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					Southwark Alliance Worklessness
Seminar
22 September 2008


Southwark Council Economic Development Team   Slide 1

22nd September 2008                           www.southwark.gov.uk
Defining Worklessness
  Workless – a person of working age who is not in paid work.
  (56,200 people in Southwark)

  Unemployed – a person of working age who is not in paid work, is
  available for work and is actively seeking work.
  (13,300 people in Southwark)




Southwark Council Economic Development Team      Slide 2

22nd September 2008                              www.southwark.gov.uk
Worklessness in Soutwhark
  Out of 56,200 people not working, working age benefits are claimed by 30,910 people, 16.2%
  of Southwark’s working age population.
  Main groups: 6,220 jobseekers, 7,060 lone parents, 13,440 incapacity benefit claimants.




Southwark Council Economic Development Team                     Slide 3

22nd September 2008                                             www.southwark.gov.uk
Other measures of worklessness
Southwark is the second most deprived borough in London for employment deprivation
(IMD 2007).

The employment rate is 66.6%, behind London (69.8%) and Great Britain (74.4%).

Around 38% or 21,600 children aged 0-18 years in Southwark are living in families on
key benefits (2006).

An estimated 20,700 children in Southwark are living in an income deprived household
(2007).

13% of Southwark LSOAs in the most deprived 10% in England for income deprivation,
with 57% in the most deprived 20% in England.


Southwark Council Economic Development Team                 Slide 4
22nd September 2008                                         www.southwark.gov.uk
  Distribution of benefits claimants in Southwark – band of high numbers across
  Bermondsey, Walworth, Camberwell, Peckham and Nunhead




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Southwark Council Economic Development Team                              Slide 5

22nd September 2008                                                      www.southwark.gov.uk
Barriers to employment faced by
Southwark residents
  Direct
  Skills (vocational, language, basic skills)
  Childcare
  Health
  Confidence / motivation
  Complex personal issues (drug and alcohol abuse, housing, legal, debt issues)
  Financial cost of returning to work

  Indirect
  Access to and awareness of services
  Employers’ engagement
  Transport and access to jobs
  Unsustainable incomes (the ‘London effect’)
Southwark Council Economic Development Team                Slide 6

22nd September 2008                                        www.southwark.gov.uk
The ‘London effect’ (HM Treasury, 2006): additional London factors impact negatively upon those on
the fringes of the labour market. In particular, an excess supply of low-skilled labour, which increases
competition for labour and drives down wages, together with higher housing, childcare and mobility
costs, reduces financial gains and therefore personal reasons for seeking employment.




  Southwark Council Economic Development Team                          Slide 7

  22nd September 2008                                                  www.southwark.gov.uk
These barriers to employment prevent people living in inner London from accessing the
benefits of local economic growth….




Southwark Council Economic Development Team               Slide 8

22nd September 2008                                       www.southwark.gov.uk
Additional structural factors in Southwark, including:

High levels of social housing (Over 50% of households live in social rented housing)

High numbers of lone parents (42% of households with dependent children are lone parent
households).

Contribute to, despite steady improvements, a persistently lower employment rate for Southwark’s
population:




Southwark Council Economic Development team                        Slide 9

22nd September 2008                                                www.southwark.gov.uk
Opportunities & Threats
  Unacceptable level of worklessness in Southwark but direction of travel is slowly
  improving

  Opportunities presented by the proximity of the London labour market

  Opportunities presented by the number of services offered, threats from the scale
  of challenge that clients face

  Enterprise – demand side, continued focus on working with employers and tailored
  support for sectors

  Credit crunch & recession – Spike in unemployed, but inactive benefits continue to
  decrease

Southwark Council Economic Development Team                  Slide 10

22nd September 2008                                          www.southwark.gov.uk
Questions and feedback




Southwark Council Economic Development Team
22nd September 2008                           www.southwark.gov.uk
Southwark’s approach to tackling
worklessness

  Southwark’s Employment Strategy
      - Launched in 2002, reviewed in 2005, to be reviewed again in 2009
      - Based on increasing access to work, sustainability and progression and preventing
      people falling into worklessness.
      - Focused on barriers to employment.
      - Partnership strategy – targeting services that add value to mainstream provision.


  Local authority / LSP interventions
      - Southwark Works.
      - Commissioning local added value services.
      - Linking local economic development to major projects.


Southwark Council Economic Development Team                     Slide 12

22nd September 2008                                             www.southwark.gov.uk
Southwark Works
  Partnership based programme developed under multi-agency initiative (Council,
  Jobcentre Plus, LSC, LDA, GOL, Aylesbury NDC).

  Targets those furthest from the labour market through outreach with key service
  delivery partners.

  Provides 700 people annually with engagement, personal support and progression to
  employment.

  Fills gap between mainstream provision and those with highest need.

  Flexible, scalable model allows simple adjustment to meet changing needs.

  Leading example of this approach in the country.


Southwark Council Economic Development Team                Slide 13

22nd September 2008                                        www.southwark.gov.uk
Securing local economic benefits from
regeneration
  Key part of partner selection process and regeneration agreement negotiation for the
  Elephant and Castle.

  12 principles agreed with Lend Lease covering local employment, skills and
  enterprise.

  Taken forward in negotiations on E&C early housing sites, Aylesbury phase 1 and
  Canada Water.

  Southwark’s Section 106 policy secures contributions and obligations regarding
  employment, training and enterprise from all major developments.

  Our Building London Creating Futures programme secures local employment on
  construction sites across Southwark and central London.

Southwark Council Economic Development Team                Slide 14

22nd September 2008                                        www.southwark.gov.uk
Local Area Agreement
  8 national indicators and 4 local relating to employment, skills and enterprise.
  - Young offenders engagement in suitable education, employment or training (indicator 45)
  • 16-18 year olds not in education, employment or training (117)
  • Proportion of offenders in employment at the end of their order or licence (144)
  • Adults with learning disabilities in employment (146)
  • Care leavers in education training or employment (148)
  • Adults in contact with secondary mental health services in employment (150)
  • Working age people on out of work benefits (152)
  • Working age people on out of work benefits - in the worst areas (local indicator)
  • Percentage of working age population qualified to at least Level 2 or higher (163)
  • Number of self employment registrations or VAT registered businesses per 10,000 adults
  (local)
  • Percentage of working age population with no qualification (local)
  • ESOL course provision (local)
Southwark Council Economic Development Team                      Slide 15

22nd September 2008                                              www.southwark.gov.uk
Costs of supporting people
  LAA requires us to reduce the number of people claiming benefits by 5800 by 2011.

  This is a stretch on top of existing interventions and progress made so far.

  Costs of supporting someone into work increase as the number of barriers to be
  overcome increases, ranges from a few hundred pounds to £8,000+ per person.

  High volumes - mainstream programmes are resourced to support most people’s
  needs.

  To make a sustained difference we need to target our investment at supporting those
  previously left behind or who aren’t benefiting from mainstream support.




Southwark Council Economic Development Team                  Slide 16

22nd September 2008                                          www.southwark.gov.uk
Questions and feedback




Southwark Council Economic Development Team
22nd September 2008                           www.southwark.gov.uk
Successes of Southwark’s Approach
  Since our first employment and enterprise strategies were launched in 2002:
            - 3,020 fewer Southwark residents are claiming working age benefits,
            - Claimant rates are down 3.2 points (London average drop 1.1 points)
            - Southwark’s employment rate has risen from 64.1% to 66.6%
            - The gap between the Southwark and London employment rates has
            closed from 5.5% to 3.2%

  Southwark’s employment strategy and the Southwark Works model cited as national
  good practice.

  Southwark Works model is being replicated by local authorities across the UK.



Southwark Council Economic Development Team                Slide 18

22nd September 2008                                        www.southwark.gov.uk
Successes of Southwark’s Approach
  Partners’ interventions are reaching areas that have traditionally been hard to affect
  in Southwark:-

            - Numbers on Incapacity Benefit are falling for the first time in five years.

            - The numbers of people claiming Lone Parent Income Support have fallen
            significantly.

            - Gap between the Southwark and London claimant rates for Income
            Support has closed to just 0.6%.




Southwark Council Economic Development Team                    Slide 19

22nd September 2008                                            www.southwark.gov.uk
Economic challenges
  August claimant count up by 200 - first significant rise in Southwark JSA claims since
  January 2002.
  400+ additional new claimants, high numbers aged 18-24. But longer term claims
  still falling.

  London job vacancies
  are starting to slow.




Southwark Council Economic Development Team                  Slide 20

22nd September 2008                                          www.southwark.gov.uk
New issues emerging
  Significant welfare reform legislation already delivered and more planned
            - Affects benefits regime and programmes.
            - Increased support / increased conditionality.

  Child poverty agenda.

  Increased DWP focus on neighbourhood level and ‘worst areas’.

  Local authorities’ statutory role in economic well-being.

  WNF – need to link worklessness outcomes across partnership activity.


Southwark Council Economic Development Team                   Slide 21

22nd September 2008                                           www.southwark.gov.uk
Outstanding challenges
  56,000 people not working including 31,000 claiming benefit. Progress is being
  made but is slow.
  JSA numbers have been falling steadily but we cannot take our eye off the ball.

  Adult skill levels remain critical in the London labour market. 31,000 adults hold no
  formal qualifications.

  Partners are now focusing more on those furthest from employment, so investment
  needs remain high.

  Structural factors in Southwark mean that we will always have high numbers of
  residents who are more likely to face barriers to employment.

  Challenge - to effectively join up provision to maximise numbers engaged and tackle
  barriers to work in a holistic way.
Southwark Council Economic Development Team                   Slide 22

22nd September 2008                                           www.southwark.gov.uk
Looking forward – the next 3 years
  Increase cross theme working:
             - Better links between services that engage with workless people and the
            support they need to return to work.
  Develop Southwark Works:
            - Place programme on a sustainable footing to access wider funding
            streams.
            - Increase level of delivery to meet need.
            - Embed advisers across wider range of service delivery partners.
            - Position services to add value to new mainstream services (Flexible New
            Deal).
  Deliver local benefit through regeneration programmes:
            - Secure jobs and training through regeneration agreements and S106 on
            major regeneration programmes (Elephant & Castle, Aylesbury, Canada
            Water, Bermondsey Spa, Building Schools for the Future).
Southwark Council Economic Development Team                Slide 23

22nd September 2008                                        www.southwark.gov.uk

				
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