DD2590 Mayor’s Academies Programme – additional hub funding and WIN

1.1 The London Recovery Board established the London Recovery Programme to restore confidence in the city, minimise the impact on communities, and build back better the city’s economy and society as a result of the Covid-19 pandemic. This is being achieved through the delivery of nine recovery missions, one of which is the Good Work for All mission.

1.2 The Good Work for All mission aims to ‘support Londoners into good jobs with a focus on sectors key to London’s recovery’. There is a strong emphasis on Londoners who have been disproportionately impacted by the pandemic and face structural inequalities.

1.3 The establishment of ‘more sector specific skills academies in growth sectors, including the green economy, digital, tech, health and social care and creative industries […to] give young Londoners a competitive advantage in securing good jobs for them and London’s economy’ is also a key Mayoral priority (as outlined in his 2021 manifesto), as well as being sectors identified by the London Recovery Board which have significant vacancies and/or growth potential.

1.4 As a result of the GLA’s ongoing engagement with London employers, hospitality was subsequently identified as an additional sector to be included in the programme remit, in light of its high vacancy rate as the sector reopened post pandemic.

1.5 The MAP was originally approved under cover of MD2846 in 2021. That MD recorded the Mayor’s approval of the original programme expenditure, reallocation of funds from the MCA, use of Adult Education Budget (AEB) for job outcome funding as well as delegation of future MAP programme level decisions to the Executive Director of Communities and Skills.

1.6 Additional funding through the GLA’s budget setting process, the London Economic Action Partnership and the receipt of £500k from external sources (£250k from HEE and £250k from NHS England & Improvements) increased the total MAP programme budget to £14.108m. The allocation of those sums was approved under cover of MD2919. Authority was delegated to the Executive Director of Communities and Skills to approve receipt and expenditure of additional funds secured for the programme, including those in excess of £150,000.

2.1 The objectives and programme delivery approach of the MAP are recorded in MD2846. The objectives are:

• to help fill vacancies in priority sectors with skilled people
• to raise the profile of these sectors for potential applicants
• to get Londoners into good work (direct employment, apprenticeships, traineeships or self employment/freelance work) in the sectors identified
• to support the Further Education (FE) sector to deliver industry relevant provision
• to gain insights into the priority sectors and to support specific groups of Londoners, including young black men, to overcome barriers to entry into the sectors identified
• to support employers and FE colleges to address structural barriers to engagement, recruitment, retention and progression for under-represented groups in their industry/workforce, as outlined in the WIN toolkit.

2.2 The programme work-strands include:

• hubs – revenue funding to support the development of partnerships between employers, training providers and others and AEB funding for job outcome incentive payments to training providers
• a Quality Mark awarded by the GLA to training providers who deliver accessible, high-quality provision which responds to the needs of the key sectors
• bespoke support for excluded groups, to help those facing structural barriers to access employment in the key sectors
• a communications campaign to champion adult education and careers in the key sectors to London learners
• capital funding– supporting the FE sector to deliver effective and relevant provision.

Health hubs

2.3 The first round of hub procurement was undertaken in Q2 and Q3 2021-22. In total 23 hubs successfully secured hub funding of up to £250k to fund coordination resource and develop partnerships. However only 22 of the 23 hubs progressed into grant, so £189,325 of the approved hub funding remained uncommitted.

2.4 The GLA originally intended to fund one pilot health hub as part of the hub procurement process. However, based on the strength of all the health hub proposals, both NHS England and Improvements (NHS/I) and HEE agreed to provide the GLA with funding for one health hub (£250k each, £500k in total). Approval to receive these external funds to deliver additional health hubs was granted under cover of MD2919. Two ICS sub-regions, North Central London and South East London were unsuccessful in securing funding at the time although applications were of a quality which met the threshold for funding.

2.5 On the basis of the strength of proposals, the GLA committed to explore alternative sources to fund the remaining two health hubs to ensure pan-London coverage and HEE has subsequently confirmed that it could provide a further £250k this financial year (2022-23) to fund an additional health hub. The GLA therefore, seeks approval to utilise the £189k relating to the hub which did not progress, along with a further £61k currently unallocated from the 2024-25 hub extension budget to grant fund the remaining health hub. The funding of both North Central London and South East London hubs will ensure the MAP can offer pan-London hub coverage for the sector.

2.6 Table 1 below sets out the revised hub element of the programme budget, based on existing hub grant agreements and planned expenditure from the social care hubs. (It does not include unallocated hub funding in 2024-25 - £2.545m which is detailed in Table 2):

Table 1:

2.7 Based on the existing hub budget and subject to approval in future years, this leaves an additional £2.545m unallocated in 2024-25 to support the extension of successful hubs for one additional year of delivery.

Workforce Integration Network (WIN)

2.8 The WIN offer to MAP hub employers is integral to addressing underrepresentation in the priority sectors. The WIN offer includes:

• sectoral research to highlight areas of sectoral underrepresentation and recommendations on how to address this
• an employer toolkit and accompanying implementation support to help companies recruit, retain and progress Londoners from underrepresented groups within their workforce
• a Design Lab programme which creates space for businesses to explore the causes of underrepresentation in their workforce in a data driven manner
• WIN will also provide support to Hub Coordinators to help them to understand the offer when speaking to employers and better drive hub employers to WIN resources.

2.9 The current WIN budget does not currently allow for the full offer to be delivered across all priority sectors.

2.10 The GLA is therefore seeking approval to reallocate £120k funds allocated to the WIN from the MCA programme (MD2680) to deliver a construction focussed employability innovation project which did not take place due to lack of capacity within the WIN team. Given the high priority of the MAP and the vital role WIN plays within the programme it was felt that this represents a better use of limited resources.

2.11 The repurposed £120k will enable the following expanded offer to MAP delivery:

• A scoping project to identify trends, needs and opportunities for the social care sector (August to November 2022).
• A digital employers toolkit resource to support employers to improve workforce diversity and inclusion (D&I) and support underrepresented groups to access progression and good quality work opportunities in the digital sector (February to July 2023). This updates the previous digital toolkit based on lessons learnt and finesses the approach.
• The expansion of the MAP evaluation focussing on a deep dive into the WIN Design Labs programme.

Programme Budget

2.12 The additional £250k external funding from HEE and the reprofile of the £120k MCA WIN funds will increase the MAP programme total from £14.108m to £14.478m. The HEE funds will increase the total hubs budget will increase from £10.008m to £10.258m.

2.13 Table 2 below details all planned expenditure by year as well as the sources of all funding. This includes £750k for the additional three externally funded hubs and the previously approved MCA underspend of £280k and £50k under MD2846 and MD2919 respectively as well as the MCA WIN underspend of £120k . The table also includes the unallocated hub funding set aside for 2024-25.

2.14 To facilitate the expansion of the MAP evaluation, the GLA seeks to expand the MAP evaluation budget from £150k to £230k, to allow for WIN to carry out a deep dive evaluation into the Design Labs delivery across the priority sectors. This will be funded using £40k from the MCA underspend requested as outlined in 2.11 and the remaining £40k will come from the existing WIN budget line (Bespoke Support for Excluded Groups) in Table 2 below.

Table 2:

3.1 Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities must have due regard to the need to:

• eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010
• advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it
• foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

3.2 Relevant protected characteristics are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

3.3 The interventions outlined in this DD are aimed at supporting those most at risk from the impact of the economic crisis brought on by Covid-19. Priority groups include learners from Black, Asian and minority ethnic communities; learners without basic skills; learners with special needs or disabilities; lone parents; and low-paid learners. However, the groups referenced in the Good Work for All mission are also considered to be priority groups and include those hit hardest by the pandemic including young people; newly unemployed people; people with caring responsibilities; people at risk of redundancy; and Londoners with the most complex needs, such as disabled Londoners and the long term unemployed. The GLA has consulted on the equalities impact of these changes with key sector representatives, and will closely monitor, review, and evaluate their impact.

3.4 Equality, Diversity, and Inclusion is a cross-cutting principle across the London Recovery Programme.

3.5 A sectoral workforce analysis of priority sectors was undertaken by the WIN team (ADD2520) to better understand the obstacles facing under-represented Londoners hardest hit by the Covid-19 pandemic; this will help to inform WIN and Academies delivery. The research identifies where under representation exists; reasons for under-representation; and opportunities to address under representation through the activities of the Good Work for All mission. The research will be published imminently, and WIN intend to lead a workshop with the MAP hubs to support dissemination of the findings.

Risks arising/mitigation

4.1 Key risks and mitigation measures are outlined below. This may be refined following further stakeholder engagement.

Links to Mayoral strategies

4.2 The programme outlined in this DD aligns with commitments made in the Mayor’s Skills for Londoners (SfL) Strategy and the Skills Roadmap for London which sets the direction of travel for adult education and skills in London over the Mayoral term and beyond. It will support the London Recovery Board’s Programme and the Helping Londoners into Good Work mission. In addition, the programme supports the Mayor’s 2021 manifesto commitment to establish more sector-specific academies.

Consultations & Impact Assessments

4.3 The recent sectoral workforce analysis of priority sectors detailed in paragraph 3.3 will help to inform and shape both WIN and wider Academies delivery. The research identifies where under representation exists; reasons for under-representation; and opportunities to address under representation through the activities of the Good Work for All mission.

4.4 This analysis will be used to inform delivery by the hubs and WIN will be supporting the hubs to ensure their offers responds to the areas highlighted in the research. Intersectional analysis shows that specific groups experience exclusion because they possess one or more characteristics in addition to ethnicity that compounds the inequalities they experience. Priority groups highlighted in the research are: young Black men; (16-24) older Black men (50+); Pakistani and Bangladeshi women; and Black women.

4.5 The analysis will also help to shape WIN tools, which will support employers to address underrepresentation in the workforce.

4.6 Both the WIN sectoral toolkits and the Design Labs will be developed and co-designed with MAP hub employers and staff to ensure they are directly responding to employer needs in relation to the recruitment, retention and progression of underrepresented groups within the workforce. The impact of these will be evaluated as part of the in-depth WIN evaluation outlined above using a budget of up to £80k.

4.7 There are no conflicts of interest to declare from those involved in the drafting or clearance of this decisions.

5.1 Executive director approval is being sought for the receipt of income in the sum of £250k from HEE. The funding from HEE is expected to be received and contained within the 2022-23 Skills & Employment budget. This will be used to fund the Health Hubs programme under the Mayor’s Academy Programme (MAP) which is a multi-year project spanning over three financial years (2022-23, 2023-24, 2024-25 financial years).

5.2 Approval is also being sought to approve expenditure of £500k for two health hubs under the MAP, with £250k funded by the Health Education England receipt explained in 5.1. The remaining £250k will be funded from available Mayor’s Academy Programme budget contained within Skills and Employment budget as approved in MD2919. The indicative expenditure profile is shown in both 2.6 Table 1 along with overall programme funding sources in 2.14 Table 2. Once this decision is approved, the process to get funds into contract and awarded as grant will begin and is anticipated to take place in Autumn 2022.

5.3 A further £120k of MCA funding (MD2680) is requested to be reallocated towards the Workforce Integration Network increasing the capacity of MAP delivery as outlined in 2.11. It is anticipated that this will be spent in 2022-23 financial year, with the funds being transferred from the S&E Construction Skills budget and contained within the WIN Budget.

5.4 Approval is also being sought to increase the MAP evaluation expenditure by £80k. The funding will be taken from the following sources; £40k from the bespoke support budget within the MAP budget envelope (MD2919 table 2) across the 23-24 and 24-25 financial years. As a multiyear programme this is subject to GLA budget setting process. The remaining £40k will be taken from the reallocated £120k MCA funding highlighted in 5.4 supporting the increased capacity for MAP delivery. This will be contained and spent within the 2022-23 MAP budget held within Skills and Employment.

5.5 Budget allocations for 2023-24 and 2024-25 will be subject to approval through the annual budget setting process. The funding for this programme is a mix of both GLA core and external funding. As the programme progresses, GLA officers will manage the position to ensure the optimum use of both sources of funding, minimising the need for carry forwards of GLA funds. As this funding is multi-year, it is subject to available funding and there should be appropriate break clauses in the agreement.

6.1 The foregoing sections of this report indicate that:

6.1.1 the decisions requested of the Director concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation in Greater London; and

6.1.2 in formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people;
• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
• consult with appropriate bodies.

6.2 In taking the decisions requested, the Director must have due regard to the Public Sector Equality Duty - namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010 and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion) and persons who do not (section 149 of the Equality Act 2010). To this end, the Director should have particular regard to section 3 (above) of this report.

6.3 If the Director makes the decisions sought, officers must ensure that:

6.3.1 no reliance is placed upon the:

• HEE funding until a legally binding commitment to the provision of the funding is in place and they are satisfied that their proposed delivery is compliant with the applicable funding conditions; and
• any WIN underspend currently committed under any existing agreements, until it has been confirmed that funding can be used without breach of such agreements and, to the extent applicable, those existing agreements are varied to reduce the funding they cover;

6.3.2 to the extent that expenditure concerns the:

• award of grant funding, it is distributed fairly, transparently, in manner which affords value for money and in accordance with the requirements of the GLA’s Contracts and Funding Code and grant funding agreements or agreements varying current grant funding agreements (as applicable) are put in place between and executed by the GLA and recipients before any commitment to fund is made; and
• payment for services, those services are procured in liaison with TfL Procurement and in accordance with the GLA’s Contracts and Funding Code and contracts are put in place between and executed by the GLA and contractors before commencement of such services and
• activity and expenditure which extends beyond the Mayoral term they observe the principle that the GLA should not unreasonably fetter the discretion of any future administration, including the retention of termination for convenience rights and the related structuring of milestones and outputs so as mitigate risks of abortive expenditure being incurred.