Agenda Item No: 19 Page Numbers: EAST RIDING OF YORKSHIRE COUNCIL
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1 Agenda Item No: 19 Page Numbers: EAST RIDING OF YORKSHIRE COUNCIL Report to: The Cabinet 14 July 2009 Wards: All wards Humber Sub Region Provision of Education Business Links Service (Work Experience) Report of the Director of Planning and Economic Regeneration A. Executive Summary Cabinet agreed (minute 3491) that Connexions Humber Limited will cease trading on 31 August 2009 and the core activity, Information and Guidance, will be provided in-house from 1 September Cabinet also agreed that from 1 April 2009 funding for EBP activity will be held centrally by East Riding of Yorkshire Council on behalf of the four Local Authorities (LAs) to allow the continuation of a sub regional service through the Humber EBP, hosted by East Riding of Yorkshire Council for the start of the academic year 2009/2010 (minute 3380). This report seeks approval for the Director of Planning and Economic Regeneration, in consultation with relevant Portfolio holders, to negotiate the transfer of the Health and Safety and Risk Assessment for the Work Experience contract to the Council from 1 September 2009 to enable the Humber EBP to provide the service to the sub-region as part of the EBP contract. B. Corporate Priorities Local Problem Solving Reducing Inequalities Revitalising our Communities Supporting Vulnerable People A Well Managed Authority C. Portfolio Key Strategic Issues Children, Young People and Schools D. Recommendation and Reason for Recommendation The Director of Planning and Economic Regeneration, in consultation with relevant Portfolio holders, be authorised to negotiate and agree the transfer of the Health and Safety and Risk
2 Assessment for the Work Experience contract to the Council from 1 September 2009 to enable the Humber EBP to provide the service to the sub-region. A formal agreement will be completed to cover financial and other liabilities between the four local authorities. 1. Background 1.1 The Humber EBP was established in April 2001 as a partnership between the four Local Authorities of East Riding of Yorkshire, Kingston upon Hull, North Lincolnshire and North East Lincolnshire. The remit of the Humber EBP is to develop and deliver a strategy that manages the links between schools and businesses across the Humber Sub Region. The Council acts as the accountable body for the Humber EBP and currently sub contracts with Connexions for the provision of Health and Safety and Risk Assessment for the Work Experience contract. 1.2 In July 2008 at a meeting of the Unitary Leaders and Chief Executives of the four Local Authorities it was proposed and agreed in principle subject to Cabinet approval that the services of the Humber EBP would be retained as a sub regional service and that funding identified for the purpose of education business links would be passported to the East Riding of Yorkshire Council, in the role of the accountable body for the Humber EBP, to continue the provision of the service. This is an agreement for up to five years and received Cabinet Approval on September , Minute From 1 September 2009 Connexions will cease trading as the delivery of its core activity (Information and Guidance) will be undertaken by the four Local Authorities for their respective areas. The Connexions core service does not include the delivery of the Health and Safety and Risk Assessment for the Work Experience contract. 1.4 For the last eight years the EBP has delivered the work experience on behalf of the LSC with funding from the Department for Children, Schools and Families (DCSF) supplemented by contributions from Local Authorities and Schools. Following a tender process in 2003, the Humberside Partnership was awarded the contract which was later novated to Connexions when staff from The Humberside Partnership were subsumed into Connexions. 1.5 The delivery of a sub regional service becomes increasingly more important for the future of work experience to ensure that a single point of contact for employers and schools is maintained. In future years, learners will increasingly travel to learn outside of their home Local Authority as the agenda is embedded and access to seventeen new lines of learning through Diplomas increases opportunities and the need for a wider range of experiences. 1.6 Arrangements for contracting with the LSC for the current academic year terminated on 31 March Sub contracting arrangements for work experience through Connexions also ran to 31 March 2009 through current arrangements, but it was agreed by the four Local Authorities that they will continue to support the funding and the delivery of the service until Connexions ceases to trade on the 31 August Considerations including Options 2.1 Two options have been considered: i) to activate a new round of tendering for work experience provision ii) to take the service in-house and provide the service to the sub-region.
3 Option i) A tendering process is unlikely to achieve a satisfactory solution to this issue by the end of August Experience demonstrates that this could increase the cost of the service, putting a strain on other areas of education business link activity. Following a tendering process, contract delivery will not change, whichever organisation was successful, and Connexions staff currently delivering this contract would probably be transferred into the new delivery organisation. Therefore, although staffing levels and costs would be the same, there is a risk that in addition to the cost of the tendering process a management fee would be required by the chosen provider. Option ii) (Preferred Option) This is the preferred option on the basis that the Humber EBP is ideally positioned to continue the service which it has delivered for more than 8 years. This would be more effective and efficient than would be the case through external provision as systems, policies and procedures are well established. Taking the service in-house will allow greater control of the quality of provision and make savings in the cost of providing the service. The Humber EBP team includes the Manager for Work Related Learning and Work Experience who is responsible for overall quality, has led the Connexions team to achieving the Centre for Education and Industry, University of Warwick Work Experience Organisers Award, has received a European Award for the occupational health and safety of young people and has produced a range of work experience materials which have been acclaimed by the DCSF and Qualifications and Curriculum Authority and are used by other Local Authorities across the country. In addition the Humber EBP holds the National Education Business Partnership Network Quality Assurance Standard. Connexions staff have extensive expertise in delivering the work experience programme and whilst some roles are designed to meet local needs through their local knowledge base, each will also have a sector experience which can be utilised across the sub region. They are also qualified and trained to a high level in matters relating to health and safety, policy and child protection which complements each Local Authority s requirements. 3. Financial Implications 3.1 Equipment, database management and licences The 2008/9 value of the contract for work experience with Connexions was 345, ,797 of this was drawn from the current LSC contract and the remainder was paid for by Local Authorities, Schools and some 6 th Form Colleges. This figure changes year on year and is based on a unit cost per learner involved in the programme. The recharge associated with this contract is calculated to fully recover all costs associated with the staffing and the related work. The EBP is currently responsible only for the block work experience placement that a learner is entitled to in Year 10 or Year 11 whilst in full time education, but we include with our current contracting arrangements other aspects of work experience that the educational institutions require Connexions to undertake. 3.2 Income generation The Humber EBP has been supplied with the details of the Connexions staff applied to the contract for work experience, but a small proportion of staff time is also used to provide a
4 work experience service to institutions outside the EBP remit, including private schools, FE and special educational units. Discussions have taken place with these institutions and it has been agreed that from September the EBP will take over the delivery of their work experience requirements. It is anticipated that this work will generate additional income, currently this is estimated in excess of 20, Staffing Implications 4.1 Staff working on this contract will be subject to TUPE. The staff will therefore transfer on their existing terms and conditions. 4.2 Staff will require enhanced CRB clearance an additional cost of 580 on transfer and in three years, an estimate of 1,150 in total. 4.3 At the end of the 5 years, or earlier if agreed by the four Local Authorities, there may be redundancy costs and potential strain on the pension scheme. From current information to hand, which has not been verified, all members of staff eligible to transfer are members of the LGPS and 4 members of staff will be over 55 and will have immediate access to their pension if redundancy occurs. Agreement has been reached with all 4 Local Authorities that these costs will be apportioned between all Authorities. 4.4 The current administrative support arrangements for the EBP are not part of the Corporate Resources function, as they are a small team of technical support on FTC and retained within the Planning and Economic Regeneration Directorate. The transferring administrative staff will also be located within the DPER as the Administration Assistants role involves substantial involvement in an active document retrieval system, ensuring the efficient retrieval of records and information using manual and computer based systems. They also perform basic research through the use of the Internet and other alternative sources of information including paperbased records. In addition the Administration Assistants have daily contact with schools and employers involved in the work experience programme providing advice and technical support. These tasks ensure comprehensive technical support to the Placement Officers and the input and retrieval of data for reporting purposes. 4.5 The value of the work experience contract covers staffing costs. In addition, further contracts funded externally will enhance and develop the service. 5. Accommodation 5.1 Consultation has taken place with Valuation and Estates to ensure the staff transferring can be accommodated within the arrangements being made for transferring staff. 5.2 Connexions staff are currently based in the area which they cover. Administration support for both North and North East Lincolnshire is based in Grimsby and those providing support for Hull and the East Riding are based in Hull. Placement Officers currently share accommodation with Connexions staff. On the South Bank they are located in Scunthorpe and Grimsby and on the North Bank, Hull, Goole, Beverley and Bridlington. By the nature of travel to work and travel to learn patterns a number of work experience placements for East Riding schools are sourced in Hull. However, Placement Officers will spend much of their time visiting employers. 5.3 Agreement has been reached in principle from each of the three Local Authorities to provide the local accommodation for staff delivering the work experience contract in each area.
5 5.4 An agreement has been made for South Bank staff and the East Riding Placement Officers to be accommodated in the respective Local Authorities with other Connexions staff transferring to the Local Authorities. The Sub Regional Work Experience Manager works predominantly from home in North East Lincolnshire, travelling to local offices as necessary. In Hull there is some doubt about the availability of suitable accommodation for the Placement Officers and administrative staff currently based in Paragon Street. However, the EBP rents accommodation at the Chamber of Commerce in Hull and if no alternative accommodation is made available, administrative staff for the North Bank will be based at these premises and a hot desk facility will be provided for Placement Officers working in Hull. Hot desk facilities will also be made available in Business Centres across the East Riding for staff working in this locality. 6. Conclusion 6.1 The transfer of the Connexions Service into the Local Authorities will take place on 1 September The preferred option for continuing the delivery of the work experience programme is Option ii which involves bringing the service in-house but necessitates the transfer of the delivery team into the employment of the Council under the management of the Humber EBP with appropriate agreements to cover financial and other liabilities between the four local authorities. 6.2 The Director of Planning and Economic Regeneration, in consultation with relevant Directors and Portfolio holders, be authorised to negotiate and agree the transfer of the Health and Safety and Risk Assessment for the Work Experience contract to the Council from 1 September 2009 to enable the Humber EBP to provide the service to the sub-region. Alan Menzies Director of Planning and Economic Regeneration Contact Officer: Paul Bell Head of Economic Development Telephone Number: E.mail: paul.bell@eastriding.gov.uk Contact Officer Sandra Cooper General Manager Telephone Number E.mail sandra.cooper@eastriding.gov.uk Background Papers None
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