Economic stimulus: Funding for 'advance to work' project

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A decision made 7 December 2009 regarding: Economic stimulus: Funding for 'advance to work' project.

Decision Reference: MD-TR-2009-0198
Decision Summary Title:	Discretionary Fiscal Stimulus – Education, Sport and Culture Budget Allocation – Advance to Work		Date of Decision Summary:	3rd December 2009
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of fiscal stimulus funding to Education, Sports and Culture – Advance to Work		Date of Written Report:	3rd December 2009
Written Report Author:	Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Education, Sport and Culture Department in relation to the Advance to Work project which is being undertaken by the skills and training project team.
Decision(s): The Minister approved the allocation of £393,000 to Education, Sport and Culture, to be transferred to the department budget as soon as possible and allocated to revenue expenditure as set out in the accompanying report. He further instructed the skills and training project group to report on spend of all stimulus monies, and project progress/performance, on a monthly basis in accordance with guidelines set by the Treasury.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The £393,000 approved funding will enable the skills and training project group to continue the Advance to Work scheme up to 31 August 2010.
Resource Implications: There are no additional resource implications outside existing approvals.
Action required: Treasury to be informed of decision to release necessary funds to the Education Sport and Culture budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Economic stimulus: Funding for 'advance to work' project

Allocation of fiscal stimulus funding to Education , Sports and Culture -Advance to Work (Youth Training) Scheme

Recommendation to Treasury and Resources Minister for additional Green Light allocation

3 December 2009

Background

Education Skills and Culture were given provisional approval (“amber light”) for £2,196,000 for the Advance to Work (Youth Training Scheme). The approval is to provide up to 150 places for young people of 16 to 19 who are unemployed for tailored training and mentoring to help them access work. This includes work placements, support to gain basic qualifications, and basic skills such as timeliness, personal presentation, and telephone protocols. The scheme requires mentoring at a level of 1 mentor to 15 students, and a scheme manager. The duration and components of the training supplied are individually tailored and therefore this element was a rough estimate at the ‘amber light’ stage.

The students receive income support directly from Social Security which is being funded separately via automatic stabilizers.

An initial ‘green light’ was allocated through Ministerial Decision MD-TR-2009-0131 on 30 July 2009 for £187,200. This represented the basic salaries for the scheme manager, a co-ordinator, an administrator and 3 mentors and minor start up costs of £7,200 to set up the Advance to Work Scheme and allow a detailed evaluation of the take-up and resource requirements to take place.

The scheme is now fully underway and has 85 active participants, 30 of whom are currently in work placements with a further c 15 in the process of being interviewed. 2 have graduated to full time employment. The amber light sum provides for a maximum of 150 participants over 2009, 2010 and 2011.

ESC have been covering running costs as the scheme has been mobilizing and urgently require to appoint additional temporary mentors to service the level of recruitment. They have now completed their evaluation of its resource requirements for 2009 and 2010 in the light of their experience to date. In particular, they have found that training is costing an average of £2,100 per student rather than the opening estimate of £2,500 and their “green light” request reflects this lower level of cost. Training costs will continue to be monitored as the scheme evolves however, and as contact with less able, less motivated individuals develops, the investment in training may need to increase to a figure closer to the original estimate.

A further drawdown of £393k is now required to finance the project up until the end of the academic year 31 August 2010.

Continuing need for the scheme

A recent review of unemployment figures continues to demonstrate a need for this scheme.

Unemployment figures continue to rise 997 in October 2009 and 910 in September. Around 40% of all those seeking work are under 24. This scheme assists 16-19 year olds at present although there may be scope to broaden the age range within the numbers in the provisional programme.

Age Range 16 to 19 – 205 unemployed in October 2009 A large proportion of youngsters in this group will already be enrolled on the Advance to Work project but will continue to be identified as unemployed as they are ‘actively seeking work’ and claiming income support. A number of the long term unemployed will be encouraged to join the scheme, or alternatively seek work more actively or risk losing their income support. The potential reluctance of this group to join the scheme is an issue on the project log and will be dealt with at the beginning of 2010.

Age Range 20 to 24 - 171 unemployed in October 2009 Some of these individuals could be absorbed by the ATW scheme if it were extended to this age group however help is currently offered by the Work Zone and Careers Jersey.

Details of Green light Request

Finance

	2009 £	Jan to Aug 2010 £	Total £	Green light July 2009 £	New Green light request £
ATW Project Manager	22,000	40,000	62,000	60,000	2,000
ATW Administrator	12,000	20,000	32,000	30,000	2,000
ESC Project Manager (2 days)	8,000	11,000	19,000	0	19,000
ATW Mentors (1:15 students)	46,000	188,000	234,000	90,000	144,000
Sub-total staff	88,000	259,000	347,000	180,000	167,000

Office equipment/misc	12,000	11000	23,000	7,000	15,000
Training costs	23,000	188,000	211,000	0	211,000
Sub-total staff	35,000	199,000	234,000	7,000	226,000
TOTAL	122,000	457,000	581,000	187,000	393,000

Manpower

A temporary increase in manpower for to 31st December 2010 of 23 Headcount and 19.5 FTE was approved on 8th October 2009 via Treasurer’s Delegated Decision.

Additional manpower up to 31 December 2010	2010 FTE	2010 Heads
ATW Project Manager	1	1
ATW Administrator	1	1
ESC Project Manager (2 days)	0.4	1
ATW Mentors (1:15 students)	9.6	10
Total requirement	12	13

This manpower commitment remains sufficient for the Advance to Work scheme.

Recommendation

The Fiscal Stimulus Steering Group has considered this request and recommends to the Treasury and Resources Minister that an allocation should be made to Education Sports and Culture from the Discretionary Fiscal Stimulus in the sum of £393,000 for the period 1 January 2010 to 31 August 2010.