Learn the lessons from the past to make devolution of employment support a success, new ERSA report warns

The Employment Related Services Association (ERSA) has this week published a major new report warning that the government’s plans to devolve employment support will only succeed if they build on the expertise, infrastructure and lessons developed through more than 25 years of nationally commissioned programmes.

The report, Delivering Locally at National Scale, argues that devolution presents a significant opportunity to bring employment support closer to local communities and labour markets, but warns against creating a fragmented system that risks widening inequalities in access, quality and outcomes.

Drawing on evidence from 24 organisations across the employability sector, the report highlights how nationally commissioned programmes have combined local delivery with national scale, supporting millions of people into and towards work while generating substantial value for participants, taxpayers, government and society.

The report argues that policymakers should avoid seeing devolution as a choice between national and local approaches. Instead, it calls for a balanced model that both combines local flexibility and integration with national standards and accountability,  and retains both economies of scale and the specialist workforce that is so critical to delivering high-quality employment support services.

The report highlights that large-scale employment programmes have enabled providers to invest in technology, data systems, innovation, workforce development, employer engagement approaches and specialist supply chains that would be difficult and costly to replicate in every local area.

The report also raises concerns about variations in local commissioning capability and points to delays in the rollout of Connect to Work in some areas as evidence of the challenges associated with rapidly devolving responsibility for employment support programmes, before the requisite capacity and capability is in place.

Calls for a shared agenda for successful devolution

ERSA’s new report sets out six recommendations for government, local and regional leaders, and commissioners.

The report recommends:

• Establishing a national blueprint of common standards, outcome measures, evidence requirements and accountability arrangements for devolved employment support.
• Creating a national programme of support to build commissioning capability and capacity across devolved areas.
• Retaining sufficient scale to support innovation, effective employer engagement, supply chain development and value for money.
• Managing the transition carefully to protect service continuity and retain specialist workforce expertise.
• Co-designing future programmes with experienced providers.
• Moving towards longer-term commissioning models that support sustainable outcomes and a resilient provider market.

The report argues that the employability sector’s workforce, expertise, relationships and infrastructure are national assets that should be preserved as commissioning responsibilities are transferred to mayoral strategic areas (MSAs).

Elizabeth Taylor, CEO, ERSA, said:

“Employment support services have always been delivered in local communities, but they have been strengthened by the investment, accountability and learning that come from operating at scale. Employment support providers have been delivering these services for almost 30 years, and bring all of the capability and insight that come with that experience.

“As government devolves employment support, there is a real opportunity to create more integrated and responsive services. However, success will depend on building on what already works and drawing on the sector’s deep expertise rather than starting again.

“The lessons of the past few decades are clear about how to deliver high-quality employment support that helps people into good work. We need common national standards, strong commissioning capability, coherent employer engagement, a sustainable and diverse provider market, and a strong focus on employment outcomes. The recommendations in our new report set out how to make it happen, and call on government to work with the sector to make it a success.

“Getting devolution right could help more people move into good work, support employers to fill vacancies and contribute to growth in communities across the country. The employment support sector will be a vital partner in helping achieve that vision.”

Ayden Sims, Country Manager (UK), AKG, said: 

“AKG contributed to this report because we believe the debate about devolved employment support needs to go beyond governance. The real question is how we build a system that works better for the people who rely on it.

“Devolution should not be judged by whether responsibility moves closer to place. It should be judged by whether it leads to support that is more joined-up, more capable, and fairer for people who need help to move into work.

“For people who are out of work, the barriers they face are rarely simple. Health, skills, housing, confidence and caring responsibilities can often overlap, so support must reflect that reality. It needs to be rooted in local communities, but also strong enough to deliver consistently and at scale.

“That is the model AKG already works within. For decades, we have aligned purpose with place: bringing together local insight, trusted partnerships and practical delivery expertise to make employment support work better in the communities people call home.

“Our focus is on continuing to build a system that works in the real world: flexible enough to respond to local needs, ambitious about what people can achieve, and grounded in the evidence and capability needed to make change last. At its heart, this is about helping people not only move into work, but stay there, progress, and build better futures.”

Julie Graham, Chief Executive Officer, Employment, Ingeus, said:

“This report demonstrates that innovation in employment support happens when providers have the scale to invest and the local insight to respond. Whether through pioneering new technology, developing intensive programmes such as RISE for young people, or supporting specialist community organisations to grow, Ingeus’ experience shows that innovation delivers the greatest impact when it is designed around people and informed by local need. Successful devolution must create the conditions for that innovation to continue and flourish so that we can better support the people we serve together.”

Gareth Parry, Managing Director, Maximus, said:

“ERSA’s report brings to life the enormous social and economic value delivered by the employability sector in every part of the UK. Through partnerships with thousands of VCSE organisations, employers and local communities, the sector is helping tackle some of our most pressing challenges, from economic inactivity and youth unemployment to workforce shortages and inclusive growth.

“As powers and funding move closer to places, this report provides timely and practical recommendations for commissioners. Devolution presents a significant opportunity to drive innovation and better outcomes, but future employment support must remain grounded in evidence, accountability, transparency and operate at a scale that works for people, employers and places.”

Donna Murrell, Managing Director, Reed in Partnership, said:

“The employability sector has nearly 30 years of experience working alongside government to help people into work. This report brings forward valuable insight and evidence from that experience, showing how deep expertise can be harnessed to deliver positive outcomes for individuals, communities and employers. Looking ahead, local knowledge, strong partnerships and the ability to design, deliver and continuously improve services must be at the heart of future provision.”

Stuart Canning, Executive Director of Commercial, Seetec, said:

“This report shows how companies of all sizes can help the government rewire Britain. Now we need to show how employability providers can bring the best of the British SME and voluntary sector together and deliver in partnership to get Britain working.”

Read the report on ERSA’s website here.