Social enterprises are at the forefront of tackling unemployment, providing meaningful employment often to those most removed from the labour market. Not only do social enterprises provide work within the competitive market place, they provide targeted and supportive interventions that tackle the causes of long-term unemployment.

In particular, Social Firms are a model of social enterprise with a mission to create employment opportunities for severely disadvantaged people through businesses that are market-led, inclusive, supportive and sustainable.

The work of social enterprises contributes greatly to economic development in the most deprived areas as well as the broader welfare agenda. As such delivering employment to the most excluded groups is one of the great success stories of social enterprise.

The Government supports the use of external employment services, especially for delivering to the most excluded groups. However, to date the majority of the contracts for these have gone to large scale private sector companies.

We are concerned that the Department for Work and Pensions (the Government department with responsibility for welfare) does not fully understand the role social enterprise can play in addressing these challenges. We are working with Department for Work and Pensions to ensure that the value of social enterprise is recognised throughout the welfare agenda.

With our members and partners such as Social Firms UK and the Development Trusts Association, we are promoting the use of the social enterprises in providing these services and advising the Government on how to encourage social enterprise though their commissioning strategy. This ensures that funds are reinvested and that employment created is sustainable.

 

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 and in “unemployment hotspots”.  Its aim is to avoid, or minimise, the impact of long-term unemployment for individuals and for the future of the economy. 

The fund, managed by the Department for Work and Pensions, is seeking bids which create at least 30 new jobs over a six month period. 

Social Enterprises have been identified as a key partner in delivering this programme and consequently DWP are seeking bids either directly from larger social enterprises and social enterprise consortia or in partnerships with local authorities.

For each new job created, the employing organisation would receive up to £6,500.

Each bid will need to demonstrate that:

• it will create extra jobs, lasting at least 6 months, either for long term unemployed young people or people in unemployment hotspots
• the work done will benefit local communities
• the work will be under way quickly.

These briefings contain further details on the fund.

Future Jobs Fund Briefing May 2009

Future Jobs Fund Update June 2009

Full details can be found here.

 

Consultations:

CLG and BERR consultation on Prosperous Places (June 2008)

CLG consultation - Third sector strategy for Communities and Local Government (September 2007)

DWP consultation 'In work, better off' (October 2007)