Democracy Spraffa

Employability - EU Funds Update

North Lanarkshire Council · 29 August 2022
Back to Enterprise, Growth and Fair Work Committee — 29 August 2022 and its agenda

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North Lanarkshire Council
Report
Enterprise, Growth and Fair Work Committee 
Does this report require to be approved? ☒ Yes   ☐ No
Ref  JO’N/PK Date 29/08/22 
Employability – EU Funds Update 
From  Janie O’Neill, Head of Education & Families (South)  
E-mail oneillja@northlan.gov.uk Telephone   07790 894444 
1. Background 
1.1 Driving up the employment rate in North Lanarkshire is a cornerstone of The Plan for
North Lanarkshire and ensuring employability support is available to all is recognised
as a major contributor to both local economic development and tackling poverty.  North
Lanarkshire Council delivers large scale employability programmes across all
Executive Summary 
This report seeks approval to negotiate an extension with the Scottish Government to the
Council’s EU funded programme from December 2022 to June 2023.  The report outlines
the role of the EU funded programme in supporting employability services in North
Lanarkshire and the steps involved in securing an extension.  It also provides an update
on the current labour market in North Lanarkshire and the new challenges created by the
impact of the pandemic in the last two years as well as demonstrating the strategic context
of the work of the employability team within some of The Plan for North Lanarkshire’s
Programmes of Work.  
Recommendations
It is recommended that Committee: 
(1) Acknowledge that the necessary steps are taken by Council officers to secure an
extension of the current EU funded employability programme from December
2022 until June 2023.
(2) Consider the information provided on the current labour market in North
Lanarkshire.  
The Plan for North Lanarkshire
Priority  Improve economic opportunities and outcomes
Ambition statement
(11) Increase economic opportunities for adults by understanding,
identifying, and addressing the causes of poverty and deprivation
and barriers to financial inclusion

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communities, and these are targeted on supporting those unemployed and
underemployed residents who face additional barriers to entering the labour market. 
These programmes support a range of groups, and all have the aim of securing fair and
sustained work for residents.  Reducing poverty is central to each of these programmes
and, in line with The Plan for North Lanarkshire, including all residents in the economic
growth of our area is viewed as central to the work on employability. 
1.2 Over half of the Council’s employability support to residents is funded from its EU
funded programme through an agreement with the Scottish Government.  This funding
comes from the European Social Fund (ESF) and the current programme, known in
North Lanarkshire as ‘Prospects for You’, is funded until December 2022 with a focus
on engaging unemployed residents with at least two barriers to getting work.   As part
of the withdrawal agreement from the EU it was agreed that existing commitments to
EU funded projects could remain in place past the UK withdrawal date of 31 January
2020.   
1.3 In North Lanarkshire the programme is led and co-ordinated by the Council’s
employability team which also provides the key function of engaging employers onto
the programme.  Routes to Work Ltd are funded to provide specialised case worker
support to unemployed residents as well as support with accessing vocational training
and the short-term costs associated with moving from benefits to employment such as
childcare and travel.  They also provide in-work support for up to 6 months for those
participants that require it. The External Funding team within Enterprise and
Communities are also funded through ESF to provide a compliance and verification role
on the distribution of the funding.  The programme is co-funded by the Council and EU
with 46% of funding coming from the EU and has an annual cost of around £4.5 million
and funds the 82.44 fte staff delivering the programme as well as the other costs
associated with training for participants, wage subsidies to employers, childcare, and
vocational qualifications. 
1.4 In recent years employability support has also been significantly bolstered by increased
levels of funding from the Scottish Government through its No One Left Behind,
Parental Employment Support and Young Persons Guarantee funding and these have
been integrated and aligned with the existing EU programme to broaden its range and
deepen its penetration into under-represented groups in the labour market.   
2. Report 
2.1 The Scottish Government have indicated to North Lanarkshire Council that there is an
opportunity to extend the operational delivery of the EU funded employability
programme from December 2022 until June 2023.  The negotiation of the extension
would involve reprofiling the financial commitment and grant as well as the outcomes
from the programme.  Given the EU, via the Scottish Government, would continue to
fund 46% of activity this would provide continued large-scale activity for another six
months. 
2.2 In terms of the scale of activity that could be expected, in 2021/22 the programme
engaged with over 1,300 residents and supported 715 into employment and in 2022/23
is expected to engage with over 1,500 residents and support 869 into work with at least
70% sustaining employment for six months.  Alongside the additional jobs that could
be secured with an extension it also allows additional time for the transition to the next
phase of employability support to be developed.

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2.3 The UK Government’s replacement for EU funds is the Shared Prosperity Fund and
the overall strategy in terms of externally funded employability programmes is to
transition these as smoothly as possible in 2023/24; however, that is the year there is
most demand on that source of funding.  Therefore, maintaining the existing EU funding
for as long as possible will lessen the demand on that source.  The negotiation with the
Scottish Government would aim for a conclusion by 30 September 2022 and would
require consultation with finance colleagues as well as the ALEO, Routes to Work Ltd,
to develop the revised financial profile and outcomes. 
Current Labour Market and Strategic Context 
2.4 The impact of the pandemic on the national and local labour market has created new
challenges for employers and those out of work.  The North Lanarkshire claimant count,
which acts as a measure of unemployment, was 14,415 (6.6%) people in March 2021
compared with 8,225 (3.8%) in March 2020, a 75% increase on the pre-pandemic level.  
However, in May 2022 it has decreased to 8,050 (3.7%).  On the face of it this is good
news but behind the unemployment figures real challenges are apparent.   As 2021/22
progressed it became clear that a significant number of people, mainly older workers
and the majority women, had left the labour market either through early retirement,
health concerns or to take up caring responsibilities.  These factors, combined with the
rapid re-opening of the economy through 2021/22 led to staffing shortages across a
range of sectors with jobs available, especially at entry level, for those who were job
ready or even nearly job ready.  
2.5 The number reported as ‘long term sick’ in North Lanarkshire has increased from
14,900 in December 2019 to 29,400 in December 2021 and the number reported as
‘looking after family/home’ in the Council area increased from 8,500 to 13,000 in the
same period.  While unemployment is lower than pre-pandemic levels the number of
people in the workforce in North Lanarkshire has reduced from 174,000 (78.1%) in
December 2019 to 159,300 (71.1%) in December 2021. The other concerning national
trend is that despite falling unemployment, long-term unemployment remains above
pre-pandemic levels; with the long-term unemployed now accounting for 35% of all
those unemployed (compared with 28% two years ago). Short-term unemployment is
at its lowest ever level.  For those in work there are also concerns as pay growth
remains well below inflation in many of the sectors predominant in North Lanarkshire
with the rising cost of living affecting the financial benefits of employment and labour
shortages and rising costs and supply chain challenges affecting employers plans for
recruitment and business development.   So, despite a fall in unemployment in the area
there is higher worklessness, negative pay growth and continued labour shortages for
businesses and these factors will have a continued and sustained impact on the
demand for Council services.  From an employability perspective this reinforces the
view that in the short term the most effective contribution to be made is to support
participation in the labour market for those for those out of work to get back in and have
employability programmes open to all of those who are out of work, not just those
claiming Universal Credit. 
2.6 In terms of the Council’s strategic response the employability team play a role within
the Workforce for the Future, Programme of Work P077.1, which has a broad range of
workstreams focused on ensuring that every resident has access to the support and
advice they need to secure fair and sustained employment or training in North
Lanarkshire.  This group is also engaged with employers to make sure that the advice
and support delivered meets their current and future needs in terms of skills and labour
supply.   Support into Employment is one of the key actions within the Council’s
Economic Recovery Plan, part of the Programme of Work P022.1, and this has re-
orientated existing employability programmes to ensure they are directly supporting

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residents with all aspects of employability affected due to the pandemic impact.  A key
contribution made by the team is also to the Programme of Work P005.2, Tackling
Poverty through its general work on increasing residents’ incomes from employment
and specifically through its work on Parental Employment Support to combat child
poverty. 
3. Measures of success 
3.1 An extension to the EU funded programme is negotiated to extend the end date until
June 2023. 
4.         Supporting documentation 
4.1        None. 
Janie O’Neill
Head of Education & Families (South)

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5. Impacts ( http://connect/report-template-guidance ) 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☐ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☒ No ☐
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact?
All costs associated with the potential extension to the EU funded programme are
matched by CE714 NLC Match Funding allocated to employability projects.   
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒
If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☐ No ☒
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☐ No ☒
If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☐
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☐ No ☐
5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?

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Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☐
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.9 Risk impact
Is there a risk impact?
Yes ☒ No ☐
If Yes, please provide a brief summary of the key risks and potential impacts,
highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service
or Project Risk Registers), and how they are managed?
The risk attached to the proposals is covered within the risk register for Employability
Services in relation to compliance and draw down of external funding.