk - Team Hackney website - LBH website - by email to all Team Hackney partners who can circulate it through their own

communication channels and networks. Partners may wish to consider advertising some invitations to tender nationally, and will also need to confirm to any OJEU procurement regulations. The Team Hackney Strategic Commissioning Manager works with thematic partnerships through the procurement process. A multi-agency assessment panel is convened to shortlist tenders and to interview and select delivery agencies. Again, strict conflicts of interest procedures will be applied so that assessment panel members will not be involved where they or the organisation of which they are a member is perceived to be in a position to directly benefit from the contract. Six Approving the Contract

Approve award of contract Board Champions

Board Champions will receive a brief report that summarises the tender responses received, details of shortlisting assessment, and outcomes of tender interviews, with a recommendation on the award of the contract. Where possible these will come to meetings of Board Champions, however in order to ensure an efficient process some reports may need to be circulated out of session.

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Seven Contracting

Negotiate detailed SLA with successful delivery organisation


The Team Hackney Strategic Commissioning Manager oversees the process of negotiating and agreeing contracts with delivery agents. The detailed activities, work programme (with deadlines / delivery dates), outcomes (including details of how and when these will be measured, reported and audited) and budget for commissioned activities will need to be negotiated and agreed as part of this process. Thematic partnerships and task groups will be engaged in this process as they have the detailed expert understanding of the required service and will lead on contract monitoring. Eight Contract Monitoring

Ensure that services are being delivered and are achieving their outcomes, performance manage and take proactive steps to address poor performance


Regular contract monitoring will be undertaken jointly by the nominated thematic partnership lead and the Team Hackney Strategic Commissioning Manager. This will be through quarterly monitoring reports and contract review meetings. The Team Hackney Strategic Commissioning Manager will work with thematic partnerships to ensure that there is robust monitoring of the progress and performance against the deliverables set out in the contract. Where a delivery agency underperforms the Strategic Commissioning Manager has the responsibility to take steps to address underperformance. The emphasis of this process will be support delivery agencies to improve their performance. Authorisation will be sought from the Team Hackney Board Champions where any significant variations to the contract are being proposed or when the Strategic Commissioning Manager recommends that the contract should be withdrawn or services decommissioned.

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Nine Evaluating

Evaluate performance against LAA targets


The Performance Task Group has the responsibility of overseeing the performance of the delivery agencies in achieving the Local Area Agreement targets. This will be managed through Team Hackney Performance Management Framework. Ten Reviewing Needs and Priorities

Review LAA priorities and revise outcomes and targets through annual LAA ‘Refresh’ process


The continued development of the partnership’s understanding of the needs of the community and how it needs to act in order to raise the quality of life for local people will be based on an honest and open evaluation of the impact of the LAA programme on floor target performance. The Performance Task Group will lead on this.

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Compliance with LBH Gateway Procurement Process The Step LBH Gateway

Stage LBH processes

One Understanding Needs


Review Point 0 – Business Case

Agreement of Team Hackney Strategic Commissioning Framework by Hackney Cabinet Procurement Committee (CPC) under LBH Contract Standing Order 1.10 Classification of risk by Hackney Procurement Centre (HPC) and entry on Forward Plan


Directorate Procurement Manager to agree tender specification


Review Point 2 – Options Appraisal

Legal Advice on any potential OJEU requirements if necessary

Five Procuring


Review Point 4 - Investment Decision

Seven Contracting


Review Point 5 – Benefits Realisation

RP5 reports (or equivalent) to CPC

Nine Evaluating


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Team Hackney strategic commissioning timeline 2006/07

The Step Responsibility of Date One Understanding Needs

Team Hackney Board / Performance Task Group / Thematic Partnerships The development of the first draft of the LAA has been led by the Partnership Board and submitted to central government on 2 October 2006. A final draft LAA must be submitted to central government by 15 December 2006.

June – December 2006


Performance Task Group / Thematic Partnerships The Performance Task Group will review baseline evidence at its meeting on 6 November 2006, and identify commissioning priority areas. These will then be discussed with thematic partnerships.

November 2006


Thematic Partnerships Briefing sessions will be held with all commissioning leads and thematic partnerships, and support offered to work with leads to develop the Stage 3 brief. Additional advice can be sought at any time from Jane Woolley, Team Hackney Strategic Commissioning Manager.

November 2006 – April 2007


Board Champions Monthly meetings of Board Champions have been scheduled in the lead up to the LAA start date, and will then be held regularly every two months or so.

30 January 2007 27 February 2007 27 March 2007 26 April 2007 as required thereafter


Five Procuring

Thematic Partnerships, with Team Hackney Strategic Commissioning Manager Invitations to tender will be advertised and multi-agency assessment panels convened. The Team Hackney office can provide support for these if required.

January – April 2007 as required thereafter


Board Champions (out of session where necessary) An assessment panel report will be cleared by the Team Hackney Strategic Commissioning Manager and circulated to Board Champions for approval.


Seven Contracting





February – March 2008

Nine Evaluating


February – March 2008



Annual LAA ‘Refresh’ process

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Roles and Responsibilities for Strategic Commissioning for LAA Targets

Outcome Area / Target Responsibility Supported by Educational Underachievement

Children & Young People Partnership (CYPP)

Hannah Jones / Andreas Adamides, The Learning Trust

NEETs Children & Young People Partnership (CYPP)

Andreas Adamides, The Learning Trust / Jane Woolley, Team Hackney

Worklessness Economic Development Partnership (EDP)

Jane Woolley, Team Hackney

Increasing Access to Low Cost Home Ownership

Better Homes Partnership (BHP) Clive Jacotine, Team Hackney

Decent Homes (Private Sector)

Better Homes Partnership (BHP) Clive Jacotine, Team Hackney

Overcrowding Better Homes Partnership (BHP) Clive Jacotine, Team Hackney

Guns & Gangs Proposed Guns & Gangs Sub-Group of Safer, Cleaner Partnership (SCP)

Jason Davis, Team Hackney

Domestic Violence Proposed Domestic Violence Sub-Group of Safer, Cleaner Partnership (SCP)


Drugs & Alcohol Proposed Drugs & Alcohol Sub-Group of Safer, Cleaner Partnership (SCP)


ASB Proposed ASB Sub-Group of Safer, Cleaner Partnership (SCP)


Liveability

Liveability Sub-Group (reporting to BHP and SCP)


Teenage Pregnancy Teenage Pregnancy Commissioning Group (reporting to CYPP)

Mary Packer, Team Hackney

Infant Mortality Reducing Infant Mortality Implementation Team (reporting to CYPP)

Andreas Adamides, The Learning Trust

Childhood Obesity Obesity Working Group of CHIG (reporting to Thriving Healthy Communities Partnership)


Health Inequalities & Older People

Adult & Older People’s Sub-Group of Thriving Healthy Communities Partnership


Life Expectancy Thriving Healthy Communities Partnership


Engagement Engagement Task Group / Team Hackney Board

Ian Lewis, Director Team Hackney

Performance, Intelligence & Equalities

Performance, Intelligence & Equalities Task Group

Gavin Cansfield and Penny Thompson, Board Champions for P I &E

Image and Reputation Communications Task Group Kevin Sugrue, Board Champion for Communications


Culture Team Hackney Board currently considering options for taking this area forward

TBC

Public Service Promise TBC Ian Lewis, Director Team Hackney

Asset Management TBC Ian Lewis, Director Team Hackney

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Agenda Item 5

Dates of Future Meetings

Monday 4 December 2006, 4-5pm Hackney Town Hall, Room 102 Extraordinary meeting to agree revised economic development block of the Local Area Agreement Tuesday 1 February 2007, 3-5pm Hackney Town Hall Meeting to agree commissioning priorities Tuesday 20 March 2007, 3-5pm Hackney Town Hall Tuesday 22 May 2007, 3-5pm Hackney Town Hall Tuesday 17 July 2007, 3-5pm Hackney Town Hall Tuesday 18 September 2007, 3-5pm Hackney Town Hall Tuesday 20 November 2007, 3-5pm Hackney Town Hall

Economic Development Partnership Notes of Meeting 24 November 2006 Present Cllr Guy Nicholson (Chair), LBH Cabinet Lead for Regeneration and the 2012 Olympic & Paralympic Games Derek Harvey (Jobcentre Plus) Tania Fletcher (LDA) Sue Foster (LBH Assistant Director Regeneration and Planning) Zeynap Kucuk (The Innovatory), for Neil Barklem Cathy Newton (Learning & Skills Council) Yvonne Servante (The Learning Trust) Apologies Neil Barklem (Hackney Enterprise Network) Fiona Fletcher-Smith (LBH Corporate Director Neighbourhoods and Regeneration) Nicole Francis (Learning & Skills Council) Liam Kane (ELBA) In attendance David Hare (LBH Economic Development Team), Maria Leatham, Jane Woolley (Team Hackney) 1. Welcome and apologies Cllr Nicholson welcomed members to the first meeting of the new Economic Development Partnership, and thanked those involved in bringing the new EDP together, including those involved in its predecessor, the ED Priority Action Team. 2. Team Hackney Review of Thematic Partnerships Members noted the outcomes of the review of thematic partnerships undertaken for the Team Hackney Board. a) Draft Terms of Reference for Economic Development Partnership Members welcomed the inclusion of a reference to the East London City Strategy Pathfinder and the 5 Boro Olympic Local Employment and Training Framework in the draft Terms of Reference, noting that these will be key initiatives for this partnership. Members endorsed the draft Terms of Reference, and agreed to add an annual refresh of membership, strategy and effectiveness to the Terms of Reference. Action: Terms of Reference to be revised

b) Member Profile for Economic Development Partnership Members noted the importance of separating strategic representation from funding and delivering activity, and agreed that the role of the partnership is to set strategic direction. Members agreed the Member Profile with one addition around member commitment to the Team Hackney Guiding Principles and guarding against potential conflicts of interest. Action: Member Profile to be revised c) Representation on Economic Development Partnership Members noted that the review of thematic partnerships identifies the following member organisations of the Economic Development Partnership: London Borough of Hackney Learning & Skills Council Jobcentre Plus London Development Agency (Business and Skills) The Learning Trust Hackney Enterprise Network ELBA Hackney Community College Members discussed arrangements for the following member places: VCS (2 representatives) – members agreed that the member profile will be forwarded to the Hackney Community Empowerment Network who will be asked to submit nominations. These will be circulated to EDP members for comment and agreement. If more than two nominations are received, members will consider holding interviews with nominees. Action: Team Hackney office to liaise with CEN on VCS membership NHS – members agreed to invite a representative from the Homerton University Hospital Trust to join the partnership, as the Hospital is a significant local employer and is leading on some key training and employment initiatives. Action: Team Hackney office to invite a representative from the Homerton University Hospital Trust to join the partnership Regeneration Partnership – members agreed to invite a representative from the City Fringe Partnership. Action: Team Hackney office to invite a representative from the City Fringe Partnership to join the partnership Business (2 representatives) – members discussed what business expertise would most benefit the partnership, and considered the following options:

- the corporate sector – ELBA could co-ordinate a nomination process and provide support to any representative; a member from this sector is also likely to be a large employer;

- the social enterprise sector – members discussed the possibility of inviting local enterprises such as Hackney Community Transport or Renaisi to join the partnership;

- SMEs – members acknowledged that HEN represents this sector on the partnership, and could co-ordinate nominations for an additional member if required;

- sector-specific representation – members discussed whether representation from key sectors for Hackney, such as hospitality or retail, would be helpful.

Members asked that a paper be developed setting out clear options and circulated ahead of the next meeting. Action: Team Hackney office and LBH Economic Development Team to draft a paper on business representation on the partnership 3. Hackney LAA – Economic Development Block Members discussed the targets and enabling measures proposed for inclusion in the ED block of Hackney’s first Local Area Agreement (LAA). These have been developed by the EDP LAA Working Group (Tania Fletcher, Derek Harvey, Nicole Francis, David Hare, Sonia Khan, supported by Jane Woolley). Members agreed that the LAA stretch targets should be revised to ensure that they are challenging but achievable. Members agreed that the target around qualifications should be amended to better support local people to develop entry-level employability (or ‘soft’) skills, including through in-work provision (‘Train to Gain’). Members agreed that the revised LAA targets will be signed off by email by the EDP LAA Working Group and the Chair ahead of the 15 December deadline for the submission of the second draft LAA. Action: Team Hackney office to amend targets and circulate to LAA Working Group and Chair for agreement by 15 December 2006 Members agreed that it may be helpful to involve the TUC in subsequent discussions around work-based training provision, and Tania Fletcher undertook to pursue this with the TUC South East in the new year, when the LAA targets are finalised. Action: Tania Fletcher to liaise with TUC South East on work-based training provision Members noted the positive feedback that has been received on Hackney’s ED enabling measures, and that members of the LAA Working Group have been invited to central government working groups to present these.

4. Team Hackney LAA Strategic Commissioning Framework Members noted the revised Team Hackney strategic commissioning framework. This framework now forms the basis of all commissioning activity to support delivery of LAA targets. The LAA Working Group will now develop commissioning specifications for consideration by the wider partnership. Potential commissioning priorities were discussed by the partnership: Supporting residents into employment – members noted that there is currently a Team Hackney tender out for a major worklessness engagement programme, which will target those individuals currently not engaged in any other mainstream provision, and this will be the key delivery vehicle for the LAA stretch targets. Sector-specific initiatives – members discussed the possibilities of commissioning skills development and employment initiatives in named sectors, including hospitality and the creative and cultural industries. This could form a key aspect of delivery of the work-based LAA skills development targets. Yvonne Servante briefed members on the move to specialised diplomas for the 14-19 age group, noting that one of these will be in Creative Media. This is part of the move to meet the government requirement to have 40% of pupils in diploma courses by 2013. Cllr Nicholson asked for a short briefing note on this. Action: Yvonne Servante to circulate a short briefing paper on the development of specialised diploma courses in Hackney. Members agreed that the LAA Working Group should now develop LAA commissioning specifications for the partnership to consider. Members noted that the timeframe for commissioning activity is extremely tight, in order to maximise the delivery within the timeframe of the government funding for the LAA, which at this stage has been announced only for 2007/08. In light of this, members agreed that they are happy to receive draft commissioning specifications out of session, to enable them to provide comments earlier in the process. Action: LAA Working Group to meet in the new year to start work on commissioning specifications. 5. Dates of Future Meetings Members agreed the following schedule of dates for 2007: Tuesday 1 February 2007, 3-5pm Tuesday 20 March 2007, 3-5pm Tuesday 22 May 2007, 3-5pm Tuesday 17 July 2007, 3-5pm Tuesday 18 September 2007, 3-5pm Tuesday 20 November 2007, 3-5pm

Documents

Economic Development Partnership Meeting 24 November 2006 ... · 2a Draft Terms of Reference for Economic Development Partnership . 2b Member Profile for Economic Development Partnership