Social Inclusion and Economic Wellbeing Hartlepool Case Studies Diane Martin Hartlepool Borough Council Targeted Recruitment and Training: Process To Practice

Hartlepool Borough Council Targeted Recruitment andTraining Charter Targeted Recruitment and Training Charter Adopted alongside the Council’s Procurement Strategy in 2007 Strategic Drivers: Local Policy FrameworkHartlepool Partnerships Community Strategy HBC Procurement Strategy Legal & Policy Framework – Planning and Development Control *Section 1 – Jobs and Economy Develop a local economy……that will attract investment….and create more employment opportunities for local people. To support local people in gaining maximum benefit from the economic regeneration of the town….. Government : Best Value Regional Skills Partnerships. Local Area Agreements. City Strategies MAA

Legal & Policy Framework :Planning & Development Control Targeted Recruitment and Training (TRT) meets three ‘tests’ - Meets planning purposes - Related to the site - Reasonable Targeted Recruitment and Training related to the development can meet the three tests ‘Planning Purpose’ is established because of the contribution TRT makes to a key planning purpose namely Sustainable Development ( high and stable levels of economic growth and employment, achieving social progress, recognising the needs of everyone). TRT supports sustainable development by ensuring the number of people in the local labour market increases in line with job creating investment, by supporting existing businesses and by reducing car-based commuting and the associated environmental damage.

Case Study 1: Housing Hartlepool TRT Charter in place Contractual clause and method statement – targets/outcomes agreed. Monitoring process, support service and reporting structures in place. (through Hartlepool Borough Council Economic Development function) Five year Strategic partnership with Wates Construction, Gus Robinson and Hartlepool Borough Council Targets: 120 people employed over lifetime of agreement 60 Apprenticeships 60 LTU to be given employment opportunity opportunity to upskill placement opportunity Achievements to June 2008: Employed to date : 155 (149 Hartlepool) Apprentices : 44 (38 Hartlepool)

Development Brief : HBC and New Deal for Communities (North Central Hartlepool – Demolition & New Build) (North Central Hartlepool – Demolition & New Build) Contractual Clause in place for tender process. Contractual Clause in place for tender process.HBC: Forecast of local labour opportunities against spend, timescale and type of build. Negotiation on methodology and target setting agreed with main contractor Forecast of local labour opportunities against spend, timescale and type of build. Negotiation on methodology and target setting agreed with main contractor Sub contractor agreements Sub contractor agreements Local supply clause Local supply clause Education Business Link activity Education Business Link activity ‘Meet the Buyer event’ – opportunities to submit expression of interest for ‘Meet the Buyer event’ – opportunities to submit expression of interest for supply sub contracts supply sub contracts Cascade contractual clause down to sub contractor. Cascade contractual clause down to sub contractor. To date:6 Apprenticeships : selection from boundary schools within development School Initiatives : safety poster competitions School Initiatives : safety poster competitions Local employment : ongoing Local employment : ongoing Development due to commence and subcontractors appointed. Development due to commence and subcontractors appointed. HBC Economic Development : Ongoing monitoring with main contractor reporting to NDC/HBC/ NAP Forums. Case study 2: WIMPEY HOMES

Supporting the process: The (CEI) process is demand led, client centred employment model focussing particularly on the disadvantaged and unemployed The (CEI) process is demand led, client centred employment model focussing particularly on the disadvantaged and unemployed Supports local authority and social housing organisations to achieve social policy objectives and community benefit through the use of leveraged planning and procurement agreements and targeted recruitment and trainingSupports local authority and social housing organisations to achieve social policy objectives and community benefit through the use of leveraged planning and procurement agreements and targeted recruitment and training Enables working with strategic partners to deliver the sustainable client training interventions, which meet the requirements of the prospective employer, and the employment aspirations of the employeeEnables working with strategic partners to deliver the sustainable client training interventions, which meet the requirements of the prospective employer, and the employment aspirations of the employee

Hartlepool Borough Council/HBC Economic Development/Housing Hartlepool :

ECONOMIC BENEFITS: Targeting and generating re-spend Saving to the Exchequer (Housing Hartlepool project)Saving to the Exchequer (Housing Hartlepool project) The aggregate number of people accessing employment as a direct result of TT&E is 149The aggregate number of people accessing employment as a direct result of TT&E is 149 The minimum wage for calculation purposes is assumed to be £5.52/hr or £204.24/week and £10,629/year. (The average gross wage for a semi skilled construction employee is circa £22,000/year).The minimum wage for calculation purposes is assumed to be £5.52/hr or £204.24/week and £10,629/year. (The average gross wage for a semi skilled construction employee is circa £22,000/year). Based upon the lower income figure and that all were unemployed before start of contracts the economic benefit generated to date is 10,629 X 149 = £1’583’721.Based upon the lower income figure and that all were unemployed before start of contracts the economic benefit generated to date is 10,629 X 149 = £1’583’721.

Economic benefits (Source: Freud, Reducing Dependency, Increasing Opportunity: Options for the Future of Welfare to Work, 2007). In comparison, it is worth noting the cost of an individual on a working age benefit. For instance, within The Freud Report on worklessness it was identified that for each individual claiming Jobseekers Allowance (JSA) it costs £8,100 each year and for an individual claiming Incapacity Benefit (IB) costs £9,000 per year minimum. Nationally, on average, once someone has been on IB for a year they are on this benefit for eight years (Amounting to an overall cost of approximately £72,000). For IB claimants, 86% will remain on this benefit for over a year.

Individual case studies (Hartlepool projects) Local Contracting: Local contracts let on Housing development : 12 sub-contracts awarded 5 Hartlepool 2 Tees Valley. Benefits savings: Unemployed IB, single, age 18 – 24yrs. 2 years on benefits. total cost in benefits: £18,641 (24months) In work example would recoup this cost in first year. Single person two years unemployed with partner claiming IB and IS. total benefits: £27,370 I

OPPORTUNITIES Victoria Harbour- through S106 (in place) PCT developments (end user – JRF) BSF – cascade to sub contractors in agreement with National Procurement Framework Building Colleges for the Future Tees Bay expansion (end user in place) Tesco Expansion (end user in place)

Partner Developments: All five Tees Valley LA’s utilising clause Four in policy Roll out with Tyne & Wear through Construction Employment Integrator pilot (Hartlepool Accountable Body) National rollout with support of Working Ventures UK Disseminating Best Practice with other LA’s – recently Salford and Bristol City Councils Local Employment Partnership with JCP for inclusion in Charter led by Economic Development.