The Current Environment for Employability Mentoring Projects Martin Crewe Director, Barnardos Scotland

Barnardo’s Works Engages young people, aged 16-24, furthest from the labour market Trains them in industry relevant, in-demand skills through a 26 week programme Qualifies them to work independently in their chosen area Employs their skills in a real job with real prospects

Delivery Areas Renfrewshire Dundee City Highlands & Islands Edinburgh City Glasgow City Cairngorm

Business Partners  Scottish & Southern Energy  Turiff Contractors  Scottish Water  AJG Parcels  Farmer’s Autocare  NHS  Inverness College  Apex Hotels  RAS Crockett & Partners  Halfords  Distribution Unlimited  Portobello Beauty Studio  Astra Sheepdog & Breeding Centre

Outcomes for Young People 83% in sustained independent employment 98% achieve accredited qualifications 100% report reduction in risky behaviour 85% make the transition from state benefit to waged employment

Employer Benefits Increased productivity – additional committed team member Cost effective and risk free recruitment 6 months financially supported – 3 months at no cost, 3 months at 50% wages Specific skill training tailored to the company Flexible support from Barnardo’s Works team that fits around business hours (i.e. early mornings) Staff within company engaged as mentors Compliments company Corporate Social Responsibility programmes and raises company profile in the community

The Work Programme Replaces all current welfare to work programmes Larger contracts (£10m-£50m) Longer periods (7 years) Payment by results DWP will establish Framework of preferred suppliers and Work Programme will be first contracts issued under the Framework

DWP Guidance on Work Programme All bidders for Framework must: have ability to deliver across whole of a geographical lot (11 lots covering England, Wales and Scotland) have ability to deliver call-off services for DWP through combination of direct delivery and sub-contracting (including sub-contracting of the entire provision to other organisations) have the financial capacity to deliver large scale contracts be able to manage cashflow of outcome funding (for ‘medium’ contract of £30m estimated peak cash required about £9.5m and break even not reached for almost 3 years)

DWP Guidance on Work Programme “Given the scale and size of the Framework, smaller organisations with a turnover of less than £1m (and indeed higher than this) are unlikely to have sufficient financial and organisational capacity to become a prime contractor and would therefore be better placed as subcontractors or as members of a special purpose vehicle/consortium.”

Bidders to Framework for Provision of Employment Related Support Services (Lot 10 Scotland) 26 Bidders 17 Private Sector: Serco, Capgemini, A4e, Remploy, Reed in Partnership, Ingeus … 9 Voluntary Sector: Barnardo’s, Catch 22, Shaw Trust, Wise Group, SCVO, SCVO Consortium … DWP expects to appoint 3 to 8 organisations to each lot (indicative range only) Successful bidders due to be notified 30 November Only organisations on Framework can be Prime Contractors for the Work Programme

Work Programme Options Prime Contractor Tier 2 Contractor (manage a partnership within supply chain of a Prime) Subcontractor Specialist Support Services (often spot purchased)  Scale / Financial Risk / Income / Predictability of Demand

Implications for Barnardo’s Works Ensure operating model fits with the Work Programme Need multi-year contracted income Maintain quality of service Conclusions: Tier 2 Contractor option looks most attractive Move from individual services to regional delivery model Overall Employment Services Manager

The Current Environment for Employability Mentoring Projects Martin Crewe Director, Barnardos Scotland