Gemma Marsh

Head of Skills and Employment Policy

European Social Fund: 2014-2020

Aim of the session

• Greater Manchester landscape

• Raise awareness of European Structural Investment Fund

• Outline European Social Fund priorities

• Big Lottery Opt In

• Where can the Sector enhance/deliver/develop activity?

New EconomyPeople &

Communities

Place

Research Policy

Strategy

Europe & International

Innovation & Business

Public Service Reform

Growth and Prosperity

for Greater

Manchester

What we do for GM:

• Research & Analysis• Policy & Strategy• Economic Think Tank

The Greater Manchester Economy

93,000 businesses2.7m people

Gross Value Added Source: ONS, GVA estimates 2012

GM ECONOMY, 2011

£48.2bn

WALES ECONOMY, 2011

£47.3bnNORTH EAST ECONOMY, 2011

£41.6bn

NORTHERN IRELAND ECONOMY, 2011

£29.9bn

Source: ONS

1.14m jobs

Collaboration History

From 1986 2008 2009 2010 2011 2012

Business Leadership

Council Established

Publicationof the MIER

Prosperity for

All: TheGreater

ManchesterStrategy

GM LEPFormation of

AGMA

Manchester City Deal

GMS refresh

Community Budget Pilot

Skills and Employment in GM

• GM is the largest city based economy outside SE England – GVA of £48 billion

• Local Enterprise Partnership leads the drive for growth

• Skills and Employment Partnership:• Enabling discharge of statutory 16-19 duties• Maximising the impact of skills and employment policy

and delivery on growth• Membership: employers, colleges, providers, local

authorities, funding agencies, JCP, unions

Labour Market IssuesFor young people:

• High unemployment (21%) and NEETs

• Poor employer perceptions of young peoples’ job readiness in UK

• Falling 16-18 apprentices but vacancies persist

For adults in work:

• Two fifths of employers struggle to recruit to associate professional roles

• One in seven employers report that staff are not proficient in their role

• 230,000 GM working households claim tax credit

For adults out of work:

• Sustained high levels of worklessness for past two decades

• Low attainment: 38% of unemployed and 42% of economically inactive adults do not have a level 2 qualification

• Growing issues around low pay, no pay and quality of available work

Greater Manchester Strategy “By 2020, GM will have pioneered a new model for

sustainable economic growth…where all residents are able to contribute to and benefit from sustained prosperity”

Preventing and reducing youth unemployment

Employer-led skills system

An integrated skills and employment offer

• GM Growth and Reform Plan – programmes that respond to GMS priorities

• Skills and Employment Partnership – responsible to developing and delivering S&E programmes

The role of LEPs

• Autumn Statement 2012: The Government agreed that LEPs would have a new strategic influence over skills policy. LEPs will be responsible for setting local skills strategies and will work with the FE providers to agree how those priorities will be delivered.

• From the Partnership’s Terms of Reference: The LEP and

Providers have a clear shared interest. For the LEP supporting the most efficient and effective skills and employment system will help to maximise growth.

• Significant rise in devolution of influence and resource to LEPs – greater control over our destiny. (E.g. ESF 2014-20, £178m + match). LEP role is not marginal.

Background• New EU programme 2014 -2020• GM LEP allocation (not regional or national)• Alignment with

• GM Growth and Reform plan, implementing GMS• Other funding, especially ERDF

• January 2014• Submission of EU Structural and Investment Fund Strategy

(ESIF)• February-September 2014

• Agree opt ins• Agree none opt in match funding• Engage with partners• Design, develop calls for tender

The Greater Manchester ESIF• GMS defines activities, ESIF implements• Part of wider growth and reform plan• Match via SFA, DWP, Big Lottery, local & private

• Responding to three EU thematic objectives:

• Employment & supporting labour mobility

• Education, skills & lifelong learning

• Social inclusion & combating poverty

• Funding allocation

• In July 2013, BIS allocated the GM LEP €415m for the 2014-20 Programme

• This is approximately £356m which is split as follows

- £195m ERDF (55%) / £161m ESF (45%)

• Minimum 20% dedicated to social inclusion

• Challenges/Issues

• Eligibility – ESF won’t fund everything

• Additionality – delivering the best, most impactful programme for GM

• Links to GM Growth & Reform Plan – GMS strategic alignment

• Match Funding – need this to access ESF resource

ESF

The ESF will deliver the Growth Programme’s objectives to

promote employment, social inclusion and skills.

The main investment priorities will be:• helping more unemployed and inactive people to enter and progress

in employment; • increasing the number of young people who are in education,

employment or training; • tackling barriers to work faced by the most disadvantaged groups; • helping more people improve their skills; • making skills provision more responsive to the needs of the local

economy.

ESF continued

The ESF programme is split into two sections:

The first theme entitled Skills; Employment & Social Inclusion consists of £137m of grant support. This

incorporates a wide spectrum of activities ranging from those furthest from the Labour Market (linked

to the Supporting Reform agenda) to the highest level skills (linked primarily to the Science and

innovation agenda). There are also clear linkages with other ESIF themes particularly Science,

Innovation and Knowledge Economy, Competitive Business and Low Carbon where the provision of

appropriate skills will be essential to success.

The Supporting Reform theme consists of £24m of GM ESF support, matched against local and

national public funds. The activities will complement the above theme for those who are furthest away

from the labour market by offering additional targeted support for certain cohorts. This is closely

aligned with the Public Sector Reform agenda in GM.

1. Science/technology Assets2. Science & tech businesses base 3. Societal challenges4. (Science & tech skills)

SCIENCE & INNOVATION - ACTIVITIESFUNDINGEvergreen- £25m

Grant - £27mTOTAL - £52 m

OUTPUTS500 Co’s supp100 new Co’s

1425 new jobs 120 Co’s with Res Orgs

£31m Priv Match

FUNDINGNW Fund - £32m

Evergreen - £2 millionBus Supp Rev- £36m

TOTAL - £70m

OUTPUTS4370 new jobs 6870 Co’s supp

1469 New Co’s supp 70 Co’s new markets

340 Co’s with Res Orgs

1.Start up & growth businesses2.International competitiveness3.Access to finance (North West Fund)4. Supporting companies with tech developments5.(Leadership, management & mentoring skills)

COMPETITVE BUSINESS - ACTIVITIES

FUNDINGEvergreen - £13m

Evergreen– Grant - £9mTOTAL - £22m

OUTPUTS4.4ha land developed£13m private match

380 Jobs

1.Sites and premises2.Town Centres3.Critical infrastructure

COMPETITVE PLACES - ACTIVITIES

FUNDINGLC Inv Veh - £15mEvergreen - £10m

Grant – £25mTOTAL - £50m

1. Low Carbon investment vehicle 2.Whole place LC infrastructure/ transport3.Whole building energy efficiency/LC generation 4.Support SMEs in the low carbon sectors 5.Energy/resource efficiency in all sectors6.(Low carbon skills)

LOW CARBON - ACTIVITIESOUTPUTS

420 new jobs1600 Co’s supp

120 co’s new products £25m Private Match

17,000t GHG reduction

GM LEP ESIF 2014-20 Programme - ERDF

FUNDINGGrant - £24m

TOTAL - £ 24m

OUTPUTS24000 people trained10833 unemployed

10833 inactive 7440 15-24

2333 employed

1.Support young people2.Empl support to LT unemployed 3.Employer-led workforce development 4.Support training providers 5.Innovative models for comm/social entreprise

1. Employment/skills linked to Public Service Reform2. Support those affected by Welfare Reform3. Support those with health related barriers4. Tackling other barriers to work/low skill

SKILLS, EMPLOYMENT & INCLUSION ACTIVITIES

SUPPORTING REFORM - ACTIVITIES

FUNDINGGrant - £137m

Social Innov - £3mTOTAL - £141m

OUTPUTS92538 people trained30322 unemployed

23516 inactive 33249 15-24

39000 employed

GM LEP ESIF 2014-20 Programme - ESF

Match FundingMatch funding is to be drawn from a number of sources and will be a mixture of Opt ins to national

organisations and locally sourced public match. Given the risk associated with managing an ESF

Programme, it makes sense to opt in for the first 3 years of the programme so GM can gain from past

experience of SFA and DWP, in particular, in managing these programme.

Opt In Organisations

• DWP

• SFA

• Big Lottery

Other sources of Match

• Local Authority

• CVS

• Employers

• HEI

Memorandum of Understanding

GM is seeking an MoU with each Opt In organisation. The main elements GM is trying to ensure

include:

• Retains control of GM’s ESF allocation and, where possible, the associated match

• Controls project identification, ITTs and allocation of funds

• Development of financial models

• Is involved in project appraisal and sign off.

• Can flex the amount of match it secures according to GM needs and can extend that to include employability skills and higher level skills as required subject to ESF eligibility.

• By opting-in there must be no hindrance to GM’s ability to use its ESF allocation to meet priorities, or to using its ESF to invest where Government may not invest itself. e.g .second level 2s, higher level skills etc.

• GM’s ESF allocation is not penalised if poor performance is not managed by the opt in.

• Timely data is provided at both contract and LEP level.

• Management fee is either waived or negotiated dependent on which elements of the management offer that GM may be best equipped to undertake

• That secondments of staff to GM are considered

ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020

INVESTMENT PRIORITIES

A: Access to employment for jobseekers and inactive people (TO8: Employment)• Will help unemployed and inactive people enter, progress in and sustain employment• Examples of actions may include:

• Additional / innovative approaches to pre-employment training; training to upgrade or learn new skills; help people access / benefit from Apprenticeships; use self-employment as a route out of worklessness; projects which add value to the National Careers Service.

B: Sustainable integration of young people (TO8: Employment)• Will help young people, particularly NEETs (or those at risk of becoming NEETs) participate in

the labour market and learning• Examples of actions may include:

• Additional literacy, numeracy, ICT and employability provision; training & vocational qualifications; progressive community and informal learning; ILM activity; use self-employment as a route out of worklessness.

• Early intervention• Support and enhance Traineeships/apprenticeships

C: Active Inclusion (TO9: Social Inclusion)• Will help people who are some distance from the labour market and who may face multiple

disadvantages, to tackle their barriers to moving towards and progressing in employment• Examples of actions may include:

• Basic skills / ESOL training; financial / digital & internet literacy courses to aid job searching, access to benefits and progress in work; local ‘community grant’ type activity; first contact engagement activities; local networks / groups to support job access; softer skills development and volunteering initiatives.

• Capacity building for CVS to enable them to deliver ESF activities• IAG for social enterprises and collaboration between SE/CVS and businesses.

ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020

INVESTMENT PRIORITIES (p53-68 of consultation)

D: Enhancing equal access to lifelong learning (TO10: Skills)• Will help more people gain the skills they need to meet their goals and the needs of the

economy. This is primarily about training, advising or supporting individuals• Examples of actions split between lower level and advanced skills which may include:

• Lower Level – basic skills interventions for existing workforce; innovative vocational approaches to support those with low level skills in Maths, English and ICT; support for intermediate, technical skills for specific industries

• Advanced Level – link to ERDF, growth and widening participation

E: Improving the labour market relevance of education & training systems (TO10: Skills)

• Will improve employer participation and engagement in learning so that it is responsive to the needs of the local economy and help individuals progress into or within learning. This is primarily about improving partnerships and systems:

• Examples of actions may include:• Support for placements / internships or other activities with SME’s that enable students / graduates

to gain industry experience & skills; promoting apprenticeships; building capacity in SME’s to provide opportunities and enhance contribution of advanced skills of SME growth; developing better links between business and schools, FE and HEI’s to equip students with skills to start and grow a business

Next Steps• Refining plan• Agree LEP roles and responsibilities• Agree Opt In MoU• Consultation – your views matter• Design & development of potential programme & projects• Work with Opt in organisations to develop calls for tender• Calls for tender likely to be end of 2014/early 2015• Procurement is expected to be a mixture of larger projects

management via the opt in organisations, smaller ad hoc projects and projects who are able to bring their own match funding.

• Appraisals at a local and national level• Successful programme begins: Likely to be 2015