FUTURE JOBS FUND

The future jobs fund was announced in the Budget 2009 and has been set up as a response to the recession and rising levels of unemployment – in particular amongst 18-24 year olds

The Future Jobs Fund is a £1 billion fund to provide 150,000 jobs over an 18 month period (October 2009-March 2011). 
 

Operation and Criteria for the Fund  

By and large it is anticipated that the funds will be put through local government-led partnerships.  This does not rule out (wholly) social enterprise/third sector bids (they will encourage that), but the speed with which this is expected to begin operating (October 2009), the process favours those with the existing infrastructure and size for delivery.

There is an anticipated 2:1 split of money and jobs – i.e. 100,000 jobs for 18-24 year olds, 50,000 in “unemployment hotspots” (in these areas the age criteria will be relaxed).  An “unemployment hotspot” is currently defined as an area where the rate of unemployment is 1.5% above the national average, however, there is no strict definition of geographic area – this could be anything from a ward to local authority area.

The cost to the government for each job from this fund will be £6,500 which should cover minimum wage and admin costs.  (One purpose of encouraging larger partnership bids is to minimise admin costs).  However, bidders and providers are encouraged to supplement this with other government resources where eligible and available for things like skills training or apprenticeships.

All bids will be expected to demonstrate “value for money” and there is little guidance on DWPs interpretation on this, but reassurance that this could be through added value and community benefit rather than simply just price.As a minimum, each bid will need to demonstrate that:

• At least 30 jobs will be created per bid 
• Jobs will last for at least 6 months, provide work for 25 hours or more per week and be paid at least at the national minimum wage 
• All jobs are suitable for long term unemployed young people between 18 and 24, or people in unemployment “hotspots”
• Jobs are additional – i.e. they would not exist without jobs fund funding and are sustainable;
•  The work done will benefit local communities
• The work will be underway quickly 

The secondary criteria which will be used

• The extent to which jobs fund funding will be supplemented by other funding
• The creation of green jobs or support for social enterprise
•  The average cost per job in each bid 
•  Previous successful experience of delivering jobs of this type, ideally those which have led to sustained employment
•  The extent to which other funding streams are aligned to support the proposal such as the Working Neighbourhoods Fund.
• DWP want all recruitment to be handled through Jobcentre Plus.  If individuals self present to the employer or are identified directly Jobcentre Plus will need to confirm their eligibility.

Future jobs fund employers will not be required to take on any particular individual referred to them but will have to give reasons for declining and provide feedback. 

DWP will pay up-front some of the monies to help programmes get started, but the rest will be paid during the period of employment. They are yet to confirm how this will be handled.  DWP also say that they will only pay whilst someone is in the job.  If the person leaves early, payment will be stopped, but then payment will be restarted once a new person is in post. 

Assessment of bids will be continuous.  Bids can be submitted at any time; the sooner the better.