This
project is financed by the LSC, SEEDA and
the European Social Fund
NATIONAL & REGIONAL
NEWS
GENERAL & POLICY
Alistair Darling’s First Budget as Chancellor Alistair Darling’s First Budget as Chancellor of the Exchequer began with the stated aim that the Government wants to maintain stability in the economic slowdown. In 2007, the UK economy grew by 3%, and is now being forecast by the Government to grow between 1.75-2.25% (a revision downwards in light of issues with the world economy).
Key points from the budget were:
Borrowing to rise to £42bn
Public spending to grow by 2.2% over the next three years
£200m more will be given to schools to improve GCSE results and there will be £30m to improve science
£60m will be spent over the next three years to equip people for the workplace.
The Winter fuel allowance will rise to £250 from £200 for the over 60s and to £400 from £300 for the over 80s.
From April 2010, all long term recipients of incapacity benefit will attend work capacity programmes.
From April 2009, child benefit will rise to £20 per week
The Government will launch a “savings gateway” nationally from 2010 and cash ISA limits have risen to £3,600 per year from April
Corporation tax will be reduced to 28% from 38% from April 2008
There will be a 60% rise in funds available through the small firms loans guarantee and a capital fund of £12.5m to encourage more women entrepreneurs
An additional £2bn to be spent on the armed forces, including £900m for military equipment
Sites for 70,000 more houses have been identified and from April 2008, key workers, including teachers and nurses, will be able to borrow cash from shared equity schemes. In addition, stamp duty on shared ownership homes will not be required until people own 80% of their house.
£26m will be available to make domestic houses more environmentally friendly and from 2019 new non-domestic buildings will have to become zero-carbon.
From 2009 vehicle excise duty will change so that new cars that are the lowest polluting will pay no road tax in the first year from 2010. Higher polluting cars will be taxed more highly.
Fuel duty to rise by 0.5p in real terms in 2010. The 2p fuel duty increase for this year has now been postponed until October.
Duties on alcohol will rise by 2% above inflation for the next four years. This year, beer will rise by 4p per pint, wine by 14p per bottle, spirits by 55p per bottle and cider by 3p per litre.
Cigarettes will rise by 11p per packet.
‘Risk of Losing Good, Impartial Careers Advice’
Professor Tony Watts OBE has said that the careers service in England is in 'disarray' and that the developments in guidance provision are moving in the wrong direction. Watts, a respected academic and consultant in the field, welcomes Secretary of State Ed Balls’ recognition that one of the four building blocks for the successful raising of the participation age is ‘advice and guidance that helps all young people make the right choices’. However, Watts expresses concern that the IAG is moving towards a school and college based service and in the process is likely to lose its impartiality. He believes that choices of learning pathways need to be viewed as career choices, not just educational choices. Quoting evidence from the 2004 OECD international review of IAG services, Watts says that the partnership model is the best. Watts also argues that the independent service currently provided by Connexions is not universally available as support addresses mainly those young people who have fallen out of education, training or employment, or were at risk of doing so.
Source: Education Guardian, 29th January 2008
Competition Launched to Find Most Enterprising Place in the South East
For a fourth year, the Enterprising Britain 2008 competition has been launched. Starting on 18th February, the search is on for the most enterprising place in the South East to compete in the national finals. Make Your Mark is running the competition for BERR and in partnership with SEEDA.
The competition aims to find places of excellence in enterprise across the UK that have transformed the economic and social landscape of their area. In this first stage, enterprising places in the South East are being sought to take part in the regional heat, the winner of which then goes through to the UK final. Click here to go through to our website for further details.
Source: SEEDA website, 18th February 2008
Independent Living Strategy Published
The Office for Disability Issues has published the ‘Independent Living Strategy’, which is a cross-government strategy, developed in partnership with disabled people with the aim of giving them more choice and control over the support they receive and greater access to transport, health, employment and housing.
The Government has a vision of equality for all disabled people by 2025. Six central Government departments have committed as part of the strategy to give disabled people more opportunities by working with disabled people and their organisations.
The Strategy includes the following commitments:
To develop a national strategy supporting people to stay in work should they become disabled or if their condition deteriorates
An awareness campaign targeting disabled people, and practitioners in social work, the NHS and other organisations to ensure that services are delivered in ways that give disabled people more choice
To demonstrate how to shift resources from professional assessment and care management to user-led advocacy, brokerage and support
A toolkit to assist in building local independent living strategies relating to older disabled people
A regional scheme to develop independent living opportunities for older disabled people who need high levels of support
Good practice guidance to help people to have choice and control over their future health care.
The Department of Health has announced additional funding for 12 user-led organisations that support disabled people to have more choice and control.
Advice and Support about Finance for Young People
Citizens Advice and YouthNet are working in partnership to use technology to offer support to young people who may otherwise get into financial difficulties. Advice about money will be available on podcasts, web content and via their mobile phones, targeting people aged 16 to 25.
The initiative follows research by Citizens Advice that only one in eight youngsters would think about going to their local Citizens Advice Bureau (CAB). YouthNet’s website, TheSite.org, already has a variety of advice for young people, to which Citizen’s Advice’s information will be added, as well as money advice fact sheets that can be read on mobile phones. There will also be audio versions to download for mp3 players. The scheme will launch in late April or early May, and the project is being funded by the HBOS Foundation.
Source: BBC Online, 23rd February 2008
Government Green Paper Published about Foreign Nationals Seeking British Citizenship
After a UK-wide consultation, a Green Paper ‘The path to citizenship’ has been published. People who took part in the consultation wanted those seeking British Citizenship to obey the law, speak English, pay their way and contribute to their community. The Green Paper sets out the following proposals:
Three stages towards citizenship, including a probationary period requiring migrants to show their contribution to the UK. During this probationary period, migrants will not have full access to benefits.
Improved ability to speak English in order to pass probation
Anyone who has been in prison being barred from citizenship
Migrants contributing to a fund to manage the transitional impacts of migration for communities affected by migration
Migrants involved in volunteering attaining British citizenship more quickly.
Major changes are also currently taking place in the immigration system. A new Australian style points based system is being introduced, as well as a single border force for ports and airports, fingerprinting of visa applicants, new systems to count people in and out and ID cards. In November, there will be a new Bill put forward, replacing all existing immigration laws.
The Path to Citizenship green paper is available from: http://www.homeoffice.gov.uk
Source: GNN, 20th February 2008
Brown Reshuffles Cabinet
Following the resignation of the Work and Pensions Secretary, Peter Hain, the Prime Minister reshuffled his cabinet. James Purnell moves from the Department for Culture, Media and Sport to become Work and Pensions Secretary. Andy Burnham replaces him as Culture Secretary. Yvette Cooper takes over from Mr Burnham as Chief Secretary to the Treasury, and her role as Housing Minister will now be performed by Caroline Flint. Peter Hain’s second role as Secretary of State for Wales has passed to Paul Murphy. Click here to go through to our website for further details.
Source: BBC Online, 24th January 2008
Government Launches Ten Year Drug Strategy
The Government has launched a new ten year Drugs Strategy that aims to reduce the harm that drugs cause to communities and families by intervening earlier to get families that use drugs into treatment, offering new approaches to drug treatment and seizing assets from drug dealers. The Government plans to invest around £1 billion in the strategy, known as ‘Drugs: protecting families and communities’. Click here to go through to our website for further details.
Source: GNN, BBC Online, 27th February 2008
Games Loan to be Repaid by 2022
Olympics minister Tessa Jowell has told MPs it could take 10 years for the National Lottery to be repaid from the sale of land being used for the London 2012 Olympic Games. The minister said £1.8bn could be raised by 2022 which will be used to repay the funds which will be diverted from lottery good causes, and £650m to the London Development Agency (LDA) which it provided for purchase of land. The LDA will be the first to be repaid, but a proportion of all sales would go to the lottery fund and any profits shared in proportion to the contribution given. Ms Jowell said that the timing of the land sale will be on the basis of selling ‘in the most favourable circumstances’.
Source: BBC Online, 29th January 2008
Cash To Prepare Countries for 2012
On a two day visit to India, Prime Minister Gordon Brown announced a £9m International Inspiration sports team to help the world prepare for the 2012 Olympics. India will receive £4m from the initiative to encourage youngsters to fulfil their sporting potential. Young people in four other countries will also benefit. Mr Brown was speaking at the Delhi University Sports Complex where he watched youngsters demonstrate their football, hockey and other skills.
Source: BBC Online, 21st January 2008
First Great Western Told to Pay Refunds
Season ticket holders on some rail routes to London from the Thames Valley could save £140 a year. London TravelWatch, the industry watchdog, audited First Great Western’s fares and found that prices had risen above the permitted rate and some passengers had been overcharged. First Great Western has apologised and promised to refund passengers who were overcharged.
Source: BBC Online, 21st January 2008
UK's First Emissions Zone
Lorries which produce the heaviest pollution are now facing charges of £200 per day to enter Greater London as the UK’s first Low Emission Zone (LEZ) comes into force. Under the £49m scheme, cameras check all lorries over 12 tonnes entering the zone against a database to see if they meet EU exhaust limits. Firms whose vehicles are not on the database will have to pay up. In July, buses and coaches will be included in the scheme which aims to improve London’s air quality. Unlike the Congestion Charge Zone which only operates during the day on weekdays, the LEZ will be in force 24 hours a day, every day and covers a larger area.
Source: BBC Online, 4th February 2008
BA Profits Strong
Despite rising fuel costs and a consumer slow-down, British Airways has reported healthy profits for the last nine months of 2007, saying that some costs had reduced because of the weakening US dollar. BA said that although short haul flights had weakened, long haul premium traffic was still strong and they have announced plans for a new twice-daily luxury service from City Airport to New York, starting in 2009. With the opening of Terminal 5 less than two months away, BA say they hope this will improve punctuality and baggage performance.
Source: BBC Online, 1st February 2008
£130m Grassroots Grants on Offer to Third Sector
Government funds of £130m earmarked for small grants to local third sector organisations are being administered by the Community Development Foundation. The funds are split into two parts, £80m as direct grants to local level organisations, and £50m, with a match challenge, will help build up endowment funds for the community. Up to the end of April 2008, existing third sector funders in England are invited to apply for money to set up endowment funds to provide small grants in the future. Local funders can get information at http://www.cdf.org.uk. Funding for community and voluntary groups will not open until after July 2008, with local areas opening at different times to fit in with local funding streams.
Source: GNN, 31st January 2008
‘Think Family’ Launch
The ‘Think Family’ report, published by the Social Exclusion Task Force, aims to ensure that adult services support whole families and not just individuals. The ‘Think Family’ approach encourages local services to adopt basic principles including: a ‘no wrong door’ policy so that contact with one service should open up a system of joined up support; looking at the whole family to take into account family circumstances and responsibilities; providing more tailored services; and building on family strengths. Launching the report in January, Ed Miliband and Beverley Hughes announced a £16m programme of local pilots to test the ‘Think Family’ model and share information about what works. The approach aims to embed early intervention and prevention within the existing system of support, and extends the logic of co-operation behind Every Child Matters to adults’ services.
One of the initiatives praised by Ministers is Building Bridges in East London, which is run by the Family Welfare Association and supports families where one or both parents have a mental illness. The project supports the whole family, helping with practical tasks in the home; aiding parents to build confidence in parenting, and supporting children to understand their parent’s mental illness better.
Source: GNN, 10th January 2008
One in Ten Overspends
Five million people, one in ten adults, are said to spend more than they earn on a monthly basis, and a further fifth have no spare money left at the end of the month. The figures come from a survey by the financial comparison website Uswitch. Half of those living beyond their means use overdrafts and credit cards to fill the gap. Uswitch combined their survey data from 4,200 adults across the UK with income and expenditure data from the Office for National Statistics and found that spending on non-essential items has risen 65% over the past decade whereas average net earnings rose by 48% and essential living costs rose by 43% over the same time period. Uswitch concluded that the UK is in the clutches of a ‘spendemic’ which could get out of control.
Source: BBC Online, 22nd January 2008
Council Tax to Rise
The Local Government Association (LGA) study of 100 draft council budgets has found that some may put up council tax by nearly 5%, and the LGA has warned that many local authorities will still have to ration or cut services. John Healey, the Local Government Minister says there is "no excuse" for large increases and that the Government may use capping powers. Local authorities say that Government departments are shifting extra costs onto councils at the same time as limiting funding from central government. The LGA believes extra costs arise from increased migration, the need to fund free travel for pensioners and disabled people, the increasing social care budgets needed to support larger numbers of elderly people, and increased costs of dealing with waste. Since 1997 council tax has more than doubled and some commentators have said only a radical reform of the system could slow down the increases.
A survey on behalf of the BBC and the Times by Cipfa, the public accountancy institute, says that council tax will rise on average by 3.9% which is the lowest for 14 years, an average increase of £52 per year in England. The highest rises are in Slough, Wakefield, Derby and Leicester at 5%.
Source: BBC Online, 22nd January and 28th February 2008
Undergraduate Numbers and Graduate Vacancies Rise
Latest university student statistics confirm that the dip in overall numbers in 2005 when variable top-up fees were introduced is now history. Growth in applicant numbers is now back on track with an overall rise between 2006 and 2007 of 5.6% from 506,304 to 534,495. The growth in number of overseas students was 7.9%.
Results were also published in January from the Association of Graduate Recruiters (AGR) Winter Review 2008. The 217 employers interviewed by AGR in late 2007 anticipated a 16.4% increase in graduate vacancies, but 67% also expected that they would face challenges filling vacancies. The reasons given included graduates’ perceptions of the business sector and their increasing selectiveness, and, for the employers, not enough applicants with the right skills. A quarter of the employers said they were actively marketing their UK vacancies to overseas graduates, with the main reason being ‘to recruit the very best talent that is available.’ Click here to go through to our website for further details.
Sources: HR Look, BBC News Online, various dates
Mixed Reception for Launch of Diplomas
A survey of university admissions officers has found that around 4 out of 10 are unlikely to accept candidates with diploma qualifications. The survey, by the 1994 Group of major research universities (including Durham, St Andrews, Exeter, Warwick and Goldsmiths), reported that although universities would like to see diplomas succeed, they are uncertain about its value. 53% of admissions tutors said they were very likely or likely to accept applicants with Diplomas onto undergraduate courses, while 38% said that they were not likely or very unlikely to accept them.
In addition, figures revealed in an answer to a Commons question from the Liberal Democrat schools spokesman David Laws indicate that 550 state secondary schools have not yet signed up to deliver the diplomas, which means that around one in five state secondary schools may still be uncertain over whether to adopt the new qualification. Click here to go through to our website for further details.
Source: BBC Online; Independent; DCSF Website, various dates
Employers may Shape Degrees
The Financial Times says that it has seen a confidential “Higher Level Skills Strategy” paper circulating Whitehall that moots giving employers powers to shape higher education degrees in England. The paper makes a case for a large part of extra university funding over the next three years to go to degrees jointly designed and funded by employers. The paper looks at more flexible arrangements suited to employer and employee, such as degrees starting at different times of year; timetables that let students vary the intensity of their studies; courses taught 48 weeks a year, in the workplace and online, and without the usual university breaks.
Source: Financial Times, 26th February 2008
Test Results for Teenagers Show Girls Doing Better than Boys
According to official performance tables, in 2007, 67% of girls aged 14 achieved Level 5 or above in Key Stage 3 Sats in English Maths and Science, compared with 60% of boys. The overall average was 64%.
By subject, 74% were Level 5 or above for English; 76% in Maths and 73% in Science. These results were a rise of 1% in Science and English and a drop of 1% in Maths since 2006. They were also beneath Government targets of 85% on Level 5 or above in English and Maths and 80% in Science.
The Government is proposing extra targeted help for pupils. There is a 20% gap for each subject between those from the most and least deprived areas.
From September 2008, new innovative Key Stage 3 lesson materials for maths are due to be introduced. A National Centre for Excellence in the Teaching of Mathematics has been set up and the bursary for teacher training for Maths teachers has been increased.
Source: BBC Online, 27th February 2008
Expert Leaders May be Sent to Struggling Schools
In an interview with the Guardian, Ed Balls has discussed Government plans to tackle low-performing secondary schools. According to Mr Balls there are around 638 of these struggling schools. The Government has set local authorities a deadline of the Summer to create individual action plans to turn around these schools in their area. Options for such schools include becoming a trust or academy school, federating with a high-performing local school or closure. An initiative in London that has sent expert school leaders, such as headteachers, deputies and heads of department, into failing schools will also be recommended.
Source: The Guardian, 25th February 2008
Disadvantaged Students Do Well at University
A study of students at St George’s Medical School, University of London, has found that students from low-performing schools with lower A-level grades than their counterparts from the independent or selective sectors have caught up and do just as well in their degrees. The medical school takes students from lower-performing schools who have two Bs and a C rather than the usual two As and a B requirement.
Source: The Independent, 25th February 2008
Truancy Rates Rise
English truancy rates are at their highest in a decade, Government figures reveal. Around 63,000 students truanted each day, which is the equivalent of 1% of all school sessions. This is a rise of 0.21% on the figures last year. The Government has urged local authorities to continue to focus on persistent absenteeism.
30,000 penalty notices were sent to parents between 2004 and 2007, relating to their child’s unauthorised absence. In addition over 19,000 parenting contracts were agreed relating to this issue. The Government believes that absenteeism is now being logged more as Headteachers start to take a tougher stance. The figures also include lateness, term-time holidays and flimsy excuses.
There has been a drop overall in absences from school, including children who are off sick with permission. In 2006-2007, the rate reduced to 6.49% from 6.68%.
Persistent absence is still the biggest challenge faced by schools and local authorities. In the last year it fell from 7.1% to 6.7%, but still needs to reduce further. Around 7% of students account for a third of all absence in secondary schools. In the last year, 436 schools with the highest proportion of persistent absence have reduced it by around 20%.
Source: BBC Online, 26th February 2008
Careers Advice to be Mystery Shopped
Education charity, Edge, will use researchers to contact advisers from national organisations such as learndirect and Connexions to check the consistency and quality of online and phone careers advice. The charity is funding this research about information, advice and guidance.
DCSF commissioned an independent research agency, VT Research, to carry out its own mystery shopping survey of the Connexions Direct service during 2006-07, involving around 1,500 ‘shops’ by phone, text and online. The quality of advice was generally perceived positively.
Source: BBC Online, 19th February 2008
5,000 Cultural Apprenticeships Created
By 2013, 5,000 apprenticeship places will be made available in the arts and media at institutions such as the Tate Liverpool, the Royal Opera House, Universal Music, EMI and Aardman Animations. Government will put forward £70.5m funding for the initiative, which will also give opportunities at the National Trust, Royal Shakespeare Company and the Royal Liverpool Philharmonic.
Other cultural schemes include:
A Find Your Talent pilot initiative offering young people five hours of culture per week inside and outside of school
A £500,000 pilot scheme to provide young musicians in deprived areas with opportunities to practise and perform live, as well as 10 new spaces for rehearsals
A global conference for the “creative economy” in the mould of the annual World Economic Forum meeting
An academic hub to encourage schools and further and higher education institutions to collaborate and share contacts and facilities
Currently, the “creative industries” in the UK employ over 1.8 million staff, which is a higher proportion of the workforce than in other countries.
Source: BBC Online, 22nd February 2008
Majority of Pupils Say They Have Been Bullies
A survey of 3,000 secondary school students conducted by the Charity Beatbullying found that 71.4% of them had been involved in bullying on at least one occasion. The reasons young people gave for being a bully were because their friends did it; anger at another person; or the fear that it could happen to them if they didn’t do it first. A small minority – 2% - of children taking part in the survey, thought that it made them popular. For the purposes of the survey, bullying was defined as "being bullied twice a week over a period of six months and involving more than two types of bullying".
Beatbullying chief executive Emma-Jane Cross said: "Most bullying is low-level, perpetrated by young people who are easily led or incorrectly believe that it is inevitable, or worse still, that it makes them popular.
"The good news is that these young people are within our grasp, they are not the hard to reach with severe behavioural problems.”
Source: BBC Online, 24th February 2008
85% of White Boys from Poorer Backgrounds do not Gain Good GCSEs
Only 15% of white boys from poorer backgrounds in England achieved five good GCSEs (A* to C) including Maths and English last year. 45% of white boys from better off homes gained five good GCSEs or more. Poorer students from ethnic minority backgrounds did better than their white male counterparts, with 36% of Indian male pupils gaining five or more good GCSEs and 52% of Chinese pupils attaining this level.
In England the national average for all GCSE students was 46% gaining five good GCSEs.
Source: BBC Online, 31st January 2008
New Chinese GCSE Announced
The Assessment and Qualifications Alliance (AQA) has announced that a new GCSE in Chinese will be available from next year. Students will be able to start studying for the qualification in September 2008. The AQA, England’s biggest exam board, say they are responding to growing demand from businesses and schools. The new qualification is in addition to the Chinese GCSE already offered by Edexcel. A spokeswoman for AQA said: "Interest in China and Chinese has grown quickly over the past few years, reflecting its increasing importance politically and economically.”
Source: BBC News, 7th February 2008
Schools Need to Talk More about Modern Languages
Research obtained by TES under the Freedom of Information Act has found that primary and secondary schools are failing to communicate adequately about the level of early learning of modern languages in primary schools. Secondary schools need more information about primary pupils’ progress in modern languages. Figures from a report based on a survey in 2006 from the nfer show that 70% of primary schools are now offering modern languages. However, only 17% of primary schools informed secondary schools about children’s progress and only 8% gave information about provision of modern languages’ teaching in their transfer documents.
Source: TES, 25th January 2008
More Money and Excitement Planned to Boost Science in Schools
The Government is offering more funds for science in an effort to reverse the decline in science candidates seen in the last 25 years. £140 million will be used to boost science and maths teaching, to make science lessons more exciting and encourage trips to workplaces. In the last 25 years, the number of A-level physics students has nearly halved from over 55,000 in the early 1980s to less than 30,000 in 2005.
Source: The Times, 25th January 2008
Private Companies to Run National Qualification Schemes
The Government plans to allow private companies such as Network Rail, Flybe and McDonald’s to run national qualification schemes that could enable their staff to go to university. Network Rail has set up its own diplomas training staff in track engineering which will now be officially recognised.
Source: The Observer, 27th January 2008
Hefce Wants Employers to Co-Fund Students
The Higher Education Funding Council for England (Hefce) has launched an “employer engagement fund” of up to £105m over three years to encourage businesses to co-fund students. Overall, universities will receive around £7.5bn in Government funding this year, a rise of 3.3% on the previous year.
Source: The Guardian, 25th January 2008
Raising GCSE Standards May Be Tough on Teenagers
England’s largest exam board, AQA, has warned that the Government’s plans to raise standards by insisting students pass new “functional skills” tests for English and Maths before they can receive a C grade or above, could lead more teenagers to fail. This will mean inequality with those who have gained better grades in previous years.
Source: The Daily Telegraph, 25th January 2008
Hundreds of Rural Schools Could Close
The fall in the birth rate has put hundreds of small rural schools under threat. The Government has drafted a letter to all local councils reminding them that by law they should not be closing rural schools. The Government wants to see a more creative approach, possibly involving federations of small schools sharing resources and staff, or combining school sites with other services. Figures on empty places show a reduction of 386 in the total number of primary schools in England between 2006 and 2007.
The National Association for Small Schools generally supports inter-school co-operation and formal federations, but not federation imposed by external agencies to resolve financial and administrative problems.
Since 1998, the Government put in place a presumption against the closure of rural primary schools, which was also enshrined in the 2006 Education Act.
Source: BBC Online, 30th January 2008
Students Unaware of Bursaries
Around 12,000 students from poorer backgrounds have not claimed bursaries because they were not aware they were entitled to £1,000 grants, the Office of Fair Access (Offa) has said. Students from homes with less than £25,000 income can claim a bursary from their university. Many universities have run bursary awareness campaigns, but Offa has written to others that have not been as proactive.
Source: BBC Online, 24th January 2008
Cookery Lessons to Become Mandatory
For young people aged 11 to 14, cookery classes are to be made mandatory. Students will learn to cook for an hour a week for one term. The move has been driven by concerns about childhood obesity. DCSF says that 85% of secondary schools offer cookery currently. Higher level teaching assistants will be trained to do some of the teaching, and more food technology teachers will be recruited. £2.5m will be available each year to schools to support children from poor backgrounds to pay for ingredients.
Concern has been expressed in some quarters about a lack of teachers and resources, since the subject has declined since the introduction of the national curriculum.
Source: BBC Online, 22nd January 2008
Slow Start for Economy in 2008
Jittery market conditions are contributing to a difficult economic picture for UK companies. There have been several stock market falls, including in January the biggest fall since the 9/11 terrorist attacks. A combination of factors is making market traders nervous, including the rise in fuel prices, the credit squeeze and fears of recession in the US. The US Federal bank cut its interest rates twice in January, aiming to kick start the US economy, which calmed the markets, and George W Bush has announced a raft of measures to improve the state of the US economy.
During January, UK inflation rose to 2.2% from 2.1% in December, mainly due to rising transport costs. In February, the Bank of England cut interest rates to 5.25% to boost the UK economy. The CBI has predicted that the UK economy will grow by 2% during 2008. British businesses will face the combined challenges of rising food and energy costs and the credit issues recently experienced by the financial sector. Click here to go through to our website for further details.
Sources: BBC Online, Guardian Online, various dates
Northern Rock Bank Nationalised
The Government recently decided to nationalise the Northern Rock bank as the offers it received from the private sector did not offer “sufficient value for money”. The Northern Rock Transfer Order 2008 has been passed, so that all shares are now in the Government’s hands. A Bill allowing the transfer was previously passed by the Houses of Parliament. The move has caused controversy. It is the first major nationalisation since the 1970s.
Nationalising the bank cost an estimated £110bn, or £3,500 per taxpayer. However, the Chancellor believes that it is better for the Government to nationalise the bank until there is an improvement in market conditions. The Government aims to return the bank to the private sector once its value has increased.
The shareholders will be offered compensation determined by a Government-appointed panel. Since the calculation is based on the value of the bank not including government guarantees, shareholders are likely to receive little compensation. The move has prompted speculation that shareholders will mount a legal challenge.
Ron Sandler, former head of the Lloyd's of London insurance market, has been appointed to run the bank and stated that savers’ deposits are secure. However, it is thought that there will be thousands of jobs lost in order to make the bank more sustainable.
Source: BBC Online, February 2008
2012 Olympic Games Business and Job Opportunities
A business ‘dating agency’ has been setup by the LDA in partnership with London 2012 and London Business Network. The initiative, known as CompeteFor aims to support all sizes of business to bid for opportunities by matching companies with London 2012’s supply needs. There will be an estimated 75,000 opportunities for businesses generated by the Olympics, with £6 billion worth of work to be allocated by London Organising Committee (LOCOG) and the Olympic Delivery Authority (ODA). Businesses need to register to be able to apply for contracts, and Competefor will also match firms with local Business Links to offer them support services designed to improve their competitiveness in the long run. A launch event for the service for the South East region was held on 20th February at the Reading Madejski Stadium. Over 400 businesses from the South East attended the event, which was co-hosted by SEEDA and Business Link. Click here to go through to our website for further details.
Source: SEEDA website, London 2012 and LDA websites, various dates
182,000 More Construction Jobs for Olympics
Around 182,000 more construction workers will need to be found to complete the transport, infrastructure and sports facilities required for the 2012 Olympics, say the Construction Skills Network. Amongst other skilled trades, they have identified a need for 15,000 more plumbers and 13,000 more bricklayers by 2012.
For the Games, the Construction Industry will need 2.8m workers, with a rise of 8.4% forecast as being needed in Greater London. Projected workforce requirements include, 122,000 bricklayers, 161,000 painters, 211,000 electricians and 189,000 plumbers. Overall there is a £9.3bn budget for construction, transport and regeneration. These estimates do not include the requirement for extra workers on the Crossrail project which is also expected before the Olympics.
On behalf of the skills network, Sandra Lilley stated that efforts are being made to recruit, train and re-train people to work in construction in London and the South East. Ms Lilley said that it is likely that migrant workers would be included in recruitment to the sector. Plans are in place to set up work-based training centres nationwide, called the National Skills Academy for Construction.
The chairman of the Construction Skills Network, Sir Michael Latham, said: "We've identified the scale of skills needs by project and region over the coming years.
"Now it is essential that we work with employers and training providers to put in place the right practical, on-site training that will help local people get the skills they need to fill local job vacancies."
Source: BBC Online, 26th February 2008
Getting NEETS into Work
18 year olds who have not been in work, education or training for at least 26 weeks before their 18th birthday will be moved onto an intensive support and sanctions regime led by Jobcentre Plus, from next April. Their benefits will only continue if they can prove that they are actively looking for work and are engaged in work-related activity. If they do not find work within 6 months, then a specialist provider from the private or voluntary sector will ensure that each individual does a minimum of four weeks full-time work-related activity – otherwise the young person will lose their benefit. The work-related activity may be community work, a work placement or work experience.
Secretary of State for Work and Pensions, James Purnell said: "The message that I want to give to young people is that they are expected to work for their money. Many young people have never experienced the world of work and this often works against them when looking for employment. We want to break down the barriers that young people face. Everyone has a talent, something to offer their community, by making work part of the deal for getting their benefits we can help them to realise their potential."
Source: GNN, 18th February 2008
Mothers Lose Out by Returning Part-time
Research in the February issue of the Economic Journal has found that hourly earnings are 26% lower for women working part-time rather than full-time. Since most women who work part-time do so when they become mothers, women with children pay a high price in terms of pay and career status, among them some of the UK’s most qualified women. 40% of women in work are in part-time jobs, and most of these are women with young children. Nearly half of women who were managers of shops, salons and restaurants before they took a career break return to a lower-skilled job. This is less the case with sectors such as nursing and teaching.
Around 85% of working women without children work full-time in Britain and approximately 90% of all working men are in full-time work, whether they are parents or not.
Other reports in the Economic Journal say that the UK has the widest pay gap for full- and part-time work in Europe and that the pay gap between part-time and full-time work is widening as part-time jobs are mainly in lowly paid occupations.
Source: BBC Online, 27th February 2008
Undergraduate Numbers and Graduate Vacancies Rise
Latest university student statistics confirm that the dip in overall numbers in 2005 when variable top-up fees were introduced is now history. Growth in applicant numbers is now back on track with an overall rise between 2006 and 2007 of 5.6% from 506,304 to 534,495. The growth in number of overseas students was 7.9%.
Results were also published in January from the Association of Graduate Recruiters (AGR) Winter Review 2008. The 217 employers interviewed by AGR in late 2007 anticipated a 16.4% increase in graduate vacancies, but 67% also expected that they would face challenges filling vacancies. The reasons given included graduates’ perceptions of the business sector and their increasing selectiveness, and, for the employers, not enough applicants with the right skills. A quarter of the employers said they were actively marketing their UK vacancies to overseas graduates, with the main reason being ‘to recruit the very best talent that is available.’ Click here to go through to our website for further details.
Sources: HR Look, BBC News Online, various dates
Employers Need to Do More to Attract Older Workers
Research for the CIPD by Cranfield School of Management has investigated what employers are doing that would appeal to older workers in order to attract them and retain them. Age discrimination law, skills gaps and an ageing population, all mean that employers need to address the issue of older workers.
The research found that while some employers have introduced schemes to be more attractive to older workers, these have generally been implemented in an ad hoc way in response to certain issues. There needs to be a more systematic and integrated methods of assessing financial and non-financial benefits and pay to see whether they appeal to all employees or potential employees, as well as older workers. By adopting this approach, employers can better understand what motivates older workers at work – for example, schemes to improve work-life balance can be attractive to older workers. Employers also need to ensure that older workers have their training and development needs fulfilled. Organisations need to develop a ‘total rewards’ package that is available to everyone but which is flexible to provide for the different requirements of different employees, including older workers. In this way, they will motivate staff to remain with the organisation, while not being discriminatory in any way.
Source: HR Look, 31st January 2008
Older Workers Want to Work Past Retirement Age
A survey of 1000 older workers by the CIPD has found that nearly 2 out of 5 mean to work past 65. Men are more likely to work longer, motivated mainly by financial concerns, but also by a wish to use their skills and to retain the social interaction that work brings. Half of those planning to work beyond 65 said they would expect to retire between 67 and 70 and most of those questioned wanted to stay with their current employer.
Source: Oxford Times, 1st February 2008
Awards Launched to Celebrate Employers’ Contribution to Local Employment
UK-wide awards have been launched to recognise the good practice of employers, employees and partners in Local Employment Partnerships (LEPs) across the country. More than 400 employers from a variety of sectors have committed to the Government’s initiative to help 250,000 long-term benefit claimants back into work by the end of 2010.
The Local Employment Partnership awards will celebrate good practice by employers that help disadvantaged individuals into work; and the achievements of employees on the scheme. There are six categories of award:
• Employer award for best practice in recruitment
• Employer award for work-life balance
• Employer award for best career progression
• Partnership award for best practice in partnership working
• Individual award for overcoming barriers to employment
• Individual award for outstanding achievement in training
To apply for the Local Employment Partnership Awards, visit http://www.jobcentreplus.gov.uk/up. Applications will be accepted until Friday 2 May 2008. The winners will be announced at an award ceremony at The Oval, Kennington in London on 1 July 2008.
Source: GNN, 31st January 2008
Employment Continues to Grow
The labour force survey for September to November 2007 shows the highest quarterly increase in the number of people in work in a decade. In the three-month period, 175,000 more people found a job, contributing to a record employment total of 29.36 million. The employment rate is now 74.7%, which is a rise of 0.1% for the year.
Meantime ONS figures show that the number of claimants for unemployment benefit went down for the 15th month in a row, to 807,700 – the lowest for 3 decades. The number of people receiving incapacity benefits in the year to May 2007 was 2.64m, a reduction of 45,000 for the year. This number is now at its lowest for 8 years.
The figures show that 95,000 more people over 50 were in work during the quarter, and 60,000 more 16-24 year olds were also in work. There are also record numbers of vacancies available for people with the right skills. The ONS’s vacancy survey estimates an average of 681,100 unfilled vacancies for the quarter to December 2007, a rise of 12.2 thousand for the quarter and 79,000 for the year. There were 124,000 redundancies this quarter, a rise of 3000 on the previous quarter, 12,000 less than the previous year and close to the lowest level since 1995.
Excluding bonuses, average earnings growth was 3.6% to November 2007.
Source: GNN, 16th January 2008
WORKSTEP - Improved Employer Incentive
The Secretary of State for Work and Pensions has announced changes to the WORKSTEP programme which helps disabled people find and retain paid employment. The sustained progression payment is to increase from £500 to £2000. The aim is to provide a better financial incentive for providers to move people into unsupported, independent work when they are able and ready to do so. Supported employees on the WORKSTEP programme either work in jobs in the open labour market, in supported placements, or within supported businesses established to employ disabled people.
Source: GNN, 21st January 2008
Teenage Pregnancy Figures Drop
Figures published at the end of February show that teenage pregnancy rates are now the lowest for a decade. The Office of National Statistics figures show that there is a fall in conceptions both under 18 and under 16 in 2006. Key statistics are:
Conception rate for under 16s are down by 13% since 1998 and 1% since 2005
Conception rate for under 18s reduced by 13.3% since 1998 and 2% since 2005
89% of local authorities have achieved an overall reduction in their under 18 conception rate between 1998 and 2006
The Government has published a league table showing teenage pregnancy trends for every local authority.
Source: Montrose Reports, 28th February 2008
Decade of DDA Improves Access for Disabled People
Between 1996 and 2006 knowledge of the Disability Discrimination Act increased significantly among the public. Research based on data from the Disability module of the Office for National Statistics Omnibus Survey found that more than 70% of people now know the Act by name, compared with only 40% in 1996. Other key findings were:
80% of disabled people had no difficulties when shopping, while fewer than 1% said they had been refused the sale or rental of a property because of a disability
79% of people with disabilities in paid work said they had no trouble accessing goods or services, compared with 59% not in paid work.
77% of disabled people said they did not have any problems using public transport
Annual Survey of Trends in Education 2007
The National Foundation for Educational Research has published its latest annual survey of trends in education 2007. Headteachers from secondary and primary schools were asked their views on trends. The findings have been published in short topic-related papers. Among the findings were:
For secondary schools, the main area of concern is now staffing issues rather than budgets, while in primary schools it remains budgets, but with a lower level of concern than the previous year. More than 80% of secondary and primary schools wanted a three-year funding cycle for schools.
In response to the Every Child Matters agenda, there was growth in partnership initiatives since 2006, especially in secondary schools.
A proportion of schools still do not have enough policies relating to helping children in care.
Almost half of secondary schools wanted more information about youth provision within their neighbourhood.
Schools with School Improvement Partners were positive about the support they have offered.
Most schools have a variety of strategies for parental involvement. Since 2006, more reported using their school website.
Report about Young Apprenticeships Programme Published
A report commissioned by DCSF about the Young Apprenticeship (YA) programme has been published by the Institute for Employment Studies (IES). In light of the Government’s ambitious target of 90% post-16 participation, the research aimed to find out more about Young Apprenticeships and training and careers opportunities, through case studies, workshops and the development of information about YAs with sector skills councils. Findings included: the need to set more recruitment targets, especially for minority groups for non-traditional subjects for boys and girls; raising awareness of YA, and embedding IAG within recruitment processes; models of support; and ways to encourage wider choices by young people.
Asylum Applications Down in South East and London
In 2007, asylum applications were at their lowest for 14 years, according to Home Office statistics. There were 23,430 principal asylum applications made, the lowest since 1993. The Border and Immigration Agency (BIA) removed 63,140 people from the UK and increased the number and speed of its decisions.
In the South East and London, 7,310 non-asylum offenders and 2,670 failed asylum seekers were removed from the area.
Figures for Bulgarians and Romanians registering to work in the UK were also published, showing that 30,570 in 2007 were granted applications and an additional 7,295 were given cards as part of the Seasonal Agricultural Workers scheme. Figures for people registering to work from other Eastern European countries that joined the EU in 2004 show a drop in the number applying under the Worker Registration Scheme (WRS). Between October and December there was a 23% fall in the numbers compared with the same quarter the year before. There was an overall decrease in the annual figure of WRS applications from 234,725 in 2006 to 214,510 in 2007.
Staying Safe Action Plan
The Staying Safe Action Plan, launched by DCSF on 5th February, sets out work to be taken forward between 2008 and 2011 to improve children and young people’s safety. The cross-departmental plan has been developed in consultation with practitioners, parents, children, and young people and aims to strike a balance between protecting children and young people and allowing them freedom to learn for themselves. The Action Plan includes measures to make it easier for teachers to prepare for school trips with more help and advice, less bureaucracy and quality badges for popular destinations. Organisations hosting school or youth group visits will be encouraged to qualify for quality badges, helping teachers to identify places which both provide high quality learning out of the classroom, and manage safety effectively.
Source: DCSF website, 5th February 2008
Integrating 14-16 Year Olds into FE colleges: Challenges and Progress
In recent years, there has been growth in the number of 14-16 year olds studying in FE colleges. Nfer has recently published research about approaches to integrating this age group into FE colleges. Challenges identified include: physical and workforce capacity of colleges to cope with the age group; unresolved partnership issues such as funding relating to 14 to 16 year old students, teachers’ and lecturers’ pay and share INSET days; health and safety; and maintaining the FE ethos.
Findings about the impact of 14 to 16 year old students include:
Most older students were unperturbed by the presence of younger students or were unaware of them;
As the number of younger students has grown, lecturers have gained greater understanding of teaching this age group;
Interviewees believed that the inclusion of this younger age group has had a positive effect on post-16 progression and in some cases on local communities.
Transparent selection processes aided the integration of younger students
Effective communication throughout the young people’s time at college was important
Provision of pastoral and learning support for pre-16s is needed, as well as good IAG before they make choices.
South East and London Most Expensive for Childcare
A survey by the Daycare Trust says that childcare costs rose 5% last year, and that parents in London and the South East are paying the most for childcare. The average price of a full-time nursery place in England for children under 2 was £159 per week. In London and the South East typical costs were £161-£202 per week rising to £750 for some.
The cost of childcare in out-of-school clubs had also risen around six times the rate of inflation to an average of £43 per week. The costs quoted do not include government funding via tax credits, childcare vouchers and free nursery places for three year old children. However, the Trust believes that the British pay more for childcare than people in other parts of Europe, even when tax credits and vouchers are included. On average, the Trust says that parents are contributing on average 70% of childcare costs, compared with an average of 30% elsewhere in Europe.
Source: BBC online, 29th January 2008
Pathways to Work from Incapacity Benefit Research
Two research reports on Pathways to Work from Incapacity Benefit have been published. The first explores the sanctions regime and concludes that sanctioning can act as an important tool for initial or renewed attendance but is not by itself sufficient. The researchers say that customers placed great importance on the consistency of their relationship with the adviser and stress the need for greater support to customers to promote confidence. The second report looks at experience with the Job Preparation Premium and concluded that there is good evidence that JPP payments can have positive impacts on incapacity benefits claimants. The researchers recommended that there be clearer guidance about the intended aim(s) for JPP to help staff be more certain about when and how to use it.
Sources: Department of Work and Pensions Qualitative Research Exploring the Pathways to Work Sanctions Regime. DWP Research Report 475 2008.
Department of Work and Pensions Pathways to Work from Incapacity Benefits: A study of experience and use of the Job Preparation Premium. DWP Research Report 474 2008.
