Agenda item

The Overview and Scrutiny Board received and considered an update on the impact of Covid 19, which had been a hugely significant economic event, alongside the clearly evident impact on the health and wellbeing of many citizens. The report was a position statement which reviewed the latest data relating to economic inactivity and proposed programmes to address these issues, with a review of the impact upon youth unemployment. However, it was noted that this was likely to change over the coming months, as local and national restrictions were implemented. The dynamic of the Government policy had been shaped by a quick recovery phase in Quarter 2 and 3

during 2020 with the economy moving back to business as usual. This was looking increasingly unlikely, as cases of Covid-19 increased

The Board was informed there were three key aspects which needed to be considered in terms of Covid related employment concerns, the first being the rise in unemployment, the second was the impact of the furlough scheme and consequences of this scheme ending in October 2020, and finally the confidence in companies to create new opportunities.

The Board noted that the Oldham economic function had been significantly impacted by the effects of Covid 19 lockdown.

·         32,000 Oldham employees on the Job Retention Scheme

·         8,900 claims made for Self-Employment Income Support Scheme

·         13,985 citizens claiming unemployment benefits.

·         Since the beginning of Covid-19, Oldham’s monthly Claimant Count had increased by 108.7%, a similar rate to GM (109.6%) but lower than English levels (128.1%).

·         Over the same period Oldham’s monthly Youth Claimant Count had increased by 136.5%, faster than GM (125.5%) and slightly lower than England (139%).

·         In July 2020 c. 55% of citizens were economically inactive.

·         Modelling suggested that unemployment in Oldham would reach c.22,000 by end of November.

GMCA and HM Government had invested in services to support citizens back into employment. The Autumn Statement could see investment in key infrastructure schemes and ensuring that this activity supported Oldham’s citizens and young people was paramount.

Members requested and received clarification on the following:

• Support in finding jobs for care leavers – there were two schemes and pathways in place for care leavers and people with disabilities. The facilities of the Kickstart programme were being reflected to offer support and the Council was working closely with employers and Job Centre Plus. Work was underway with care leavers to identify their ambitions and to prepare them for the application process so they were ready to apply for opportunities.
• The increase in modelling figure to 22,000 from 14,000 current claimants – Greater Manchester was lobbying to get early access to information on redundancies. As government support for business reduced, it was expected that the number of claimants would increase in November and December, when businesses could not afford to pay staff and people could not live off reduced pay. There were many variables, including the impact of local lockdown on the ability of businesses to compete for national contracts. Business support had been increased by over £50M in six months.
• Support for people becoming self-employed – there was government funding for this. An increase in start-ups had been evident, though some new businesses would wait until the situation improved. The Council was also securing income for social enterprises and maximising inward investment.
• The success of grant applications - GMCA had launched the AEB Local Authority (LA) Grant Programme on the 6th July 2020 to enable each LA to submit proposals for work towards alleviating barriers and constraints faced by residents around Adult Skills. The Council had submitted applications to a value of £150k and these had all been successful.

RESOLVED that:

1.    The update be noted.

2.    The update on the Covid-19 recovery plan be brought to the Board at the earliest opportunity.