Social Firms UK

This discussion paper http://www.communities.gov.uk/publications/communities/principlesofrepre... sets out some principles that are aimed at assisting third sector bodies to come together to form networks and act as the collective voice for the sector in a local area. The principles are not intended to be a blueprint, but try to offer a framework which can be adapted according to local circumstances. Social Firms UK’s response explains what Social Firms are and the impact they can have on local social and economic wellbeing. It highlights the need for Local Strategic Partnerships to be aware of the Social Firms in their area.

Following the publication of its Green Paper on Welfare Reform “In Work, Better Off” DWP has been drawing up a strategy on how it will commission employment support programmes. It favours moving towards a position where it has large contracts with a small number of prime contractors. They in turn will subcontract with smaller or more specialist providers. In its response, Social Firms UK highlights the role that Social Firms play in providing employment and employment support for people furthest from the open labour market and flags up the need to support job creation as well as employment support. We include a proposal aimed at helping the Social Firm sector to grow and highlight ways in which the needs of Social Firms should be taken into account in any future contracting arrangements.

DWP is proposing to streamline the Job Introduction Scheme, Work Preparation and WORKSTEP into a single flexible programme. The concepts that are shaping the proposals are:

The Department for Communities and Local Government (CLG) is setting up a Third Sector Partnership Board to provide them with strategic advice on the design, development, implementation and evaluation of their activities. In our response we stress the importance of the social enterprise sector being represented, in addition to representatives of the voluntary and community sectors. We also point out that the Board’s remit must be clear, and that the work of this board should complement and not overlap with the activities of similar boards in other government departments. We see that this board can provide opportunities to gain greater recognition for the role social enterprises are already playing and to find ways to overcome barriers that constrain social enterprise and Social Firms at a local level.

Social Firms UK has fed into the interim "Tackling Worklessness" report that Claire Dove (Chair of the Social Enterprise Coalition) with Councillor Stephen Houghton (Leader of the Labour Group at Barnsley Metropolitan Borough Council) has submitted to Hazel Blears. The final report is due to be published by the end of March 2009. Social Firms UK's position statement here shows what Social Firms UK sees as some key issues raised by Working Neighbourhood Fund as well as our comments on the "Tackling Worklessness" interim report.

This consultation set out the Government’s plans increase the numbers of people getting work. By 2013, people will either be on Job Seekers Allowance (JSA), or the Employment Support Allowance (ESA). Emphasis will be on what people can do and, where relevant, this will be tested by a new medical assessment. People with severe disabilities will get more cash under ESA.  Others who qualify for the benefit will be placed in a “work” category and will receive personalised back-to-work support to help them prepare for work and overcome any barriers they face. It will be made clear to this group that ESA is a temporary situation to help them get fit to return to work.  The proposals also include streamlining the benefit system, moving lone parents with children under seven on to JSA and offering more support to prepare them for work.

Social Firms UK told the Office of the Third Sector about a range of actions that would help Social Firms. These covered access to finance; prompt payment and access to public sector contracts; rate relief; intermediate labour market support; and contributions to support costs for Social Firms.

In summary, Social Firms UK called for the Employment Strategy to include action:

• that makes work accessible. Simplify forms and offer support with job applications. Offer training that suits people’s needs
• review and simplify benefits system so that transition to work doesn’t result in financial disadvantage, and then
• ensure that accurate and accessible information on benefits and tax credits is available to demonstrate that work actually does pay more than benefits
• achieve greater use of work preparation and work experience, with a clear route towards paid employment.
• provide finance to extend the Social Firms sector’s capacity and potential to do this by offering  work experience opportunities and real paid jobs.