Agenda item - Future of Connexions Service

This report advises Members of the prospective transfer of Connexions Service responsibilities to the Council from April 2008, proposes a strategy for the management of these new responsibilities and seeks permission to implement a management of change strategy, funded entirely by external grants.

RESOLVED: (i) That the transfer of Connexions Service Responsibilities to the local authority from April 2008 be noted.

REASON: In order to prepare for the new responsibilities.

(ii) That an integrated service for young people be established.

REASON: In order to continue the strategy already developed and to streamline management costs,

(iii) That staff teams be integrated in locality bases.

REASON: To provide a more accessible service to young people.

(iv) That some work continue to be sub-contracted to the private, voluntary and community sectors.

REASON: To purchase provision from those who can deliver specialist work beyond the scope and expertise of the Council.

(v) That the Council manage the Connexions contract as a direct provider, as set out in Option 1, subject to continuing reassurance that this option represents an efficient use of available resources.

REASON: In order to establish the terms of reference for the transfer document and to authorise staff to carry out the related work programme.

(vi) That the operation of the current contract be reviewed in order to establish whether there is a need to continue to procure specific services from external providers.

REASON: To ensure continuity of provision and maintain service quality.

(vii) That a further report be received, from the Directors of Learning Culture and Children’s Services, Resources, and People and Improvement, once transfer documents have been agreed with North Yorkshire County Council.

REASON: So that a final decision can be made about the deployment of resources from April 2008 and to be satisfied that the Council is not exposed to unfunded risks and liabilities.

Members considered a report which proposed a strategy for the management of new responsibilities following the transfer to the Council of a government grant previously paid to the Connexions Service.

In York and North Yorkshire, Connexions had been set up as a limited company, the business of which had been transferred in 2004 to North Yorkshire County Council NYCC), in order to resolve a VAT issue. In April 2008, the Connexions statutory functions under Section 8 of the Employment and Training Act 1973 and Sections 114 and 140 of the Learning and Skills Act 2000 would transfer to the local authority. These functions could be delivered in house or commissioned from external partners. Funding for service delivery would be paid directly to the local authority. The current Connexions Board had agreed to wind up its functions as soon as the transfer of funding was complete. Staffing issues would be dealt with by NYCC, as employer of all the central Connexions staff.

The local authority must now establish a new Young People’s Service, combining the functions of the Youth Service with those of Connexions. Strategic accountability for the service would be via the YorOK Board and the 14-19 Partnership. The YorOK Board had considered the outcome of consultation and endorsed a set of principles to be borne in mind when deciding the future of Connexions in York. These were listed in paragraph 24 of the report. The Executive were asked to consider the following options for future delivery of the service:

Option 1 – increase in-house provision. This would meet all of the needs identified by the consultation and was the option with most support from partners.

Option 2 – roll forward existing contracts. This would delay action to meet the needs identified in consultation.

Option 3 – carry out a thorough review of needs and redesign a specification for future tendering. This also ran the risk of delay, due to the need for complex contract negotiations.

In respect of the comments made on this item under Public Participation, Members indicated that the in-house option would enable the service to become more efficient, which was vital in view of the expected net loss of funds. However, it was expected that some elements of the services might be procured externally should a clear benefit be identified. The speaker’s comments on Guidance Services’ willingness to work with the Council were welcomed.