Urban renewal gets long-term unemployed back to work

Operating in Scotland, Derby and the London Borough of Newham, the non-profit making Wise Group offers a one-year programme to trainees - most of whom have been out of work for at least a year. The company provides them with paid work experience installing insulation, energy-efficient heating and home security systems and carrying out environmental improvements.

An independent evaluation published today by the Joseph Rowntree Foundation found that:

• Two out of three trainees went on to find work after leaving the programme. Two-thirds found permanent jobs and 90 per cent were working full-time.
• Nearly half were in work within six months of leaving - including 44 per cent of those who had been out of work for more than two years before joining.
• The job-finding rate among trainees was significantly higher than for long-term unemployed participants in the government's Training for Work scheme.
• Six out of ten trainees gained NVQ qualifications while taking part in the programme.

The research study also found that householders were more satisfied by improvements carried out by the Wise Group than with maintenance work done by their local authority landlords. Most tenants in refurbished properties and a third of those in homes that had been insulated reported lower fuel bills. A majority said the improvements made it more likely they would stay in their neighbourhood.

Over ten years the Wise Group has grown into a business with a £13.7 million income, employing 234 people to work with over 800 trainees a year. Glasgow City Council has been the company's main financial backer and client, but the programme also receives substantial support from the European Social Fund.

For all but the first eight weeks, trainees are paid wages of around £116 a week, taking them out of the benefit system. The cost for each job created is an estimated £14,100 - but this falls to £8,300 when tax payments and benefit savings are taken into account. The report also calculates the value of fuel cost savings and other improvements achieved by the programme as equivalent to a further £4,300 and £5,300 per job.

Alan McGregor of the University of Glasgow's Training and Employment Research Unit, which carried out the evaluation, said: "This is a rare example of a scheme that is acheiving significant success in getting long-term unemployed people into work. Taking account of the public service being provided and the savings in social security we conclude that the Wise Group is delivering good value for money. Our research in Glasgow and London shows that the company's innovative approach has proved adaptable and could successfully be repeated in other areas of high, long-term unemployment."