Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: July 7, 2025

Purpose:

Content: 8.1 The Head of Employment, Skills and Economy introduced the report which outlined the opportunity presented by Connect to Work to enhance labour market access and job sustainability for residents with multiple and/or complex barriers to the labour market. It also mapped out a local delivery plan for the programme and identified key roles and responsibilities of South Yorkshire Mayoral Combined Authority, Sheffield City Council and contractors.     8.2 RESOLVED UNANIMOUSLY: That Economic Development, Skills and Culture Policy Committee:-   (a) Note the aims of the Government’s Connect to Work Programme of targeted employment support and the opportunity this presents – as part of South Yorkshire’s Pathways to Work system – to enhance service delivery for Sheffield residents who are at significant disadvantage in the labour market.   (b) Note the positive impact of Sheffield City Council’s Local Supported Employment Programme, which is intended to form a key element of Connect to Work. (c) Approve the receipt by Sheffield City Council of Connect to Work funds, designated by the Department for Work and Pensions to South Yorkshire Mayoral Combined Authority (SYMCA), through a £7.28m grant award to Sheffield City Council by SYMCA, including Sheffield City Council becoming the accountable body for such funding and entering into the grant agreement with SYMCA, such approvals in this recommendation (c) to be subject to the grant agreement being approved by the Council’s finance department and legal department. (d) Approve Sheffield City Council using part of the funding described in recommendation (c) above to commission the appointment of delivery staff and community-based specialists for the period up to March 2030 with an estimated value of up to £2.2m. (e) Note that the balance of the funding described in recommendation (c) above is to be retained centrally by Sheffield City Council to cover its costs of implementing the Connect to Work programme for the period up to March 2030. (f) Approve Sheffield City Council implementing the ‘SEQF in Sheffield’ local delivery plan for Sheffield as outlined in section 2.6 of this report and the ‘non-health IPS in Sheffield’ local delivery plan for Sheffield as outlined in section 2.7 of this report. (g) Note the proposed roles and responsibilities for Sheffield City Council as a Delivery Area Member in South Yorkshire’s Connect to Work Programme.         8.3 Reasons for Decision     8.3.1 Connect to Work, as a Government programme designated to Mayoral Combined Authorities and Delivery Area Members (i.e. Local Authorities) presents a significant, longer-term funding opportunity to increase capacity within the employment support system to support residents with multiple and/or complex barriers to the labour market. The proposed Sheffield programme will build on existing skills, knowledge and capacity within SCC and Sheffield’s provider network to increase the availability of high[1]quality IPS and SEQF provision for disadvantaged out-of-work residents seeking support to find a job, and people who are in-work but vulnerable in their employment.     8.4 Alternatives Considered and Rejected     8.4.1 Alternative Option 1: All-regional commission, no local delivery   In this scenario, SYMCA – as the accountable body for the South Yorkshire programme – would commission all activity centrally, to be delivered across South Yorkshire by one or more providers.   This option was rejected on the basis that local variances would be difficult to account for, resulting in challenges responding to local needs (based on demographics), reaching priority groups with targeted hyper-local projects, and providing ease of access to residents.   Additionally, this approach would result in the loss of skills and experience from within the Local Authorities’ in-house SEQF teams, which have successfully delivered the Local Supported Employment programme since 2022 and are well-placed to seamlessly transition into Connect to Work.     8.4.2 Alternative Option 2: No regional commission, only local delivery   In this scenario, all Connect to Work activity would be delivered and/or commissioned at local level, with no regional commission. Some provision is most suited to a pan-regional approach, and it makes sense for interested parties to be able to bid for one larger contract rather than four smaller ones (in each Local Authority area).   This option was rejected on the basis that existing infrastructure put in place through delivery of SYMCA’s Working Win programme provides access to IPS health support in Sheffield, Barnsley, Doncaster and Rotherham, and deconstructing this infrastructure Page 44 would be both costly and time consuming, with no guaranteed benefits in terms of generating referrals and ensuring the availability of quality provision available to residents. With investment in IPS and SEQF significantly increasing, partners agreed that building on what is already in place – through another regional commission complemented by new local activity – would be the most effective way to seamlessly transition into Connect to Work.     8.4.3 Alternative Option 3: SCC delivers all local IPS and SEQF activity in-house   SCC is intended to be the recipient of funds from SYMCA for non[1]health IPS services targeted at priority groups, and SEQF to enable continuation and upscaling of activity currently delivered by Local Supported Employment Sheffield. In the event of contracting to third parties, SCC will be responsible for procuring appropriately skilled providers which are able to deliver IPS and/or SEQF to the requisite standard to ensure fidelity standards are met. This will require appropriate resourcing of contractors, the appointment of skilled, qualified advisors, investment in training and robust contract management, to ensure high quality services can be delivered at scale to achieve contracted outputs and outcomes.   SCC’s proposed hybrid approach – to directly deliver some SEQF and IPS services, and commission others – is intended to (1) build upon the existing successful direct delivery of Local Supported Employment and retain valued Council officers, (2) mitigate financial risk for SCC, given the need to recruit significant numbers of advisors for a fully direct-delivered service, with funding only guaranteed to 2029-30 (3) leverage the skills and experience of external specialists who are currently operating to the IPS and/or SEQF models, or who have the capacity to develop these competencies, (3) and draw on the strengths of Sheffield’s successful VCFSE employment and skills network, to identify and engage with eligible participants, make services accessible to residents in trusted community locations, and support valued third-sector provision.