1. 1 How London delivered during hard times Stephen Evans and Kris Krasnowski 1 July 2011

2. 2 Outline Labour market context The London approach London delivers London’s future & key lessons

3. 3 Context: Missed opportunities… London employment rate lagging UK for more than two decades… Incomes at the top racing away from everyone…

4. 4 The London approach

5. 5 The LDA’s approach… Strategic direction Transparency & accountability Coherent information Thought leadership & innovation More and better for less LSEB, Mayor’s action plan, Skills priorities, apprenticeships Work Programme asks, WLW London Skills and Employment Observatory Employability Performance Rating, evaluation, Labour market research, careers ladders & job plus, advancement metric 6 and 12 month sustainability Increased VfM & Better outcomes

6. 6 6 A new focus on outcomes… Progression And “more than a foot in the door…” People Employability Support Further Skills Development Job entry Sustained Employment Post employment support

7. 7 …based on intelligent commissioning… Realistic performance expectations coupled with understanding of cost of services… … and better targeted provision…

8. 8 …and four key tests Does it deliver value for money? Does it add value and avoid duplication? Is their strategic fit in line with the LDA’s responsibilities under London’s Employment and Skills Strategy? Is it sustainable?

9. 9 London delivers

10. 10 Delivering for hard to help Londoners Around 1 in 3 starts into work 1 in 2 job starts sustained work for 6 months

11. 11 Programme value for money 1/3 reduction in unit costs (against previous provision); and better quality outcomes (sustained jobs vs skills outputs) cost of projects neutral through savings in benefit expenditure

12. 12 Developing a comparator benchmark for previous provision Used data for a number of DWP programmes operating in London and JCP provision in Northern Ireland; Focus on programmes aimed at Lone parents and disabled people; Use of time-limited conversion rates (where available) and the conversion rates for the entire programme (or other time period available) when they are not; data on both mandatory and voluntary national programmes are included in the comparison benchmark.

13. 13 Comparative benchmarks

14. 14 Job entry and sustainability

15. 15 Cost per job

16. 16 Some valuable lessons… Based on a clear, robust understanding of the market and the costs of delivery Freedom, Accountability Transparency Focus on outcomes Robust & early contract management Intelligent commissioning a)You get what you pay for; b)Sustainability welcome, but right measure? a)Advancement vacuum Freedom works, but a complete black box approach is irresponsible. Greater accountability is required with appropriate checks and balances and public scrutiny Effective market stewardship requires early intervention, policy & delivery expertise and authority delegated to the appropriate level