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Liverpool City Region

Liverpool City Region. City Region Deal for Jobs and Skills. Skills for Growth. http://www.lcrskillsforgrowth.org.uk. The Liverpool City Region. Liverpool City Region. 6 Council areas – 1 LEP and 1 Jobcentre District £20 billion economy 37,000 Businesses 1.5 million residents

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Liverpool City Region

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  1. Liverpool City Region City Region Deal for Jobs and Skills Skills for Growth http://www.lcrskillsforgrowth.org.uk

  2. The Liverpool City Region

  3. Liverpool City Region • 6 Council areas – 1 LEP and 1 Jobcentre District • £20 billion economy • 37,000 Businesses • 1.5 million residents • Over £12 billion of planned investments • 43% of businesses report skills shortages • 54,000 people on JSA • 103,000 on IB/ESA

  4. City Deals Background • A process of negotiation • Present a coherent view of economic transformation • An opportunity to state how things can be improved • Opportunity to devolve power and funding • But not for the sake of it • Some bold and radical proposals • Some cautious steps

  5. Our Starting Point • LEP leads economic growth • Up to 100,000 new jobs over the next decade • ESB oversees skills system response • Over 300 different colleges and providers • Up to £200m of investments • Complex competitive landscape • Sectoral balance of training changes little • High levels of unemployment • Significant lags in skills at all levels • Huge opportunities

  6. Our Skills Gaps If the Liverpool City Region mirrored the England average it would have approximately: • 29,150more people qualified to level 2+ • 73,270more people qualified to level 4+ • 32,900fewer people with no qualifications

  7. Liverpool City Region Deal • Signed by DPM in September 2012 • International Festival for Business • Regulatory pilot to support low carbon linked developments • Clean river task force • Jobs and skills – Skills for Growth • Transport • Science • Investment

  8. Why Skills for Growth? The Liverpool City Region has a jobs deficit of around 90,000 but it also has the potential to create 100,000 new jobs over the coming decade If we do not get the skills of our workforce right businesses will either not create these jobs or have to import the skills they need.

  9. The most demand-led and responsive employment and skills system in the country Businesses Residents Employment And Skills Board Colleges & Providers

  10. Governance Arrangements Liverpool City Region Cabinet Liverpool City Region Employment and Skills Board Skills and employment providers Civic Leaders Employers Public agencies & funders

  11. Employment and Skills Board • Private sector-led • Reporting to the LEP and City Region Cabinet • Bringing Supply and Demand together • Lead shared strategy, governance and funding • Lead the City Region Deal for Jobs and Skills • Devising ESF proposals for 2014-2020 • Many key activities and initiatives • Working with a radically changing economic backdrop

  12. The structure of our economy is changing Net Change in Proportion of Public / Private Sector Employment, Liverpool City Region (2008-2011)

  13. A City Region with opportunities

  14. SuperPort projects will create up to 24,000 jobs Source: Cambridge Econometrics – LCR Policy On Forecast to 2025

  15. The Visitor Economy will create up to 14,000 jobs • Top 5 UK destination • ‘Cruise Turnaround’ facilities • Improved ‘destination’ promotion • International Festival for Business 2014 • the ‘Grand National’ • The Open Championship 2014 • New Exhibition Centre in Liverpool linked to the existing Arena and Convention Centre • Political Party Conferences Source: Cambridge Econometrics – LCR Policy On Forecast to 2025

  16. Advanced Manufacturing will create up to 12,000 jobs

  17. How sensitive has skills funding been to changing demand? Source: Enrolments, Starts and Achievements by Sector and Home Postcode 2010/11, SFA Statistical First Release * Science, Engineering & Manufacturing Technologies had a change in definition from 09-10

  18. Why is this? • Lack of clarity from demand-side (employers) • Lack of involvement of demand-side (employers) • Supply-side choices (individuals) • Supplier push of existing capacity (providers) • Provider freedoms still embryonic (providers) • Funding incentives (government)

  19. Our Jobs and Skills City Region Deal: • Skills for Growth Bank & Funding Devolution • Labour Market Information Service • Payment by Results in Adult Skills • Customer Choice in the Work Programme • Youth Unemployment Task Force

  20. Skills for Growth Bank • £32m Project – part funded by Employer Ownership • Awarding grants for training in return for outcomes • 4,000 Apprenticeships • 6,000 people trained and helped into work • 3,000 other qualifications • Invested alongside businesses own training budget • Allows employers to decide exactly what training they require • Provider comparison website • Providers and Employers to register on www.skillsforgrowthbank.org.uk

  21. Labour Market Information Service • Research and articulation of labour market needs • Annual Skills for Growth Report • Labour market data and analysis • Skills for Growth Agreements • Jobs for Tomorrow • Dissemination events • Ensure everyone is on the same page • Now driving SFA funding allocation • Reshaping curricula • IFB 2014 - Skills Show Proposals

  22. http://www.lcrskillsforgrowth.org.uk

  23. Our Five Key Challenges • Raise skill levels at all ages • Increase employer ownership and involvement • Involve employers in curriculum reviews • Improve the relevance and consistency of Careers Education and IAG • Work together to tackle youth unemployment

  24. Payment by Results in Skills “Design, test and pilot a “payment by results” system within elements of Adult Skills Funding in the Liverpool City Region: this will link the payments providers receive to the progression learning; employment; and/or wage gains of the individuals to whom they provide services to. Movement from designing and testing to full scale will require Ministerial and City Region agreement in advance of the 2013-14 academic year.”

  25. Background Research • Social Market Foundation ‘Britain’s Got Talent’ • 7 other PbR models • SFA ESF projects • Other SFA projects and pilots • Consultation with providers and partners

  26. Payment by Results in Skills • Initial pilot based on increasing ‘Job Gains’ in training for the unemployed • Increasing the demand-sensitivity of courses • Ability for providers to earn more or less • Modelling, modelling, modelling • Technical questions resolved – short and long term • Ministerial Submission • Awaiting final green light • Subject to above, pilot commences in August • Wage Gains & link to HMRC

  27. Customer Choice in the Work Programme • Random allocation as a potential disincentive • Targeting specific groups • Payment Group 3 • Technical and legal challenges • Ongoing work with DWP • Ahead of final Ministerial Submission • Informing Work Programme 2.0

  28. Youth Unemployment Task Force • High level target – Halving long term youth unemployment in three years • Task Force primarily young people and businesses • Primary research and scrutiny • Comprehensive set of recommendations • Implementation of these underway • 1/3 of target met in first 12 months

  29. Task Force Methodology

  30. Where to next? • 2014 – 2020 EU Programme being written • Sharing learning with Wave 2 City Deals • Sharing learning with Community Budget Pilots • Embedding experience in Core Cities proposals • ‘Single Pot’ proposals

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