Category Archives: Cuts

Here’s a neat idea: get rid of the neet label


By Andrew Purvis

I am currently CEO of youth charity Fairbridge, I have 20 rewarding years experience working in the private sector behind me, but it might surprise you to learn that I was ‘neet’ (not in employment, education or training) once – just like the million young people being tagged with that acronym today.

My experience was actually a good one, I had four months off following my first job after university, and it was a very productive time in my life. I gained skills which I then found useful in the job I moved into. Being neet wasn’t a problem for me, it was a situation I knew would be temporary and that I had the wherewithal to get myself out of. But I did not come from three generations of unemployment; I had not been the victim of domestic violence; I hadn’t been in care or excluded from school and I was lucky enough to have two loving parents to support me.

It’s this chasm of difference between the opposite ends of the neet spectrum that worries me in the wake of the comprehensive spending review. While schools funding has been ring fenced, complementary provision like that provided by Fairbridge is vulnerable. Benefits for the jobless and homeless are going to be reduced so for those million young people not in education, employment or training, difficult times are about to get even tougher. But not to worry, the government is using a payment by results approach to get lots of them back into work – so that’s okay, isn’t it?

Well no, it’s not. Having a neat, neet acronym is helpful shorthand and has undoubtedly brought attention to the problems of youth disengagement but the label is now confusing the issue and I want us to stop using it. Being badged ‘neet’ isn’t nice but it’s not the stigmatisation I have a problem with. It’s the fact that by putting the same label on a million young people, we’re preventing help reaching those who need it most.

A recent government report by the Audit Commission segmented the million neets and identified 380,000 young people, who were classed as being ‘sustained neet’. They have the biggest problems, are the biggest cost to society and are in greatest need of investment. By grouping all these young people together, it is easier for those who are commissioning services NOT to focus on these sustained neet. The term now creates great confusion over where support should be targeted. It is a real concern that much of the recent investment in reducing the neet figures, has gone to the top end – those closest to the job market like I was all those years ago – rather than the sharp end where it is genuinely needed.

As the economy recovers, those closest to the job market will move on to a job or education and the commissioners can put a tick in the box marked ‘reduced neet figures’ and go home thinking job done, ignoring the fact that the sustained neets are still there, without any targeted support. The label hides the fact that we need to start putting resource where it is needed most and where it will have the most impact.

Fairbridge runs courses across its 15 centres which focus on the skills these sustained neets will need to get back into employment, often in conjunction with corporate supporters. In London our Employ Me course gives young people, most of whom have never been in a workplace, basic skills to start them on the road to employment. From workplace behaviour to discovering what types of jobs are out there, they need to start from scratch which is what we help them to do. Without this support they will remain unable to take the even the first steps towards employment.

If we could make real inroads into that 380,000 sustained neets then many of our communities would be happier, safer and we would see a corresponding reduced burden on the coffers of the Ministry of Justice, Home Office, Department of Education and – because mental health is such an issue with our youth – the Department of Health.

To do that we need to commit to properly targeted interventions and this requires sophisticated commissioning of solutions. Let’s drop the neet label and let’s stop using money inefficiently by lumping together large groups of the population who have vastly differing needs. Only when we start being honest about where the real problems lie, can we start solving them.

Fairbridge is holding a parliamentary event today to raise awareness of its work among new MPs.

A post-cuts third sector; where business and back office are as vital as compassion

Shaks Ghosh
Shaks Ghosh, chief executive, Private Equity Foundation

By Shaks Ghosh

“A hard road, leading to a better future, is how Chancellor George Osborne spoke of the journey ahead of us in yesterday’s Comprehensive Spending Review (CSR).

All I know for certain is that it’s already been a bumpy ride for charities, many more of which, it’s now been estimated, receive public money than previously thought. The Third Sector Research Centre believes that some 35% of organisations (rather than between a fifth and a quarter) get statutory funding and of those, 23,000, or 14%, regard it as their most vital source of income.

In the youth sector alone, the magazine Children & Young People Now, has found that of more than 130 charities, 82% are already being forced to cut youth projects because of funding shortages.

And, even with the very welcome one-year, £100 million transition fund announced yesterday to help voluntary sector groups adjust to new public spending budgets, it is going to get tougher. Think tank New Philanthropy Capital (NPC) warned on Monday that these government funded charities are approaching a “maelstrom”. It expects the sector’s income to drop by between £3.2bn and £5.1bn.

So that’s just some of the bad news. But there is good news too as we peer into the gaping chasm of what Shadow Chancellor, Alan Johnson, has called “the deepest cuts to public spending in living memory”.

Along with the transition fund, there’s £470 million over the next four years to build the capacity of the voluntary sector to deliver the Big Society.

I don’t know what this expanded delivery role will actually mean, the devil will be in the detail, but the CSR adds that it will “look to set proportions of specific services that should be delivered by non-state providers including voluntary groups.”

Could this support amount to enough of a lifeline? Possibly, but only if we are really bold and act now! During the economic down-turn last year, the Charity Commission found that only 32% of charities surveyed had taken steps to limit the impact of the recession, with just 14% reducing costs.

An ostrich mentality isn’t going to help. And I don’t say that lightly. I’ve felt that pain. As a charity chief executive, I’ve had to lose staff on occasions when the funding didn’t materialise.

What my last few years at a venture philanthropy fund have taught me is the importance for charities to concentrate on their ‘back office’ as much as their compassion.

It won’t be for everyone, as charities are driven by much more complex ‘bottom lines’ than pure profit and there will be a learning curve, but there’s much to gain from partnership with business. The Private Equity Foundation (PEF) has organised some 15,000 hours of pro bono support for its portfolio charities so I’ve seen first-hand how powerful it can be. In some cases, we’ve worked with charities which have managed the move away from substantial government funding to more sustainable models, while others have achieved huge growth in impact.

Which leads me to better measurement and evaluation. Only the demonstration of effectiveness will ensure support, as government tenders and pays for more services by results and funders choose between a deluge of ‘asks’.

It’s not measurement for measurement’s sake; evaluation can also help create a virtuous circle as organisations scrutinise the data to see where they can improve outcomes. It will become a vital tool, in what’s likely to become a ‘race for quality’ and more foundations should be prepared to pay for it.

Funding from the public and philanthropists cannot plug the hole left by government cuts. But, I believe that business does have a huge contribution to make in safeguarding the sector and I will be doing everything humanly possible to bring more of its money and skills to charities in the coming years.