Local employment partnerships

Rt. Hon Stephen Timms MP, Minister of State for Employment and Welfare Reform

The past decade has seen a sustained period of economic growth, with employment reaching record levels and fewer people claiming key out-of-work benefits. Progress has also been made on helping people gain the skills they need, with 1.75 million adults in England having improved their basic literacy and numeracy skills. Despite progress there is still more to be done. The Skills for Life Survey estimated that 38 per cent of those on benefits were below NVQ level 1 for literacy and nearly three quarters were below level 1 for numeracy. We need to ensure that everybody, including the most disadvantaged, has the skills they need to compete in the labour market and move into sustainable work. We recognise that employers have a crucial role to play, so we are increasingly placing them at the heart of our skills and employment initiatives. That is why we have created a new UK Commission for Employment and Skills, , allowing employers to drive the strategic change in the employment and skills infrastructure, ensuring that it delivers the skills that British businesses need.

Employability

Our National Employer Skills Survey highlighted the main shortfalls as being basic skills and general employability. Basic skills significantly increase earnings and employment chances, and the rate of return in Britain is larger than that found in other countries. The UK Commission has already identified the need for action on core employability skills and will work closely with other key bodies, including the Business Council for Britain, to pursue this.

Increase productivity

Of course, skills are not just important for individuals. Businesses themselves have a lot to gain. As well as contributing to the local community and the wider economy, research shows that raising the proportion of trained workers by one percentage point increases productivity by about 0.6 per cent. Recent research also shows that, while employers are aware of the importance of training, they are looking for a greater commitment from government. We have listened to employers, and that is why in January the Prime Minister unveiled a clear commitment to work collaboratively to unlock Britain’s talent. At the forefront of this employment and skills offer are Local Employment Partnerships (LEPs). LEPs are a groundbreaking scheme to link employers with job-ready candidates in disadvantaged groups in the labour market, such as lone parents and the long term unemployed.

Tailored package

As part of each agreement, Jobcentre Plus agrees to establish a named contact to manage the partnership at a national and local level and, working with partners such as the Learning and Skills Council (LSC), will develop a package tailored to the individual employer’s requirements. Employers choose from a menu of options which can include pre-employment training, in-work training and mentoring. To date, more than 600 employers have signed up to Local Employment Partnerships and discussions are taking place with many more. These include employers from the retail, hospitality and public sectors and feature household names such as Tesco, McDonalds and Guy’s Hospital. The feedback we are getting from employers on Local Employment Partnerships has been extremely positive and we are now extending the scheme to SMEs.

Expert advice

But the offer does not end there. Jobcentre Plus is working with the LSC in England to ensure that Train to Gain is available for employers to develop the skills of people recruited through Local Employment Partnerships – offering expert advice and support on investing in their workforce, backed by more than £1 billion of public money. Employers are being encouraged to make the Skills Pledge – a voluntary, public commitment to investing in employees and supporting them in improving their skills and gaining new qualifications. We are also making it easier for employers to have their own in-house training programmes accredited as part of the national qualification system. Through National Skills Academies employers will have the opportunity to exercise direct influence over both the content and delivery of skills training for their sectors.


Many employers see apprenticeships as a key way of developing talent to benefit their business and, in parallel with new initiatives such as Local Employment Partnerships and Train to Gain, we are encouraging employers to offer apprenticeships. To strengthen this offer, we will be creating a National Apprenticeship Service for England to act as a single point of guidance, and we are introducing a matching service to encourage people to apply for apprenticeships that are right for them. Finally, employers often tell us the system is too complex. In response to these concerns, the Department for Business, Enterprise and Regulatory Reform created the Business Support Simplification Programme to make it easier for employers to understand and access government-funded grants and subsidies with which to grow their business. These measures will, we believe, provide the support to employers they require to help them recruit and train staff in a way that truly meets their needs. Only by working together are business and government best placed to realise untapped potential, resulting in a workforce with world-class skills to benefit us all.