Saturday, February 16, 2013

Does this make any sense? Well apparently it does to Cardiff Council!


I was sent this by a friend who lives in Cardiff and yet again I find myself asking where are the press and opposition when you need them and also how many of people who voted so comprehensively for  Labour last May would do so again knowing about this.


Cardiff Council is faced with a ‘Budgetary Armageddon’ with proposals out for consultation to make savings from next year’s budget by over £22 million.

The effect of what they are proposing is going to be felt by those most ill prepared to take the hit and in a significant way it will hit the aspirations of the Labour administration to tackle poverty and worklessness, and increase  job prospects for those most in need. Cutting right across the manifesto promises that saw them back in power.

While lots of publicity is centred on the closure of some stables in the Capital. The closure of a lifeline out of poverty by some of Cardiff’s poorest communities is being total passed over.

One of the single biggest proposals is to reduce the Learning, Training and Enterprise (LTE) Service budget by £500,000. That’s a 50% reduction.  No, that’s not a reduction that’s an assassination.

To achieve that it means shutting down the St Mellons and Jasmine Centres (Caerau & Ely) Enterprise Centre, plus cutting the three remaining centres (City Road, Grangetown & Butetown) from five days per week to four.

The current Labour Administration came into power last May with a stunning victory, ousting the former Liberal Democrat/Plaid Cymru coalition and taking outright control of the capital city. One of Labour’s stated aims is to make Cardiff a NEET free city. Is this a way to do that? Who is the architect of this stupid move?

The LTE Service has opened the way for 3,000 Cardiff residents a year to move into training and employment. This includes NEETs, newly made redundant, women and harder to reach people. The LTE specialist staff at the five Enterprise Centres intervene and support and mentor people and make them employable.

What’s the cost? An unbelievable £260 per job or training place - How much is being paid thorough the Welfare to Work programme to achieve this?

Currently savings to tax payers every year is almost £19 million (conservative estimate) as the LTE clients move from means-tested benefits to gainful employment. It is estimated the average wage of job seekers placed into the labour market in Cardiff by LTE is £268 per week. A conservative estimate of the total wage (excluding overtime payments) per annum for 3,000 former LTE clients is £42 million per annum in household income for the Cardiff economy. This represents a net increase of approximately £23 million per annum over and above the means tested benefit total of £19 million referred to above.

The 3,000 become contributors to the UK Exchequer in terms of their own tax and National Insurance contributions. ‘While anyone has to sympathise with the very difficult decisions faced by Cardiff’s Elected Politicians and the Senior Management Team –this cut is one too far.’

Over 40,000 households are living in income poverty. Income poverty is at its worse in the areas where the closures are being targeted at. These areas are where life expectancy in Cardiff is 11 years less than the more affluent parts.’

Health and well-being, educational achievement and employment prospects are significantly worse for those who live for any length of time in income poverty. The longer young people live in households and communities suffering income poverty, the less likely they are to achieve their potential as and more likely to become trapped in a multi-generational underclass.

The Council’s draft proposal of swingeing cuts for the LTE service will make living so much worse long term for the communities of Ely and St Mellons.

The ramifications of the proposals clearly have not been thought through the impact they will have on people’s lives; on wider social and economic impact or on the reputation of Councillors and the labour party in the Capital  

The public sector has to provide more from less in the coming years and this proposal shows a total lack of vision and leadership, ignoring as it does the use of intelligence to make better informed decisions, Cardiff Council needs to rethink this..

The facts and figures


St Mellons and Jasmine Enterprise Centres are located in two of Cardiff’s traditionally most deprived community areas.

The Annual Survey of Hours and Earnings (ASHE); ONS 2012 reveals that the 30th percentile of weekly wages for full-time employees = £268.30, the overall mean weekly wages excluding overtime and other additional payments in Cardiff for full-time employees = £465.10

2011 Household Income poverty is defined by those households whose annual income is less than 60% of UK median income levels.

Figures produced by the CACI Data Consultancy highlight that 46.4% of households in Ely and 40.3% of households in Caerau live in income poverty, compared with a Cardiff Average of 28.6% and UK Average 27.2%

 Please see the table below.
Cardiff LEA Key Stage Attainment Levels
3 of Cardiff’s
Neighbourhood
Management Areas

Key Stage 2
(Aged 11)
Key Stage 3
(Aged 14)
Key Stage 4
(Aged 16)

South-West Cardiff
74.8%
60.9%
38.1%

East Cardiff
74.6%
57.6%
31.7%

North Cardiff
86.8%
79.8%
64.2


10 comments:

Anonymous said...

not much to say on the politics of this they're all as bad as the other, but I would be interested to compare the 3,000 into work per year at £260 from the LTE programme with the UK Government’s Work Programme and the Jobcentres in Cardiff stats, it seems at first glance much better value for money and quicker turn around for the job seekers.

valizmam said...

this is crazy - cut now and incur massive cost down the line.These centers are a life line to may , they work and are cost effective. Yeh I wonder how much the W2W placements cost and they don't get people into work just into unpaid labour. If I were a member of the opposition I would be over this like a rash

Earthshaker said...

I doubt if Labour or Tory voters (or politicians) who aren’t from places like Ely or St Mellons care about the loss of these services which is ironic because they are the first to complain about the enormous UK benefits bill, systemic benefit fraud and single parent families taking all their hard earned taxes.

And if Cardiff is doing it, are other Welsh Councils making similar cuts to vital employment services in unemployment black spots that are going unreported?, this is a ticking time bomb that needs exposing.

Anonymous said...

Goodway has been very smart using tools like the Riding School, and the Splott Pool as distractions, I did look at the budget plans and felt that this was quite devastating, to paraphase captain Mainwaring “A shabby Goodway trick”

Bored of Labour said...

Russell Goodway and his stooges are doing this because they know they can get away with it, the story isn’t interesting enough for the local press and the Tories and Lib Dems aren’t in a position to lecture anyone about back to work schemes after the Work Programme was found to be unlawful this week. That leaves Plaid Cymu who are too busy naval gazing about how the party should be run to focus on this.

Anonymous said...

The local elections in Cardiff in May were an utter disaster. There was virtually no debate about council performance. It was purely about getting one over on the Westminster government. I am not a fan of the Lib Dems at all, and usually loathe their middle of the road hypocrisy, but as a Cardiff resident I can guarantee they ran the city pretty well after years of chaos under Russell Goodway. I don't see where Goodway has any labour values at all. In any other part of the UK he would be Tory, or whatever party was powerful locally.

Anonymous said...

Well Bored of Labour despite its navel gazing Plaid is fighting back locally. The only difficulty is that the controversial Neil McEvoy is their leader, and happens to be quite effective in those kind of campaigns. In May Plaid's vote was also higher than ever before despite losing most of their seats.

Anonymous said...

It was Goodway's dictatorship that lost them election in 2004, and wil do it again next time, I hope all those new Labour cllrs realise that.

A Change of Personnel said...

Thanks for the comments everyone, this has certainly generated some heat jusging by the numbers who have read it.

I think the team at Cardiff Council should do some analysis with the Work Programme if only to prove what a bad decision this it.

Lets hope its picked up by the Opposition and queries at the very least.

Anonymous said...

A big factor in Goodway losing in 2004 was that the Lib Dems were relatively popular nationally at the time. They were, believe it or not, seen as left of New Labour, and had a good winning formula that worked the same in Swansea and English cities as well. Next time around, for what it's worth, I think the Lib Dems can regain some ground. But nowhere near to the same level as 2004.

Plaid could maybe pick up a few seats but i'm not convinced they have the organisation in place outside of the west of the city.

The Tories will do okay in the usual areas but nowhere else.

The non-Labour parties need to have an unwritten agreement not to go too heavy in each others strongest wards.

That is, unless the Lib Dems or Plaid want to aim for a coalition with Labour.