Social enterprises are at the forefront of tackling unemployment, providing meaningful employment often to those most removed from the labour market. Many social enterprises provide supported employment within the competitive marketplace and 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. This has included addressing unemployment through intermediate labour market programmes (ILM), which generally provide work within existing community-based organisations or in discrete projects. ILM programmes have repeatedly enabled people to obtain the motivation, skills and experience in order to get out of welfare and into employment.

We are working to ensure that the Department for Work and Pensions (the Government department with responsibility for welfare) better understands the role that social enterprise can play in addressing a wide range of challenges. Social enterprises can play an important role including delivering to the most excluded groups but have faced issues such as a contracting model that has seen contracts going to large-scale private companies. We are working 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 services and advising the Government on how to encourage social enterprise though their commissioning strategy.

 

From Future Jobs Fund to the Work Programme

The Future Jobs Fund was established by the former Government as a response to the recession and rising levels of unemployment – in particular amongst 18-24 year olds and in unemployment hotspots.  Its aim has been to avoid, or minimise, the impact of long-term unemployment for individuals and for the future of the economy. 

Social enterprises were identified as key partners in delivering this ILM programme and consequently DWP sought bids either directly from larger social enterprises and social enterprise consortia or in partnerships with local authorities.

As a result of the Coalition Government’s May 2010 announcement on efficiency savings, no further bids to the Future Jobs Fund are being accepted. Government figures show that, between October 2009 and January 2010, 8,660 DWP claimants started a Future Jobs Fund job. The Coalition Government has stated that there is now an even greater focus on delivering high Future Jobs Fund performance and value for money. It has also indicated that there may be further opportunities to contribute as the Government’s ‘Work Programme’ to tackle unemployment is rolled out.

 

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)