Looked After Children Pre Employment Programme - Proposal to use Section 106 funding from DB238 Gem Mill, Fields New Road to establish a new programme

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1 Looked After Children Pre Employment Programme - Proposal to use Section 106 funding from DB238 Gem Mill, Fields New Road to establish a new programme Report of Elaine McClean, Executive Director Economy, Place and Skills Delegated Report section 106 monies 23 rd May 2011 Officer Contact : Rohema Khan/Jonathan Phillips Ext Purpose of Report To seek approval for Oldham Council to use Section 106 funding from DB238 Gem Mill, Fields New Road, Chadderton of 94, for setting up the Looked After Children (LAC) pre employment programme. Executive Summary The main aim of the Looked After Children Pre Employment programme is to offer a cohort of looked after children the opportunity to a 12 month work experience placement with training. The cohort of looked after children failed to secure an apprenticeship position within the Council due to their skills level which is significantly below the required level to commence on an apprenticeship programme. This will provide the opportunity to raise their skills base over a 12 months period through a paid work experience scheme with the view to securing future employment and training. Fourteen Looked After Children applied for the different apprenticeship positions advertised during December 2010 and January All LACs were put forward to assessment stage and 11 attended assessment. However, only 2 candidates achieved a level 1 in both literacy and numeracy required to commence on a level 2 apprenticeship programme. The majority achieved an entry level 3 and some with entry level 2 which means that they are not suitable for an apprenticeship position. Planning permission for the development at Land at Fields New Road, (inc Gem Mill) Chadderton (PA/50951) was granted subject to the developer first entering into a

2 Section 106 planning obligation. This obligation was signed on 31/05/2007, whereby the developer, Redrow Homes and Manchester Methodist H.A., agreed amongst other things to pay 100,000 to enhance employment opportunities in the Borough. Some of this funding has already been used on the feasibility study for the Chadderton technology Park, leaving 94, avaialble. In order to support our Looked after Children (LACs) into employment and training, it is proposed that the S106 funding of 94, is used to develop a preemployment programme specifically for LACs. The pre-employment programme would be for a 12 months period and the S106 funding to be used for the salary and training costs of the programme. Without the section 106 monies, this opportunity would not be available. The impact would significantly reduce the cohort to enter employment or training. Recommendations Agree to Oldham Council to using S106 funding of 94, from the Gem Mill development (DB238) to develop a pre- employment programme specifically for nine Looked After Children. Page 2 of 15 [Document Title] [date]

3 Delegated Item 23 rd May 2011 Looked After Children Pre - Employment Programme Report of Elaine McClean, Executive Director Economy, Place and Skills Portfolio Responsibility: EPS 1 Purpose of Report 1.1 To seek approval for Oldham Council to use Section 106 funding from DB238 Gem Mill, Fields New Road, Chadderton of 94, for setting up the Looked After Children (LAC) pre employment programme 2 Executive Summary 2.1 The main aim of the Looked After Children Pre Employment programme is to offer a cohort of looked after children the opportunity to a 12 months work experience placement with training. The cohort of looked after children failed to secure an apprenticeship position within the Council due to their skills level which is significantly below the required level to commence on an apprenticeship programme. This will provide the opportunity to raise their skills base over a 12 months period through a paid work experience scheme with the view to securing future employment and training. 2.2 Fourteen Looked After Children applied for the different apprenticeship positions advertised during December 2010 and January All LACs were put forward to assessment stage and 11 attended assessment. However, only 2 candidates achieved a level 1 in both literacy and numeracy required to commence on a level 2 apprenticeship programme. The majority achieved an entry level 3 and some with entry level 2 which means that they are not suitable for an apprenticeship position. 2.3 Planning permission for the development at Land at Fields New Road, (inc Gem Mill) Chadderton (PA/50951) was granted subject to the developer first entering into a Section 106 planning obligation. This obligation was signed on 31/05/2007, whereby the developer, Redrow Homes and Manchester Methodist H.A., agreed amongst other things to pay 100,000 to enhance employment opportunities in the Borough. Some of this funding has already been used on the feasibility study for the Chadderton technology Park, leaving 94, avaialble. 2.4 In order to support our Looked after Children (LACs) into employment and training, it is proposed that the S106 funding of 94, is used to develop a pre- employment programme specifically for LACs. Page 3 of 15 [Document Title] [date]

4 2.5 The pre-employment programme is for a 12 months period and the S106 funding to be used for the salary and training costs of the programme. 2.6 Without the section 106 monies, this opportunity would not be available. The impact would significantly reduce the cohort to enter employment or training. 3 Recommendations 3.1 Agree to Oldham Council to using S106 funding of 94, from the Gem Mill development (DB238) to develop a pre - employment programme specifically for Looked After Children. 4 Background 4.1 The apprentice route is now the main focus for the Government, as signalled by the removal of the Train to Gain scheme, encouraging young people and adults (including those in employment) to access the apprenticeship programmes. This includes key skills, an NVQ qualification and a technical certificate. 4.2 In relation to the Looked After Children, it is clear that as the corporate parent, the Council can play an important role in developing bespoke programmes to support them into apprenticeship programmes. However, the apprenticeship recruitment process demonstrates clear evidence that these vulnerable young people require pre employment support as they received specific support, including: Pre Employment support from Connexions Dedicated assessment just for LACs Guaranteed Interviews Social Worker/Key worker support to attend pre employment sessions, assessment, interviews 5 Current Position 5.1 Fourteen Looked After Children applied for the different Oldham council apprenticeship positions advertised during December 2010 and January All LACs were put forward to assessment stage and 11 attended assessment. However, only 2 candidates achieved a level 1 in both literacy and numeracy required to commence on a level 2 apprenticeship programmes. Majority achieved an entry level 3 and some with entry level 2 which means that they are not suitable for apprenticeships. 5.2 Two looked after children secured an apprenticeship position within the council; one Apprentice Project Support Officer (Economy & Skills) and one Apprentice Youth Worker (Integrated Youth Service) 5.3 This leaves a cohort of nine significantly away from the jobs market and future training. Page 4 of 15 [Document Title] [date]

5 5.4 Planning permission for the development at Land at Fields New Road, (inc Gem Mill) Chadderton (PA/50951) was granted subject to the developer first entering into a Section 106 planning obligation. This obligation was signed on 31/05/2007, whereby the developer, Redrow Homes and Manchester Methodist H.A., agreed amongst other things to pay 100,000 to enhance employment opportunities in the Borough. Some of this funding has already been used on the feasibility study for the Chadderton technology Park, leaving 94, avaialble. 6 Recommendations 6.1 Agree to Oldham Council to using S106 funding of 94, from the Gem Mill development (DB238) to develop a pre - employment programme specifically for Looked After Children.. 7 Options/Alternatives 7.1 The alternative is to not support the initiative which would have a negative impact on the lives of LACs as majority of the applicants did not achieve the required standard in literacy and Numeracy, therefore leaving them out of employment and/or training. 7.2 Offer of a day a week contract to the 9 candidates which would cost 79, and there would be 15, remaining from the total S106 funding. This could be used to offer bespoke support and training. The support and training would be very specific to the individuals need which would may include: Literacy and Numeracy (mandatory) Job Search training and support Personal development programme Accredited pre Apprenticeship programme The table below shows the breakdown: Minimum wage per hour Hours per day Days per week Weeks per year Salary without on cost 24.6% on cost Salary with on cost Candidate Age , , , , , , , , , , , , , , , , , , , , , , , , , , , Total Cost 63, , , Page 5 of 15 [Document Title] [date]

6 The table below shows the breakdown: 7.4 National Minimum Wage There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates are: the main rate for workers aged 21 and over the rate the rate for workers above school leaving age but under the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship 8 Option 8.1 For the council to support the proposal. 9 Consultation 9.1 Looked After Children Pre - Employment Programme has been discussed in depth with the After Care Team and Organisational / Workforce Development. In addition to this discussion has taken place at the Passport to Employment Operational meetings as well as the Towards University Town Board meetings. 10 Financial Implications 10.1 Planning permission for the development at the site off Fields New Road and including Gem Mill, Chadderton (PA/50951) was granted subject to the developer first entering into a Section 106 planning obligation. This obligation was signed on 31 May 2007 whereby the developer, Redrow Homes, agreed that within 14 days of the development commencing, they would pay 100,000 to enhance employment opportunities in the borough. The developer paid the contribution on 21 September 2007 and the Council has until 21 September 2012 to spend the contribution. Following expenditure in relation to the development of Chadderton Technology Park, this contribution now stands at 94, The costs associated to the council are funded through approved schemes as follows: 10.3 Salary cost under the proposal is 79, and training/development cost is 15, Total costs of 94, which needs to be spent by 21 September 2012 (Rohema Khan) Page 6 of 15 [Document Title] [date]

7 Revenue Implications 10.5 Section 106 funding awarded under PA/50951 for DB238 Gem Mill, Fields New Road totals 94,966. The cost of employing 9 apprentices at 0.8fte for 1 year including oncosts is 79,506. Bespoke training for these employees will be approximately 15,460. The salary costs will be split over 2 financial years with an expected time line of 01 st June 2011 to 31 st May 2012, as per the table below; 10.6 The income and expenditure for the LAC apprenticeship programme will be held on a new cost centre within the Place Shaping Service area and will be managed by the Economy & Skills team The Section 106 funding received for this programme has a time condition attached. The funds must be utilised by 21st September 2012 to fulfil this condition or they will be returned to Redrow Homes Any surplus arising from apprentices not completing the training will lead to additional resource within the training provision or ultimately resulting in payback of the S106 funding. (Vickie Crewe) 11 Legal Services Comments 11.1 The 100,000 contribution was provided as a contribution towards the enhancement of employment opportunities in the Borough. The planning obligation stated that the Council must use the 100,000 for the purposes specified or return the money together with interest. The Council must therefore be satisfied that the proposed use of the section 106 monies is in accordance with the terms of the planning obligation. The Planning Committee report which recommended the requirement for the contribution stated that one way to enhance employment opportunities was by funding or sponsoring training initiatives to raise skill levels within the workforce so Page 7 of 15 [Document Title] [date]

8 contributing to the creation of a higher quality, more diverse labour market. (A Evans) 12 Human Resources Comments 12.1 From a HR perspective, should the candidates be extended beyond the initial 12 month period employment rights will begin to accrue. However, as long as the proposed offers will be on a fixed term contract for a period of 12 months there are no further HR implications. (Paul Dernley) 13 Community Cohesion Implications [including Crime & Disorder Implications in accordance with Section 17 of the Act] and Equalities Implications 13.1 The initiative is targeted to 9 unsuccessful Looked After Children who applied for the Oldham council Apprenticeship positions. 14 Key Decision 14.1 No Signed Executive Director EPS Dated [to delete the box below when it goes to Cabinet] Report Tracking Where EMT Leadership Joint Leadership Overview & Scrutiny When n/a n/a n/a n/a Page 8 of 15 [Document Title] [date]

9 Annex a Employment Initiatives - Apprenticeships Portfolio Holder: Report of Principal Officer (Economy, Skills and Place Shaping) and Head of Organisation Development. Report Author: Rohema Khan Officer Contact: Jonathan Phillips / John Fraine Ext. 5194/ 8700 Date: 25 th August 2010 What the issue is: Purpose of the Report 1.1 The report provides an update of the current positioning of apprenticeships in the Council. It gives an overview of how the 200,000 central funding will be used to support the apprenticeship programme within the Council to aid unemployed residents of Oldham into skilled employment. 1.3 The report also identifies some potential funding from a Section planning obligation which could be used to support the apprenticeship programme. Background The Apprenticeships Update: supporting citizens into skilled employment (19 th July 2010), states that: apprenticeships are an essential part of Oldham s workforce strategy. Young people are an under-represented group within the workforce and it is important that Oldham Council reflects the community demographics. Engaging with Apprenticeships can help in these areas. The Oldham council has been involved in the apprenticeship scheme for a number of years. Apprenticeships have traditionally been offered to 16 to 24 year olds. However, the coalition government has recently extended this to 1 Section 106 of the Town and Country Planning Act 1990, as amended by the Planning and Compensation Act 1991 Page 9 of 15 [Document Title] [date]

10 over 24 year olds as well. This could increase both the experience and quality each apprentice brings to an organisation. Table 1 shows how apprenticeships have grown significantly over the past few years: Table 1: Apprenticeship Intake Year Numbers Areas (10 level 3 permanent contracts, 23 fixed term) (all permanent contracts) (all permanent contracts) (7 permanent contracts, 1 casual contract, 2 unknown, 2 left) Business Administration, cemetery Operations, Customer Service, Early years & Childcare, Environmental, Finance, Health & Social care, Street Scene, Horticulture, It User, Sports Development, Teaching Assistants, Waste management, Youth Work Business Administration, Environmental, Finance, Health & Social care, Street Scene, Horticulture, Infrastructure Technician, Technician Business Administration, Estate Ranger, Street Scene, Horticulture, Teaching Assistants, Waste management Engineering & construction, Finance, Health & Social Care, Horticulture, Business Administration From 2006 to 2008, apprenticeships were only offered to existing staff as a way of updating training for specific jobs. Predominantly it focused on Level 2 qualification and entry level posts. However, during 2009 twenty three additional apprentices were recruited through the support from the 200,000 funding provided by central funds. The level 2 apprentices were on a fixed term 12 months contract being paid the apprenticeship minimum wage of 95 per week. However, the average apprenticeship wage in the UK is 170 at present. The Level 3 apprentices were recruited through existing posts paid at entry level scale of pay. The table also demonstrates that the areas of apprenticeships areas have also grown significantly. The retention rate has been very high as only 2 apprentices withdrew from 2009 cohort due to securing permanent employment elsewhere. Section 106 funding Planning permission for the development at the site off Fields New Road and including Gem Mill, Chadderton (PA/50951) was granted subject to the developer first entering into a Section 106 planning obligation. This obligation was signed on 31 May 2007 whereby the developer, Redrow Homes, agreed that within 14 days of the development commencing, they would pay 100,000 to enhance employment opportunities in the borough. Page 10 of 15 [Document Title] [date]

11 The developer paid the contribution on 21 September 2007 and the Council has until 21 September 2012 to spend the contribution. Following expenditure in relation to the development of Chadderton Technology Park, this contribution now stands at 94, It is now proposed that all this amount toward funding a minimum of 8 full time level 3 apprenticeships across the Council. This is subject to a separate EDRS report to the Executive Director of Economy, Place and Skills in consultation with the Cabinet Member for Regeneration and Environment in accordance with the councils approved procedures for the allocation of Section 106 funding. (Liz Kershaw) 3. Business Case The Apprenticeships Update: supporting citizens into skilled employment (19 th July 2010), mentions that we as a town are required to increase the volume of apprentice places that are made available, ensuring that the needs of employer, the economy as well as meeting the meets of the residents are aligned. The paper also suggests that there is an existing shortfall of around 320 young people not accessing apprenticeships to reach the target of 20% young people undertaking apprentices. This gap is further increased to annually due to the recent changes in eligibility on funding made by the coalition government. The Council can utilise this scheme to develop talent and help to reduce skill shortages, and minimise staff turnover. It would also support the other existing programmes, such as, Future Jobs Fund (FjF), and the Passport to Employment (P2E) projects in ensuring that we reduce the number of people falling out of employment. The FjF project will place 500 unemployed residents with employers by March By end of October FjF Trainees will complete and look for opportunities to secure employment. An exit strategy for FjF trainees would be to convert to apprentices and maximise on the training and support they have received. This would as a result lead to reduce the rate of unemployment during this difficult economic climate. The aims of P2E project is to pilot employability bespoke programmes to help unemployed residents initially enter The Council and then to roll its successes to other public sector organisations. This project therefore, can support the apprenticeship initiative by delivering specific employability training to recruit high calibre candidates for apprenticeships. This initiative will also enable The Council to act as a catalyst in leading the way to encourage other public sector organisations in opening up apprenticeship opportunities during the difficult recession period. 4. Target Priority Groups Page 11 of 15 [Document Title] [date]

12 After discussion within the Apprenticeship working group, it was decided that the priority groups should include: Looked after Children (LACs) to ensure that corporate parenting responsibilities are implemented by offering employment and training opportunities. LACs encounter far more difficulties in entering employment than other young people due to the many barriers they face, such as, poor educational achievements. The apprenticeship scheme in 2009 supported 3 LACs into employment. Considerations needs to take place when deciding the salary for a LAC as Children above the age of 16 live either semi-independently or independently and found it difficult to manage financially, especially as some of the Looked After Children are now parents themselves. Future Jobs Fund Completers: Again this would enable The Council to maximise on the training FjFs have already received and move them into secure employment. Many FjF managers have already requested this as way forward strategy. It will also help the different departments to displace agency staff with apprenticeships. Existing Staff: This would look at staff that may be at risk of redundancy and offer apprenticeship opportunities to reduce that risk. Also, existing staff that may have moved jobs and need to update skills. It is a good method of keeping up to date with continuous professional development. 5. Financial Cost In total there could be 294, funding available to recruit new apprentices to the Council, which is made up of 200,000 central funds and the 94, section 106 funding from DB 238 (land at Fields New Road, Gem Mill). There is also another 95k from the P2E project to support the apprenticeship initiative through marketing and pre employment programmes and well as training for managers who recruit apprentices. It would also finance a managers club which would exist to explore new ways of working and share good practice across the council. The statutory Apprenticeship minimum wage is 2.50 per hour. applies to the following groups: This rate apprentices under 19 apprentices aged 19 and over, but in the first year of their apprenticeship. On completion of the first year it needs to be raised to at least the minimum wage at 4.83 per hour for 18 to 20 year olds, and 5.80 per hour for over 21 year olds Page 12 of 15 [Document Title] [date]

13 Apprentices are paid at different rates across the council, depending on the entry level salary of the vacant post and service area into which the apprenticeship falls. Based on the current budget of 200,000, the council will be able to recruit 33 apprentices taking into account 22% on cost assuming posts are offered at 95 rate of pay. However, in order to provide a reasonable wage and to attract apprentices of all ages, suggestions have been made that payment should differ in relation to age. Recommendation includes: Apprentices aged at 95 per week Apprentices aged at per week ( 4.83 per hour based on 37 hour week) or 9, per annum. Apprentices aged over 19 at per week ( 5.80 per hour based on 37 hour week) or 11, per annum These rates of pay would relate to the level 2 apprenticeships and would be effective for the first year of the apprenticeship on the basis that the apprentice achieves the required training and qualifications.. In addition, it was decided that 50% of the Apprenticeships Coordinator s current total salary of 34, is taken from this budget; which will leave a budget of 182,532 which reduces the number of apprentices to 16 level 2 apprentices based on the assumption that all apprenticeship posts are full time and paid at the highest rate of per week. The Oldham council is potentially able to recruit at least another 16 level 2 apprentices if the funding of 200,000 was made available this year. It is proposed that the S106 funding is used to recruit Level 3 apprentices where the funding will be used to cover salary costs of the apprenticeship for the duration of the training which could be up to months. After the months specific services would be responsible for sustaining the post. First 12 months of the salary would be paid at ( 5.80 per hour based on 37 hour week) or 11, per annum and there after up to 24 months at the entry level salary of specific post and service area. Based on the above calculations, the 94, from Section 106 funding will fund another 4 level 3 apprentices, totalling potential vacancies. The apprenticeship scheme is a very cost effective method of recruiting staff as they learn as they work. The learning for year olds is fully funded by the government, which again cuts down the training cost that the council may occur if recruiting through the traditional routes. The learning for apprentices aged 19 and over requires a contribution from the employer. 6. Expression of Interest To date there are 160+ potential apprentices on a waiting list, who have expressed an interest in becoming an apprentice with the Oldham Council. In addition there are 180 FjF in various departments within the council at present. There will be137 FjFs completing their placement by end of October Page 13 of 15 [Document Title] [date]

14 By March 2011, the number of FjFs will rise to around 500. All of whom would require support to secure employment. Although, we cannot meet the needs of all FjF completers, it would support some completers into sustained employment. 7. Benefits and Savings By sustaining and increasing the apprenticeship scheme, The Council will benefit in a number of ways as listed below: Apprentices are good for business as they offer a route to harness talent and can help to reduce skill shortages, minimise staff turnover and workplace accidents, and increase productivity. Apprenticeships can help to raise skills levels. Taking on an apprentice is cost effective because they learn while they work and government funding contributes to training costs. Apprentices work towards nationally recognised qualifications. This as a result provides continuous professional development for staff. Apprenticeship programmes can help with broader challenges as it will address wider social responsibility by helping to offset regional and local skills shortages and reducing unemployment rates locally. It will help to reduce the number of 16 to 18-years olds who are not in employment, education or training (NEET) Apprenticeships can help to promote Oldham Council as an employer of choice as it will work towards reducing barriers to entry into the Council and improving the diversity of the workforce. It will further enable the Council to develop its future and existing workforce and tackle succession planning issues. Ensure our corporate parenting responsibilities are implemented by offering looked-after children (LACs) education and employment opportunities, Reduction on the dependency of agency staff 8. Risks Without the support of the 200,000 and the 94, S106 funding, it is unlikely to sustain the same level of apprentices as This would mean that the aim to reduce unemployment rates through skills development for local people will not be achieved. 9. Sustainability In order to sustain the apprenticeship scheme on long term basis, the Council would need to embed this scheme as a mainstream activity and move away from the year on year funding. This would require managers to review their spending and work towards advertising all entry level vacancies as apprenticeships. The council at present has an aging workforce with only 5% of staff aged between years Old, (Workforce Monitoring statistics quarter 1, 30 th June 2010). This has been a common trend over the last few Page 14 of 15 [Document Title] [date]

15 years which needs to be addressed to ensure effective succession planning is in place. Mainstreaming the initiative would both drive cost efficiency and promote the Council as employer of choice. Long term strategy to sustain the apprenticeship scheme would require support from senior leadership and Unions, as well as redeveloping HR policies to incorporate the changes. 10. Recommendation 10.1 To confirm the utilisation of 200,000 central funding and recommend a further report to allocate the 94, section 106 funding in order for the Council to continue expanding the apprenticeship scheme as a new method of recruitment for entry level posts 10.2 Agree the priority groups. A minimum of 2 Apprenticeships places are allocated to Looked After Children on an annual basis All entry level post to be considered for apprenticeships as this will aid efficiency Displace agency staff with apprentices. 200,000 central fund to recruit Level 2 apprentices, and target the section 106 funding to support a minimum of 4 Level 3 apprentices. Page 15 of 15 [Document Title] [date]