Bumpy start for Future Jobs Fund

The first month of the government's Future Jobs Fund has seen mixed results for social enterprises with bureaucratic delays for some leading to concerns that their reputations will be damaged.

The Future Jobs Fund launched at the start of October and aims to create 150,000 jobs for long term unemployed young people in the public, private and third sectors.

The Grow Organisation hoped to have 88 people employed in October under the Future Jobs Fund but so far has only been able to employ 14.

Joint CEO of The Grow Organisation Alex Cosgrove blamed the delay on Jobcentre Plus staff 'dragging their heels'.

'Too little is being done too late,' said Cosgrove.

'Jobcentre Plus have all our information but don't appear to have any sense of urgency. The result of this is possible failure to fulfil our contract.

'This is a major risk as it has the potential to damage our brand and the reputation of the third sector.'

Other social enterprises have not started recruiting on time because of delays in receiving their grant confirmation letters from the Department of Work and Pensions (DWP).

But a DWP spokesperson said: 'This process is working properly, but we are keeping it under close review'.

'The Future Jobs Fund has been a resounding success and it has been delivered in record time. From concept to delivery in around 100 working days.'

She added there were no 'systematic delays' in issuing grant confirmation letters to successful Future Jobs Fund bidders and that any delays would not have a negative effect on social enterprises when their contracts were reviewed. She also said the DWP was 'unaware of any delay in referring customers to Future jobs Fund employers'.

Acting CEO of 3SC, a third sector consortium which has won a contract to deliver part of the Future Jobs Fund, Richard Litchfield described the delays as 'teething problems'.

'Nothing that's happened so far has been things that we haven't thought could happen. It doesn't feel like a major problem, more teething problems in the system, which, given the scale of the initiative, is not surprising,' said Litchfield.

But he also pointed out that the referral process from Jobcentre Plus would be the 'key thing' that would help make the Future Jobs Fund programme a success or not. He said it was something 3SC would be monitoring.

Litchfield added that the relationship between social entrepreneurs and the staff at the local Jobcentre Plus offices would be very important.

Social Enterprise London (SEL), which is providing jobs through its members, has also experienced delays in receiving its grant confirmation letter but Michelle Richmond, senior project manager at SEL, said the DWP and Jobcentre Plus staff were very helpful in keeping the communication going.

Richmond emphasised that the social enterprises themselves were ready to get started.

'The response of the social enterprise sector has been overwhelming,' she said. 'Our members are keen to start recruiting and have been quick to respond to all requests for information.'

Other social enterprises, including HCT Group and Stride, told Social Enterprise they hadn't experienced any delays and both put this down to their existing good relationship with their local Jobcentre Plus.

HCT Group communications director Frank Villeneuve-Smith said: 'We've found that our contacts at the DWP and Jobcentre Plus have been really helpful. We have our interview for candidates scheduled for the next two weeks and we are looking forward to starting our project - a new community car scheme.'

Stride CEO David Brazier emphasised that social enterprises had a real opportunity to make a difference through the Future Jobs Fund.

'In the social enterprise world if we do it right we can generate sustainable jobs,' said Brazier.

'As of this minute we've taken on 14 young people and we're looking to take on 20 or so by next month. By March our target is to have 78 people from the Future Jobs Fund employed and, by being able to refurbish more furniture, we're hoping to trade more, and turn 25 per cent of those positions into full-time sustainable jobs.'