MD2796 Careers Hubs

1.1 This proposal seeks approval to establish four Careers Hubs in London, one in each of London’s sub-regional partnership areas. Each hub will build on the work of the London Enterprise Adviser Network (LEAN) in that area and be supported by organisations delivering employability activity for the schools and colleges in the hub. This will support the achievement of the GLA’s Good Work for All mission as detailed further in 1.15.

1.2 The Government has committed to the continued expansion of the Careers Hub model across the country in its new report, “Skills for Jobs: Lifelong Learning for Opportunity and Growth”.

1.3 Careers Hubs, as further described in paragraph 1.11, are an enhanced version of the Enterprise Adviser Network (EAN). These new hubs will deliver greater impact than the EAN. Careers Hub Enterprise Advisers (EAs) and Enterprise Coordinators (ECs) will work with a much smaller number of schools and colleges (approximately 15) so they can offer more dedicated support. There will be an addition of a Strategic Hub Lead role in each Careers Hub to lead the strategy and performance of the hub to ensure the highest quality of support is offered.

1.4 The EAN is a national programme that supports social mobility through matching senior business volunteers (EAs) with a school or college careers leader. They work in partnership to increase business engagement with the school or college and develop a whole-school careers strategy and employer engagement plan that is representative of all pathways into employment and considers all sectors. The national programme is led by The Careers & Enterprise Company (CEC).

1.5 The Greater London Authority (GLA) has been delivering the London EAN (LEAN) since 2016. The CEC provides funding for the LEAN which is matched by the GLA. Delivery of the LEAN from September 2020 to August 2021 was approved by the Mayor under cover of MD2609.

1.6 To date, the LEAN has:

i. engaged 540 schools and colleges;

ii. recruited over 600 EAs from more than 370 different organisations; and

iii. supported 243 Careers Leaders to access bursaries to gain accredited and non-accredited qualifications.

1.7 An interim evaluation of the LEAN was produced in September 2020 and highlighted that:

i. expansion in London has been rapid and there is already an improvement in the achievement of the Gatsby Benchmarks. The 8 Gatsby Benchmarks are a national measure of best practice in delivering careers education in schools and colleges;

ii. London continues to lag behind the national average for the achievement of the Gatsby Benchmarks; but the LEAN has:

iii. improved Gatsby Benchmark achievement in London’s schools and colleges from an average of 1.82 in August 2018 to 2.9 in December 2020;

iv. improved Gatsby Benchmark results so that 201 schools and colleges matched with an EA are fully achieving Benchmark 5 (compared to 41 in July 2018);

v. improved Gatsby Benchmark results so that 162 schools and colleges matched with an EA are fully achieving Benchmark 6 (compared to 43 in July 2018); and

vi. being part of a national network has been invaluable, especially during the COVID-19 pandemic where economies of scale have meant that packages of support for schools and colleges were developed quickly, to a high standard and disseminated at a local level.

1.8 Approval is now being sought to establish four Careers Hubs in London, one in each of London’s sub-regional partnership areas. Each Hub will build on the work of the LEAN in that area and be supported by organisations delivering employability activity for the schools and colleges in the Hub.

1.9 The GLA will award grant agreements to organisations who will deliver the Careers Hubs and the employability activity. A competitive grant award process will be managed by the GLA Skills and Employment Team (who are the GLA’s ESF Co-Financing Team).

Background

1.10 The Government requires all schools and colleges to be working towards achievement of the eight Gatsby Benchmarks. The CEC has been given the remit from Government to implement the Gatsby Benchmarks, the EAN, Careers Hubs and to support careers leaders in schools and colleges.

1.11 In line with the Government’s Careers Strategy, the CEC launched Careers Hubs across the country in 2018. A Careers Hub is a group of schools and colleges located in the same geographic area, working together, and with partners in the business, public, education and voluntary sectors to deliver the eight Gatsby Benchmarks and improve careers outcomes for all young people.

1.12 The standard of careers education provision in London’s schools is patchy. A recent analysis shows that London schools matched with EAs in the LEAN are achieving on average 2.7 Gatsby Benchmarks. This compares to 3.62 for schools and colleges matched with EAs in the rest of the country.

1.13 Evidence published by the CEC in October 2018 showed that Careers Hubs accelerated overall careers education progress and performance by 56% in 12 months. Key findings were:

i. 95% higher standard of performance in schools linked to Hubs over schools that are outside the CEC’s EAN (in terms of achievement of the Gatsby Benchmarks);

ii. two third of schools and colleges in Hubs run regular encounters with employers, compared with just over a third (36%) in schools and colleges outside the network;

iii. nearly three in five schools and colleges in Hubs run work experience compared to around a third (35%) outside the network; and

vi. nearly two thirds of schools and colleges in Hubs learn about careers directly from the jobs market compared with only three in 10 schools outside the network.

1.14 By introducing the Careers Hub model in London, the GLA will aim to replicate this impact in London by offering strategic support to significantly improve London’s careers provision. This would result in closing the gap in performance between London’s schools and the national average. It will also align London with the rest of the country and so increase the support and resources available to London’s schools and colleges.

1.15 Careers Hubs will provide an essential delivery mechanism for the GLA’s “Good Work for All Mission”, in particular the following objective: “By coordinating skills, careers and employment support so there is ‘no wrong door approach’ for Londoners; and ensuring that employment and enterprise provide a secure route out of poverty.” Careers Hubs will address a key element of the Mayor’s support for improving careers provision, supporting several objectives set out in the Skills for Londoners Strategy and Careers for Londoners Action Plan.

1.16 There are approximately 750 mainstream secondary schools, alternative provision institutions, FE colleges and special schools in London and the quality of careers provision across the capital remains patchy, with a number of schools having not received support from the LEAN.

1.17 The CEC has committed to supporting the development and delivery of Careers Hubs in London over the next three years (September 2021-August 2024) through up to £5.834m funding. Funding is confirmed in February each year, but a multi-year grant agreement will be in place between the GLA and successful providers to ensure consistency and continuity of support.

1.18 The CEC requires its funding to be matched. Subject to formal approval of a Project Change Request, the GLA can take advantage of the ESF 14-20 programme funding, which has been allocated to the GLA as an ESF Co-Financing Organisation (CFO) but not yet committed, to match the CEC investment to fund Careers Hubs. ESF funding will be used until 31 August 2023.

1.19 Funding from the CEC and ESF gives London an opportunity to address a gap in provision and significantly improve the support available to schools and colleges. It will improve the quality of careers provision and improve progression outcomes for young people in their transition from education to work. The GLA has the opportunity to put in place Careers Hubs combined with additional employer engagement careers activities.

1.20 It is proposed that the Careers Hubs and employability activity can be funded by:

i. £5.908m funding commitment from the Careers & Enterprise Company (from September 2021 to August 2024);

ii. £3.587m ESF match funding from September 2021 to August 2023 (using the ESF 2014-2020 programme funds already approved through MD1642);

iii. £1.071m GLA funding to match the final year of Careers & Enterprise Company (from September 2023 to August 2024;

iv. £546k GLA funding to provide GLA staff to manage the Careers Hubs (from September 2021 to August 2024);

v. a delivery organisation will also be appointed to deliver a robust evaluation of the Careers Hubs and employability projects. External CEC funding was secured in MD2609 that will be used for evaluation; and

vi. project management by the ESF Co-Financing Organisation (CFO) within Skills and Employment team (the salary costs of ESF CFO staff are reclaimed from ESF through the ESF programme Management and Administration budget as set out in MD1642).

2.1 Careers Hubs will expand the reach of the LEAN so that by August 2024 they will:

i. engage 710 schools or colleges in the Careers Hubs;

ii. engage 710 Enterprise Advisers in the programme;

iii. train 1,485 teachers in schools and colleges to access relevant labour market information and careers resources so that they are better equipped to relate the curriculum to current employment needs. This will result in young Londoners having better access to the information they need to make informed decisions about their futures; and

iv. increase the achievement of all Gatsby Benchmarks with London achievement equalling the national average.

2.2 Outcomes achieved through the employability activities funded and delivered until August 2023:

i. 3,067 young people to take part in employability activity that involves an experience of the workplace;

ii. 3,195 young people to take part in employability activity that involves an encounter with an employer;

iii. 436 SMEs to benefit by working with the Careers Hubs or engaging in employability activity, in line with ESF requirements; and

iv. termly London-specific labour market information resources for students and teachers, highlighting London’s key sectors and SME skills and employment needs.

2.3 An independent evaluation will be carried out on the Careers Hub programme to identify the most effective ways to deliver careers provision in schools and colleges and evaluate the added value of the programme.

Additional benefits

2.4 The GLA will build on the GLA’s LEAN work by introducing the Careers Hub model. It will also give the GLA direct and ongoing relationships with careers leaders in the vast majority of London’s secondary school and colleges. These relationships provide a mechanism for staff to signpost schools and colleges to other elements of the Mayor’s developing careers offer for London’s schools and colleges. It will also allow us to promote and share best practice in careers education provision, ensuring that more schools and colleges benefit from good practice.

2.5 By utilising CEC and ESF funding the GLA is leveraging £9.495m for £1.617m investment. This represents a good return on investment for the GLA and the scale of the support being offered could not be achieved using GLA funding alone.

Delivery of the Careers Hubs in light of COVID-19

2.6 In designing the delivery of the Careers Hubs, we have planned for the potential need to adapt the key performance indicators for the programme and the delivery partners for the Careers Hubs and employability activity. The GLA is working closely with the CEC and Department for Education on business continuity planning to ensure that young people will still receive the careers provision they need to make informed decisions about their futures whether or not they are able to access the school or college premises. We will require potential delivery organisations to evidence their ability to adapt to COVID-19 and school and college closures in their bids, including how they would operate the Careers Hubs if some or all of lockdown measures were to continue.

2.7 Now, more than ever, schools and colleges need support to ensure every young person gets access to appropriate, personalised careers information. The Learning and Work Institute has stated five key challenges arising from COVID-19, number one being: “Support young people: We must avoid a ‘pandemic generation’ of young people with poorer education and skills prospects.” The LEAN is the GLA’s main communication and engagement route with schools and colleges in London on the topic of careers. The transitions that young people were intending to make into further and higher education, employment or apprenticeships continue to be a priority. Careers Hubs will provide the infrastructure, resources and knowledge to provide and enable high-quality delivery of careers to London’s young people.

2.8 Delivery organisations for the employability activity will be asked to demonstrate how they would deliver their KPIs and outcomes in a virtual or social distanced manner to ensure we have sufficiently de-risked the possibility of COVID-19 negatively impacting the achievement of KPIs.

Supporting wider GLA objectives

2.9 The GLA has experienced an increased appetite from businesses in recent months to engage with local schools and colleges. Careers Hubs will provide an off-the-shelf initiative to allow businesses to engage and support schools, colleges and young Londoners. This supports the GLA's ambition to increase employer supported volunteering numbers in London and provides a means of skills development for employees (in line with the Skills for Londoners Strategy).

2.10 The introduction of Careers Hubs in London will enable a “No Wrong Doors” approach to careers provision as outlined in the London Recovery Board’s Good Work for All mission. The coordination of the Careers Hubs coupled with the careers and employability activity targeted at gaps in provision will ensure that London’s young people will be connected to the right type of support at the right time to help them to make informed decisions about their future careers.

2.11 The data collected by the Careers Hubs will also allow the GLA to plan and target further interventions based on relevant, timely data directly from London’s schools and colleges.

3.1 Under Section 149 of the Equality Act 2010, as a public authority, the GLA is subject to the public sector equality duty and must have due regard to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 4 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sex orientation, and marriage or civil partnership status (all except the last being “relevant” protected characteristics).

3.2 Grant awards will include ESF targets that support Londoners who are most disadvantaged in the labour market. The GLA will require all bidders to have an equalities policy and implementation plan. They must also explain in their bids how they will ensure the requirements of the Equality Act are met, and how they will implement and monitor equalities. Consideration of the responses received from bidders forms part of the bid evaluation process.

3.3 Research by the Education and Employers’ Taskforce has informed the planning of this programme. Young people who have four or more encounters with the world of work while at school are 86% less likely to become NEET (Not in Education, Employment or Training) and will earn up to 22% more. Careers Hubs aim to increase business engagement in schools and advance equality of opportunity so that every young person has the opportunity to meet employers and experience workplaces therefore reducing the risk of them becoming NEET, regardless of race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment.

3.4 We have worked with cross-sector organisations to ensure our pool of over 600 Enterprise Advisers are diverse (in terms of race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment), therefore fostering good relations between persons who share a relevant protected characteristic and persons who do not share it.

3.5 Information on current London EA applicants shows that the LEAN is reflective of London as a whole:

i. 53% of EAs are women;

ii. 40% of EAs are from BAME (Black, Asian and Minority Ethnic) backgrounds;

iii. 8% of EAs identify as LGBT+;

iv. 5% of EAs consider themselves to have a disability; and

v. 28% of EAs have never volunteered before.

Risks and issues

4.1 If the GLA did not continue with the work of the LEAN by introducing Careers Hubs from September 2021, income from the CEC (£5.908m match-funding mentioned previously) and from ESF (£3.587m) would also be lost. In addition, the GLA would lose the network of schools and colleges and business volunteers that allow us to engage London’s businesses and provide an effective dissemination infrastructure into the majority of London's schools and colleges.

4.2 There is a high level of need for careers support in London. A recent analysis shows that London schools matched with EAs in the LEAN are achieving on average 2.7 Gatsby benchmarks. This compares to 3.62 for schools and colleges matched with EAs in the rest of the country. There is a risk that if London was to opt out of the EAN that this gap would further increase in comparison to other LEPs.

4.3 The EAN and Careers Hubs will continue to be rolled out nationally and this is backed by the DfE. The EAN is a national network and much of the support provided in London is developed nationally at a pace and scale that we would not be able to match alone. There is also a professional network for the delivery team to share and learn from 270 other coordinators around the country.

4.4 Being part of the national network provides the GLA with school level data on the achievement of the Gatsby Benchmarks and we use this to target support, programmes, funding and CPD for teachers. It also means that schools and colleges in London can access student-level data about their careers provision.

4.5 The Enterprise Adviser Network and Careers Hubs are part of the national, DfE-funded programme. Every Local Enterprise Partnership or Mayoral Combined Authority across the country has partnered with the CEC to deliver the Enterprise Adviser Network. There would be considerable reputational risk if the programme was not delivered in London.

4.6 The DfE National Careers Strategy and Statutory Guidance states that access to the EAN will be available to all secondary schools and colleges to support careers education. If funding is not secured London’s schools and colleges would not receive this support. Government has committed to match-funding contributions from local areas to help achieve full coverage of the EAN in each LEP area.

4.7 Risks to the programme include:

Links to Mayoral strategies and priorities

4.8 The proposal directly supports one of the core objectives of the Mayor’s Skills for Londoners Strategy to ‘reduce barriers to participation in lifelong learning and progression in work, through the creation of an all-age careers offer’. Within the strategy, the Mayor has committed to ‘…extend and further diversify LEAN in many more London boroughs’.

4.9 Careers Hubs will form an essential component of the GLA’s “Good Work for All Mission”, in particular the following objective: “By coordinating skills, careers and employment support so there is ‘no wrong door approach’ for Londoners; and ensuring that employment and enterprise provide a secure route out of poverty.” This is in addition to the existing objectives, set out in the Skills for Londoners Strategy and Careers for Londoners Action Plan.

4.10 The continuation of the LEAN and introduction of Careers Hubs in London would demonstrate considerable investment and support from the GLA. Each Hub will be able to tie into the local Employment and Skills Board of each sub-region to align national and pan-London priorities with local need.

4.11 Careers Hubs would provide an off-the-shelf opportunity for employee volunteering in London. The CEC provides employer engagement support, national partnerships and campaign materials to London to make this activation easier. The current LEAN delivery leads to large numbers of businesses more actively involved in their communities, the education of young people and the careers and skills agenda.

4.12 Due consideration has been given to any conflict of interest (both existing and that may arise) and none have been found to exist.

5.1 Approval is sought for expenditure of up to £11,113,000 to establish four Careers Hubs in London from September 2021. The expenditure will span over four financial years from 2021/22 to 2024/25. Below is the profile across financial years detailing expenditure, income receipts and GLA funding source.

5.2 Of the £11,113,000 total expenditure amount, £1,617,000 will be funded by budget transfers from the Skills and Employment Unit to the Team London and Community Sports Unit (who will be responsible for managing this programme). The remaining £9,495,000 will be funded via the receipt of income from the Careers & Enterprise Company (£5,908,000) and receipt of match funding from the European Social Fund (£3,587,000) as approved by MD1642.

5.3 Project management will be provided by the ESF Co-Financing Organisation (CFO) within Skills and Employment team (the salary costs for ESF CFO staff are reclaimed from ESF through the ESF Programme Management and Administration budget as set out in MD1642).

5.4 Future years’ funding from the GLA will be subject to the GLA annual budget setting process and will be approved each year.

6.1 The foregoing sections of this report indicate that:

6.1.1 the decisions requested of the Mayor concern the exercise of the GLA’s general powers, falling within the statutory powers of the GLA to do such things as may be considered to be facilitative of or conducive or incidental to the promotion of economic and social development 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:

a) pay due regard to the principle that there should be equality of opportunity for all people;

b) 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

c) consult with appropriate bodies.        

6.2 In taking the decisions requested, the Mayor 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 or belief, pregnancy and maternity and gender reassignment) and persons who do not (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

6.3 In the event that the Mayor is minded to make the decisions sought Officers must ensure that:

6.3.1 no reliance is placed on the CEC funding until after a legally binding commitment is in place in this regard and they are content that the GLA can comply with the terms attached to such provision of funding;

6.3.2    the further services required will be put in place through the GLA Competitive Grant Award process managed by the GLA Skills and Employment Team (who are the GLA’s ESF Co-Financing Team). Officers will ensure that the relevant Grant Agreement documentation is put in place and executed by the successful bidder(s) and the GLA before the commencement of the services.