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T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright [email protected]
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Page 1: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

T2E – Transport to Employment

Reducing lack of transport as a barrier to gaining employment in rural communities

Steve Wright [email protected]

Page 2: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

T2E - In a nutshellObjectives

Improve transport access to employment in East Sutherland, Easter Ross and Southern Caithness

Develop solution requiring minimum ongoing financial support

Evaluate sustainability of the routes provided and assess the wider benefits of the service to society

Page 3: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

T2E - In a nutshell Startup funding provided by

European Social Fund Scottish Executive Working For Families Highland Council

Service planning - Taxi Studies Group at Napier University

Booking Office services - ‘T2E Ltd’ established

Transport provided by numerous local taxi firms

Evaluation - TORG at Newcastle University

Page 4: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Contents Why East Sutherland area ? EMIRES project Operational aspects of the T2E scheme

Service design + management Booking office provision Transport provision

Evaluation Level of use Stakeholder satisfaction (Users / Employers / Taxi operators) Assessment of costs/benefits and sustainability

Conclusions and what’s next

Page 5: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

East Sutherland area

Regional economy: main industries include tourism, call and contact centres; construction; agriculture.

Sutherland is the least densely populated county in the UK

Page 6: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

East Sutherland areaPOPULATIONApprox 8,000

Dornoch 1200Golspie 1400Brora 1100Lairg 900

Bonar Bridge / Ardgay 400 Tain 3,500

Alness 5,000Invergordon 4,000

DISTANCESInverness – Dornoch 45 milesTain - Dornoch 9 milesGolspie - Dornoch 11 milesLairg – Dornoch 22 milesBonar Bridge – Dornoch 14 milesGolspie – Lairg 19 milesGolspie - Brora 5 milesBrora – Helmsdale 11 miles

Generally, the main employment opportunities are located in or near the coastal towns of Dornoch, Golspie and Tain, which are popular tourist destinations and main centres of activity.

Page 7: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Location of unemployed

Source: NOMIS official labour market statistics (www.nomisweb.co.uk)

Page 8: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Joseph Rowntree Foundation study(JRF, 2003 - Wired For Work? ICT and Job Seeking in Rural Areas)

190 face to face interviews and 6 focus groups conducted between 2001 and 2003 job seekers hold realistic views about the need to commute

51% from the Sutherland area willing to travel more than 40 km to and from work on a daily basis

61% of job seekers in Sutherland held a driving licence

private transport ownership amongst job seekers very low (21%)

So jobseekers willing to travel but don’t have own transport

Page 9: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Joseph Rowntree Foundation study(JRF, 2003 - Wired For Work? ICT and Job Seeking in Rural Areas)

ICT plays a growing role in job search activities

remote rural communities are much more likely to use the Internet to look for work

Job search sites return vacancies but without own car can’t get to them – frustrating and gives perception they are not useful so job seekers stop using them

jobseekers willing to use internet to find vacancies but also want to know if they can access them by PT

EMIRES Project

Page 10: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

EU EMIRES project

www.jobseekers.direct.gov.uk www.transportdirect.info

Jobcentre Plus nationwide

vacancy database

National Public

Transport database

bespoke journey planning software

Sutherland PT database (inc. DRT

and post-bus services)

EMIRES website front end

Log of searches with no PT availability (postcode sector to sector)

Mapping gaps in provision

Matching job search and transport information in a rural area (demonstration site East Sutherland)

Page 11: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Job locations and labour supply EMIRES highlighted job vacancies remain unfilled in coastal

towns of Dornoch, Golspie and Tain Generally low skilled jobs in tourist industry or call centres Supply of active job seekers outside immediate vicinity but within 20

miles higher land values in the coastal towns prevent the job seeking labour

force from moving closer

Creates a need for travel BUT gaps in public transport provision restricting access to employment

It is from this project that the T2E concept developed initial user needs were identified, initial partnerships established, service design ideas nurtured.

Page 12: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

General people movements required to match job supply and demand

Page 13: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Existing public transport services in East Sutherland Train Intercity Bus Local Bus Scool Bus Dial-a-Ride Post Bus Taxis

Generally do not provide appropriate level of service to match job seekers to vacancies

Page 14: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

T2E service characteristics small numbers of travellers often demanding travel at

same time from and to dispersed locations

sometimes unsociable hours of work

new bus services inappropriate

use of several small vehicles as and when needed

Taxis !

devise method of utilising local taxi firms

• sustainable• acceptable • legal

Page 15: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Design Requirements (1) Sustainable – minimise costs and maximise revenues

Plan routes which enable and encourage coordination of trip demands onto same vehicle consider known trip demands in time and space consider potential of route to satisfy future demands consider potential of route to attract existing employees

Negotiated tariffs with taxi firms Achieved 40% reduction on standard tariff rates £1 per mile Same rate regardless of passengers carried No retainer

Model for achieving sustainability is based on 3 users sharing ride with an average trip length of 10 miles

Cost10 miles x £1 per mile =£10

Revenue35p per mile x 10 miles x 3 passengers = £10.50

Page 16: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Design Requirements (2) Acceptable

job seekers Job seekers travel free for first 4 months After this pay equivalent of a bus fare (35p per mile – capped at

£3.50) Job Seekers pay T2E monthly in arrears. Billed only for trips made. flexible routes – access to childcare desired en-route to work

taxi firms Taxi drivers don’t handle bookings or fares – T2E booking office

deal with this. Low technology requirements Provided weekly route itinerary by fax + e-mail. Sent monthly

billing forms to sign for payment direct from Highland Council. Employers

Flexibility to change work rotas in knowledge staff can still get to work

Page 17: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Design Requirements (3) Legal

Must abide by regulations on shared use of private hire vehicles Section 11 of the Transport Act 1985 makes provision for

the carriage at separate fares in licensed taxis and private hire vehicles of passengers who have booked their journeys in advance.

Allows changes to route at short notice

Page 18: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Design Requirements (4) Numerous local private hire taxi firms (often small and

without proper office – mobile) Needed mechanism to co-ordinate routes and allocate

demands to most suitable taxi Needed single number for job seekers to ring to receive

information and to make bookings Needed standard way of billing and making payments

Need for a centralised booking office Central service planning / route development Co-ordinated booking and scheduling of trips Co-ordinated billing and payments Information and Promotion

Initially Napier University

Now ‘T2E Ltd’ (private company with charitable status)

Page 19: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Booking Office Provision (1) The T2E booking office

dedicated phone-line – the T2E Hotline – charged at local rates

staffed by from 9:30 a.m. to 5:00 p.m., 5 days per week calls made outside these hours are diverted to an

answering service, which is also operational when the T2E Hotline number is engaged.

separate emergency number available between 0600 and 2200 hours, 7 days per week.

T2E web-site offers on-line booking for registered users (http://www.t2e.org.uk).

Page 20: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Booking Office Provision (2) Individual clients can be introduced to the scheme in

a number of ways: Direct Contact - including contact initiated through published

media, the T2E website, the Highland Council website and service points.

Referred Contact - potential users placed in contact with the scheme by the Jobcentre Plus, Working for Families or by employers providing information at the point of interview or first contact between employer and potential employee

Personal Contact - whereby potential users are introduced to the scheme by existing user recommendations

Page 21: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Booking Office Provision (3)

T2E Booking Office

Information

Promotion

Service Planning•Route Development

Service Management•Booking•Scheduling•Dispatch•Payment

EmployersJob Centre

Economic Development Agencies

Employment Agencies

Job Seekers

T2E Client

Transport Providers

•Local Taxi Companies

•Community Transport Organisations

Public Transport Information Database

T2E approves request for travelT

2E

clien

t pro

vided

with

tran

spo

rt to e

mp

loym

en

t

Employers post job vacancies

Job

Se

eke

rs sea

rch fo

r job

vaca

ncie

s +Jo

b C

en

tre in

form

s the

m o

f T2E

wh

en

app

rop

riate

Telephone request for

travel

Details of T2E and

established routes

Telephone or internet booking of

trips (weekly)

Dispatching route details

by phone and fax (daily)

Invoice and payments by

post (monthly)

Billing and payments

by post (monthly)

Requests for new routes

Info on existing PT services eligibility

check Info on target development areas (informs route creation)

Details of T2E and established routes

T2E Booking Office

Information

Promotion

Service Planning•Route Development

Service Management•Booking•Scheduling•Dispatch•Payment

EmployersJob Centre

Economic Development Agencies

Employment Agencies

Job Seekers

T2E Client

Transport Providers

•Local Taxi Companies

•Community Transport Organisations

Public Transport Information Database

T2E approves request for travelT

2E

clien

t pro

vided

with

tran

spo

rt to e

mp

loym

en

t

Employers post job vacancies

Job

Se

eke

rs sea

rch fo

r job

vaca

ncie

s +Jo

b C

en

tre in

form

s the

m o

f T2E

wh

en

app

rop

riate

Telephone request for

travel

Details of T2E and

established routes

Telephone or internet booking of

trips (weekly)

Dispatching route details

by phone and fax (daily)

Invoice and payments by

post (monthly)

Billing and payments

by post (monthly)

Requests for new routes

Info on existing PT services eligibility

check Info on target development areas (informs route creation)

Details of T2E and established routes

Page 22: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Transport Provision (1) 8 taxi firms

20 routes provided

Average route distance 11 miles

Agreed tariff of £1 per mile

No retainer

No add-ons for multiple passengers

Page 23: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Transport Provision (2)Routes provided (June 2006 - March2007)

Page 24: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Contents Why East Sutherland area ? EMIRES project Operational aspects of the T2E scheme

Service design + management Booking office provision Transport provision

Evaluation Level of use Stakeholder satisfaction

(Users / Employers / Taxi operators) Assessment of costs/benefits and sustainability

Conclusions and what’s next

Page 25: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Evaluation summary The methodology employed in the evaluation

consisted of a detailed analysis of the booking and invoicing data

collected for the 10 month period from June 2006 – March 2007

combination of surveys to gauge the levels of effectiveness, acceptability and reliability of the service. Consisting of; structured questionnaires with users structured questionnaires with providers (of employment and

transport) and semi-structured interviews with key stakeholders

Page 26: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Evaluation results- use of service Generally the T2E services meet with the principle

funding criteria which were to overcome the barriers met by young people who do not

have opportunities for learning and employment, childcare initiatives to support access to work, and to improve opportunities for women

No of users now exceeds 100.

A constant churn of users dropping out of the service and being replaced by new users is evident.

Page 27: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Routes provided (June 2006 - March2007)

Page 28: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Route ID

Route Distance per run (miles)

Av. number of runs

per week

Total number of route users

Av. number of

passengers per run

Av. subsidy per run

(£)

Av. subsidy per pass mile (£)

Av. fare revenue as a % of supplier

cost

Established Routes A Bonar Bridge to Skibo (Early) 12 9 2 1.44 9.47 0.57 24%

B Bonar Bridge to Skibo (Late) 12 11 3 1.32 8.23 0.63 28% C Golspie to Embo and Dornoch 11 24 7 1.40 12.85 0.85 8% D Cambusavie to Golspie 5 14 1 1.00 4.25 0.85 19% E Golspie to Brora (all) 6 12 3 1.00 3.81 0.63 32%

F Loth to Helmsdale 14 10 2 1.02 7.64 0.53 28% G Helmsdale to Brora 24 4 2 1.20 27.83 1.16 7% H Alness to Saltburn 5 9 2 1.05 4.14 0.78 21% I Ardross to Alness 5 5 2 1.17 5.57 0.95 17%

J Tain and Balintore to Alness 10 27 4 1.41 3.88 0.25 37%

K Ballintore to Fearn 5 32 3 1.33 1.71 0.26 44%

Recently Started Routes

L Bonar Bridge – Golspie 13 8 1 1.00 12.65 0.97 7%

M Ardgay to Invergordon 10 14 1 1.00 9.50 0.95 10%

Discontinued Routes N Ardgay to Carbisdale Castle [end Sep 06] 6 10 1 1.00 9.20 1.53 10% O Bonar Bridge to Rosehall [ended Sep 06] 13 7 1 1.00 12.65 0.97 7% P Bonar Bridge to Tain [ended Feb 07] 8 5 2 1.04 5.55 0.67 34%

Q Bonar Bridge to Alladale [ended Jan 07] 14 8 1 1.00 13.70 0.98 7% R Lairg to Overscaig [ended Nov 06] 16 6 1 1.00 15.80 0.99 6% S Dingwall to Alness [ended Jan 07] 10 9 1 1.00 8.50 0.85 19%

T Evanton to Dingwall College [end Oct 06] 10 8 1 1.00 8.45 0.85 11%

Route details

Page 29: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Av. route costs and revenues over timeAverage supplier costs, fare revenues and subsidies per passenger mile on established

routes

0

0.2

0.4

0.6

0.8

1

1.2

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Month

Co

st

(£)

/ P

assen

ger

mile

supplier cost/passenger mile

fare revenue/passenger mile

subsidy/passenger mile

Average supplier costs, fare revenues and subsidies per passenger mile on discontinued routes

0

0.2

0.4

0.6

0.8

1

1.2

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Month

Co

st

(£)

/ P

assen

ger

mile

supplier cost/passenger mile

fare revenue/passenger mile

subsidy/passenger mile

Page 30: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

User Surveys Surveys conducted with over a third of the total number of users revealed:

70 % claimed that public transport was available to their place of work but at unsuitable times while 30 % claimed that there was no public transport at all to their place of work

¾ of respondents have had to turn down job opportunities in the past due to a lack of transport

T2E has enabled over 95% of respondents to gain employment which, otherwise, they would have been unable to access.

45 % were employed before T2E, 33 % were unemployed and 22 % were in full-time education

More than half of the T2E users who had been unemployed prior to using T2E were long-term unemployed (>24months)

All respondents reported that they were happy with the destinations offered by T2E and that their T2E journey operated at a suitable time for them

Only 1 user commented that the service was too expensive All respondents said they would recommend the service to others and, in fact, almost half

of the respondents have already recommended T2E to someone who now uses the service

Page 31: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Former Users Over 60% of former users felt the service was very reliable and had

no problems. The remainder thought the service was somewhat reliable or had no strong opinion.

The following reasons were given for stopping use of the service: 3 moved job 2 moved house 2 bought a car 1 changed personal circumstances 1 family illness prevented user going to work 2 work was seasonal 1 decided to live on premises 1 user commented that service was too expensive, but also stated this

was not their main reason for stopping use

Page 32: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Taxi operator surveys The Taxi operators who responded both agreed or strongly agreed

that the T2E service provided a steady income and greater stability. Both had provided more working hours to members of staff and one

had employed more drivers as a direct result of increased work provided by T2E.

taxi firms reported that T2E provided double the income they would otherwise have received for the times they were involved in T2E journeys – a 20% increase in income but at the sacrifice of 10% of revenue from other sources (although some of this is picked up at other times of day)

the T2E service has been a welcome addition to the taxi trade – especially during winter months

Page 33: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Employers surveys half the respondents stated it was easier to fill vacancies as a direct

result of T2E. 66% believed that the flexibility of the service had eased the burden

of sorting out work rosters Over 85% of respondents thought that the T2E service operated at

times which fit with shift patterns and working hours Over 70% thought that as a result of T2E there was a greater

likelihood of them appointing someone from the local area Employers, generally, agreed that their businesses have benefited

from T2E on many levels, specifically: improved staff attendance; easier management of staff rotas; greater likelihood of appointing staff from the local area. However, the majority of employers are reluctant to contribute to the costs of the service, even though the introduction of it has resulted in a reduction in their own expenses.

Page 34: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Stakeholders interviews The involvement of the stakeholder organisations and the roles of the

individuals interviewed within these organisations included providing financial backing, steering group membership, involvement in designing service delivery, contact point and referral agent for job seekers, liaising with employers, negotiating with taxi operators and promotion of project.

All respondents felt, with conviction, the service has been effective at improving access to employment?

flexibility of the service was highlighted as a major advantage in regard to accessing childcare

All stakeholders aware of the costs to users thought they were acceptable and every stakeholder was of the opinion that T2E provides a service that job seekers could not receive anywhere else.

Page 35: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Survey summary In general, the service is viewed very positively by

its users and employers / stakeholders

The cost/revenue evaluation suggests that overall, on the established routes, just over 20% of costs are being recovered, requiring 80% support.

It is important to realise that the value of a route can not be determined solely by its level of subsidy.

Page 36: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

SROI Analysis need for an alternative form of cost / benefit analysis

accounts for the social and economic benefits to individual users

not simply assessing the sustainability of the service based on the balance sheet of supplier costs and revenues generated.

apply assessment technique known as Social Return on Investment (SROI) analysis gain some measure of these social benefits and economic

benefits to individuals

Page 37: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

SROI analysis SROI captures the economic value of social benefits by

translating social objectives into financial measures of benefit.

Measured benefits arising from T2E include those to individual clients and to the State. A monetary value is established in relation to the social benefits of

increased employment to the client (based upon net increased income, i.e. client’s wages minus lost welfare benefits and increased taxes).

The monetary value to the State is assessed in terms of the reduction in welfare payments offset against increased tax contribution.

Comparing this value of benefits to the investment made produces an SROI ratio.

Page 38: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

SROI analysis – indicators usedIndicator Value Source/Justification Employment assumptions Wages, average across clients

£162.40/wk Based on average wage of £5.80/hour and an average working week of 28 hours

Wages, growth 2% p.a. Growth equal to inflation rate (CPI) target Welfare benefits £0/wk Changes to housing and council tax assistance – based on

survey responses Job Seeker Allowance-JSA

£53/wk = £2750/annum

Current UK single person JSA of £46.85 for 18-24 years and £59.15 for over 25 years

% T2E users stop JSA claim

10% The % of T2E users which stop receiving JSA benefits as a direct result of gaining paid employment due to T2E

Income tax

0% < £5,035 10% <£7,185 22% >£7,185

UK Statutory rates 2006/2007 http://www.hmrc.gov.uk/rates/it.htm

NI –client 11%> £94/wk UK National Insurance (NI) statutory rates NI – State 23.8%>£94/wk Statutory rates (11%-employee/12.8%-employer) % of T2E users which are new employees

50% The % of T2E users which are contributing increased tax and NI as a direct result of gaining paid employment due to T2E

Deadweight: employment

0% User survey response and negative changes over the evaluation period in job claimant count statistics suggest that T2E clients would not have found work anyway without T2E

Drop-off: use of T2E

75% Assumption based on evidence from length of use statistics during the evaluation period

Add-on: employment

25% Assumption based on evidence from user surveys that at least 33% of former T2E users (25% of total users) remain in employment but no longer need use of T2E due to owning own car or moving closer to work

Displacement: employment

0% Based on employers survey response stating they were unable to fill vacancies before T2E

Other assumptions Investment £68,000 p.a. Grant funding required to support the 20 main routes

examined in the evaluation analysis Discount rate 3.5% HM Treasury recommended rate for appraisal Time period 5 years To capture benefits but not overestimate impact

Page 39: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Drop-off and Add-on Clients who have stopped using the T2E service (drop-off rate 75%) have

not necessarily stopped working; some have bought a car to travel to work, others have moved home in order to be closer to their place of work.

T2E has helped them get started in employment until they felt established and financially stable enough to make the commitment to either purchase a car or move closer to work.

For these instances, the benefits of T2E in terms of increased income, tax revenue and reduced benefits payments continue without the cost of supplying transport.

Requires introduction of an ‘add-on’ factor which allows the analysis to more closely reflect the lasting benefits of the service to society. user survey responses indicate that approximately one third of the users who

stop using the T2E service (75% of all users) continue in the same employment which results in an add-on rate of 25%.

Page 40: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

SROI calculationsEMPLOYMENT Year 1 Year 2 Year 3 Year 4 Year 5

Benefits to each new employee client

Client Wages 8444.8 8614 8786 8962 9141

Less welfare lost 0 0 0 0 0

Less JSA lost (10% of all T2E users) 2756 2756 2756 2756 2756

Less increase in tax contribution 479 489 499 508 519

Less national insurance 391 399 407 415 423

Net benefit per client previously not receiving JSA £7,574 £7,726 £7,880 £8,038 £8,199

Net benefit per client previously receiving JSA £4,818 £4,970 £5,124 £5,282 £5,443

Benefits to the State (per new employee client)

Welfare saved 0 0 0 0 0

JSA saved 2756 2756 2756 2756 2756

Increase in tax contribution 479 489 499 508 519

Increase in national insurance 847 863 881 898 916

Net benefit to state per client previously not receiving JSA £1,326 £1,352 £1,379 £1,407 £1,435

Net benefit to state per client previously receiving JSA £4,082 £4,108 £4,135 £4,163 £4,191

Combined Benefit £8,900 £9,078 £9,260 £9,445 £9,634

Total number of T2E users 40 40 40 10 3

Drop-off (75%) -30 -30 -30 -7 -2

Total 10 10 10 3 1

Replenishment (3 years funding gives 2 years replenishment) +30 +30 0 0 0

Number of T2E users in Jobs excluding add-on 10 10 10 3 1

Add-on (former T2E users still in same job) 10 10+10 20+10 30+2 32+0

Total number of T2E users in jobs including add-on 20 30 40 35 33

50% adjustment to account for those in 'new jobs' only 10 15 20 17.5 16.5

Total annual benefits 89001 136171 185193 165284 158956

Page 41: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

SROI Results values of total annual benefit adjusted –using discount rate of 3.5%- to produce the

Net Present Value (NPV) of benefits

NPV of benefits Year 1 Year 2 Year 3 Year 4 Year 5 Total

Total annual benefits 85991 127117 167033 144036 133837 £658,014

NPV of

Benefits NPV of Costs

Value Added

Number of clients

VA per client SROI

Total benefits 658,014 204,000 454,014 100 4,540 3.2

• ‘value added’ measures the value that the project has created through its activities (the difference between the NPV of benefits and the NPV of investment)

• ‘SROI ratio’ measures the value of the benefits relative to the costs of achieving those benefits (the ratio between the NPV of benefits to the NPV of investment)

SROI ratio of 3.2 means that for every £1 of investment, £3.20 worth of social benefits is generated. Any value of SROI ratio above 1 is generally attractive from an investment viewpoint.

Page 42: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Can the service be described as Sustainable?

Indicator Description Value Number of clients in 'new' sustainable jobs Clients still employed after 12 months 10

Net combined benefit per client in year 1 For client and the State £8,900 Aggregate benefit 10 * £8,900 £89,001

Investment in year 1 Grant funding £68,000

Months those 10 clients must remain employed to break even on investment

(£68,000/£89,000)*12 9.17

Indicator Description Value

Net combined benefit per client in year 1 For client and the State £8,900

Investment in year 1 Grant funding £68,000

Required number of clients into sustainable employment over 1 year period to break even on full investment

£68,000/£8,900 7.64

Page 43: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Contents Why East Sutherland area ? EMIRES project Operational aspects of the T2E scheme

Service design + management Booking office provision Transport provision

Evaluation Level of use Stakeholder satisfaction (Users / Employers / Taxi operators) Assessment of costs/benefits and sustainability

Conclusions and what’s next

Page 44: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Stakeholder views All stakeholders thought the T2E service offered good or very good value for

money to the users those that committed a financial or human resource towards the operation of

the service felt they received very good value return for their input.

Stakeholders thought that T2E improved community cohesion as it “put money into local pockets” but it was commented that the whole community does not benefit from the service as its use is restricted to particular groups.

Stakeholders were very keen that the added value social benefits of the service was considered in value for money assessments.

Additionally stakeholders also commented on the harder to quantify benefits to individuals of improved quality of life gained from increased opportunities, self esteem gained from securing employment, increased spending power and related freedoms and felt these were also attributable to the T2E service.

Page 45: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Stakeholder views the service should continue to receive subsidy from government/local

authority funds as it is providing a necessary service to the public in the absence of any alternative public transport

all stakeholders envisaged continuing their involvement with T2E in the future subject to their organisations receiving continued funding themselves

changes stakeholders would like to see a relaxation of eligibility criteria to open the service up to more groups of the

population to use the same model to provide access to health care/social sectors. employers to become more involved and to take some responsibility for

changes to shifts and to contribute towards costs of the service

Page 46: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Transferability

few barriers to transferability were foreseen as the model for delivery is not location specific as it uses a central booking office and subcontractors to deliver the service

stakeholders felt that T2E could operate effectively in most other areas of the Highlands and specifically Fort William, Wester Ross, Lochaber and the Islands. however, introduction of the service in certain areas, especially the west coast,

should proceed with caution due to the long distances involved in travel and a lack of transport providers in some of the more remote areas

other rural areas and semi-rural areas of the UK were also seen as potentially suitable for delivery of the service

the willingness of key partner engagement was seen as essential and the involvement of an individual ‘champion’ is viewed as very important to the success of schemes like T2E.

Page 47: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Current plans

On-going operation of T2E in East Sutherland/Easter Ross/Southern Caithness investigate revisions to routes provided to increase

occupancy rates Application to Big Lottery for funding beyond 2008

T2E Northern Ireland running since July2007

Page 48: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Next StepsBased on the evaluation of the T2E service in East Sutherland/Easter Ross/Southern Caithness a

rule base has been developed for establishing the application of T2E services elsewhere

Identify the need for the service An identifiable number of job vacancies which are difficult to fill Identify types of job and job seeker A sizable number of job seekers >3 miles but less than 20 miles from these job vacancies Ideally, sufficient job vacancies will be clustered in an area or along a corridor which define the

destination and route. The establishment of core routes between areas of high unemployment and areas with large numbers of unfilled jobs or large numbers of employers is important if multiple occupancy T2E routes are to be generated

A lack of alternative transport provision in the area – especially public transport operating between the locations with job seekers and the locations of job vacancies

Establish the supply for the service (must be sufficient taxi firms based locally) Maximise benefits - It is important to provide journeys to work (via childcare when

necessary) for new job seekers rather than for those already in work Provides other advice on

Setting of Fares Establishing multiple occupancy routes Maximum length of route Consultation with Employers Partnership working

Develop this advice and create a tool which automates as much of the process as possible

GIS based tool which presents spatial data on • demographics, • employment, job densities + job vacancies, • public transport

Investigate capabilities of accessibility modelling tools for this purpose

Page 49: T2E – Transport to Employment Reducing lack of transport as a barrier to gaining employment in rural communities Steve Wright s.d.wright@abdn.ac.uk.

Acknowledgement It was unanimous amongst stakeholders that the drive and

enthusiasm of James Cooper has been paramount in the success of the service in Sutherland and Easter Ross.

The added value of the service to individuals is encapsulated by the following stakeholder quote…..

“It cannot be stressed enough that this service changes people lives, lifts them out of poverty by enabling them to go to work. It is especially important to consider the [accessibility] factors of living in a rural area with bad transport infrastructure. T2E enables people to remain in the area they choose to live in by breaking down this barrier to work.”

http://www.t2e.org.uk


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