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Devolution of Employment Support Promises New Opportunities for Communities, but Are Local Authorities Ready?

The devolution of employment support to local authorities offers tailored, community-focused services but poses challenges due to limited resources. Richard Clifton, Shaw Trust’s Chief Commercial Officer, emphasises the need for quick action, service integration, strategic partnerships, and high social value standards to maximise benefits.

Photo Richard Clifton

Richard Clifton

Chief Commercial Officer, Shaw Trust

In July, the government announced its plans for a ‘devolution revolution’, and invited local authorities to take on more responsibility over previously centrally managed policy areas such as skills, transport, and planning.

One of the areas where devolution is set to have the most impact is work and skills, which will see many local government authorities adopt new powers in the design and delivery of employment-related services. Previously managed centrally by the Department for Work and Pensions (DWP), these new powers aim to give local authorities a much more strategic role in shaping employment services tailored to address local problems and meet local needs. Which makes a lot of sense, considering how diverse communities are across Britain.

Why Local Context is Important

Take Rutland, for example, a largely rural area in the East Midlands. In a previous life, I was elected to represent the ward of Oakham Southwest as a councillor for Rutland County Council, which I did from 2014 – 2018. I spent three of those years serving on the cabinet as portfolio holder for adult social care and health.

In that time, I learnt a lot about the needs of the area. Yes, it’s affluent in comparison to the rest of the UK, but its aging population coupled with ongoing challenges in housing and retaining younger, working-age residents, has led to recruitment difficulties in social care, where demand consistently outstrips supply. Moreover, there is no job centre, so people need to travel to neighbouring towns to see an advisor. But as it’s a rural area, some bus services operate sporadically, while some areas aren’t serviced at all.

Cities, on the other hand, face vastly different challenges – many of which I’ve grappled with in my role as board member and former chair of the Employment Related Services Association (ERSA), which campaigns for better support and services for jobseekers and low-earners. In cities, population density means that there is more competition for jobs and resources, and therefore, greater pockets of deprivation. There is more homelessness, compounded by insufficient housing, there are more sensitive cultural issues to navigate, and local authorities generally have to contend with bigger, more complicated problems.

Opportunities and Risks

All of this is relevant because it demonstrates that a deep understanding of the local context is required to develop employability services which meet the needs of communities. Local authorities can provide this, and now have the opportunity to create bespoke employment services which are integrated with health; which could, for example, see employment support being part of someone’s recovery. 

However, there are significant risks too. At a time where headlines are continuing to warn of ‘cash-strapped councils’, many local authorities may struggle to deliver these new responsibilities with their increasingly squeezed resources. Moreover, some nationally commissioned programmes have already stopped taking referrals, meaning the pressure to meet local demand will grow before Christmas. This will put local authorities under pressure to design, commission and mobilise new services quickly, increasing the burden on over-stretched commissioning teams who don’t have experience in procuring this type of support.

Whichever way you cut it, rolling out a new programme in each local authority area in a short period of time will be challenging., Yet if they get it right, investment in this area could take pressure off other budgets, reducing the demand for statutory services, improving community cohesion, and boosting the local economy.

A 4-step Guide for Local Authorities

At Shaw Trust, we have more than two decades of experience working with local authorities to co-design and deliver employment services, and we’ve learnt a lot along the way. So, we’ve developed a simple 4-step guide for local authorities to prepare and make the most of devolution:

1) Get Support in Place Quickly: Some nationally contracted services are no longer offering support to new referrals, and the impact will soon be felt, as those seeking support will be signposted to local services. We know that procurement takes time, so local authorities should start having conversations with suppliers now.

2) Get a Structure in Place: Local authority structures and governance are not designed for the devolution that is coming, which calls for more integration of services like employment, health, skills, and education. Most local authorities divide their responsibilities and delivery into directorates based on function, or the age groups they are supporting. This leads to, in many cases, siloed working which can inhibit integration.

For example, which departments would take the lead on employment support? Is it economic development, adult social care, education and skills, or is it health-led? Employment support services need input from all of these departments. Local authorities will need to bottom out what structure will work for them, and they need to do so quickly.

3) Develop Strategic Partnerships: Solve structural problems by bringing functions and leaders behind a single approach that best delivers for the local community.  A good strategic partnership should be purpose-led and not-for-profit, building capacity in the local Voluntary, Community, Faith, and Social Enterprise (VCFSE) sector, unlocking the potential of communities, and driving change and innovation.

4) Raise the Bar for Social Value: Make sure contracts deliver maximum and lasting benefits on this, providing support which serves the community as a whole. Look for contracts which support community development and offer quality and lasting, measurable impact with local employment and economic development.

In closing, there are substantial rewards presented by devolution, but in order to realise them there are challenges and risks to overcome. Working together to get it right means more autonomy for local authorities, enabling them to develop services tailored to meet unique local needs, attract more investment, and support national economic growth and prosperity.

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