LGA submission to the APPG for Youth Employment inquiry into place-based approaches to youth employment

Councils want to ensure that every young person, no matter their background, has the tools and support to progress in life and reach their potential. Local government as democratically elected leaders of place, also play a key role in stimulating local economies and want to ensure that employers have a supply of skilled workforce to meet the current and future business demands in local areas.

The LGA works strategically with all tiers of local government across England and Wales. The response to the inquiry is based on our discussions with councils and combined authorities and their respective engagement with partners and VCS organisation in their local areas.

As part of their wider role in supporting children and young people and in shaping their local skills and employment system, councils have several statutory duties relating to ensuring all young people up to the age of 18 (25 for those with learning difficulties) participate in education or training. Despite having these wide-ranging responsibilities that demand close working with local providers, partners and employers, councils have very few formal levers over commissioning or co-ordination of provision to ensure their statutory duties are met. This makes it extremely challenging for local government to provide place leadership and coordinate, plan, target and join-up provision, or build in the right wider support for those with complex or additional needs.

Despite these challenges, councils are leading from the front in terms of supporting participation in education, employment and training through commissioning devolved and local discretionary provision, and by joining-up and adding value to national schemes.

Place makes a difference in young people’s life chances, access to support and economic opportunities. Every area has its own unique labour market and economy, including a mix of jobs, qualification levels, unemployment, vacancies, levels of deprivation and geographic challenges, with often as many differences within regions as between them. A national one-size-fits- all approach cannot therefore deliver on areas diverse needs.

Councils and combined authorities, with the right powers and resources, could do more to bring together decisions around the economy, job creation, transport, skills and employment support and wider support services, to create a joined-up offer for young people and adults around the needs of place. The LGA’s Work Local model is a ready-made blueprint for making this happen. By giving democratically elected local leaders the power and funding to work with local partners – businesses, training providers, the education system –to join up careers advice and guidance, employment, skills, apprenticeships, business support services and outreach in the community, they could deliver improved outcomes for young people at reduced cost. Work Local would allow councils to effectively deliver their statutory duties and provide the wraparound support for those with complex needs and those experiencing disadvantage.

To tackle many of the barriers young people are facing, there needs to be a joined-up, cross-Government approach to addressing vulnerability and supporting young people facing disadvantage. This must be backed by sustainable investment in the national benefits system to ensure it meets households essential living costs and investment in the local public services young people rely on, including SEND services, mental health services, children’s services and youth services.

• The most disadvantaged groups of young people at a place-based level.
• The impact of place/location on a young person’s access to employment, training, and education opportunities.

One of the biggest issues facing young people is high levels of deprivation. Many of the barriers to employment experienced by young people are linked to deprivation and are inter-dependent, including health deprivation and low educational outcomes.

The most disadvantaged groups of young people at a place-based level continue to be those young people who have vulnerable characteristics. For example, care leavers, young people who have received social care interventions, those who have had an involvement with youth justice, young people with English as a second language or those who have special educational needs and disabilities (SEND). Often a combination of these factors blends to magnify a young person’s level of labour market deprivation.

Careers education, information, advice, and guidance

Poor-quality and insufficient careers education, information, advice and guidance (CEIAG) remains a key barrier to youth employment. At present, provision of CEIAG is complex, patchy and fragmented. In any one area, schools, colleges, councils and national agencies like the National Careers Service (NCS), Careers and Enterprise Company (CEC), Job Centre Plus, and Education and Skills Funding Agency deliver initiatives for different age ranges and groups, with no one organisation responsible or accountable for coordinating it with the local jobs market. Recent years have seen a plethora of new policies, initiatives and new bodies, some of which have proved counter-productive. While in schools, careers advice has been identified to be often inconsistent, not independent, and not start early enough.

Poor CEIAG risks disproportionately impacting young people from disadvantaged backgrounds, as they are potentially less likely to benefit from resources and advice from family and friends about the breadth of career options.

Quality, locally tailored and independent CEIAG is vital to ensure young people are fully informed of the full range of careers and pathways available to them, including vocational and technical education and training options, apprenticeships, and university degrees. It also plays an important role in raising aspirations.

It is important that CEIAG informs young people about the local and national job market, which industries/ sectors are growing, and which skills are in demand to support young people into quality jobs. Too often, young people finish training and struggle to find suitable employment or take up low-paid or insecure jobs that do not match their skills or interests. This can lead to frustration, disillusionment, and a lack of motivation to pursue further education or training.

Low educational attainment

Education and skills are a foundation for a young person’s future career prospects and opportunities. Unfortunately, many young people leave school with no or few qualifications, leaving them without the qualifications needed to undertake further education or training. In 2021/22 only 82.9 per cent of young people by the age of 19-years-old were qualified to Level 2 and 74.9 per cent achieved Level 2 in English and maths respectively. According to the Department of Education (DfE), the Key Stage 4 disadvantage gap index (the attainment gap between disadvantaged pupils and all other pupils) has widened compared to 2020/21, from 3.79 to 3.84. It is now at its highest level since 2012. 

Educational attainment also varies regionally. The DfE post 16 education and labour market activities, pathways and outcomes (LEO) research report reveals that post-16 education outcomes differ according to individual characteristics and regions. For example, individuals from London were more likely to move through further and higher education than individuals from North East and East Midlands after leaving school.

Mental health

​​​​​​​Research by the  Prince’s Trusts’ identified that the most common reason why NEET young people are struggling to find a job or not looking for work is due to a mental health problem or disability (39 per cent). This is echoed anecdotally by council services which work with young people.

​​​​​​​The impact of the COVID-19 pandemic has exacerbated pre-existing issues in relation to mental ill-health. This is illustrated in many councils’ local NEET data, which shows a significant growth in the number of young people who are not active in the labour market due to ill-health; with mental ill-health being a prominent factor. Somerset County Council report that at the start of this academic year 429 young people, nearly 9 per cent, (from a cohort of approx. 5,300) have withdrawn from their college courses. Some of these have found new destinations but over 65 per cent (283) are now NEET/Not Known. This is an increase from this time last year and the main reasons for withdrawal are mental health/anxiety/not coping with the course (these figures are based on local college data).

​​​​​​​Councils’ family and youth services report that the pandemic had a significant impact on many young people’s development, from which some young people have not yet recovered. This has shown up in a variety of ways including increased social anxiety, more young people finding it difficult to engage with people outside of their family unit and having lower levels of motivation in school.

Transport connectivity

​​​​​​​Transport is fundamental to connecting young people with education, training, job opportunities and support services. The high cost of public transport, lack of transport and long journey times in some areas. Inadequate transport connectivity is costing regions, for example, poor public transport connections in cities in the North of England result in a loss of productivity worth more than £16 billion a year.

Transport is a key barrier to youth employment in many rural areas. Furthermore, provider costs in rural areas are often higher due to similar issues as for young people, for example, the travel distance, poor transport links, low population density, hence low numbers of learner, that can consequently result in more limited provision for young people in those areas.

​​​​​​​Supporting under 25-year-olds with transport costs is vital to maintain equitable access to further education. Many councils are supporting young people with costs and transport issues in innovative ways, for example, Derbyshire Wheels to Work offers help to young people who are experiencing transport issues which are preventing them for getting to work, through a loan scheme providing young people with bikes, e-bikes and mopeds. Meanwhile, in the North East a ‘Flexibility’ smartcard has been introduced by Go North East and Co-Wheels that can be used for bus journeys and for access to a car club.

Digital connectivity

​​​​​​​Good digital skills, accessible equipment and reliable digital connectivity are crucial to enable young people to fully participate in society and engage in education and employment systems. A lack of digital skills and digital access can severely impact on people’s lives, restricting access to training, education and job opportunities, and leading to lower health outcomes, increased loneliness and social isolation.

​​​​​​​Digital exclusion has three main causative drivers; access (people who do not have access to a digital connection at home); affordability (those who cannot afford a device, data or broadband connection) and ability (those who are excluded from digital access to a lack of skills or confidence). Digital exclusion due to affordability is more likely to be experienced by those from low-income households and is linked to other forms of deprivation. The cost-of-living crisis risks increasing digital exclusion and deepening the inequalities faced by the most disadvantaged young people in society.

​​​​​​​About 300 thousand young people lack digital skills and 700 thousand young people lack access to computer or tablet at home, with young people who are already vulnerable more likely to be digitally excluded. Research by Three UK in December 2022 found that 49 per cent of young people they surveyed did not have access to an adequate digital technology at home, with 33 per cent not having access to a laptop or computer. Of those without access to a laptop or computer, the survey found that over two thirds (71 per cent) found it difficult to do schoolwork or apply for jobs.

 A recent LGA commissioned report on the role of councils in tackling digital exclusion, found that whilst there has been important progress in closing the digital connectivity gap, some areas are being left behind in mobile coverage. There is also a substantial gap between rural and urban areas in gigabit coverage. Analysis from the County Councils Network shows just 21 per cent of premises in county areas have access to gigabit broadband. Ofcom Connected Nations Data shows educational attainment at Key Stage 4 tends to be higher in areas with higher fixed broadband access, which highlights the importance of a reliable broadband connection to supporting young people’s educational attainment and future career prospects. 

The impact of place on a young person’s access to employment, training, and education opportunities

​​​​​​​Many of the issues and barriers young people face are closely linked or exacerbated by deprivation, which is worsening with the rising cost of living. While there are pockets of deprivation in every community, certain regions and local areas of the country are more acutely affected.  

​​​​​​​Place does make a difference. Every area has its own unique labour market and economy, including a mix of jobs, qualification levels, unemployment and vacancies, with often as many differences within regions as between them – highlighting that a national one-size-fits- all approach with not deliver on areas diverse needs.

​​​​​​​Young people in urban and rural areas also face different challenges. Learners and job seekers in rural areas often cite long journey times, cost of transport, scarcity of childcare, and accessible job opportunities for those with caring responsibilities as reasons for dropping out of a course or struggling to secure work. The Government should explore a rural premium to unlock talent, to allow councils to top-up providers where programmes may not be otherwise be financially viable due to low participant numbers and large geographical areas. In urban areas, the largest disparities and greater socio-economic challenges will also need addressing.

​​​​​​​Research for the LGA in 2021 found that labour force participation and jobs demand varies greatly across areas. However, there are also some common themes and patterns, most notably:

• Low participation and low vacancies – experienced often in coastal areas.
• High participation and high vacancies – more common in the south.
• High participation and low vacancies – common in parts of London and the South-East.
• Strong growth in vacancies but low rates of economic activity – common in parts of the Midlands and North-West.
• Areas that are close to the national average in terms of participation and vacancy rate – evenly spread across the regions.

​​​​​​​This analysis showed that virtually without exception, all five area types are represented across all eight of the ONS-classified statistically similar areas – highlighting that a ‘one-size-fits-all’ approach to skills and employment support cannot be expected to meet areas diverse needs.

The Cities Outlook 2023 shows the employment rate, jobs, qualifications, and unemployment in cities in England. It also ranks cities with highest and lowest rates according to these metrics which demonstrates that place matters when it comes to employment and skills opportunities in an area.    

Young people were one of the groups worst impacted by COVID-19, both in terms of their participation in the labour market and the impact on their mental health and wellbeing. Youth unemployment can have significant long-term effects, with periods of unemployment having a ‘scarring’ effect on young people’s future employability and wage potential. Therefore, it is important to ensure that young people can access timely employment support to avoid long-lasting adverse impacts. 

Councils, despite having wide-range statutory responsibilities for young people, have very few formal levers over commissioning or co-ordination of provision to meet them. Our research shows that the skills and employment system remain highly complex and fragmented – delivered across 49 employment and skills-related schemes or services across England, managed by multiple Whitehall departments and agencies, and delivered over different boundaries by various providers – with no one local point of coordination. This is echoed by a National Audit Office report which highlighted that there are a growing number of national skills programmes which are disjointed and hard for learners, employers and training providers to navigate.

Funding for skills and employment support is short-term, fragmented and held centrally, and powers to affect change are too remote, unless a council is situated in an area with a devolution deal. This makes it extremely challenging for local government to provide place leadership and coordinate, plan, target and join-up provision, or build in the right wider support for those with complex or additional needs.

Despite these challenges, councils continue to work hard to support participation in education, employment and training through commissioning devolved and local discretionary provision, and by joining-up and adding value to national schemes.

Many councils have put in place targeted initiatives and developed pathways to successfully support young people who face additional barriers or have complex needs into work or further training. This includes targeted work with young people with special educational needs, young offender backgrounds, those from ethnic minority groups, and those with experience of the care system. Such interventions are additional to standard national initiatives and are typically financed through council funding or through a range of external funding bids. For example:

​​​​​​With the right powers and resources, councils in every area could do more to bring together decisions around economy, job creation, transport, skills and employment support and wider support services, to create a joined-up offer for young people and adults. Work Local, our plan for a devolved and integrated skills and employment system is the blueprint for making this happen. Work Local would give democratically elected local leaders the power and funding to work with partners, such as schools, colleges, further education providers and local employers, to join up careers’ advice and guidance, employment, skills, apprenticeships, business support services and outreach in the community.

With one pot of funding to plan and commission provision, a Work Local approach would enable councils to create services tailored to the needs of their local youth population and build in wraparound support for those with complex barriers.

The underpinning principles of Work Local are: 

• a ‘one stop’ service rooted in place 
• with clear and responsive local leadership 
• that is driven by local opportunities and needs 
• within a common national framework for devolution of strategy, financing and delivery of employment and skills 
• underpinned by Devolved Employment and Skills Agreements (DESA) 
• delivering better outcomes at lower cost. 

​Devolution of skills and employment support services to all areas is vital to accelerate and expand place-based approaches that have proven effective. It would also allow local government to take a whole-systems approach, aligning decisions around infrastructure and capital investment with learning, skills and employment to ensure young people benefit from new investment and job opportunities, including ensuring young people are equipped to move into emerging industries in the green and digital sectors where there are skills gaps.

As conveners of place, councils are the only organisation that has the access to local data and intelligence and the existing relationships with local partners (schools, providers, businesses and other partners, such as the voluntary and community sector) to plan and commission a tailored, integrated offer, which builds in wrap-around support and joins up the supply and demand side of skills and employment programmes.

This includes identifying and re-engaging NEET young people with early support; providing careers advice and guidance to those who are vulnerable to support effective post-16 transitions and promote the well-being of all children and young people. It would also allow councils to join up progression pathways across their place, align provision with local and national skills demand and job opportunities and take into account travel and access to training and work opportunities, which can act as a key barrier to access particularly in rural areas.

Our independent cost benefit analysis found that for a typical medium sized authority, introducing a Work Local Model could improve employment and skills outcomes by about 15 per cent, meaning an extra 2,260 people improving their skills each year and an extra 1,650 people moving into work. This would boost the local economy by £35 million per year and save the taxpayer an extra £25 million per year.

Careers education

​​​​​​​The LGA have long called for a radical overhaul of careers advice, to end the current inconsistent patchwork of careers activity. As part of a Work Local model, we are calling on Government to devolve careers education, information, advice and guidance to local areas.

​​​​​​​Locally commissioning a comprehensive careers service for all ages, would help to close the gaps in the current system and ensure that all young people have access to high quality information, advice and guidance to make the right decisions about their future.

The role of national government

​​​​​​​To tackle many of the barriers young people are facing, there needs to be a joined-up, cross-Government approach to addressing vulnerability and supporting young people facing disadvantage. Crucially, this must be backed by sustainable investment in the national benefits system and the local public services young people rely on, including SEND services, mental health services, children’s services and youth services.

​​​​​​​In February this year, research released by the Joseph Rowntree Foundation and the Trussell Trust found that Universal Credit allowance falls £140 short a month of the cost of food, energy and other essentials. The most effective intervention to tackle childhood poverty and disadvantage, and to reduce the barriers young people face to education and employment due to deprivation, would be to reform and adequately resource the national benefits system so that it meets true living costs. 

​​​​​​​Government must shift to a whole system approach to prevention, intervention and treatment to improve young people’s mental health, meet current unmet mental health needs and tackle service waiting times. This will require investment in all parts of the mental health system, investment in community provision and the wider services that support wellbeing and tackle the socio-economic drivers of mental ill-health, such as housing and welfare support.  We also are calling on Government to roll out early support hubs nationwide to help the increasing number of young people who are struggling with mental health issues. These hubs allow young people to access mental health support in the community without a referral. 

​​​​​​​Young people with SEND are significantly less likely to be in work and, on average, have much lower earnings 15 years after Key Stage 4. The Government have now published their SEND and Alternative Provision Improvement Plan which the LGA responded to. In our response we welcomed the proposed national standards, which will clarify the support available and who will be responsible for delivering it, as well as the focus on early identification of needs and support. The focus on improving levels of mainstream inclusion is also welcome and will be crucial to improving outcomes for children. We are however concerned the proposals set out in the improvement plan do not go far enough. To improve support for young people with SEND we are calling on Government to give councils additional powers to lead local SEND systems and hold partners (such as health partners) to account for their work to support children and young people with special needs.

​​​​​​​Councils continue to see significant pressure on their SEND budgets, with demand for support growing by almost a quarter in the last year alone. Therefore, while the SEND reforms are being implemented councils urgently need additional support to manage down and eliminate their growing high needs deficits, to ensure all children and young people receive timely support.

​​​​​​​An intervention that has been shown to help the employment outcomes for young people with learning disabilities is supported internships (structured, work-based study programmes for 16 to 24-year-olds who have an Education Health and Care Plan). Councils would be better equipped to increase investment in these type of programmes with devolved and sustainable funding.

Apprenticeships/T Levels

​​​​​​​Local Authorities are major employers in England with a workforce of over 1.2 million. As a significant employer and apprenticeship levy payer councils provide support for young people to gain access to employment with their local council. The LGA has been providing improvement support to councils as employers to help them create more apprenticeship and T level Industry Placement (IP) opportunities.

​​​​​​​All councils in England have active apprenticeship programmes and since the launch of T levels in 2020 councils have been providing IPs where training providers exist. More of course can be done and having the appropriate brokerage in place to help all employers work successfully with providers is essential. Although we welcome the additional investment in provider support for example to help increase T level placements, direct employer incentives have a greater impact in changing employer behaviour and consideration should be given to how and when incentives can be used to increase more young people accessing opportunities.

​​​​​​​In a recent LGA T level survey of councils the majority said they would provide more Industry placements if incentives remained in place to help with the additional capacity needed to provide placements for young people. The LGA is committed to working with DfE to promote how T levels and apprenticeships can continue to be a positive experience for young people to gain long term employment.