I've spent the last 24 hours catching up with colleagues from across Europe, all of whom are members of ENSIE (European Network of Social Integration Enterprises). They work collectively to make the case for social enterprises which focus on work integration of disadvantaged individuals at a European level, and of course are all active at their own national level.
At a national level, many of them have been supported traditionally by their governments (typically 80% of the income in their work integration social enterprises is earned through trade of products and services and the other 20% subsidy from the state). We of course haven't had that kind of support to date in the UK and whilst they're keenly trying to hang onto that important element of support, we're busy trying to lobby for introduction of some support in the first place (especially in the case of Social Firms!) In my overview to my ENSIE colleagues of the situation currently in the UK for work integration social enterprises (including Social Firms), I couldn't help but wonder at the rate and scale of change that we're going through:
- Work Programme implementation and payment by results. Common talk already about the possibility of primes and subcontactors going bust as the government's passed all the risk onto them. The job market's relatively flat and those furthest from the labour market are in competition with those closer to the labour market...you don't need to be a rocket scientist to predict what will happen.
- change in the commissioning framework and increase in the implementation of personal budgets, creating both opportunities and challenges for social enterprises;
- complete change in the state benefits system with everyone on Incapacity Benefit being assessed for work capability;
- review of specialist disability employment initiatives to place emphasis on personalisation and tailored need as opposed to structures (and hopes for social enterprise and self employment as routes to achieving this). We're awaiting the government's consultation following Liz Sayce's independent review published 9th June.
From what I can gather around the table today, there is no other country going through the pace and extent of change that the UK is at the moment with regards to the environment for work integration of disadvantaged people and social enterprises. Let's take heart in that and brace ourselves for a battle. We need to keep up the pressure in helping the government see the value of work integration social enterprises at this time of change, possibly more than ever before. Strength and support from our European counterparts has been mustered from this session so the trip to Brussels has been worth it!
Sally Reynolds
CEO Social Firms UK