EIA - PS20 - REDUCTION OF ECONOMIC SUPPORT COMMISSIONING BUDGET

1.What is the name of the savings proposal and its current status?
PS20 - REDUCTION OF ECONOMIC SUPPORT COMMISSIONING BUDGET
2. Which Service is responsible for this proposal?
CUSTOMER AND COMMUNITIES
3. Does this proposal impact on other services or other service savings proposals and if so, have you discussed this proposal with the Service Directors from those other services?
No
4.Please state the name of the officer leading the EIA
5. Who has been involved in undertaking this assessment e.g. list the stakeholder groups which have been involved?
Officers in the Customer and Communities Service and public consultation responses have informed the assessment
6.What is the scope of this assessment?
  • -what is included in this assessment
  • -does this proposal link to any other proposals (i.e. previous or current). If so, please state

The assessment includes potential impact of the proposal to reduce the overall economic support commissioning budget on the protected groups and links to PS19 – the restructure of support for economic development, which contains the staffing implications of this proposed budget reduction.
7 a).What does the function currently do?
b).Describe the needs which this service meets?
a) The budget currently wholly or partially funds a range of activities including:
  • Inward investment marketing
  • Employment support – help local residents in finding a new or better job, and providing free recruitment service for employers. Delivery of Government careers and employment contracts namely the Work Programme and Next Step.
  • Skills support – plugging gaps in mainly government funded training programmes
  • The development of the Community Champions programme
  • Support for the Government’s ‘Get Britain Working’ measures such as Work Clubs, and work experience placements
  • Business and enterprise support
b) Needs being met:
  • Attract new jobs to the borough
  • Increase the employment rate
  • Improve skill levels
  • Improve business start up and business growth rates

8. What proposed changes do you wish to make?
To reduce the overall budget by 44%. However, the percentage reduction will differ for each type of activity.
Proposed budget allocation changes on broad themes are:
Employment support – reduce by 50%
Skills Support – reduce by 33%
Business Support – reduce by 30%
Community champions – increase by 50%
Inward investment marketing – unchanged
9. Who are the key stakeholders who may be affected by the proposed changes?
-residents not able to access mainstream funding training support
-residents seeking work/training in the construction sector
-businesses in the construction sector needing support with tendering
-local businesses across all sectors
-residents seeking to become community champions
-residents for whom the best method of engagement and support is through community champions
10. What impact will this proposal have on all the protected groups
To assess the impact that the proposal has on equality for different groups or communities, you need to be clear about who the users of the service are and provide specific details about who is affected by the proposal. Include as much information as you can on the numbers of individuals likely to be impacted, and the weight and scope of such impact. You should consider the following questions when assessing the impact that the savings proposal may have on equality:
  • Is there any evidence of, or potential for unequal outcomes or disadvantage?
  • Could there be barriers to accessing the service? E.g. language, physical access etc
  • Is there any evidence that needs will not be met?
  • Who will benefit from the proposal and in what ways may they benefit?
  • Who will be adversely affected by the proposal and in what ways?
  • Is there any evidence that certain protected groups will be more adversely affected? Is so, please explain

Race Equality
There is no unequal impact on this customer group
Disabled People
There is no unequal impact on this customer group
Carers
There is no unequal impact on this customer group
Gender
There is no unequal impact on this customer group
Older and Younger People
There is no unequal impact on this customer group
People who are Socio-Economically Disadvantaged
The proposed reduction in Council funding for employment activities is not likely to reduce the overall funding available to provide employment support services by the Council as the Economic Affairs Team has been successful in winning external contracts. These are the Skills Funding Agency “Next Step (Adult Careers Service)” contract and a sub-contract from two Prime Contractors for the DWP’s Work Programme (employment support for primarily the long term unemployed). The funding for these contracts is on a ‘payment by results’ basis and therefore the income can not be guaranteed but based on past performance with the Next Step contract, it is forecasted that the likely income will cover the reduction in this proposal.
Therefore, it is envisaged that there will be no negative impact on this protected group as external income will replace Council funding.
The proposal includes a reduction in funding forconstruction sector employment, training and procurement support. The reduction will result in less capacity to support residents seeking employment and training in the construction sector but the geographic area to be covered (was Oldham and Rochdale, now just Rochdale) has also been reduced. Therefore, it is envisaged that there will be minimal impact on this protected group from this proposal.
Nationally, the nature of skills funding has changed to put control and management of funding with training and skills providers, not local authorities. For residents that have low or no skills and qualifications, and therefore most socio-economically disadvantaged, most training is free of charge, if they are moving towards employment. The proposed reduction in Council funding for skills reflects this and the increasing support and influence the Council has had in steering and supporting local providers to meet local needs. Therefore, the proposed reduction is likely to have a minimal impact.There is no evidence of unequal outcomes from within the group of residents that are socio-economically disadvantaged from this proposal.
It is proposed that the reduction in business support allows for the retention of the Enterprise Coaching Service for a further year. This project works primarily in disadvantaged areas to stimulate interest in enterprise and self employment and complements the New Enterprise Allowance launched locally this month in the borough (Aug 2011). Therefore the proposed savings will not affect the ability to continue this project in 2012/2013. The proposed reduction in Business Support activities is likely to have an indirect impact on this protected group as fewer businesses will be able to be supported to grow, win new contracts etc and thereby increasing employment opportunities. This impact will be compounded by changes in national business support. Therefore, the proposed reduction in funding for business support will have an indirect impact on this protected group
The proposal includes an increase in funding to support the development of the community champions project which trains local volunteers to work alongside services, supporting people with wellbeing, skills, employment or family matters. This will have a direct and positive effect on those socio-economically disadvantaged. The targets in the new Community Strategy aim to have an increase of 80 community champions each year.
Religion or Belief
There is no unequal impact on this customer group
Sexual Orientation
There is no unequal impact on this customer group
Gender Reassignment
There is no unequal impact on this customer group
Pregnant Women or Those on Maternity Leave or Those who have given Birth in the Previous 26 weeks
There is no unequal impact on this customer group
Marriage or Civil Partnership
There is no unequal impact on this customer group

11. Conclusions and Recommendations

What are the main conclusions from this analysis?

The proposed reduction in the overall Economic Support commissioning budget will have some minimal negative impact on the provision of economic support services in the borough to the socio-economically disadvantaged either directly e.g through the reduction in capacity of specialist employment support, and indirectly through the reduction in business support. However, there will be positive direct impact on this group through the planned development of the Community champions work.
What are your recommendations?
What measures (a) have you or (b) do you propose to put in place to mitigate any adverse impacts?
a)alternative funding has been sourced to enable the reduction of Council funding for non sector specific employment support
b)continue to support and influence skills and training providers to meet the needs of borough residents
c)influence GM economic support bids and provision to meet the needs of borough residents and the wider economy
d)developing the Community Champions programme
What evidence do you have which demonstrates that these measures will be effective?
a)3 contracts (SFA, DWP and DWP/ESF) already in place
b)Contributing to the business planning process for HopwoodHallCollege and promotion of the new all aged skills strategy for the borough to all secondary schools and training providers.
c)Active participation in the development GM economic development activities – varying effectiveness and impact on the borough.
d) the Community Champions programme is still small in scale and yet since December 2010, over 1500 positive outcomes have been achieved in terms of skills, employment, families or wellbeing.

12. Please provide details of who you have consulted on the proposals and the methods which you used to consult. State your consultation and inclusion methodology.

The Consultation and Inclusion Methodology Used
Public consultation via Council website and presentation on the proposal to the Economic Partnership

13. Produce an action plan detailing the mitigation measures that you propose to put in place to address any adverse impacts.

Action / Who / When
External contracts to deliver careers and employment support for long term unemployed / S Ayres/H Darwent / In place
Continue to influence mainstream training and skills support to meet the needs of the local economy / S Ayres/G Kelly / Ongoing
Active participation and influencing of GM economic support activities to ensure nationally or sub regionally funded programmes meet local needs / S Ayres / Ongoing

14. Equality impact analysis sign off

Name / Position / Date
/ Executive Director
Children’s Services / 18th January 2012
Andy Zuntz
/ Executive Director / 18th January 2012