1. Towards inclusive and sustainable growth: Promoting in-work progression
Sheffield City Partnership Board
Dr Fiona Aldridge
@FionaAldridge

2. Why in-work progression?
In-work poverty is an increasing share of all poverty. This has economic as well as social costs
Economic benefits to improving pay through a reduced social security bill and increased economic activity
In-work progression is key to tackling in-work poverty
5m adults in low paid work – 1m more than OECD average
Low pay is key driver of household poverty
Low pay is not just a temporary phenomenon; three in four people in low pay in were still low paid a decade later
Policy changes have put the spotlight on in-work progression
In-work conditionality under UC will require low earners to take steps to improve their earnings (hours or pay)

3. Challenges to progression
Progression outcomes shaped by range of factors
Personal and household circumstances; Access to learning and skills development; Employer practices; Local labour markets; Welfare policies
Progression opportunities are sector-specific
Low-paying occupations seeing generally stronger employment growth
Hospitality and catering, personal services, retail and residential care sectors are closely associated with low pay and persistent low pay
Compressed wage distribution means limited opportunities for increased earnings
Limited support for progression
Employment support focuses on out of work
Skills system focuses on young people with fewer qualifications
Not inevitable – there are good examples of low paying employers that do progress their staff

4. What works? The evidence base is limited
One RCT in the UK – the Employment Retention and Advancement (ERA) Demonstration, delivered by JCP
Improvements in earnings for long-term unemployed group, as a result of increased work entry and work retention (not progression in work)
Improved uptake of skills provision for lone parents but not ‘converted’ into earnings progression
Weak employer (and sectoral) focus may have limited the programme’s impact

5. What works?
Review of mainly US studies by Anne Green et al (for JRF). Not conclusive, but suggests that:
Personalised adviser support, incl careers guidance and wrap around holistic support, alongside access to IAG is important in supporting decision-making on learning and skills take up
Some evidence of wage impact from skills provision – if targeted on low-paid workers, focused on transferable skills, clearly linked to progression routes
Potential for sector-based workforce development (‘career ladders’)
Trade unions can play a key role in enabling access to progression routes in workplace
Employer engagement easiest where clearly linked to business need (e.g. skills shortages, recruitment/retention difficulties)

6. An integrated approach
Evidence supports need for integrated approach:
With individuals –active labour market and skills policies – to support the development of individual skills and capabilities
With employers – helping them to get better at developing their staff and growing their businesses, perhaps via LEP Growth Hubs? – to strengthen progression pathways in low paid sectors
Via places – coordinating support and convening key stakeholders, sectors, interests – based on labour market analysis, establish delivery partnerships, development of engagement models

7. Current In-work progression trials

8. West London Alliance: Skills Escalator Pilot
Part of West London’s Whole Place Community Budget pilot
Delivered by West London Alliance (LB Hounslow and Harrow) funded through Transformation Challenge Award
To redesign frontline services for people working on low incomes by providing access to better paid and more stable employment through personalised advice and skills acquisition
Entry point
Civic centre
CAB
Library
Employer
Children’s centre
Credit union
Online service
Money, debt, housing, etc
NCS
Childcare
Skills
Adviser service
Triage service
Advice/assess
Action plan
Advocacy
Follow-up
Skills escalator
Guidance
Job brokerage

9. Trust for London and Walcot Foundation: Step Up
Grants for pilots to support in-work progression
Target beneficiaries – individuals paid below London Living Wage working an average of 14 hours a week for the last 12 months
£200,000 available per year in total
Individual grants of up to £40,000 per year
Oct 2015-Sept 2017 – Year 1 “test & learn”, Year 2 “steady state”

10. Step-Up Projects
Creative Society - supporting low paid young people in creative/cultural sectors
High Trees Community Development Trust - supporting low paid workers in Tulse Hill (with focus on lone parents and over 50s)
Indoamerican Refugee and Migrant Organisation (IRMO) - supporting low paid Latin American workers
Springboard UK – supporting low paid young people in the restaurant and hospitality sector; employer-focused
Thames Reach/Clean Slate – using digital engagement, alongside more conventional approaches, to support low paid workers
Women Like Us – supporting low paid parents (mostly women, including many lone parents)

11. Ambition London
Ambition London seeks to test and trial a range of interventions to engage, train and support people to change their lives with the support of Advanced Learner Loans
We aim to develop models and approaches that can be rolled out more widely to:
support employers and people to meet their skills needs and demonstrate the impact
provide people with career advancement support, aligned to their needs
increase individual (and employer) investment in their skills and learning
support people to progress from low pay

12. Examples of tests and trials
Supporting individuals become informed customers with sector specific IAG and case studies
Job Coach support model
Modular training offer
Flexible training approaches; online and blended
Supporting individuals become informed customers via development of an app
Employability IAG and support
Engagement via employers
Co-investment model
Modular training offer
Supporting individuals become informed customers with a sector toolkit
Additional employability support
Modular training offer

13. Glasgow In-Work Progression in the care sector pilot
Part of the Glasgow City Region City Deal - enabling greater self-reliance among people on low wages by testing ways to boost incomes
To devise, deliver and refine a sustainable model of employee progression to improve the skills and earnings potential of care sector employees
Budget of £600,000 over two years, half from DWP local budget and matched from Glasgow City Council
Delivered by business advisers in City Council DRS
Co-production of action plan
Co-ordinate interventions
Ongoing support
Post-intervention assessment
Target: 40 employers in social care sector
Business interventions, eg:
Business diagnostic
Operations management
Pitching and procurement
Business sustainability
Leadership & management development
Target 400 social care staff
Employee interventions, eg:
Career progression plans
Formal qualifications
Job rotation
Mentoring support
Financial & debt advice

14. An integrated service should…
Improve capability to increase earnings – support to get the tools, skills and experience needed to progress
Address barriers that may make it harder for some – like caring responsibilities, health and disability, language barriers, motivations, and incentives to earn more
Support to find and then take opportunities –matching and brokering people into better and better paid work, or to progress within their current workplace
Help to address barriers for employers – including how jobs are designed, company structures and processes, employer behaviour, sectoral approaches

15. How might this look at local level?
Wrap around services – health, housing, debt, childcare
Targeted initiatives to improve business practices in low-pay sectors
Outreach and Engagement
JCP
Housing
Trade unions
VCS
In-work progression service
– personalised, flexible, sequenced support
Engagement with employers in higher paying sectors with good career paths
Skills provision
Individual-focused
Business-focused
(through Growth Hub)

16. In summary, in-work support should…
Be focused on outcomes – increasing earnings, not just exits from benefit
Lead to sustainable employment – hourly pay not just hours worked
Address in-work poverty – prioritising low income households
Be personalised – there are very different barriers and motivators for different groups, which points to a need for different combinations of support
Be evidence led – build on UK ERA and international reviews, add to the evidence on what works for whom
Be joined up – with city regions, employer support, the skills system, local provision, European Social Fund provision, etc.
Be ambitious – more than ‘conditionality plus a pound’

17. THANK YOU QUESTIONS