Agenda item

Report of Director of Economic Development and Property

Matthew Wheatley, Head of Economic Development, introduced the NEET Reduction Service report, highlighting the following information:

a)  the report seeks approval to enter into a contract for a NEET reduction service for 2024/25 and to place that contract with Nottingham and Nottinghamshire Youth Services (NNYS), part of the Futures group, under a TECKAL exemption;

b)  the Council has a statutory duty to encourage, enable and assist young people, as well as those between 20-25 with SEN and disabilities, to participate in education and training. It is a priority for the Council in the strategic plan, as the longer a young person spends as a NEET, the more the long-term cost to the public sector;

c)  Futures has performed well, contributing to Nottingham City’s combined NEET and unknown rate being recorded as 5.1% in 2023, the second lowest of all the core cities;

d)  the service will be delivered in three parts: core services, meeting statutory requirements, to be met from the local authority’s base budget; an enhanced service, targeted for those with the highest risk of becoming NEET; and making use of public health grants to undertake activity supporting the wellbeing, including the financial wellbeing, of young people across the city;

e)  the value has reduced by £50,000. The Council is working with the provider to drive efficiencies and savings. An outline Best Value review has been undertaken, which showed that performance was good and cost was comparable with other cities and local authority areas.

During subsequent discussion and in response to questions from the Committee, the following points were made:

f)  the report seeks one-year’s funding, and it is difficult for those working on one-year contracts that is renewed year-on-year. With the development of the East Midlands Combined County Authority, it is hoped that the landscape for skills funding will change positively in the future.

Resolved to:

(1)  Delegate authority to the Corporate Director for Growth and City Development to enter into a new joint contract with Nottinghamshire County Council for the delivery of NEET reduction activity, delivered by NNYS under TECKAL arrangements within Nottingham City for the period 2024/25, with the combined value not exceeding £941,300 (£410,300 LA base budget) and the contract to be reviewed by Legal Services in advance of signature;

(2)  delegate authority to the Corporate Director for Growth and City Development to sign the contract and any subsequent modifications on behalf of Nottingham City Council, subject to compliance with the applicable Public Procurement regime and review by Legal Services.

Reasons for decision

g)  The local authority has a statutory duty under Section 68 of the Skills and Employment Act to support young people in participating in education or training, and implementing a NEET reduction service in Nottingham ensures that the local authority complies with its legal obligations;

h)  reducing the number of NEET individuals is crucial for economic development and is a key metric in the Keeping Nottingham Working strand of the Strategic Council Plan;

i)  young people who are NEET often face multiple social challenges, including mental health issues, social exclusion, and lower life satisfaction. Providing targeted support can help to address these issues directly, improving social outcomes for young people, reducing social inequality, and creating a more inclusive community;

j)  a Best Value review is being carried out to inform delivery and contracting in the 2025/26 financial year. Pending that review, and subject to performance, the continuation of the award to NNYS under TECKAL arrangements allows for significant benefits:

a.  NNYS have maintained good performance achieving profiled results;

b.  they have established relationships and a deep understanding of the local context;

c.  NNYS through Futures holds additional Employment and Skills grant awards to enhance NEET reduction activity (UKSPF);

d.  there are significant administrative savings due to not having to undergo a commissioning and re-implementation process.

Other options considered

k)  Not delivering the statutory service. This could leave the Council open to potential legal challenge, would result in poor performance on the Strategic Council Plan NEET rate key metric, and would create demand for other Council services;

l)  the Best Value review will examine the best route to source future delivery of the NEET reduction service.