The NI Context

1. Welfare to Work Presentation 10.07.13Building collaborative supply chains: lessons for Northern Ireland from the WorkProgrammeDavid McDougall, AVANTACiaran Boylan, Locus

2. The NI Context • Total population at just over 1.8m • Relatively young population – approx. one third of persons aged between 0-24 • Almost two fifths of the pop live within the Belfast Metropolitan Area with another sizeable concentration around Derry • Recession hit some sectors particularly hard – construction has fallen by 37% since its peak at the beginning of 2007) • Business & financial services contracting by around one-quarter (26%), retail also hit badly

3. The NI Context • Slowdown in the private sector has had a major impact on the local labour market with the number of employee jobs in NI falling by almost 35,000 since the employment peak in June 2008 • Rise in the number of persons claiming unemployment benefits (increased by 39,500 or 167% over the period Feb 08-August 12) • However unemployment rates (7.6% July-Sept12) on par with UK average and below ROI and EU averages (15% and 10.5% respectively) • Level of economic inactivity around 27.2% - NI the worst region in the UK on this measure

4. Evaluating what works • NI continues to face a range of structural challenges that hamper the region’s economic performance including: • NI living standards persistently lag behind GB with the main factors being lower levels of employment and productivity • Growth in output and jobs in relatively low value added areas which has resulted in average wages remaining below the UK • Over reliance on the public sector for economic growth in NI • Economy has historically been under-represented in higher value added sectors such as finance and business services • Large proportion of the pop. Is registered as economically inactive • Almost half of the working age pop. In receipt of incapacity benefit have been diagnosed with mental and behavioural disorders • Intergenerational poverty or joblessness leaving many far removed from the labour market

5. NI Context • Unemployment rate for period Feb-April 13 was estimated at 7.8% (decreased by 0.6% over the quarter and increased by 0.7% over the year) • Employment estimated at 803,000 for period Feb-April 13 = employment rate of 67.1% which is the 2nd lowest rate among the 12 UK regions • Numbers of unemployed estimated at 68,000 down 5,000 over the quarter and up 7,000 over the year • 59.2% of the unemployed have been unemployed for 1 year or more –up 14% over the year and up from 41% in 2010 • Unemployment rate for 18-24 yr olds at 19% is down 2% over the year

6. NI Context • Different programmes from GB –NO WORK PROGRAMME • Devolved administration at Stormont – 12 NI Government Departments with full responsibility for employability and training • Department for Employment & Learning is lead NI government body • Key Programmes include Training for Success (16-18 yr olds) and Steps to Work (18+)

7. NI Context • DEL are replacing Steps to Work with a new programme titled Steps to Success which is about to be publically tendered • Original idea was to model S2S on the Work Programme • Interim results from the Work Programme and discussions with DWP and Work Programme Prime Contractors encouraged DEL to tailor the new NI programme

8. NI Context Aims of S2S To help eligible benefit recipients to find and sustain work thereby supporting the needs of employers and the economy. • Entry points for ESA clients – Adviser Discretion • The Contract Areas – 3 instead of 1 • The length of Contracts – 4 years + 2 • The split between Attachment and Outcome funding • Flexible ‘Grey Box’ approach • Each organisation will determine their own delivery model, supply chain partners etc. • Additional funding for providers when participants enter employment with a recognised qualification gained while on Steps 2 Success. • Minimum Service Guarantee – for participants • Attendance - Hours to be agreed between the provider and each participant

9. Developing Collaborative Supply Chains • Develop rich and diverse supply chains across the voluntary, public and private sector • Have a clear and transparent customer journey for each cohort group especially those furthest away from the labour market • Integrate employment and skills in to the delivery model • Where possible lever in additional funding and services • Better utilisation of different funding streams • Engage with public sector partners to ensure that the programme is linked to forecasted growth sectors

10. Developing Collaborative Supply Chains • Be transparent in the selection of partners • Understand what you are looking for • Use a diverse range of methods to engage partners • EOI’s do not tell the whole story • Make sure the “offer” to contractors is clear and concise this should include forecasted volume and price • Clearly outline the expected “step change” in performance • Ensure that your supply chain has the capacity to deliver • Be prepared to “capacity build” the supply chain as the programme evolves

11. Developing Collaborative Supply Chains • Share best practice across the supply chain • Capacity build key areas such as employer engagement, IT, processes and procedures • Develop and encourage partnership working across the supply chain • Be transparent and open in the publication of data