7:59am Thursday 2nd September 2010
By Mark Stead
AN AGENCY which has helped hundreds of York job-hunters to find work may be forced to ask council bosses for more money after making a six-figure loss.
The Future Prospects scheme, which offers information and advice to the city's jobseekers, has revealed it ended 2009/10 with a £141,000 deficit after a cash contribution from York College was taken away.
Figures released last week showed it has helped 308 people find employment in the past year, saving £523,000 in benefits, and provided training openings for 5,484 more.
But although its 2009/10 loss has been dealt with through the organisation's reserves, it has now drawn up a “restructure plan” involving cutting staff, extending its opening times and drawing in extra rental income.
It also includes asking for an additional £100,000 in investment from City of York Council, which it says would bring £3.5 million into York through job creation in the first year after receiving the money and £4 million the year after, plus £250,000 in benefit savings.
The report, which will be discussed at a decision session for the council’s leader, Coun Andrew Waller, next week, said York College had withdrawn its £80,000 contribution during 2009/10.
“This is the first time Future Prospects has operated at a loss, and the public funding available to deliver a quality holistic service has gradually declined over the last three years,” it said.
“Our position as a portal to the labour market can save the council’s spend on housing benefit and council tax benefit by moving people into paid employment.”
Coun Waller said: “I am committed to ensuring the work of Future Prospects continues because so many people have benefited from their advice and the promotion of skills to get jobs.
“No other part of the region has an organisation like this and it has a fantastic track record of getting people back into work. The council will need to look at its budget for 2011/12 and the projected business plan.
“In these difficult financial times, it is important the council is not left funding all this type of work. There are financial benefits to central government in getting people into employment and so the costs need to be shared.”
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