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Policy Briefing 5th December 2011
(22 November – 5 December 2011)
Workforce issues remained high on the agenda as approximately two million public sector employees took part in industrial action on 30 November. Minister for the Cabinet Office, Francis Maude described the strikes as “inappropriate, untimely and irresponsible”, blaming union leaders for the disruption. The official figures showed that at least 62% of state schools were forced to close, a third of local government workers went on strike, and 14.5% of NHS staff took part in industrial action. A YouGov poll conducted prior to the strike showed a split in public opinion with around half of the British public opposed and two in five in support of striking public sector workers.
The day before the strikes was also particularly newsworthy, featuring both the Chancellor of the Exchequer’s Autumn Statement (formerly known as the ‘pre-budget report’) and the latest official estimates on growth. The latter event was not a great source of encouragement as the Office for Budget Responsibility estimated that GDP would only start to pick up in 2013, unemployment would peak in the next calendar year, and earnings growth would remain significantly below the inflation rate.
George Osborne’s Autumn Statement was heavily tempered by the latest estimates which suggest that the Government will not meet is target for eliminating the structural until 2016-17. The Chancellor did however announce several policy proposals of interest to the sector, including a £940 billion scheme to tackle youth unemployment, a planned re-allocation of international development funding, and a VAT cost sharing exemption to be introduced for charities from February 2012. Most significantly, the Autumn Statement lays the ground for a further £15 billion a year of spending cuts beyond the duration of this Parliament. This may cause difficulties for the Coalition Partners in how they position themselves for the May 2015 election, including the unfavourable position of campaigning on a continued programme of austerity.
Skills & Workforce
The Department for Business Innovation & Skills has published a response to the recent consultation on FE reform, ‘New Challenges, New Chances’. The response covers several areas including a renewed focus on improving English and Maths skills; the delivery of higher education in FE; new funding models for adult and community learning; and new organisational models for learning providers. A supplementary document also outlines the projected levels of public investment in FE over the next three years. This is set to be £3.8 billion over 2012-13, £3.4 billion over 2013-14, and £3.3 billion over 2014-15.
The second phase of the Government’s ‘Growth & Innovation Fund’ is now open for applications. The fund intends to support businesses develop skills solutions tailored to their own needs and transform growth in their sector, region or supply chain. A total of £29 million is yet to be allocated to bidders (who will be expected to match this with employer contributions). Applications will be accepted throughout the next calendar year and are being invited from Sector Skills Councils, Industry Training Boards, formally constituted Sector Bodies, National Skills Academies, Employer Associations, Trade Associations and Professional Bodies.
The UK Commission for Employment & Skills has announced details of how £61 million of public funding will be invested in employer designed and led skills solutions. This funding will be distributed via 18 sector skills councils. It includes over £3m for the cultural and creative industries, £2.2m for social care, £3m for the health service, and £4.8m for the justice sector. The Employer Investment Fund replaces previous strategic grants and will cover activity starting in April 2012 up until March 2014.
The Government has launched a comprehensive review of employment law designed to increase flexibility and promote economic growth. Following a previous consultation on resolving workplace disputes, BIS intends to overhaul the employment tribunal system in order to save employers around £40m a year. Two new consultations have also been launched, one on the proposed reduction of the 90 day minimum consultation period for collective redundancies and another on the effectiveness of TUPE regulations. Other proposals include the merger of all National Minimum Wage regulation and the creation of a portable online CRB check.
The Government has announced the details of successful bids to the Higher Apprenticeship Fund announced in July 2011. A total of 19 partnerships comprising employers and training providers will receive £17m to develop apprenticeships equivalent to degree-level. This includes a new framework in human resource management and project management created by the Council for Administration, a new framework in employment-related services by Babington Business College, and a new framework in emergency care to be developed by Chesterfield College. All projects are due to commence in either 2011/12 or 2012/13.
The Ofsted Annual Report 2010/11 has now been published, presenting evidence from inspection visits undertaken between September 2010 and August 2011. It covers the full range of Ofsted’s statutory remit, including early years and childcare, provision for education and skills in schools, colleges and adult learning, children’s social care and local authority services for children. Among the key findings were that the number of schools judged inadequate or placed in special measures fell by 20%, and only 15 out of 312 learning and skills providers were judged to be outstanding (all of which were independent learning providers or employer providers).
Politics
A ‘Youth Contract’ worth £940 million over the spending review period was announced during the Autumn Statement. This will include the provision of cash subsidies worth up to £2,275 for private sector employers who hire unemployed 18-24 year olds from the Work Programme; additional work experience or Sector-Based Work Academy places for every 18-24 year old who wants one after 3 months of claiming Jobseekers’ Allowance; incentive payments worth £1,500 for small firms to take on young apprentices; extra support available to young people through Jobcentre Plus and the National Careers Service; and a new £50 million a year programme to provide support disadvantaged 16-17 year into education, an apprenticeship or a job with training.
The Cabinet Office has outlined details of a new £10m programme of support to help staff-led mutual organisations set up and spin out from the public sector. This package of support will be delivered by a consortium which includes Social Enterprise UK, Co-ops UK, and the Office for Public Management. The announcement was made alongside the publication of two new reports: a briefing paper which presents evidence relating to the performance of employee-run organisations and a progress report on the Mutual Pathfinders launched in August 2010.
Further changes are to be made to the Work Capability Assessment (WCA) for incapacity benefit claimants. This follows the publication of a second independent review by Professor Harrington for DWP which makes several recommendations, including work with disability groups to help develop guidance for Atos healthcare professionals and decision makers; improved support and communications for people who move onto Jobseeker’s Allowance; and the regular publication of data on performance and quality to improve the transparency of the face-to-face assessment. The proposed changes are also expected to improve the ability to assess those with mental health issues or fluctuating conditions.
Disabled people and representative organisations are being invited to help develop a new cohesive cross-government disability strategy. Describing the strategy, the Minister for Disabled People Maria Miller said: ““Working with disabled people I now want to ensure that there is a clear focus in place across Government so that the money that is available takes full account of disabled people.” A discussion document, Fulfilling Potential outlines three main areas for discussion: realising aspirations, increasing individual control and changing attitudes and behaviours. Views are being sought until 9 March 2012.
DWP has reversed its decision to abolish the mobility element of Disability Living Allowance (DLA) and the Personal Independence Payment (PIP). This follows a consultation in which over 5,500 individual responses were received and will enable disabled people living in residential care homes to receive continual support for their mobility requirements.
DWP has published a new research report which evaluates the labour market impact of the introduction of Job Centre Plus. The report explores the effects of bringing together the Employment Service and Benefits Agency under one roof and the significant modernisation of service delivery which accompanied this move. The general picture is that Jobcentre Plus has helped to reduce the number of people on out-of-work benefits and has generated around £5.5bn for the UK economy since its introduction in 2001. The picture across difference sub-groups is mixed, however, and its introduction was found to involve significant levels of disruption.
The Department for Work & Pensions plans to reduce the amount of health and safety regulation by a third rising to over a half over the next 3 years through combining, simplifying and reducing approximately 200 existing regulations. This follows the publication of the Löfstedt Review which provides evidence on how to reduce regulatory requirements on businesses which do not lead to improved health and safety outcomes and to enable employers to reclaim ownership of the management of health and safety.
The new NHS Operating Framework has been published for 2012/13. This document sets out the practical steps that need to be taken by the NHS in order to ensure a ‘strong and stable transition’ to a reformed new commissioning and management system whilst maintaining quality standards and financial stability. The framework calls upon the sector needs to look at where it can work better with partners, including voluntary organisations.
The Care Quality Commission (CQC) has had a difficult task in establishing itself and has not so far achieved value for money in regulating the quality and safety of health and adult social care according to a new report by the National Audit Office. The report also highlights a gap in expectation and misunderstandings between the public, health and social care providers, and the CQC itself in terms of what constitutes ‘successful regulation’. It welcomes current action to improve its performance as a regulator.
Housing Minister Grant Shapps has issued a series of new standards on social housing in response to a recent consultation. The standards cover new abilities for social landlords’ to issue flexible tenancies; tenant access to mutual exchange schemes; new opportunities for social housing tenants to get involved in commissioning repair and maintenance services; introduction of the “Affordable Rent” model (80% market rate); and additional clarity over the levels to which providers are expected to maintain their stock.
A new action plan has been published by the Department for Education which urges Local Safeguarding Children Boards to measure and tackle child sexual exploitation in their area. This includes proposed work with the Association of Chief Police Officers, health professional bodies, and the Social Work Reform Board to ensure the issue is properly covered in training and guidance for frontline professionals. This was influenced by the publication of the recent ‘Puppet on a String’ report by Barnardo’s.
The newly-established Independent Commission for Aid Impact (ICAI) has published a series of new reports which cover the impact of British aid. The new reports are on four areas of activity - the ICAI’s own approach to value for money and the impact of aid; the Department for International Development’s approach to anti-corruption; Britain’s climate change programme in Bangladesh; and UK support for the health sector in Zimbabwe.
All of the care homes formerly run by Southern Cross have now been transferred to new operators. This was done with minimum disruption to their residents, with reportedly no Individual losing their care home place as a result. In all cases, the transfer was scrutinised and approved by the Care Quality Commission. It follows the break-up of the private care provider this year following financial mismanagement.
The Voluntary Sector
Over a million more individuals gave to charity over the past 12 months but donation levels remained flat according to the results of UK Giving 2011. The study, commissioned by the Charities Aid Foundation and NCVO, shows that the UK public gave £11 billion to charity over the last year, with an additional 1.1 million donors. However, the average (median) amount given per month fell from £12 in 2009/10 to £11 in 2010/11. This means that donations are now worth £900 million less in real terms than the amount given prior to the recession.
The National Association for Voluntary and Community Action (NAVCA) has appointed a new Chief Executive. Joe Irvin will replace outgoing CEO Kevin Curley and has previous experience working for the RSPB, British Airports Authority, Chief Special Adviser to John Prescott, the Transport and General Workers Union, and in the 10 Downing St Policy Unit. Welcoming his appointment, Irvin spoke of the “huge challenges” NAVCA members were facing in the current financial climate.
New Philanthropy Capital has launched new guidance for charities which explains the risks and benefits of social investment. The report estimates that over £500m of social investments have already been made in the UK and highlights the ongoing development of new financial products in the social investment market. The report’s authors also warn that charities which seek to benefit from this new source of investment must be aware that they are taking on a loan and have a clear plan for repayment.
Chief Executives body ACEVO has produced a free guide which offers practical advice on how equality and diversity can be mainstreamed in third sector organisations. The guide was designed to help organisations tailor action on diversity to their particular organisation and is arranged in sections spanning the case for equality and diversity; current legislation; the role of leadership; integration with policy and procurement; and equalities monitoring.
Think Tanks & Research
The Office for National Statistics have published their annual survey of hours and earnings for 2011. This survey is based on HM Revenue & Customs data from HM Revenue and Customs PAYE records. Among the key findings were that median gross weekly earnings for full-time employees rose by 0.4% to £501; full-time median gross weekly earnings for higher for men (£539) than for women (£445); median gross weekly earnings for full-time employees were highest in London (£651) and lowest in Northern Ireland (£451); and the hourly earnings for full-time employees in the bottom decile grew by 0.1% to £7.01 per hour, whilst the top decile grew by 1.8% to £26.75 per hour.
The average life satisfaction rating for adults in Great Britain is 7.4% according to an experimental research report on well-being published by the Office for National Statistics. One of the questions asked in a recent opinion survey was, ‘Overall, how satisfied are you with your life nowadays?’ The majority (76%) of respondents were estimated to have a rating of 7 out 10 or more. The report was based on surveys with 4,200 adults between April and August 2011 and forms part of the development of measures to supplement economic growth.
The Joseph Rowntree Foundation has published its annual report on the state of poverty and social exclusion in the UK. The report was produced in partnership with the New Policy Institute and is based on official Government data. Among the key findings were a rise in the number of people who were unemployed, lacking but wanting work or working part-time because no full time job was available; the gap in educational attainment levels between those on free school meals and other children was smaller than in previous years; the proportion of households in fuel poverty has risen significantly in the last few years; and the number of households accepted as homeless in England rose for the first time in seven years.