Agenda item

6.1  Graham Sutton; Regeneration Manager, presented the report circulated in advance. He commented that following his last visit in June to this committee the Employment and Enterprise strategy had been agreed by cabinet.

6.2  The Regeneration Manager explained that the interim report on the delivery plans was a result of major changes following the election of the coalition government. These changes include the very significant drop in the council’s commissioning budget because of the ending of the Working Neighbourhood Fund (WNF). The removal of WNF means the council’s commissioning budget is down by 82% next year compared to this year.  The remaining 18% is from other non-WNF sources. WNF was reduced mid-year in 2010-11, and will disappear altogether in 2011-12, along with other ring fenced area-based grants. The officer explained that next year's cut to WNF is 100%. This is direct loss of £3.12m that officers had to commission programmes with, and a total loss of £8 million as WNF money was also spent by other departments to support employment.

6.3  The officer explained that provision of employment support for people will be radically changed. The Department of Work and Pensions (DWP) will contract three ‘prime contractors’ for five years to cover much wider areas; Southwark is in the  ‘East London ‘ area , which comprises 17 local authority areas. These are vast contracts that will fundamentally change the relationship with unemployed people. Officers are meeting with prime contractors to enable them to link with sub contractors who can deliver locally.

6.4  Officers recommend that one or two prime contractors attend a scrutiny meeting to discuss the delivery plans once appointments have been made in September. Members agreed with this proposal.

6.5  A member commented that Southwark has a high number of young people, and there is growing concern that a large number of younger people under the age of 25 will be most adversely affected by unemployment.

6.6  The chair suggested that a letter be written to Eric Pickles, Secretary of State for Communities and Local Government, about the loss of WNF funding. The letter would particularly highlight youth unemployment. This was agreed.

6.7  A member commented that the coalition government will have alternative plans in place and asked the officer for details. The Regeneration Manger explained that the focus will be on procuring a high volume of job outcomes for unemployed people. Providers will be tasked with getting people into sustained employment of over 24 months. The officer explained that potential ‘prime contractors’ are working across the East London area and are looking for partners who can deliver this outcome.

6.8   A query was raised on continuity of support for unemployed people and the Regeneration Manager explained that flexible new deal has been extended and this may help in sustaining delivery until the new contracts are agreed, however it is unlikely delivery will be seamless

RESOLVED

It was agreed that officers would return in September to discuss the new delivery plans with Job Centre Plus and one or too prime contractors.

A letter will be written to Eric Pickles from the chair, on behalf of the committee, raising concerns that cuts to WNF will result in a disproportionate effect on Southwark’s unemployed, and noting the committee’s concerns that young people will be particularly adversely affected. The letter will be copied to Southwark’s political party group leaders, local MP’s and the London Mayor.