By Jessica Cundy, with economic analysis by Ritu Patwari

Levelling the playing field Achieving social mobility for 16 and 17-year-olds

November 2011

2 Levelling the playing field

This short report focuses on what social mobility means for the young people that Barnardo’s works with. We know that social mobility will only ever be achieved if the most disadvantaged in our society are helped to overcome the obstacles that stand in their way. The UK Government has acknowledged that by 2020 a third of parents in poverty will come from our current population of 16 to 24-year-olds, unless action is taken now.1 Through Barnardo’s employment, training and skills services, we support 16 and 17-year-olds to gain the confidence, skills and opportunities that lead to sustainable employment and a route out of poverty. This report highlights the barriers faced by some young people, and the cost-effective solutions that can help to break intergenerational cycles of worklessness.

The voluntary and community sector (VCS) has a unique role to play in ensuring that those young people who are most at risk of being out of education, employment and training at 16 have a place in the labour market and are supported to progress through it.

We have seen that by developing effective partnerships with the private sector and local authorities, these young people are able to get a foot on the ladder and begin building their own futures. In this report we make four key recommendations based on our experience of working with 16 and 17-year-olds across the UK.

Barnardo’s recommends that:

1. The UK Government makes rhetoric a reality by prioritising the social mobility of the most disadvantaged 16 and 17-year-olds.

2. The UK Government introduces a range of flexible pathways through post-16 education, employment and training.

3. The private sector supports cost-effective partnerships between employers and the voluntary sector to engage those young people who are furthest from the labour market.

4. Local authorities in England use the Early Intervention Grant to support disengaged 16 and 17-year-olds into employment and training.

Introduction

2

1 Department for Education (2010) Tackling Child Poverty and Improving Life Chances: Consulting on a New Approach. Department for Education, London.

3Introduction 3

4 Levelling the playing field

Almost a million 16 to 24-year-olds were not in education, training or employment between April and June 2011.2 The recession has had a disproportionate impact on young people’s levels of employment, with one in five 16 to 24-year-olds unemployed in the UK.3 The picture for 16 to 17-year-olds is even worse, for whom the unemployment rate has almost doubled over the last decade, rising to 38 per cent at the end of March 2011.4

While participation in post-16 education has increased in recent years, there remains a vulnerable minority of 16 and 17-year-olds facing numerous barriers to moving on in life. These range from young people with fewer options after getting poor grades at GCSE, who move between low-skilled jobs and unemployment, to young people with identified barriers such as care leavers and teenage parents. Against this backdrop, a strategy for achieving social mobility for the most disadvantaged young people could not be more crucial.

For Barnardo’s, achieving social mobility for vulnerable 16 and 17-year-olds means raising their aspirations, self-esteem and confidence so that they are ready to return to education or training. It can mean challenging low expectations and offering alternatives to their previous experiences of formal education. Overcoming intergenerational patterns of worklessness and community deprivation is a significant challenge for many of the young people we work with. However this can be compounded by additional barriers, including parental substance misuse, homelessness, domestic abuse or being a young carer. The VCS is often able to engage with and support the most disadvantaged young people

so that their background does not determine their future outcomes. Central to this support is the belief that anyone can turn their life around, given the right opportunity.

The UK Government has embarked on a major programme of reform to tackle worklessness and benefit dependency; however 16 and 17-year-olds are missing out on opportunities to gain work experience, training and supported entry into the labour market. Young people from workless households are far less likely to be in education, employment or training at 16; and those living in the most deprived communities are least likely to find sustainable employment.5 In order to break the cycle of worklessness faced by young people in these households and communities, flexible learning options that are relevant to the labour market must be available. The situation is desperate for too many young people, and urgent action must be taken to prevent a lost generation.

Research undertaken for the Audit Commission by the University of York found that the lowest estimate of the life-time public finance cost of young people who are not in education, employment or training between the ages of 16 and 18 is just under £12 billion; the highest estimate is around £32.5 billion.6 The researchers also calculated the ‘resource costs’ associated with being out of education, employment or training at age 16 and 17. Their lowest estimate of losses to the economy, individuals and their families was just under £22 billion, with the highest estimate at almost £77 billion.7

A strategy for social mobility

Through its social mobility strategy,8 the Coalition Government has committed to ensuring that every

Why focus on social mobility and 16 to 17-year-olds?

2 Department for Education (2011) Statistical First Release: Participation in education, training and employment by 16 to 18-year-olds in England. Department for Education, London.

3 Office for National Statistics (2011) Labour market statistical bulletin: August 2011.4 Ibid.5 The Prince’s Trust (2010) Destined for the dole? Breaking the cycle of worklessness in the UK. The Prince’s Trust,

London. 6 Coles, B; Godfrey, C; Keung, A et al (2010) Estimating the life-time cost of NEET: 16-18 year olds not in education,

employment or training. University of York, York.7 Ibid.8 Cabinet Office (2011) Opening Doors, Breaking Barriers: A Strategy for Social Mobility. Cabinet Office, London.

5Why focus on social mobility and 16 to 17-year-olds?

child and young person has an equal opportunity to achieve their potential, regardless of their background. This is a commitment that has been at the heart of Barnardo’s vision almost 150 years, and continues to direct our work with over 190,000 children, young people and families each year.

Social mobility can be defined and measured in different ways:9

Absolute mobility – Changes in the overall class structure or prosperity of society over a period of time.Relative mobility – Changes in the class position or income of individuals in relation to the rest of society.Intragenerational mobility – Movements up or down the class structure or income distribution within a person’s (or cohort’s) lifetime.Intergenerational mobility – Differences between the class position or income of a parent and that of their child.

The Coalition Government has chosen to focus on both relative social mobility, with specific attention to closing the gaps in educational achievement between the poorest children and their peers; and on intergenerational social mobility, to prevent disadvantage from being passed on from one generation to the next. Improving social mobility is the ‘principal goal’ across all Government social policy and it is intended that all new policies will be social mobility proofed to ensure that they do not negatively impact on the most disadvantaged.10

The scale of this task cannot be underestimated, particularly in the current economic climate, however equality of opportunity will only ever be achieved by breaking down the barriers facing those furthest from the top of our society.

‘We should focus on closing the gap between the bottom and the middle not because that is the easy thing to do, but because focusing on those who do not have the chance of a good life is the most important thing to do.’11

Rt. Hon. David Cameron MP, Prime Minister

In 2008 the Independent Commission on Social Mobility was tasked with investigating the causes and effects of social immobility. The Commission concluded that Government should focus on improving the opportunities of the most disadvantaged children and young people.12 They identified key drivers which should be addressed by policymakers (such as income, education and occupation) to have the greatest impact.13 As a result, the social mobility strategy commits to focusing resources on those who are most at risk of ‘falling through the gaps’. It aims to tackle unfairness at every stage of the life cycle with measures to improve social mobility from the early years to adulthood.

However, despite the original intentions, the social mobility strategy appears to prioritise moving those in the middle to the top; giving talented, ambitious young people who have not attended fee-paying schools the chance to enter the top universities and professions. This may be an important goal, but it will not address inequality of opportunity for the most disadvantaged young people. The Government must ensure that those furthest from the labour market have the opportunity to get a foot in the door. Research has confirmed that literacy and numeracy skills are fundamental to 16 to 18-year-olds to enable them to progress through the labour market, yet 300,000 18-year-olds begin adult life without the equivalent of a Maths or English GCSE.14

9 As defined by the Independent Commission on Social Mobility; see Report from the Independent Commission on Social Mobility (2009), available at www.tuc.org.uk/extras/Social_Mobility_Report_Final.pdf

10 Cabinet Office (2011) Opening Doors, Breaking Barriers: A Strategy for Social Mobility. Cabinet Office, London. 11 Rt. Hon. David Cameron MP, Prime Minister, Hugo Young lecture 10/11/09, available at www.conservatives.com/

News/Speeches/2009/11/David_Cameron_The_Big_Society.aspx12 Report from the Independent Commission on Social Mobility (2009), available at www.tuc.org.uk/extras/Social_

Mobility_Report_Final.pdf13 Ibid; and Crawford, C; Johnson, P; Machin, S and Vignoles, A (2011) Social Mobility: A Literature Review.

Department for Business, Innovation & Skills, London.14 Wolf, A (2011) Review of Vocational Education – The Wolf Report. Department for Education, London.

Levelling the playing field6

In her review of vocational education Alison Wolf stresses the importance of post-16 courses that will lead to progression into a variety of jobs or further learning, including gaining basic literacy and numeracy skills. The Government has accepted Wolf’s recommendations by proposing that all programmes of study for 16 to 19-year-olds in England include Maths and English for those young people who have not achieved GCSE by age 16.15 However, for all young people to benefit, this must apply to those following a training programme outside of school or college, whether part-time or full-time.

The focus on closing the gap between the middle and the top is echoed by the assertion that the professions in particular must play their part in achieving social mobility, by opening access to high achieving young people from low income backgrounds. Again, this is a positive aim; however, incentivising a wide range of employers to open up work experience, training and employment opportunities to the most disadvantaged young people would go further to achieving social mobility.

The long-term impact of being left without the skills or experience required to enter the world of work is well-documented.16 For every young person not in education, employment or training there is an average cost of £56,000 to public authorities over their lifetime.17 Furthermore, the social costs of not providing adequate opportunities for the most disadvantaged include increased risk of ill health, homelessness, substance misuse and involvement in crime.18 Barnardo’s believes that for the Government’s measures to have a real impact on social mobility they need to focus on breaking

down barriers, raising aspirations and opening up opportunities to those young people who are most vulnerable to poor outcomes.

Barnardo’s recommends that the UK Government makes rhetoric a reality by prioritising the social mobility of the most disadvantaged 16 and 17-year-olds.

The picture across the United Kingdom

The social mobility strategy is UK-wide, however the devolved administrations do not necessarily use this term to describe measures taken to reduce inequality. The devolved nations also have separate strategies relating to ensuring young people’s post-16 participation in education, training or employment.

The Department for Education and Learning in Northern Ireland has recently consulted on their strategy to reduce the number of young people not in education, training or employment. Pathways to Success outlines the Assembly’s broad strategic direction and actions to be taken across departments to re-engage young people who have fallen into this group and prevent more from entering.

In Scotland, the More Choices, More Chances strategy was launched in 2006. It proposed seven ‘hotspot’ areas where targeted action would be taken to make an impact on local and national levels of young people not in education, training or

15 Department for Education (2011) Study Programmes for 16-19 year olds, available at www.education.gov.uk/consultations

16 See for example, Cotton, D; Stone, V and Thomas, A (2000) Mapping troubled lives: young people not in education, employment or training. DfEE, London. Payne, J (2000) Young People not in Education, Employment or Training, Policy Studies Institute, London. DfEE; Coles, B; Hutton, S; Bradshaw et al (2002) Literature Review of the Costs of Being “Not in Education, Employment or Training” at age 16-18. HMSO, London.

17 Coles, B; Godfrey, C; Keung, A et al (2010) Estimating the life-time cost of NEET: 16-18 year olds not in Education, Employment or Training. University of York, York.

18 Coles, B; Hutton, S; Bradshaw, J et al (2002) Literature Review of the Costs of Being “Not in Education, Employment or Training” at Age 16-18. HMSO, London.

7

employment. The strategy also identifies specific groups of young people who are more likely to enter this category, including care leavers, young offenders and teenage parents. Since December 2010 every young person in Scotland must be given a ‘post-16 learning offer’, requiring strong local partnerships between local authorities, Careers Scotland, learning providers and schools.19

Reducing the proportion of young people not in education, employment or training in Wales sets out an action plan to identify and re-engage young people who leave school without a positive destination. It outlines a range of post-16 learning options and measures to provide advice and guidance to those needing it most.

19 See www.scotland.gov.uk/topics/education/edandtrainingforyoungple for more information.

Why focus on social mobility and 16 to 17-year-olds?

8 Levelling the playing field

The Coalition Government has committed to increasing the compulsory age of participation in education and training to 17 by 2013 and to 18 by 2015, as laid out by the Education and Skills Act 2008. Barnardo’s has supported this historic programme of reform as it has the potential to improve the skills, job prospects and life chances of the young people we work with. However this will only happen if there is a range of flexible and appropriate learning options available to 16 and 17-year-olds who are currently not in education, employment or training.20 The rate of unemployment for this age group is the highest ever recorded, as young people continue to leave school at 16 with no provision to move on to.

In 2009 Barnardo’s published research carried out with more than 100 young people not in education, employment or training, or at risk of being so, attending 19 Barnardo’s services across the UK.21 It found that most of the young people interviewed were alienated by their time in school and left because of poor relationships with teachers, boredom, family problems and bullying. However it also found that young people were highly motivated to enter the world of work, learn from experienced employees and progress to full-time employment. This research highlighted the urgent need for a range of comprehensive and flexible pathways through post-16 education, training and employment.

Barnardo’s Step-Up Programme

Co-financed by the Skills Funding Agency and the European Social Fund, Barnardo’s Step-Up Programme aims to break the cycle of disadvantage experienced by young people not in education, employment or training. The programme targets 14 to 19-year-

olds who are most at risk of becoming disengaged across six London boroughs (Barnet, Enfield, Waltham Forest, Tower Hamlets, Hackney and Haringey). The programme is provided by a voluntary sector consortium led by Barnardo’s, including Nacro, Rathbone, Fairbridge and The Prince’s Trust.

The Step-Up model

1. Engagement

The Step-Up partnership works with schools, colleges, pupil referral units, Connexions, and youth offending teams in each local authority to identify those young people most at risk of being out of education, employment or training. Young people begin a 26-week programme tailored to their individual needs with the goal of sustaining engagement in education, employment or training.

2. Individual assessment and action plan

An experienced personal development mentor is assigned to each young person to provide:

n information, advice and guidancen one-to-one mentoring and supportn expert assessmentn personal development plan design

and reviewn coordination of the young person’s

personal programme throughout the 26-week engagement.

3. Personal development mentoring

The personal development mentor meets with each young person for one hour per week for the first 13 weeks, and for one hour per fortnight between weeks 13 and 26. The mentor coordinates the education, employment and training offered by different providers, reviewing

Flexible post-16 pathways to enable participation

20 Department for Education (2011) Statistical First Release: Participation in education, training and employment by 16-18 year olds in England. Department for Education, London.

21 Barnardo’s (2009) Second Chances: re-engaging young people with education and training. Barnardo’s, Barkingside.

9Flexible post-16 pathways to enable participation

achievement against outcomes and offering ongoing tailored mentoring and support. In addition, all young people are offered a volunteer coach, carefully matched to each individual, to provide motivational, role model and pastoral support. Mentors and coaches are trained and accredited, receiving a Development Award in Mentoring (Institute of Leadership Management accreditation) delivered by Barnardo’s award-winning mentor training partner, Red Ochre.

4. Flexible, individually tailored pathways

Step-Up offers three flexible pathways to sustained education, employment or training. The Fast Trax pathway offers an alternative to mainstream education for 14 to 16-year-olds and vocational training to 16 to 19-year-olds. The Learn 2 Earn pathway focuses on continued and further education for 14 to 19-year-olds through e-learning, signposting, and coaching to prepare young people for further education at school, college or university. The Way to Work pathway is for young people who choose to enter employment with training at age 16, and includes:

n short-term work experience, work taster courses and employer presentations, providing a window into a wide variety of sectors and roles

n employability and work preparation training focusing on career aspirations, teamwork, conduct at work, dealing with authority, communication and soft skills

n pre-apprenticeship support, apprenticeships and ring-fenced paid employment opportunities with Barnardo’s, partner organisations and our wide network of London employers

n self-employment, enterprise and business skills training.

In addition to all three pathways, the programme offers innovative ‘Break

Out’ activities delivered by partners and a diverse range of specialist providers that complement each young person’s education, employment or training. These activities ensure sustained engagement by enhancing young people’s self-confidence, raising their aspirations, increasing their self-discipline and providing an opportunity for new experiences. Activities are allocated through ‘Break Out’ credits that can be used at any time over the 26-week engagement. Activities include sports leadership, outward bound events, community projects and volunteering, and enterprise and entrepreneurial training.

While overall numbers of 16 to 18-year-olds participating has increased over the last 10 years, the number of young people who are in training has decreased.22 The problem is more pronounced for 16 and 17-year-olds, as shown in graph 1 overleaf.

For those who are disengaged from the education system, there seems to be less scope for work-based and on the job learning opportunities. This is concerning as Barnardo’s services know that this more practically-based learning is often the most effective for young people who have become disengaged from mainstream education.

The UK Government will publish a strategy in the autumn focusing on how to maximise the participation of 16 to 24-year-olds and tackle the long-term consequences of young people not in education, employment or training. Barnardo’s believes this strategy must outline measures that will engage the most disadvantaged 16 and 17-year-olds by including a range of flexible work-based learning options that are relevant to the labour market.

Existing measures to support youth employment focus on the 18 to 24 age group, including providing early access to the Work Programme for

22 Department for Education (2011) Statistical First Release 15/2011 Participation in education, training and employment by 16-18 year olds in England. Department for Education, London.

Levelling the playing field10

Graph 1 – Participation of 16 to 18-year-olds in education and training in England

Source: Department for Education

vulnerable 18-year-olds, and giving Jobcentre Plus more responsibility for finding work experience and entry level jobs for young adults. However, for disengaged 16 and 17-year-olds there is no national programme to link them with employment and training opportunities that will prevent them from becoming long-term unemployed. Early intervention is key, and ‘NEET’ prevention begins with making sure young people receive relevant and timely information, advice and guidance when faced with decisions that will affect their future life chances.

Following Alison Wolf’s review of vocational education, the Government has acknowledged that too many young people are taking vocational courses which are irrelevant to the labour market and do not offer a route to sustainable employment.23 They have also recognised that there are not enough apprenticeships for 16 to 18-year-olds and a lack of incentives for employers to be involved in the programme, noting that:

‘underlying these problems, an attitude that vocational education

is a second choice, easy option for the less able, which has been reinforced, not tackled, by claims of “equivalence” between qualifications which no one has truly believed’.24

Schools and local authorities have a responsibility to ensure that all young people are given accurate careers advice and are aware of the range of options available to them that will lead to positive destinations in the future. Young people most at risk of being out of education, employment and training at 16 require targeted support and a range of flexible pathways to ensure their sustained engagement.

Work experience

In January 2011 the UK Government announced plans to introduce extended work experience placements for young unemployed people between the ages of 18 and 21.25 The placements will last for up to 12 weeks and young people will be matched by Jobcentre Plus with employers. It is not designed to create sustainable employment opportunities, but it is intended that young people with no previous experience of the

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

199

4

20

06

20

05

20

04

20

03

20

02

20

01

20

00

199

9

199

8

1997

199

6

199

5

201

0

20

09

20

08

20

07

Age 16

Age 18

Age 17

23 Department for Education (2011) Wolf Review of Vocational Education – Government Response. Department for Education, London.

24 Ibid.25 Department for Work and Pensions, press release available at www.dwp.gov.uk/newsroom/press-releases/2011/

jan-2011/dwp007-11.shtml

11

workplace will be in a better position to apply for jobs following a placement. However, there is no such similar scheme in place for 16 and 17-year-olds who desperately need an opportunity to break in to the labour market. Those leaving school at 16 cannot be left to fend for themselves until they come to the attention of Jobcentre Plus advisors. It is imperative that a wide range of employers are engaged to offer meaningful opportunities for young people (who may be growing up in homes where no one has ever worked) to gain confidence and build aspirations for their future.

Work-based learning

Alison Wolf’s extensive review of vocational education in England highlights the fundamental principle that any vocational route chosen at 16 must be relevant to the labour market. In order to prevent the ‘churn’ in and out of employment, young people need to be supported to remain in employment while gaining qualifications, and taught skills that are required by employers.26 The UK Commission for Employment and Skills (UKCES) in a 2008 survey found that half of employers surveyed reported a lack of relevant workplace skills among school leavers. These findings were reinforced by the National Employers Skill Survey in England (UKCES, 2010).

In common with the social mobility strategy, the UK Government’s skills strategy aims to promote ‘fairness’ by helping the most vulnerable, including young people, the unemployed and those without basic skills.27 Employers are given a key role in covering the costs of skills provision and accountability for delivering skills training. The Government is engaging with employers through national skills academies and has again given responsibility to Jobcentre Plus to develop links

with the private sector and provide vocational training opportunities.

On worklessness, the skills strategy focuses on adults receiving employment-related benefits and a reliance on Jobcentre Plus to identify those who should receive support. In this sense young people are likely to be left behind when it comes to matching 16 and 17-year-olds to the support, training and employment they need. The VCS has a unique role to play in matching those young people furthest from the labour market with employers that can offer relevant, local work experience and employment opportunities. Jobcentre Plus advisors will need to link closely with the VCS if disadvantaged 16 and 17-year-olds are to benefit from the Government’s plans.

Barnardo’s strongly supports the Access to Apprenticeships pathway for young people who are not yet ready to undertake a full apprenticeship and believes that more opportunities for disengaged 16 and 17-year-olds are required. Analysis carried out by UKCES for the Wolf Review shows that 16 to 18-year-olds are least likely to gain an apprenticeship than young adults and that demand for places exceeds availability by more than 15:1.28 Furthermore, a large proportion of apprenticeships are allocated at the ‘advanced level’, out of the reach of many of the most disadvantaged 16 and 17-year-olds, who have left school without any qualifications. While apprenticeships are not suited to all disadvantaged young people, for some they are the ideal opportunity to gain the skills both they and employers need, and build a future of sustainable employment.

Barnardo’s recommends that the Government introduces a range of flexible pathways through post-16 education, employment and training.

Flexible post-16 pathways to enable participation

26 Wolf, A (2011) Review of Vocational Education – The Wolf Report. Department for Education, London.27 Department for Business, Innovation and Skills (2010) Skills for Sustainable Growth. Department for Business,

Innovation and Skills, London.28 Wolf, A (2011) Review of Vocational Education – The Wolf Report. Department for Education, London.

12 Levelling the playing field

Barnardo’s Works is one of Barnardo’s employment, training and skills services operating across the UK. It is an innovative and effective employment programme for young people aged 16 to 24 who are not in education, employment or training. The programme matches the skills and talents of young people with the real world needs of employers. Barnardo’s Works in Scotland is based in five areas, and there is also a Barnardo’s Works service in Cornwall. The young people engaged with the services live in areas of high deprivation; 42 per cent of young people participating live in the 20 per cent most deprived areas of Scotland, and 61 per cent live in the 30 per cent most deprived areas.29 Most of the young people have little formal education and work experience, and their employment experience prior to joining the programme is characterised by continuous unemployment or short-term or seasonal, low-skilled employment.30

The services adopt a holistic approach with each young person, focusing on helping the individual to overcome multiple and complex barriers to employment. Most young people accessing Barnardo’s Works have little or no work experience and lack formal qualifications. Many have a criminal record, ongoing offending behaviour or describe themselves as having a dependency on drugs or alcohol. We also work with a high number of young people on the homeless register, those who are young parents and care leavers. The aims of our Barnardo’s Works services are:

n to engage young people, aged 16 to 24, who are furthest from the labour market

n to train them with industry relevant, in-demand skills through a 26-week programme

n to qualify them to work independently in their chosen area

n to employ their skills in a real job with real prospects.

The partnerships Barnardo’s has developed with employers in a wide range of industry sectors ensure that opportunities for young people are maximised and the needs of the employer are met. Employers we have worked with have reported a wide range of benefits including a productive placement, sustainable recruitment, and development opportunities for staff, for example through mentoring a young person.

Barnardo’s Works comprises a 26-week programme during which young people are placed with an employer to receive:

n industry-specific training and qualificationsn a workplace mentor to help develop

their employability skillsn one-to-one support from Barnardo’s

to overcome personal barriersn the opportunity to earn a wage and

leave state benefits behind.

The Barnardo’s Works programme is effective because it meets the needs of employers who are supported to take on young people in areas where they need resources and skills. Employers contribute to the learning, skills development and wage costs of young people. This partnership approach ensures the best use of resources and expertise. Employers are also able to meet their own corporate social responsibility objectives, and have an impact on reducing local youth unemployment.

Evidence of success

Three hundred and seventy four young people participated in Barnardo’s Works between 1 July 2007 and 30 June 2010. An evaluation of Barnardo’s Works services by the Employment Research Institute at Edinburgh Napier University found that half of the young

Steps to sustainable employment – Barnardo’s Works

29 McQuaid, R; Dutton, M; Egdell, V and Canduela, J (2011) An Evaluation of Barnardo’s Works Services. Edinburgh Napier University, Edinburgh.

30 Ibid.

13Steps to sustainable employment – Barnardo’s Works

people who started the programme were in employment (including apprenticeships) or further education after 26 weeks.31

In addition, young people participating in the programme reported improvements across a range of outcomes including self-esteem, social skills, levels of offending behaviour, access to work experience and understanding the requirements of the job market.

Barnardo’s Works has enabled young people furthest from the labour market to access training and employment, improving their current and long-term prospects, and giving them greater self-respect and confidence. The importance of working towards qualifications that will lead to sustainable employment was clearly understood, in contrast to negative experiences of formal education before entering the programme.

The economic impact of Barnardo’s Works

The economic impact of Barnardo’s Works has been analysed by comparing young people’s outcomes after participating in the programme with a control group that was constructed from Longitudinal Study of Young People in England (LSYPE) data.32 The impact of the programme is considered over three different periods:

n the six month duration of the Barnardo’s Works programme

n the year following participation in Barnardo’s Works

n the longer term.

The first six months Three hundred and seventy four young people participated in Barnardo’s Works between 1 July 2007 and 30 June 2010. Participants who join Barnardo’s Works are young people not

in education, training or employment. Forty per cent of those who join have no prior qualifications, and the rest have very low level academic qualifications.

Barnardo’s Works participants go through the 26-week programme consisting of 13 weeks of job-related training, and 13 weeks in a work placement. During the training period, participants can claim Jobseeker’s Allowance (JSA), so the costs of providing the scheme include this provision.

For this analysis a control group was constructed to match the group of Barnardo’s Works participants. They are a group of young people not in education, training or employment, 40 per cent of whom have no qualifications, and 60 per cent of whom have low qualifications. Using LSYPE data, estimates have been made to show how much this group would claim in benefits; and how much they could have contributed in tax during these six months if they were employed. This represents the cost to public services for the control group.

Table 1 – Cost to public services during the first six months

The cost to public services of the Barnardo’s Works group is much higher than the control group because of the training and support that participants receive and the wage subsidy that employers receive to

31 Ibid.32 See www.esds.ac.uk/longitudinal/access/lsype/L5545.asp for more information on this dataset.

Barnardo’s Works group

Control group

Number of young people

374 374

Cost to public services for first six months

£2,726,000 £922,000

Levelling the playing field14

provide the 13-week work placement. On the other hand, the control group’s costs are incurred through the financial support that they receive when they are not in education, employment or training.

The year following participation in Barnardo’s Works

Using data on outcomes for participants after they had completed the course, their cost to public services for the year after completion has been modelled. For the control group, longitudinal LSYPE data was used to model outcomes at 18 years old for young people who were not in education, training or employment at 17 years old, based on their qualification level at 16 years old.

Table 2 – Cost to public services following participation

There are two stark differences in the outcomes for Barnardo’s Works participants and the outcomes for the control group:

n the majority of the Barnardo’s Works group remain in work

after participating

n the majority of the control group who were not in education, employment or training at age 17 are still in this category at age 18.

The difference in outcomes translates to a large difference in cost to public services. These estimates take into account:

n the cost of benefits or other financial support provided by government

n the cost to the state of providing the relevant education and training coursesn the tax contributions of those who are earningn the potential tax contributions of those

who are not in education, employment or training.

The longer term

Research has shown that periods of youth unemployment between the ages of 16 and 23 leave large and significant wage penalties of at least nine per cent, even after controlling for a wealth of family and individual characteristics including education.33

Although we do not have evidence of the long-term outcomes of the Barnardo’s Works group, simply participating decreases the length of time for which the majority of participants are unemployed. As the ‘wage scar’ of youth unemployment is larger the longer a young person is unemployed, just decreasing the period of unemployment significantly increases their earning potential.

For example, using this research, we can compare the wage progression for a worker who is employed at minimum wage at age 23, with their earning potential if they had spent just six months less in unemployment:

% of group Barnardo’s Works group

Control group

In education 5.1% 9.4%

In work 60.3% 22.6%

In training - 7.6%

In apprenticeship

2.2% 2.2%

Remaining ‘NEET’

32.4% 58.4%

Cost to public services for year following participation

£359,000 £1,169,000

33 Gregg, P and Tominey, E (2005) The wage scar from male youth unemployment, in Labour Economics 12 pp487-509. Elsevier, Oxford.

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Table 3 – Unemployment wage scar

Not only is the earning potential much higher for young people who have completed Barnardo’s Works, but their tax contributions will also be much higher, and the amount that needs to be spent on welfare payments will be much smaller.

Barnardo’s recommends that the private sector supports cost-effective partnerships between employers and the voluntary sector to engage those young people who are furthest from the labour market.

Having spent 13 months unemployed when young

Having spent six months unemployed when young

Wage at age 23

£5.93 per hour

£7.10 per hour

Wage at age 33

£8.95 per hour

£11.35 per hour

Wage at age 43

£10.62 per hour

£14.78 per hour

Steps to sustainable employment – Barnardo’s Works

16Levelling the playing field

The Centre for Social Justice has summarised the key findings of a plethora of reports into early intervention that have been published over the last 18 months.34 One of the findings consistent across all of these reports is that intervention in the early years must be followed up with intervention at later points, across the life cycle and particularly at times of transition.

The Department for Education’s Early Intervention Grant aims to give local authorities in England greater flexibility to target resources strategically and intervene early to improve outcomes for children, young people and families. Twenty-two separate funds have been abolished in favour of this grant, which should be used to respond to local needs and target resources where they will have the greatest impact. The overall Early Intervention Grant is £2,222 million in 2011-12 and £2,307 million in 2012-13.

In the context of achieving social mobility, it is paramount that early intervention is understood to apply across the entire life cycle, and that local authorities allocate resources accordingly. Many of the ring-fenced, centrally-allocated budgets that have been replaced by the Early Intervention Grant were for services to 16 and 17-year-olds, including information,

advice and guidance provided by Connexions.35 Despite this, the key areas of early intervention where the Government is ensuring that the overall grant provides support are Sure Start Children’s Centres and nursery places for disadvantaged two-year-olds. While there is no doubt that foundations laid in the early years have a significant impact on a child’s later outcomes, there are several transition points throughout the school years and beyond when intervention is required to keep the most vulnerable young people on track.

Barnardo’s recommends that local authorities in England use the Early Intervention Grant to support disengaged 16 and 17-year-olds into employment and training.

The most recent statistics show record numbers of 18 to 24-year-olds claiming Jobseeker’s Allowance, with significant increases in September 2011 compared with the previous year. All regions of England have seen increases, however the numbers of claimants vary considerably, from 27,500 in the South West to 64,200 in the North West. These figures call for local authorities to prioritise 16 and 17-year-olds in need of support to remain in education, employment or training, before they

Early intervention across the life cycle

70,000

0

10,000

20,000

30,000

40,000

50,000

60,000

North West London East of England

East Midlands

South EastYorkshire & The Humber

West Midlands

South WestNorth East

Jobseeker’s Allowance claimants aged 18 to 24 years September 2011September 2010

34 Centre for Social Justice (2011) Making Sense of Early Intervention: A framework for professionals. CSJ, London.35 Department for Education (2011) Early Intervention Grant: Technical note for 2011-12 and 2012-13, available at

www.education.gov.uk

17Early intervention across the life cycle

become reliant on benefits like so many young adults.

The VCS already works with local authorities across the country to identify those young people who are most at risk of being left behind, however the duties laid out in the Child Poverty Act36 mean that greater collaboration between local authorities, the VCS, and the private sector is needed. Each local authority is required to develop a local strategy to reduce child poverty, and it is important that this includes measures to reduce the number of young people who are not in education, employment or training. In addition, Local Enterprise Partnerships in England could offer an opportunity for entrepreneurs, businesses and the VCS to pool their expertise and offer sustainable employment to young people.

Local authorities have considerable responsibility for the outcomes of the most vulnerable and disadvantaged children and young people. It is imperative that central government supports them to assess local needs and account for their spending so that it has the best possible impact on those most in need. Addressing rising numbers of unemployed young people

is an early intervention issue, and 16 and 17-year-olds should not be ignored when local strategies are developed. Barnardo’s believes that local authorities, in partnership with the VCS, are best placed to match young people with businesses and employers to ensure that they develop skills that reflect local labour demands.

In addition to flexible learning options, young people most at risk of not participating in post-16 education or training require relevant and timely advice and guidance to enable them to make informed choices. Barnardo’s strongly disagrees with the suggestion that Jobcentre Plus advisors are best placed to support vulnerable 16 and 17-year-olds into employment. The vast majority of 16 and 17-year-olds will not come into contact with the Jobcentre at all, and those most at risk require targeted, ongoing support from the VCS to keep them engaged. Barnardo’s Step-Up Programme is an example of an effective partnership between a range of statutory agencies and the VCS. Working with local authorities, the VCS can make the difference between losing young people to a lifetime of unemployment, and setting them on a path to a successful career.

36 Child Poverty Act 2010. HMSO, London.

Levelling the playing field18

With almost a million 16 to 24-year-olds not engaged in education, training or employment, and the unemployment rate for 16 and 17-year-olds at its highest for 19 years, we cannot afford to ignore the most disadvantaged young people. The Coalition Government has committed to ensuring that every child and young person has an equal opportunity to achieve their potential; yet too many vulnerable 16 and 17-year-olds are being left without options to achieve social mobility and break from intergenerational patterns of worklessness.

Increasing the compulsory age of participation in education and training to 18 has the potential to improve the skills, job prospects and life chances of the young people that Barnardo’s works with. However, success depends on the range of flexible and comprehensive pathways through post-16 education, employment and training available to young people. Those 16 and 17-year-olds facing barriers to engagement, such as young carers, teenage parents or care leavers, require options that are tailored to their needs. Barnardo’s Step-Up Programme offers personal development plans, mentoring and access to work experience, apprenticeships and paid employment for those young people who are most at risk of becoming ‘NEET’. The Government’s review of 16 to 19 funding must acknowledge the role that the voluntary sector has as a training provider so that those most at risk of being left without an education, employment or training option at 16 are able to access a coherent programme of learning.

There are cost-effective solutions to address youth unemployment and engage those young people who are furthest from the labour market. Successful partnerships between the private sector and the VCS have enabled many young people to get a foot in the door and begin building skills that meet their employer’s needs, and provide a basis for their future career. Periods of unemployment between the ages of 16 and 23 leave large and significant wage penalties of at least nine per cent, and for every young person not in education, employment or training there is an average cost of £56,000 to public authorities over their lifetime.37

It pays to intervene early, and local authorities in England must not ignore 16 and 17-year-olds when they allocate the Early Intervention Grant. This grant replaces ring-fenced funds that were previously used for Connexions services to provide information, advice and guidance to young people. It is imperative that the most disadvantaged young people are supported to make the right decisions for their future at crucial transition points. Giving genuine autonomy for decisions to local leaders allows for provision to be targeted effectively; however, there is also the risk that the most vulnerable are left without support. The Government has an obligation to monitor the allocation of funds, to ensure that the goal of targeting disadvantage and preventing problems from escalating is fulfilled.

Conclusion

37 Coles, B; Godfrey, C; Keung et al (2010) Estimating the life-time cost of NEET: 16-18 year olds not in education, employment or training. University of York, York.

19

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Levelling the playing fieldAchieving social mobility for disadvantaged young people

© Barnardo’s, 2011 All rights reserved

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The report was written by Jessica Cundy, with economic analysis by Ritu Patwari