London's Labour Market Challenges and Partnerships

1. John-Paul MarksDWP Director for LondonEmployment and Skills Convention, October 13

2. Labour Market London’s economy growing and creating jobs across most sectors Employment rate highest since Nov-Jan 2009 (70.5%) but still lower than UK Last time London claimant count was lower was February 2009 (189,305) The London claimant count is falling across all of London Down 3,628 from July 2013 (-1.8%) Down 23,008 from January 2013 (-10.4%) Down 20,090 from last year (-9.2%)

3. Labour Market – challenges London 18-24 claimant count increased in August but down on the year: Up 205 from July (+0.5%) Down 4,470 from January 2013 (-9.8%) Down 8,500 from last year (-17.2%) but still 1 in 4 unemployed is 18-24 Lone parent count has reduced by 68,720 (45%) over the last 5 years Young people, women in employment, BME, long-term unemployment risks

4. Partnerships progressing – flexibility, local coordination 5 boroughs in London have worst child poverty rates in UK Tackle deprivation, worklessness and economic underperformance alongside flexible, growing local labour markets – social mobility, social justice Enfield Council first London Borough to sign partnership agreement with JCP and Work Programme providers Ingeus, Maximus and Reed, July 2013 Enfield, Merton & Newham, Kensington & Chelsea, Westminster, Sutton, Harrow, Havering, Waltham Forest, City of London, Barnet, Camden, Barking and Dagenham, Redbridge, Islington all signed – tackling poverty in partnership FSF – 130 live partnership grants c£18m Youth Action Alliance, Break the Cycle, School of Hard Knocks, Street League, Princes Trust, Groundworks, Goals UK, Reds 10, Storm, Tottenham Hotspur Foundation…

5. Welfare Reform • Employment programmes • Troubled Families • Benefit Cap • Social Fund • Personal Independence Payment • Housing • Universal Credit

6. Universal Credit – overview • Universal Credit replaces six in work and out of work benefits. • Universal Credit requires claimants to accept a ‘Claimant Commitment’. This sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. • Claimants will be able to apply for their benefits online. Nearly 80 per cent of benefit claimants already use the internet. Telephone and other support services available if needed. • A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears. • Designed to make work pay. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Real Time information (RTI) link with HMRC will facilitate this. • Local support will be available to help claimants where appropriate. This will be provided through DWP and local authority delivery partnerships.

7. Claimant Commitment • Claimant Commitment • Each adult in a Universal Credit household will have • their own, individually tailored • Claimant Commitment • Records a claimant’s responsibilities • in return for receiving Universal Credit • and outlines the consequences of not • meeting them • Those who can work will be expected to look for work • full-time • Those who cannot work full-time will have a Claimant • Commitment that reflects this • Universal Credit Work Services Coaches will support • and encourage claimants to achieve the goals outlined • in their Claimant Commitment. • Once accepted, the Claimant Commitment • will be reviewed and updated on an ongoing basis. Attend work-focused interviews with a Work Coach who will provide structure to someone’s jobsearch Claimant • Accepts • Claimant Commitment A Claimant who can work will be expected to look for work full-time (or as outlined in their Claimant Commitment) Work Claimants will be expected to take specific steps to prepare for work Claimants will need to look to increase their earnings where possible What if someone doesn’t fulfil their Claimant Commitment? Claimants have a responsibility to fulfil the terms of their Claimant Commitment in return for receiving support through Universal Credit. If they don’t meet their responsibilities they may face sanctions.

8. North Lanarkshire West Dunbarton Edinburgh Dumfries & Galloway Wakefield Oldham Wigan West Lindsey Rushcliffe Shropshire Melton Birmingham Oxford Torfaen Southwark Caerphilly Newport Lewisham Bath & NES North Dorset Key: UC LA led pilots Direct Payment Demonstration Projects Developing and testing our approach • Direct Payment Demonstration ProjectsIdentifying what interventions best help tenants who go into arrears – e.g. different levels of arrears at which direct payment reverts back to landlords, ways of providing support to tenants and using a range of payment methods. • Local authority led pilots Aim to explore approaches on how local expertise can support residents to claim Universal Credit, and so:a) encourage people to access online support independently; b) improve their financial independence and how they manage their money; c) deliver efficiencies, reduce fraud & error; and reduce homelessness.

9. Key learnings to date: • Direct Payment Demonstration Projects: • Early and clear communication to tenants is essential using a mix of channels. • Direct Debits are not always the best payment option; Jam jar accounts will help money management. • Landlords should recognise the potential increase in money advice their tenants will need. • Local authority led pilots: • Some LAs have already begun mapping services, examining both provisions and gaps. • LAs and DWP Districts have begun building relationships with voluntary sector organisations and other potential delivery partners.

10. Future trends in London London's working population projected to increase from 5.7m 2011 to 6.6m 2036 The number of jobs in London projected to increase from 4,896,000 in 2011 to 5,757,000 in 2036, annual average growth c35,000 jobs per year, over 850,000 more jobs in London by 2036 The employment projections show an increase in the number of jobs requiring degree level or higher qualifications of 800,000 between 2011 and 2036 – skills challenge The number of London residents qualified to degree level or higher and in employment is projected to increase by 560,000 between 2011 and 2036 London’s economy growing and creating jobs across most sectors To optimise the gains demands good governance, coordination and leadership…