Support for the Pathfinders
In June 2007 the Secretary of State for Work and Pensions launched the City Strategy pathfinder areas at the Welfare to Work Convention. This gave the signal for pathfinders to move into the delivery phase.
At the same time the Secretary of State launched the Learning Network which aims to support the sharing of ideas and good practice, stimulate new thinking and help meet the communication needs of the pathfinders.
The pathfinders will receive funding and flexibility from Government to realise their ambitions. On 2 April 2007 the Secretary of State announced that pathfinders would have:
- direct control of £32 million from the Government’s Deprived Areas Fund once targets have been agreed
- a key role in shaping the delivery of the Government’s flagship Pathways to Work programme to help people off Incapacity Benefit
- access to improved data-sharing
- a greater ability to influence the provision of training opportunities and employment programmes at a local level
- potential additional reward funding if they are successful in meeting their targets to get people back to work.
Targets
We have agreed with the pathfinders to a 3 per cent reduction in the numbers of people on benefit and an equivalent increase in employment. Precise figures are finalised for the benefit target, with some final negotiation on the employment target. We will then support the pathfinders on their local targets.
As a result, pathfinders who have reached sign off are receiving the Deprived Areas Fund.
The offer to Pathfinders
The City Strategy is not principally about new money. It is about making better use of the existing investment in employment and skills at local level. However, there are three ways in which DWP is contributing funding to the City Strategy.
- DWP made available £5 million of ‘seed-corn’ money to kick start the development of consortia, helping to build capacity, bring together partners and support the planning process plan. ‘Seed-corn’ money is up front money paid to the city strategy pathfinders to pump-prime the work of the local consortium, providing support during its development and initial operational phase.
- There is a long-standing commitment to pay reward money to successful City Strategy Pathfinders. Ministers announced a reward pot of at least £5 million. A payment mechanism for this money has yet to be finalised.
- The Deprived Areas Fund (DAF) is a flexible pot of money that is allocated to deprived wards across the UK that fall within the City Strategy, Ministers chose to devlove the money to the pathfinders. Pathfinders will receive £32m of DAF in 2007/2008, and a similar amount in 2008/2009, uprated in line with inflation, to support delivery of their plans. We have now begun to pay the money to the pathfinders.