Sector-based work academies – a quick guide for ITPs
What are sector-based work academies?
The DWP’s sector-based work academy scheme was introduced in England in 2011 and Scotland in 2012.
Individual sector-based work academies are developed and delivered by providers alongside employers and targeted at sectors with high numbers of local vacancies.
Participants must be 18+ and receiving out of work benefits or single parents aged 18-24 on income support. Recipients are eligible from day one of a claim subject to discretion of the Jobcentre advisor, and participants continue to receive benefits while participating.
Programmes typically last up to six weeks and consist of up to 30 hours per week of sector-specific pre-employment training (PET); a work experience placement (WEP); and guaranteed job interview (GJI) linked to a genuine vacancy.
The FE sector contributes the majority of pre-employment training; about 2/3rds of participants complete pre-employment training with ITPs, with a further 13% taking place at FE colleges.
ESFA AEB funds the pre-employment training component funded through AEB local flexibility
The scheme has been employed in industries including “teaching; retail; hospitality; transport and logistics; food; care; manufacturing and engineering; agriculture; and administration”, and the most common sectors are:
Have sector-based work academies been a success?
The scheme saw 199,380 programme starts between 2011 and May 2015 but recent figures are thin on the ground.
90% of participants in a trial of SBWAs for older claimants were satisfied, particularly when programs were well structured, tailored to job roles and sectors where they wanted to work, and led to clear outcomes like a qualification or job.
In terms of outcomes, we know that sector-based work academies reduce the time 19-24 year olds spend on benefits; research estimates that participants spent 29 days per year less on benefits and 50 days more in work for the 1.5 years following participation. Providers like Liverpool’s Antrec have seen employment progressions of 70% and higher.
Benefits increase for those who have been claimants for longer, and analysis suggests that the public purse turns a small profit on its investment, with each participant producing a net gain of £100 to the Exchequer and approximately £1,950 to participants.
How can providers deliver sector-based work academies, and is it worth it?
Given that the PET component is funded under ESFA AEB, delivery will be restricted to providers who have access to AEB funding, and forms part of overall ESFA funded AEB allocations.
We already know that the majority of AEB funding is awarded by grant and that ITPs are losing out big-time. So, if you don’t already have a contract, it’s not likely any time soon – with one big exception; the West Yorkshire Combined Authority’s AEB devolution is expected to go live imminently. If you’re interested, you can email procurement@westyorks-ca.gov.uk for the tender documents now.
Is it worth it? The answer is the same as for any AEB funding: if you can get an increasingly-rare slice of the pie, it’s absolutely worth it to deliver AEB, including sector-based work academies. If you’re in a position to deliver and have contacts in local industry with vacancies, it’s 100% worth exploring, and I’m always available to consult if you’re not sure where to begin.
Ultimately, AEB is a goldmine if you’ve got it, but it’s not the be all and end all for ITPs. If you’re one of the lucky few, or if you’re well placed to win a contract in future rounds, great. But if you’re not already on board, I wouldn’t bet the house on it.
Is your ITP business starting to feel the squeeze? Looking to get a slice of the West Yorkshire AEB Devolution pie? Just send me a message on LinkedIn if you need help with any opportunity.
