Resetting the relationship between local and national government. Read our Local Government White Paper
Our vision for a devolved and integrated employment and skills system.
Work Local: a devolved skills and employment model for England
Local government is the only constant in a continually changing employment and skills landscape, has the capability to deliver, and with adequate resources, can deliver more. Our local government partners across the UK are already on a path to achieving this so there is no reason why it cannot happen across England too.
Democratically elected leaders would have the powers and funding to work with partners to join up careers advice and guidance, employment, skills, apprenticeships, business support services and outreach in the community link to local services and meeting local need. Work Local will improve services and outcomes.
The underpinning principles of Work Local are:
A ‘one stop’ service rooted in place
- Make full use of facilities which host or deliver employment and skills services, using technology to broaden access.
- A clear, coherent offer to help people improve skills, prepare for and find work, progress and change careers, and help businesses to grow.
- Connect to wider services, partners and support, integrating employment and skills, with more specialist services and support.
With clear and responsive local leadership
Local government is best placed to coordinate this work, in partnership with national government, employers (public, private and third sector), education, training and employment providers and institutions, the voluntary and community sector and unions. It needs local democratic leadership built on trust and strong relationships, shared objectives, and empowered staff.
That is driven by local opportunities and needs
Devolved funding and increased influence to design services that meet local needs and priorities, rather than to one-size-fits-all approach, will strengthen our ability to create inclusive local economies. What works for major cities is different to what is needed in suburbs, towns, rural and coastal areas and more mixed communities.
Within a common national framework for devolving strategy, financing and delivery of employment and skills
Delivering this vision requires a new settlement on the political and fiscal levers for employment, skills and growth. We need to expand the national devolution framework and develop local plans that sit within it, alongside a single pot of funding to plan, commission and have oversight of local delivery.
Underpinned by Local Employment and Skills Agreements
Central and local government should agree three-year devolved employment and skills agreements (LESAs) covering outcomes, budgets and actions needed, supported by outcome agreements. Areas with existing and well-established devolution deals, governance and consultation processes are best placed to decide what works for them locally. In new devolution areas, LESAs will be governed locally by boards to provide open and transparent decision making, closer to citizens.
Delivering better outcomes at lower cost
The LGA commissioned the Learning and Work Institute (L&W) to analyse the Cost Benefit Analysis of a Work Local approach alongside the wider social benefits. It reveals that by using existing investment more effectively – including the devolution of adult skills, contracted employment support and UKSPF, and more influence on apprenticeships and 16-19 funding – Work Local could result in a 15 per cent increase in the number of people improving their skills or finding work - delivering undoubted benefits to residents, businesses, communities and to the local and national economy while reducing costs for the public purse. The evidence is striking and the case for Work Local is clear. Link to L&W full report on LGA website.
The L&W analysis was limited to the data, budgets and outcomes available for these funding streams. For instance, it was unable to include Jobcentre Plus employment support or National Careers Service as there is no publicly available data on their budgets or outcomes. Local government is clear that it needs more influence over this provision too.
- For a medium-sized combined authority, with a working age population of 960,000, more effective use of around £270 million investment per year could improve employment and skills outcomes by about 15 per cent, meaning an extra 2,260 people improving their skills each year and an extra 1,650 people moving into work. This could boost the local economy by £35 million per year and save the taxpayer an extra £23 million per year. Taking account of wider benefits such as health and wellbeing could more than triple the economic benefits, up to £87 million per year.
- For a large combined authority, with a working age population of 1.8 million, more effective use of around £680 million investment per year could improve employment and skills outcomes by about 15 per cent, meaning an extra 4,200 people improving their skills each year and an extra 3,850 people moving into work. This could boost the local economy by £80 million per year and save the taxpayer an extra £52 million per year. Taking account of wider benefits such as health and wellbeing could more than triple the economic benefits, up to £260 million per year.
- For a larger rural local authority, with a working age population of 475,000, more effective use of around £77 million investment per year could improve employment and skills outcomes by about 15 per cent, meaning an extra 1,150 people improving their skills each year and an extra 640 people moving into work. This could boost the local economy by £14 million per year and save the taxpayer an extra £9 million per year. Taking account of wider benefits such as health and wellbeing could more than triple the economic benefits, up to £54 million per year.
- For an urban local authority, with a working age population of 172,000, more effective use of around £51 million investment per year could improve employment and skills outcomes by about 15 per cent, meaning an extra 250 people improving their skills each year and an extra 370 people moving into work. This could boost the local economy by £8 million per year and save the taxpayer an extra £5 million per year. Taking account of wider benefits such as health and wellbeing could more than triple the economic benefits, up to £27 million per year.
Work Local is good for the economy – by integrating services, responding to local economic needs, and delivering better outcomes at lower costs; good for people – with more personalised, joined-up and responsive services; and good for employers – by delivering a locally rooted, demand-led and integrated approach.
It will enable local government to take a whole systems approach by bringing together decisions around infrastructure and capital investment with learning, skills and employment to maximise opportunities for residents, businesses and the wider local community.
Scenario: A major public health institution is relocating to an area, and alongside it the development of a new hospital and a life science business park is required. Only local government has the unique cross cutting role to bring people, the public and private sector together and get partnerships working to make this happen. For instance, ensuring that construction complies with net zero targets, and planning for additional housing and transport capacity, and the impact on public services. Moving to a Work Local approach would enable local government to weave in a local skills and jobs offer through a joined-up employment, skills and careers provider base, help contractors maximise environmental and social value through procurement, making best use of flexible national and local interventions so residents – both young people and adults including those experiencing disadvantage – benefit from this new investment.
