The problem
Modern Warrington is undoubtedly one of the success stories of the New Town Development Corporation. A growing and affluent population based on average incomes above the North West and national averages, a well qualified population, (31% of working-age people are graduates), and various other published statistics provide testimony to this triumph.
Economic success has however by-passed certain parts of the Borough. And now, in common with many other prosperous areas, unemployment is being experienced for the first time by individuals and households which to date “have never had it so good.”
Recessionary unemployment
In September 2009 some 5,031 people in Warrington were claiming the main unemployment benefit of Job Seekers Allowance (JSA). This represents a 70% increase in the 12 months from September 2008.
Whilst most new claimants were men, the proportionate increase at 75% is greatest among women. In terms of age the 25-49 age group appears to be suffering the most.
Alarmingly, recessionary unemployment appears to be settling in. Most JSA claimants have been claiming for less than six months, but a growing number have been claiming for 6-12 months and over one year, e.g. the 12 months plus group increased by 98% between September 2008 and September 2009.
Deprivation – long term worklessness
Certain areas of Warrington have not shared in the Borough’s economic achievements. Fourteen areas are within the most deprived 10% in England on the Government’s employment deprivation scale – one part of the index of multiple deprivation 2007. This is worse than the position in 2004, when only three areas were in the most deprived 10%. Orford, Bewsey and Whitecross, Poulton, Latchford – the areas are well known and long standing.
In February 2009, 15,160 working age adults were receiving key out-of-work benefits. The bulk of these were 8,210 people claiming Employment Support Allowance and/or Incapacity Benefit (IB). The proportion of IB claimants (7%) is just below the national average but well below that for the region. What is surprising however is the size and proportion of this group given that Warrington has an employment rate of 77%. Other areas with such a high employment rate, e.g. St Albans, have a much smaller proportion of IB claimants (4%).
If the IB patterns are the same as most areas we will find the bulk of claims at over five years with the largest group “signed off” due to mental health related illnesses. It appears that in affluent Warrington there are persistent pockets of long term worklessness and deprivation that share the challenging characteristics of near neighbours like Manchester, Liverpool, Halton and St Helens.
Somewhat aged (2007) job density figures for Warrington are very positive at 0.99 compared to .80 for the region and .83 for Great Britain. What this means of course is that the area attracts many in-commuters to fill the available jobs.
Positive news is that unfilled JobCentre Plus vacancies in Warrington are rising since their low in June 2009. The ratio of unfilled jobcentre vacancies per 10,000 working age population is also very positive compared to the regional and national figures.
The solution – what can be done locally?
The Houghton Review introduced the notion of a “worklessness assessment”, that is now a requirement within economic assessments of areas and within the work and skills plans of those in receipt of Future Jobs Fund. Most Local Area Agreements (LAAs) include national indicators associated with work, skills and benefit claims.
The Improvement and Development Agency (I&DeA) has produced a series of “how to” guides, one of which covers worklessness. It sets out five steps to developing a worklessness strategy for a local area:
- Partnership
- Assessment
- Customer journey
- Strategic priorities and an action plan
- Implementation and review
This project cycle management approach is a good start, but our experience suggests that there is more to it than this. The problem of worklessness has been analysed and acted upon like this before.
So, what are the issues within the worklessness assessment and action plan that can make a difference? Many years’ experience suggests that there is no formula that will work every time. However, success seems to require the following ingredients:
- A real understanding of the statistics.
- Parity of esteem for the demand (employers) and supply (people) side of the labour market – and a facilitator role for providers (it’s not about them).
- Government and third sector employer demonstration of, and commitment to, what works.
- Local leadership – it’s vital to partner with and add value to JobCentre Plus and their providers but they are national with limited local discretion.
- Making LAA targets real – including commitments to action.
- Integration of work and skills with housing, health, social care etc. A multi-agency team is required as is team and management development, sharing data, and referring clients – ultimately saving public money.
- Accountability for actions and measured results – somebody senior has to care.
- Changing cultures – being without work, for whatever reason, has to become socially unacceptable.
- Flexible resources designed to break down barriers and clear the path to personal development and sustainable employment.
- A good deal of luck, communication, perseverance and no reliance on quick fixes!
