COMMUNITIES AND LOCAL
GOVERNMENT News Release (228) issued by The Government News Network
on 30 November 2007
Communities
Secretary Hazel Blears and Work and Pensions Secretary Peter Hain
have today announced a new drive to turn around long term
unemployment in the most disadvantaged communities.
While unemployment is at record lows, more needs to be done.
Hazel Blears has outlined how councils and communities will have a
new and invigorated role to play in tackling stubborn and
persistent unemployment.
The Department for Communities and Local Government has
established the first-ever dedicated fund for local councils and
community organisations to use to address worklessness.
A new £1.5 billion Working Neighbourhoods Fund will support
councils and communities in developing more concentrated,
concerted, community-led approaches to getting people in the most
deprived areas of England back to work. This fund replaces the
existing Neighbourhood Renewal Fund.
The new funding is part of a radical restructuring of the
Government's approach to regenerating some of the
country's most deprived areas. The Government is determined
to break the cycle between worklessness and the lack of economic
growth in certain parts of the country which risks leaving some
communities behind.
Although nationwide unemployment rates have fallen in recent
years, the Government wants to be more ambitious in tackling
worklessness. Around one quarter (913,000) of all the people on
benefits are concentrated in the most deprived places in England.
These are the very places that need regenerating the most but
unless aspirations and employment rates are raised, change will
not happen.
Earlier this week the Prime Minister talked about the work that
the Department for Work and Pensions are doing to "redefine
Britain's welfare state for a wholly new world - to give
people skills through transferring resources from welfare to
education. Not leaving them dependent, reliant on benefits without
the opportunity to improve their skills and prospects."
The Working Neighbourhoods Fund will support this ambition. Under
the new plans local areas that successfully turn around long term
unemployment will receive new financial rewards. The Working
Neighbourhoods Fund will include at least a £50m package of
incentives and rewards for councils that boost employment levels.
These rewards could be used to fund community facilities or local
projects. This "something for something" approach will
drive councils and communities to really get to grips with
worklessness and will reward those that do a good job.
All members of the community could benefit from the financial
incentives that will be introduced. Getting people into work would
become a shared concern with everyone having something to gain
from rising employment in their area. This new injection of peer
support and peer pressure will go hand in hand with innovative
approaches such as sending job advisors into libraries, community
centres and schools to link up with those people who have been out
of work for lengthy periods of time.
Tackling worklessness is one of the toughest challenges that
Local authorities face but getting this right can lead to a
transformation of both people and their communities. The
Communities Department will work with local councils and others to
tackle the root causes of worklessness.
Details of the new Working Neighbourhood Fund are outlined in the
publication Working Neighbourhoods Fund which is published today.
Communities Secretary Hazel Blears said -
"We need to be on the side of the decent hard working people
keen to stand on their own two feet and improve their
neighbourhood. This fund will empower them to make a real
difference and encourage everyone to play their part.
"We need a new more aggressive community-led focus to
tackling persistent worklessness with a greater role for councils
and community organisations.
"Despite people living in better homes, with better health
care and rising educational attainment, persistent worklessness
continues to blight in too many communities.
"We need to rebalance our regeneration strategy and put a
much sharper focus on tackling worklessness. This dedicated fund
will help us concentrate on raising aspiration and driving
economic growth with more support for local communities and councils."
Work and Pensions Secretary, Peter Hain said:
"We have
made great progress over the last ten years achieving sustained
high levels of employment. While we have made progress even in
deprived areas, we now need to refocus our efforts on local
pockets of worklessness.
"This is given even greater urgency by the concentrated
disadvantage in these areas faced by ethnic minorities: this is
unjust and economically inefficient as we prepare for an ageing
workforce. We want to engage local communities to tailor support
to the needs of an increasingly diverse workforce.
"The Working Neighbourhoods Fund creates the opportunity to
do this. Joining funds together locally will create a dedicated
flexible resource to stimulate community action on increasing employment."
In a tough financial climate, Government is focusing its efforts
and resources where they can have the most impact. This new fund
shows governments commitment to tackling the worklessness issue.
Local areas will receive funding incentives if they are
successful in driving down levels of worklessness. Councils
working with communities will be encouraged to take a fresh look
at the problems associated with this issue and find proactive
solutions including innovative community schemes to break down the
long term barriers to getting back to work. Examples could include:
Councils and third-sector/community organisations who set-up job
advice and skills schemes in community settings like schools, post
offices and libraries to meet targets could get reward payments.
People getting access to local advice as well as through there
local job centre is a real bonus - going into communities offering
support on their doorsteps and challenging people to get back into
work can be very effective.
Stepping up outreach schemes in council estates and providing a
greater link between accessing social housing services and schemes
to tackle worklessness. Social tenants represent about half of all
workless households. Fewer than half (45%) of social tenants of
working age are in employment.
Councils and community organisations who develop
'in-work' community support and skill schemes to end the
'revolving door' or worklessness. People who have been
out of work for a long period of time are more likely to fail to
hold a job down. Simple support with time-keeping, teaching the
importance of calling in sick rather than just not turning up,
interview skills and ongoing encouragement as people enter back
into work can ensure those people with poor employment histories
turn the corner.
Councils who help residents access jobs in neighbouring areas by
looking at the kind of transport available. Transport costs and
lack of public transport are amongst reasons given by those on
benefits as obstacles to work.
Notes to Editors
1. The total Working Neighbourhood Fund (WNF) which of £1.5
billion will be allocated over the next three years with more than
£450million in 2008-09, and over £500m in 2009-10 and 2010-11. At
least £50 million will be available as a reward fund which will go
to areas that have made good progress over the first two years on
tackling worklessness and improving enterprise levels.
2. The Working Neighbourhood Fund replaces the current
Neighbourhood Renewal Fund. In addition, after a transitional
period DWP will be contributing from its Deprived Areas Fund all
of the money which will be available to England over the three
year period.
3. WNF will be focused on the most deprived areas on the country.
The areas receiving funding will be announced shortly.
4. DAF funding will continue to be made available to tackle
worklessness in deprived areas of Scotland and Wales but will be
handled separately because of the different local government arrangements.
5. Funding to Local Authorities under WNF will be paid as part of
the new Area Based Grant, which is a non-ring fenced general grant
providing maximum flexibility to local authorities.
6. The Document Working Neighbourhoods Fund is available online
at http://www.communities.gov.uk
Public Enquiries: 020 7944 4400;
News Releases: http://www.communities.gov.uk