True Potential: Pathway to Progress – Opportunity Action Plan

Pathway to Progress

True Potential Opportunity Action Plan

Contents

03

Foreword - David Harrison

04

Foreword - Rt Hon Justine Greening

06

The Social Mobility Problem

07 Coronavirus 08

The Opportunity Gap

09

Best Practice Innovations

10

Best Practice Insights

14

Stage One: Outreach

20

Stage Two: Employment

21

Stage Three: Progression

22

Financial Mobility

24

Insights

25 Recommendations 26

True Potential Analysis

Some of the images in this report were taken before social distancing rules were introduced.

Foreword Government intervention, education and economic forces can all influence an individual’s ability to get on in life from a disadvantaged position.

I and my partners started our own business, True Potential, at the height of the 2007/8 financial crisis. It is a thriving financial services business employing over 300 people in the North East with well-paid, tech jobs.

But at the very heart of solving Britain’s lack of social mobility are those businesses which recognise the value of finding and nurturing talent from all backgrounds.

That experience is further proof that there is never an optimal time to start a business and there are always a million and one reasons why not too.

It is they that drive the opportunities, culture and vision that can propel people beyond what their circumstances had otherwise laid out for them. This report comes amid great economic turbulence, with some employers and employees unable to operate in current conditions.

It is also imperative, however, that efforts to continue driving up social mobility are not postponed until brighter times. In fact, the pay-offs that come from supporting social mobility are exactly what businesses and indeed the country need right now.

New talent brings fresh ideas and enthusiasm, while decision-making that has input from the broadest range of backgrounds is proven to be more profitable; and could be vital in innovating a route through these challenging times.

We also know that purposeful businesses are more appealing to customers and investors.

We must ensure that young people in disadvantaged communities are exposed to entrepreneurialism – and given the tools they need to follow this path.

ENCOURAGING BUSINESSES TO CREATE A CLEAR RUNWAY FROM THE BOTTOM TO THE TOP OF THEIR ORGANISATION IS ALSO AN ESSENTIAL PART OF THE SOCIAL MOBILITY SOLUTION. Certainly at True Potential this approach has been integral to our success, as this report demonstrates.

Embracing social mobility, therefore, is no fluffy concept to be dropped at the first sign of trouble. The cold, hard facts tell us that will be absolutely critical in the months ahead.

I hope the following insights on this and our other social mobility practices prove useful to you and your organisation.

For individuals trying to better their situation and go further in life than their parents, meanwhile, adaptability is key. Working practices and consumer demands are changing and anyone with ambitious career plans must change accordingly to increase their employability.

Chairman, True Potential and co-founder of the Social Mobility Pledge

David Harrison

I sincerely hope, too, that would-be entrepreneurs are not deterred by the current doom and gloom.

Some of the most successful businesses were forged in difficult times and out of periods of adversity can come ideas that changed the world.

03

THE UK-WIDE WORK DAVID HARRISON AND I HAVE WITNESSED SINCE WE CO-FOUNDED THE SOCIAL MOBILITY PLEDGE IN 2018 GIVES ME GREAT OPTIMISM THAT PLEDGE SIGNATORIES WILL CONTINUE THEIR EFFORTS TO CLOSE THE OPPORTUNITY GAP.

04 Opportunity Action Plan

Foreword As Education Secretary in 2016 I oversaw the launch of the Opportunity Area programme to boost local talent through improving education in twelve disadvantaged areas.

This approach united schools, universities, employers, councils, local health service and other community organisations together with the Department for Education to ensure a joined up, locally and nationally owned set of education priorities for the first time.

They were driven by an evidence base to ensure a focus on the right local education priorities and backed up with initial funding of £72m, followed up with a further £18m announced in 2020.

The scheme identified that for too long education initiatives had been pushed out nationally from Whitehall with an unrealistic expectation that they would have a universal reach, somehow working and having impact in the same way even in very different communities.

The sports and education facility is home to the Harrison Centre for Social Mobility, the charitable arm of True Potential created by its chairman David Harrison and chief executive, Daniel Harrison. Every year it works with hundreds of young people to provide the tuition and training they need to help them grow in confidence and secure a job.

The approach marries up both big picture strategy, which plots out the career journey of an individual and its likely barriers, and attention to detail – recognising and addressing those circumstantial challenges that could derail the social mobility path.

Furthermore, in the coronavirus crisis, this work was stepped up, with tutors at the Harrison Centre going out into communities to deliver coursework to ensure a smooth continuation of education.

The pandemic means that those delivering education face a pivotal year ahead, as they deal with the mass disruption to schedules and exams.

It was predicated on a firm principle that less privileged communities in places like Doncaster, Oldham and the North Yorkshire coast, had a huge amount of talent, yet too much of it was lost, not fully developed or having flowed out of those areas due to a lack of opportunities.

But out of the chaos has come some improvements to the way we do things, including a better mastery of technology to connect with educators and pupils. It is imperative that the progress made on the social mobility front in recent years is not reversed in this difficult period.

A Social Mobility Commission report in June 2020 highlighted that the Opportunity Area approach has been the only place-based social mobility strategy introduced by the Government. Though a programme to deliver generational change for the long term, just three years in results have already been showing a rate of improvement above the wider national average.

The UK-wide work David Harrison and I have witnessed since we co-founded the Social Mobility Pledge in 2018 gives me great optimism that Pledge signatories will continue their efforts to close the opportunity gap.

Part of its success has been its effectiveness in joining up all stakeholders together at a local level to deliver what that particular area needs.

True Potential is well versed in harnessing this collaborative approach to improve social mobility.

Its work with the Harrison Centre at the Beacon of Light in Sunderland, for example, as set out in this report, shows what can be achieved when a highly successful business that is an opportunity creator teams up with community stakeholders to identify and nurture talent from traditionally hard-to-reach places.

The challenge now, however, is awakening more businesses to the very real benefits of embracing social mobility. We must show them that social mobility belongs in the boardroom and not the marketing suite.

Current conditions mean opportunity creation, talent development, more diverse decisionmaking and new ideas are imperative for survival.

All of these can come with a commitment to social mobility. Our task now is to spread this message and I hope this report into one of our earliest signatories helps this cause.

Rt Hon Justine Greening

Co-founder of the Social Mobility Pledge & Former Education Secretary

05

The Opportunity Gap

The social mobility problem

Social mobility is often defined as an individual’s ability to progress further in life than their parents. In the UK it has stagnated in recent decades, meaning that where a person is born largely dictates where they end up in life.

The barriers that prevent people from breaking out of this trend include a focus among employers on connections over competence, unconscious bias about accents and where a person grew up and a lack of opportunities which are accessible to people in disadvantaged communities.

According to the report, A Broken Social Elevator?

How to Promote Social Mobility, it could take at least five generations, or 150 years, for the child of a poor family to reach the average income, on average across OECD countries.

Meanwhile, one in three children with a low earning father will also have low earnings while, for most of the other two-thirds, upward mobility is limited to the neighbouring earnings group.

The OECD’s report also shows that, whereas many people born to low-educated parents between 1955 and 1975 enjoyed income mobility, this has stagnated for those born after 1975.

Over the four-year period looked at by the report, about 60 per cent of people remained trapped in the lowest 20 per cent income bracket, while 70 per cent remained at the top.

06 Opportunity Action Plan

At the same time, one in seven middle-class households, and one in five people living closer to lower incomes, fell into the bottom 20 per cent.

This is reflected in the Social Mobility Pledge’s own research which reveals that, in the UK, young people are finding it harder to progress in the workplace than their parents or grandparents did.

It shows that a majority (60 per cent) of workers aged 35 to 64 believe economically disadvantaged people in the generation below them have a harder time advancing their careers than those one generation older.

The poll also asked workers to score how easy it is to get on in life, regardless of background, in the UK. With one being ‘very hard’ and 10 being ‘very easy’, an average score of five was registered, although a quarter of those polled rated it ‘hard’ or ‘very hard’.

The Social Mobility Pledge was set up to highlight and address these issues in the UK and, in doing so, to level up opportunity and build a fairer society.

It encourages organisations to be a force for good by putting social mobility at the heart of their purpose. By sharing their own best practice with other businesses and universities, they are not only demonstrating their own commitment but creating a powerful shift towards purpose-led organisations.

The Opportunity Gap

Coronavirus The Office for Budget Responsibility’s Covid Reference Scenario predicts that the UK economy will contract by 35 per cent, with unemployment potentially peaking at 10 million.

But, just like the issue of social immobility, the impact of the coronavirus pandemic is varied across the UK. While the 35 per cent national average figure is high in itself, it is the case that some areas – predominantly in the North West and Midlands – will see their economic growth reduce by almost 50 per cent. Only one of the twenty hardest hit areas is in London and the South East.

In addition to the significant diversity of geographic impact estimated by the Centre for Progressive Policy, the Resolution Foundation points to previous data suggesting that there is likely to be a large impact on those leaving full time education and graduating into an economy in the midst of turmoil.

Large numbers of young people are now in the jobs market having had their career pathways significantly disrupted.

One in three young people under 25 are employed in the three sectors most affected by the pandemic - travel, hospitality and retail. It has the potential to leave a long-term legacy of unemployment and will certainly impact those from disadvantaged backgrounds and on low incomes the most.

Coronavirus has shone a spotlight on the inequality that already exists and data suggests that it will have a varied and profound impact across locations, ages and education levels.

It is clear that the businesses and universities which do best as we recover from the crisis will be those that have stepped up to the mark in recent months for their employees, customers and communities.

We need them now to lead the way in delivering solutions and sharing best practice.

In the 2008 recession, the unemployment rate across the whole population rose from 5.2 per cent in 2007 to 8.5 per cent in 2011; for those with GCSE equivalent qualifications the unemployment figures were 22 per cent in 2007 and 32 per cent in 2011.

10 M LL ON UNEMPLOYED. The Office for Budget Responsibility’s Covid Reference Scenario predicts unemployment could potentially peak at 10 million.

07

The Opportunity Gap

The Opportunity Gap The impact of coronavirus across locations, ages and education levels also has an impact for social mobility in the UK. Our research shows that eight of 14 measures used to calculate social mobility will be impacted.

We have used existing place based social mobility analysis together with the predicted impact of coronavirus to examine the size of a community’s ‘Opportunity Gap’.

From our analysis we believe there are 16 areas in England at risk of a ‘double opportunity hit’.

Already amongst the worst areas for social mobility, they are going to be particularly badly affected by coronavirus. Those in the top 20 per cent, with the largest opportunity gap are referred to as COVID Opportunity Coldspots.

This opportunity deficit overwhelmingly impacts people from more disadvantaged communities and backgrounds and the gaps start opening up from the very start. Coronavirus widens that opportunity gap for young people at every stage of their formative years and it is becoming clear that we are at risk of a lost generation.

True Potential’s experience, detailed in this report, demonstrates that it is possible to improve outcomes among hard to reach young people in disadvantaged communities, despite the many barriers that exist for them, both practical and perceived.

It shows how it successfully addresses social mobility in some of the most deprived areas of the North East and has created a pathway into well-paid tech jobs of the future.

This report contains insights into best practices which have worked well and which have had a positive outcome for learners at the Harrison Centre for Social Mobility as well as employees at True Potential.

It features case studies which illustrate the impact that its approach has had on individuals as well as analysis focusing on the community in which it is located.

The Opportunity Action Plan also considers how True Potential might advocate for an expansion of business-led community employment programmes and wider financial resilience.

The impact on those in the education system in these more disadvantaged communities is obvious.

NINE EIGHT SEVEN 08 Opportunity Action Plan

Eight of 14 measures used to calculate social mobility will be impacted due to Coronavirus.

Best Practice Innovations

An Introduction to Best Practice Innovations.

Close to 20 per cent of the financial adviser market use True Potential’s products and services.

These include investment management and business support services, as well as financial services technology.

The company has expanded rapidly since its inception in 2007, ranking as the fastest growing financial advice and technology services company headquartered outside London in the 2014, 2015 and 2016 Deloitte Technology Fast 50.

Across the group, True Potential has over £52bn assets under administration. In 2017 and 2018 it won its category at the European Business of the Year award, beating 34,000 other firms from 35 countries.

The company is powered by a commitment towards creating opportunities for all. This is evident in its products and services, which are equally open to both high net worth individuals and pension savers who wish to start by putting aside as little as £1 for their future. It can also be seen in its approach to employees.

The UK’s lack of social mobility is particularly prevalent in financial services. But True Potential has found a highly effective solution. Its Pathway to Progress is designed to speed young people with limited life chances into fulfilling and ever-developing careers.

In partnership with its founder’s charitable foundation, the Harrison Centre for Social Mobility, True Potential is pioneering a new approach.

The formula involves a school True Potential helped to create in an area of high deprivation and culminates with an ongoing pathway of opportunity.

Through intervention in an area of the North East that performs poorly for youth social mobility, complemented by employment programmes in a neighbouring part of the region that underperforms in early adulthood.

True Potential has created an opportunity pathway.

What makes this approach unique in the business world, is that it views social mobility as a journey that transcends life stages.

Furthermore, it is being delivered in the North East, one of the most deprived parts of the UK and in financial services, an industry often seen as being inaccessible. This is covered in more detail in the next section.

09

Best Practice Insights The Pathway to Progress: From outreach to employment to progression True Potential believes that youth outreach and talent acquisition programmes should not be delivered as standalone activities – and certainly should not be considered ‘tick box’ or merely ‘CSR’ exercises.

There is a much bigger prize at play.

The company urges that they are run with purpose and focus on a natural strengths process that factors in disadvantaged areas.

Crucially, they must give candidates of all backgrounds a real opportunity of employment and a clear path towards a flourishing career with a contextual focus on an individual’s life journey.

While this may consume more management and HR time in recruitment processes, it ultimately ensures candidates are selected on a broader range of considerations.

True Potential has achieved this as part of its pathway that has three stages – outreach, employment and progression – and that are seamlessly connected and managed with one overriding goal: To create a pathway towards success at work based on talent, attitude and aptitude.

10 Opportunity Action Plan

OUTREACH EMPLOYMENT PROGRESSION

11

12 Opportunity Action Plan

DAVID HARRISON AND JUSTINE GREENING ARE JOINED BY THE TRUE POTENTIAL TEAM ON THEIR SOCIAL MOBILITY ACTION DAY.

13

Stage One: Outreach Give opportunities, new skills and career aspirations to young people in disadvantaged areas.

As well as working with schools, True Potential has helped create a school that could set disadvantaged people on the path to success.

Through its sister organisation, set up by company founder David Harrison, it supported the launch of the Beacon of Light in Sunderland. The initial £150,000 contribution from the Harrison Centre for Social Mobility (HCSM) to the sports and education facility was more than a mere financial donation, however.

During the coronavirus crisis, True Potential and its partners at the Foundation of Light stepped up their efforts to ensure people in disadvantaged communities were not further left behind.

The Foundation redeveloped the programmes delivered at the Harrison Centre – Back in the Game and Back on Track – to move to an inclusive e-learning programme of delivery.

All 34 Back on Track participants continued to be engaged by course tutors through Microsoft Teams, and for learners who did not have access to technology or the internet, tutors posted workbooks and course resources to learners at home and drove to participants houses to pick up learner work to continue the assessment process.

Harrison Centre learners completed qualifications across the four months of lockdown which included: Maths and English, Personal and Social Development, ICT, Sport, Health and Social Care and Customer Services, all of which had a module of managing finances embedded into the work programme. Learners have now returned to staggered classroom delivery with 98% of learners returning to face to face delivery.

It was the catalyst for a new education programme run by HCSM at the centre that aims to complement core skills in maths and English to inspire a new generation of innovators and entrepreneurs – and provide support and education for those that need it most.

The Beacon is located in Sunderland Central parliamentary constituency. Sunderland Central is ranked 24th out of the 29 North East constituencies for social mobility, according to a report by the House of Commons Library. In terms of youth social mobility, it is ranked 357th out of 533 English constituencies, placing it in the bottom third nationally.

The Harrison Centre at the Beacon hosts workshops which give teenagers and young people the skills, confidence and experience necessary to get on in the world of work.

There are four programmes in total aimed at ages 14 to 19+ and attracting young people from across the surrounding region, many of which are from disadvantaged backgrounds.

The young people True Potential engages with receive a head start in pursuing their career ambitions, but True Potential is rewarded too; by unearthing talent that could drive its business forward in future.

14 Opportunity Action Plan

On the Back in the Game programme, tutors developed 15 new programmes specifically designed to meet the needs of lockdown, engaging the adult learners and their children together in course activities to ensure positive family relationships over the course of lockdown.

Within three weeks, tutors had developed new schemes of work to provide accredited programmes focusing on health and wellbeing, physical activity, work skills and employability as well as managing finances and home cooking skills. Within a month of launching the programmes, the Foundation had enrolled 76 learners on programmes, offering daily contact with participants via Microsoft Teams to support participants through their programmes.

To ensure the hardest to reach learners can benefit from the Harrison Centre’s employability programmes, the team is taking forward examples of what has worked well in lockdown to include a mixed delivery approach from September, with online learning and face to face classroom delivery. Delivery over lockdown has been a real success and has generated new ways to support young people to make the most of their talents and potential.

Here are some highlights from The Harrison Centre at the Beacon:

BACK IN THE GAME (19+) A programme designed to support jobseekers across the North East in finding work by raising skills and confidence while assisting learners throughout the application to work process.

Additional industry qualifications added to the portfolio in 18/19 including: Engineering, ICT/Digital, Health and Social Care, Customer Service and Retail .

In 2019 over 150 adult learners accessed employability and industry specific qualifications through the Harrison Centre.

Further qualifications added to the portfolio in 19/20 included; Construction, Self-employment workshops and Hospitality.

Key outcomes of the Back in the Game programme include:

100%

100%

100%

of learners benefitting from work experience

of learners achieved qualifications

increased confidence

100%

100%

100%

increased health and fitness

increased knowledge of the labour market

financial awareness

76%

progressions from this programme into employment, training or education

15

Participant Examples Participant A completed the Back on Track programme from September 2019 to July 2020.

As part of the programme, the participant completed five different qualifications including a Level 2 certificate in Personal and Social Development and a GCSE in Maths. The GCSE in Maths was a significant barrier to this participants progression, as it really limited what options could be taken across employment, access to College or an apprenticeship.

The participant joined the Foundation as a shy 16 year-old, with a fear of public speaking and concerns around interacting with larger groups. The course tutor offered information, advice and guidance to identify a personalised timetable and learning programme that would help the participant establish what they wanted to do beyond the course. At the point of entry to the programme, the participant had no idea of life beyond the programme so the course tutor pulled a programme together that worked on employability to identify key skills which could then be mapped to a range of industries as the course progressed.

At the start of the course, a team building programme was established to help all participants work together and build confidence as a group. This really helped the participants get to know each other and for this participant in particular, really helped to ease anxieties on public speaking and engaging with their peers.

Participant B joined the Back on Track programme at Stanley in September 2019 and remained with the course until July 2020, successfully completing six qualifications.

During the programme, Participant B displayed inconsistent levels of motivation but academically was very gifted. There was no consideration for career choices beyond the course and had caring responsibilities at home for their Nan. When the participant joined the Foundation, the learner enjoyed sport and really engaged in the practical side of delivery.

As a result, when the tutor was devising the personal learning programme, Sport became one of the core aims of the course.

This really helped with motivation, with engagement levels becoming more consistent as the course progressed.

Running alongside this, the Foundation supported key employability skills through a Level 2 certificate in Personal and Social Development and supported the learner to achieve their Maths and English qualifications as part of the programme also.

16 Opportunity Action Plan

As the course progressed, the worries of public speaking became less and less and the participant ended up being one of the most vocal members of the group and a real mentor to some of the more quiet members, offering support during learning tasks and at challenging times in the course.

When the course was forced to teach online over the lock down period, the participant’s attendance remained high, with work always returned on time and to a high standard.

When the Foundation could return to face to face teaching at the end of June 2020, Participant A was one of the first learners to return to the classroom to complete their learning, achieving all five qualification aims, including Maths.

With support from the course tutor, Participant A applied for an apprenticeship at Caterpillar and although they had no idea what career they wanted to take, they knew they wanted to work at Caterpillar as their Granddad had worked their previously.

Participant A successfully passed the interview, with outstanding feedback from the panel and is now continuing their programme of study whilst following in Granddads footsteps at Caterpillar.

During lockdown, Participant B took the decision to move in with Nan and become a full-time carer which is a credit to the skills that were developed on the course and the true nature of this participant. During lockdown, Participant still engaged around their caring responsibilities and began to talk more about a career in public services, in particular the armed forces.

The course tutor facilitated the development of these aspirations, offering IAG in relation to the different careers on offer as part of the armed forces and what entry requirements each role had. Towards the end of the course, Participant B identified a Uniformed Public Services course at East Durham College.

The course tutor supported with the College application process and after a successful initial assessment and interview, Participant B has been accepted on to complete a Level 3 Uniformed Public Services qualification which started in September 2020.

BACK ON TRACK (16+) A programme which engages, inspires and educates young people aged 16-19 by helping them achieve nationally recognised qualifications, improve their numeracy and literacy skills and gain practical working experience.

Qualifications delivered include: Maths and English Functional Skills/GCSE , ICT/Digital, Health and Social Care, Personal and Social Development , Sport and Active Leisure, Customer Service and Retail.

In 2019 a total of 43 learners engaged on the programme with learners from Sunderland, South Tyneside and County Durham accessing the Harrison Centre for programme delivery.

Key outcomes of the Back on Track programme include:

100%

98%

100%

of learners achieving qualifications

pass rate in Maths and English

of learners increased their confidence, motivation and self-esteem

100%

100%

70%

of learners achieving a work placement

of learners increased their knowledge of the local labour market

progression into employment, education and training

17

HARRISON ENTERPRISE CHALLENGE In 2019 a total of 20 learners participated in developing presentations on ideas relating to increasing awareness of the importance of saving responsibly. Learners worked in teams to generate ideas for an app which would be engaging for their peers aged 16- 19.

The programme delivery was linked to their ICT qualification and not only provided learners with the opportunity to develop employability skills but also obtain a qualification at the end of delivery.

Key outcomes of the Back in the Game programme include:

100%

100%

100%

of learners increasing confidence

of learners achieved a qualification in ICT

of learners increasing ICT skills

100%

100%

of learners developing presentation and communication skills

of learners working as a team and building leadership skills

18 Opportunity Action Plan

APPRENTICESHIPS The Foundation’s apprentices have benefitted from receiving tuition from the Harrison Centre, allowing them to achieve key aspects of their qualification.

The cohort of 10 apprentices are completing a Level 2 or 3 Business Administration apprenticeship and are supporting our wider employability programme delivery as part of their off the job training.

Key outcomes of this programme include:

100%

100%

100%

achievement of qualifications

employment outcomes beyond their apprenticeships

learners achieving further qualifications following their apprenticeship including Level 4 qualifications in teaching.

100%

progression routes for apprentices with wider local employers

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Stage Two: Employment

Develop recruitment policies that reward talent, effort and determination, not the candidate’s connections or background.

In April 2018, True Potential became one of the first companies in the UK to sign the national Social Mobility Pledge.

Companies representing over seven million employees have since signed up, including John Lewis, Marks & Spencer, Vodafone, ITV, BT, Adidas and Thomas Cook. The Pledge commits businesses to working with schools, offering apprenticeships and adopting fair recruitment polices.

The latter point means that a person’s upbringing should not influence hiring decisions. To achieve this, True Potential uses an approach known as name-blind recruitment.

This is an extra safeguard against the risk of unfair bias for one candidate over another.

True Potential runs a thriving apprenticeships scheme that leads young people into exciting careers in the fast-moving worlds of financial services and technology.

Despite the UK going into lockdown and the after effects on the economy, True Potential has continued to thrive. It has grown its team with 58 new hires joining the firm during the coronavirus lockdown.

20 Opportunity Action Plan

THE EXPANSION OF ITS HEAD OFFICE TEAM IS A RESULT OF STRONG MANAGEMENT LEADING TO EVEN STRONGER FINANCIAL PERFORMANCE IN THE SECOND HALF OF 2020.

The firm recorded a £15.7 million profit between April and June at the height of the coronavirus crisis. The results meant True Potential was able to keep all 300 employees in full employment and nobody was furloughed.

The new recruits, who have joined the team between April and September 2020, will fulfil various roles within True Potential‘s head office, including customer support, technical support, IT software development, compliance and marketing.

This is yet further evidence that purpose and profitability go hand in hand, opening up new career opportunities underpinned by sustainable businesses.

Stage Three: Progression

Create a continuous pathway of opportunities that leads to rewarding jobs and ongoing career development.

Social mobility means more than simply opening up access to jobs. It means empowering people to go as far in life as their talents, hard work and attitude will take them, unhindered by unfair bias.

TRUE SOCIAL MOBILITY OCCURS WHEN AN INDIVIDUAL IS ABLE TO FULLY UNLOCK THEIR POTENTIAL AND CONTINUALLY BUILD ON IT. But True Potential is located in one of England’s cold spots for adult social mobility. Its neighbouring constituency, Newcastle upon Tyne Central is ranked 417th out of 533 in England for social mobility.

This underlines the need locally for stronger pathways, first into employment and then crucially, the opportunity to forge a career with the skills needed to thrive as the 4th Industrial Revolution approaches.

To dramatically improve the career trajectory of people from all backgrounds, True Potential opened its own academy.

The True Potential Academy is a conduit between the company’s various outreach and education activities and exciting careers in financial services and technology.

Harrison Centre students and apprentices are given the opportunity to join the academy.

Here they have the opportunity to learn about and experience many aspects of working life with True Potential.

They then may have the opportunity to secure full-time employment with the company. The academy is also open to existing staff who want to turbo-boost their career progress – or switch into a new field.

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Financial Mobility Limited personal finances, and a poor understanding of money management, can be detrimental to social mobility.

Becoming financially resilient better enables individuals to approach their career with a long-term perspective; and keep progress on track without the distraction debt or falling behind on payments.

Funding and completing training and educational courses may also require financial savviness and access to savings. To help address this, True Potential launched a series of free money management courses in partnership with the Open University in 2013.

This is part of the True Potential Centre for the Public Understanding of Finance (True Potential PUFin), a centre of excellence for research in the development of personal financial capabilities.

It works to improve the public understanding of personal finance through its research and the delivery of free modules providing individuals with the tools to make sound financial decisions.

More than 500,000 people across the UK have taken part in the courses and in doing so have improved their own financial resilience.

True Potential’s impulseSave app, which enables users to save as little as £1, also encourages people to become more financially stable by building up funds for the future.

With household finances likely to suffer in the coming months amid further redundancies and the winding down of the furlough scheme, financial education and guidance will be crucial.

15.9% 22 Opportunity Action Plan

True Potential’s Savings Gap survey – which tracks quarterly savings and debt – has long showed the influence of debt in thwarting regular saving activity.

But another enemy of personal financial stability is currently going unchecked. High and unnecessary recurring fees, taken from savings and investment pots, can significantly offset growth in personal finances.

At a time when people need as much financial advice as possible, many are being discouraged from seeking it because of this outmoded drain on funds, or worse still, unaware of the long term effects on their wealth.

Many savers are paying recurring fees for advice that was delivered years ago, at a cost based on the size of their assets, not the work involved in the advice itself.

True Potential believes a simpler and fairer solution would be to pay for advice upfront or - if the individual wanted to - spread the cost via a direct debit over several years.

With technology allowing savers to transparently track the performance of their investments and replacing costly manual visits from advisers, he ongoing advice fee is increasingly in need of a rethink.

As part of its campaign greater financial inclusion and resilience, True Potential is urging the Financial Conduct Authority (FCA) to look into this matter to protect savers and, in doing so, contribute to making Britain a more financially mobile nation.

Forecasting group the EY ITEM Club predicts that demand for consumer credit will fall 15.9 per cent in 2020.

MORE THAN 500,000 PEOPLE ACROSS THE UK HAVE TAKEN PART IN THE COURSES AND IN DOING SO HAVE IMPROVED THEIR OWN FINANCIAL RESILIENCE.

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Insights

True Potential has created an opportunity pathway that flows seamlessly from school to successful career within financial services.

This process begins with its unique approach to linking up with schools in disadvantaged areas; and continues on through work experience, fair recruitment and internal progression via its academy.

True Potential is driving access to opportunities in a sector which has long been dogged by the traits of low social mobility, like connections over competence and a focus on background above talent.

Furthermore, it is doing so not in the financial services’ City heartland, but in the North East of England, where such opportunities are in relative short supply or could traditionally only be accessed by leaving the region.

Through its work at the Beacon of Light, it is also inspiring young people to unlock their potential in many other sectors and professions; providing vital life lessons and raising aspirations.

24 Opportunity Action Plan

The company has made great progress in social mobility in recent years – and when this progress was threatened by Covid-19, it duly responded.

The continuation of its various programmes and approaches throughout the crisis, against the backdrop of record financial results, are indicative of a company fully committed to social mobility.

By feeding much of the proceeds of its success into programmes like the Beacon, meanwhile, a virtuous circle of profit with a purpose is created.

We hope the recommendations in the report enable the company to go even further, at a time when opportunity creation and access are in desperately high demand.

Recommendations True Potential’s approach to opportunity can be summarised in three words:

SIMPLE

For example, the Beacon’s straightforward but hugely impactful social mobility work.

EFFECTIVE UNIQUE

Showing what can be achieved by applying the Social Mobility Pledge principles at scale.

Developing solutions to problems; working with other businesses to drive and lead change.

These characteristics must continue to underpin the company’s work, while the following measures will further enhance its performance as an engine of social mobility: • Steps should be taken to ensure the faceto-face and online teaching provided by the Harrison Centre for Social Mobility are blended to reach and inspire as many individuals as possible in current conditions.

• Strive towards offering 100 per cent of work experience opportunities to young people in surrounding social mobility coldspots.

• Measure and publish True Potential’s progress in redirecting its efforts towards those furthest away from opportunity, setting a standard for others to follow.

• Reframe relationships with universities and suppliers to take into account their own progress on social mobility and social value.

• Become a recognised leader in social mobility, advocating for a new purpose-focused approach directed at less privileged communities • Develop solutions to expand the success of the Harrison Centre at the Beacon of Light, to help countries, cities and corporations around the world support the progress of less privileged young people.

25

True Potential Analysis

Part A - Social Mobility True Potential is a large financial services company based in Newcastle.

Social Mobility research conducted in 323 local authorities in England and Wales shows the top 20% of local authorities are labelled as ‘hotspots’, areas where social mobility is good, and the bottom 20% of local authorities are identified as ‘coldspots’, areas where social mobility is poor.

It is important to note that just because an area is designated a hot or cold spot based on the current rankings, that is not the complete picture. An area which is a social mobility hotspot for most indices can also mask sharp decline in social mobility at different life stages such as early years.

These complexities highlight that social mobility cannot be tackled with a ‘one size fits all approach’. Therefore, a thorough understanding of the challenges those individual communities face is vital and we assess social mobility below through those life stages.

NORTH TYNESIDE NEWCASTLE UPON TYNE

SOUTH TYNESIDE GATESHEAD

SUNDERLAND

26 Opportunity Action Plan

True Potential Analysis

NEWCASTLE NORTH

NEWCASTLE CENTRAL

NORTH TYNESIDE

BLYTH VALLEY

Head Office 105/533 Constituencies

Commuter Area 248/533 Constituencies

Commuter Area 234/533 Constituencies

Commuter Area 477/533 Constituencies

GATESHEAD

SUNDERLAND CENTRAL

Commuter Area 211/533 Constituencies

Harrision Centre 320/533 Constituencies

27

True Potential Analysis

Newcastle upon Tyne North Newcastle upon Tyne North is the location of True Potential’s Head Office. Three of its indicators are in the top 100 rankings and just 1 is in the bottom 100; across all life stages, Newcastle upon Tyne North ranks at 105/533 on the Social Mobility Index.

Newcastle upon Tyne North is a social mobility hotspot, but does face issues in the youth stage in particular.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Newcastle upon Tyne North performs extremely well at 13/533.

Ninety-seven per cent of nurseries in the constituency are rated as good or outstanding

by Ofsted, better than the national average of 93% and ranking Newcastle upon Tyne North as 57/533 for this measure.

The youth stage sees Newcastle upon Tyne North’s worst ranking at 448/533. Eighty-four per cent of young people who were eligible for free school meals find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4, the single worst score across all life stages.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Newcastle upon Tyne North is ranked 44/533; 60% of those children achieve a good level compared to the national average of 53%.

Less (28%) FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, those that do take A Levels will have an average points score per entry of 25. Newcastle upon Tyne North ranks at 355 and 347 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 78/533 at the school stage, Newcastle upon Tyne North is again in the top 100 constituencies. Ninety-two per cent of pupils eligible for free school meals attend good or outstanding primary schools, with 55% of them achieving the expected level in reading, writing, and maths at the end of Key Stage, the national average being 39%. This is a top ranking.

At the adulthood life stage, Newcastle upon Tyne North recovers slightly to rank at 217/533.

Slightly more (26%) jobs pay less than the real living wage, and average earnings are £436 weekly – the English average is £443. Housing is six times the annualised salary, the 159th area in England (where houses are eight times the annualised salary), but home ownership is still lower than average at 64%.

At secondary level indicators are worse, with attendance of FSM eligible pupils at good or outstanding schools only 68%, and an average Attainment 8 score of 37 places Newcastle upon Tyne North below the 39 average.

28 Opportunity Action Plan

The percentage of jobs in the area that are managerial and professional stands at 31%, ranking Newcastle upon Tyne North at 233/533 for this measure.

True Potential Analysis

Early Years, 13 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Newcastle upon Tyne North

97

60

England

93

53

Area

Schools, 78

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Newcastle upon Tyne North

92

55

68

37

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Newcastle upon Tyne North

84

25

28

England

88

26

34

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Newcastle upon Tyne North

436

6

31

26

64

England

443

8

30

25

65

Youth, 448

Adulthood, 217

Area

29

True Potential Analysis

Newcastle upon Tyne Central Newcastle upon Tyne Central is a commuter location for True Potential workers. Only 1 of its indicators is in the top 100 rankings compared to 3 in the bottom 100; across all life stages, Newcastle upon Tyne Central ranks at 248/533 on the Social Mobility Index.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Newcastle upon Tyne Central performs very well at 49/533.

Ninety-seven per cent of nurseries in the constituency are rated as good or outstanding

by Ofsted, better than the national average of 93% and ranking Newcastle upon Tyne Central as 45/533 for this measure.

The youth stage sees Newcastle upon Tyne Central fall further to rank at 343/533. Eighty-seven per cent of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Newcastle upon Tyne Central is ranked 157/533; 56% of those children achieve a good level compared to the national average of 53%.

Only 24% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, but those that do take A Levels will have an average points score per entry of 28. Newcastle upon Tyne Central ranks at 469 and 181 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 336/533 at the school stage, Newcastle upon Tyne Central is in the bottom 40% of constituencies. Eighty percent of pupils eligible for free school meals attend good or outstanding primary schools, with 41% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39%.

At the adulthood life stage, Newcastle upon Tyne Central ranks worst at 417/533. Although more (79%) of jobs pay at least the real living wage, average earnings are only £357 weekly – the English average is £443. Housing is relatively cheap, at 5 times the annualised salary, but despite this home ownership is only at 48%, the 39th worst area for this measure.

At secondary level, attendance of FSM eligible pupils at good or outstanding schools is lower than average at 65%, consequently the average Attainment 8 score of 37 places Newcastle upon Tyne Central in the bottom third of constituencies.

The percentage of jobs in the area that are managerial and professional stands at 28%, ranking Newcastle upon Tyne Central at 317/533 for this measure.

30 Opportunity Action Plan

True Potential Analysis

Early Years, 49 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Newcastle upon Tyne Central

97

56

England

93

53

Area

Schools, 336

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Newcastle upon Tyne Central

80

41

65

37

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Newcastle upon Tyne Central

87

28

24

England

88

26

34

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Newcastle upon Tyne Central

357

5

28

21

48

England

443

8

30

25

65

Youth, 343

Adulthood, 417

Area

31

True Potential Analysis

North Tyneside North Tyneside is a commuter area for True Potential workers. Four of its indicators are in the top 100 rankings and only is in the bottom 100; across all life stages, North Tyneside is an average constituency, ranking at 234/533 on the Social Mobility Index.

Early Years Life Stage

Youth Life Stage

At the early years life stage, North Tyneside performs best at 136/533. Ninety-seven percent of nurseries in the constituency are rated as good or outstanding by Ofsted, better than the national average of 93% and ranking North Tyneside as the 50th best area for this measure.

The youth stage sees North Tyneside fall to rank at 307/533. Eighty-nine per cent of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, North Tyneside is ranked 338/533; 51% of those children achieve a good level compared to the national average of 53%.

27% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, those that do take A Levels will have an average points score per entry of 25. North Tyneside ranks at 377 and 344 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 166/533 at the school stage, North Tyneside is in the top third of constituencies.

Ninety-five per cent of pupils eligible for free school meals attend good or outstanding primary schools, with 45% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39%.

At the adulthood life stage, North Tyneside ranks worst at 413/533. Twenty-eight percent of jobs pay less than the real living wage, average earnings are £392 weekly – the English average is £443.

Housing is 5 times the annualised salary, the 86th best area in England but home ownership is only at 62%, below the average.

At secondary level, attendance of FSM eligible pupils at good or outstanding schools is 73%, only slightly above average, but an average Attainment 8 score of 34, lower than the 39 average places North Tyneside at 474/533.

32 Opportunity Action Plan

The percentage of jobs in the area that are managerial and professional stands at only 21%, ranking North Tyneside as the 53rd worst area for this metric.

True Potential Analysis

Early Years, 136 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

North Tyneside

97

51

England

93

53

Area

Schools, 166

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

North Tyneside

95

45

73

34

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

North Tyneside

89

25

27

England

88

26

34

Area

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

North Tyneside

392

5

21

28

62

England

443

8

30

25

65

Youth, 307

Adulthood, 413

33

True Potential Analysis

Blyth Valley Blyth Valley is a commuter area for True Potential workers. With only 1 of its indicators in the top 100 rankings and 4 in the bottom 100, Blyth Valley ranks at 477/533 on the Social Mobility Index. It is a social mobility coldspot, and the worst of True Potential’s locations.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Blyth Valley performs best 237/533, its only ranking in the top 70%. Ninety-five percent of nurseries in the constituency are rated as good or outstanding

by Ofsted, better than the national average of 93% and ranking Blyth Valley as 163/533 for this measure.

The youth stage sees Blyth Valley rise slightly to rank at 473/533 but on all measures it is still well below average. Only 85% of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Blyth Valley is ranked 328/533; only 51% of those children achieve a good level compared to the national average of 53%.

Just 25% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, and those that do take A Levels will have an average points score per entry of only 23. Blyth Valley ranks at 435 and 425 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 483/533 at the school stage, Blyth Valley is 50th worst constituency. Only 75% of pupils eligible for free school meals attend good or outstanding primary schools, with just 36% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39%.

At the adulthood life stage, Blyth Valley ranks at 389/533. With 28% of jobs paying less than the real living wage, average earnings are £406 weekly – the English average is £443. Housing is 5 times the annualised salary, the 91st cheapest area in England (where houses are eight times the annualised salary), but home ownership is stubbornly at 65%, average for this measure.

At secondary level, attendance of FSM eligible pupils at good or outstanding schools is 46%, making Blyth Valley the 73rd worst constituency, and an average Attainment 8 score of 34 places Blyth Valley at the 55th worst.

34 Opportunity Action Plan

The percentage of jobs in the area that are managerial and professional stands at just 19%, ranking Blyth Valley as the 29th worst area for this measure.

True Potential Analysis

Early Years, 237 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Blyth Valley

95

51

England

93

53

Area

Schools, 483

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Blyth Valley

75

36

46

34

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Blyth Valley

85

23

25

England

88

26

34

Area

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Blyth Valley

406

5

19

28

65

England

443

8

30

25

65

Youth, 473

Adulthood, 389

35

True Potential Analysis

Blaydon Blaydon is a commuter constituency for True Potential workers. Three of its indicators are in the top 100 rankings and only 2 are in the bottom 100; across all life stages, Blaydon ranks at 161/533 on the Social Mobility Index. While not a social mobility hotspot, it is still in the top third of constituencies.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Blaydon performs extremely well at 26/533. All of the nurseries in the constituency are rated as good or outstanding by Ofsted, ranking Blaydon as the best constituency for this measure.

The youth stage sees Blaydon fall to rank at 409/533. Eighty-six per cent of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Blaydon is ranked just 265/533; 53% of those children achieve a good level, matching the average.

27% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, those that do take A Levels will have an average points score per entry of 24. Blaydon ranks at 373 and 392 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 155/533 at the school stage, Blaydon is in the top 30% of constituencies. Eighty-eight per cent of pupils eligible for free school meals attend good or outstanding primary schools, with 50% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39% and ranking Blaydon at 37/533.

At the adulthood life stage, Blaydon ranks at 280/533. Sixty-seven percent of jobs pay less than the real living wage, and average earnings are £434 weekly – the English average is £443.

Housing is 5 times the annualised salary, the 55th best area in England (where houses are eight times the annualised salary), and home ownership is at 69%, above average for this measure.

But at secondary level, attendance of FSM eligible pupils at good or outstanding schools is just 38%, making Blaydon a bottom 50 constituency.

However, an average Attainment 8 score of 42 places Blaydon at 115/533.

The percentage of jobs in the area that are managerial and professional stands at 27%, ranking Blaydon at 332/533 for this measure.

36 Opportunity Action Plan

True Potential Analysis

Early Years, 26 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Blaydon

100

53

England

93

53

Area

Schools, 155

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Blaydon

88

50

38

42

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Blaydon

86

24

27

England

88

26

34

Area

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Blaydon

434

5

27

33

69

England

443

8

30

25

65

Youth, 409

Adulthood, 280

37

True Potential Analysis

Gateshead Gateshead is a constituency containing many commuting workers at True Potential.

Three of its indicators are in the top 100 rankings and 4 are in the bottom 100; across all life stages, Gateshead ranks at 211/533 on the Social Mobility Index. Gateshead is an above average area for social mobility.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Gateshead performs best, with a top 100 ranking at 82/533. Ninetyeight percent of nurseries in the constituency are rated as good or outstanding by Ofsted, better the national average of 93% and ranking Gateshead as 31/533 for this measure.

The youth stage sees Gateshead fall to rank at 303/533. Eight-six per cent of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Gateshead is only average; 53% of those children achieve a good level.

Only 25% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, but those that do take A Levels will have an average points score per entry of 29, higher than average. Gateshead ranks at 449 and 115 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 175/533 at the school stage, Gateshead is in the top third of constituencies.

Ninety per cent of pupils eligible for free school meals attend good or outstanding primary schools, with 49% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39%.

At the adulthood life stage, Gateshead ranks at 419/533 – its worst score. Although only 23% of jobs pay less than the real living wage, average earnings are £389 weekly – the English average is £443. Housing is 5 times the annualised salary, the 66th most affordable area in England (where houses are eight times the annualised salary), but home ownership is at 52%, the 61st worst area for this measure.

At secondary level, attendance of FSM eligible pupils at good or outstanding schools is only 34%, making Gateshead the 37th worst constituency, but an average Attainment 8 score of 41, above the average, places Gateshead at 129/533.

38 Opportunity Action Plan

The percentage of jobs in the area that are managerial and professional stands at just 21%, ranking Gateshead at 478/533 for this measure.

True Potential Analysis

Early Years, 82 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Gateshead

98

53

England

93

53

Area

Schools, 175

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Gateshead

90

49

34

41

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Gateshead

86

29

25

England

88

26

34

Area

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Gateshead

389

5

21

23

52

England

443

8

30

25

65

Youth, 303

Adulthood, 419

39

True Potential Analysis

Sunderland Central Sunderland Central is the location of the Beacon of Light, a partner organisation of True Potential. Three of its indicators are in the top 100 rankings, but weak performance in others sees Sunderland Central ranks at 320/533 on the Social Mobility Index across all life stages.

Early Years Life Stage

Youth Life Stage

At the early years life stage, Sunderland Central performs most poorly at 446/533. Ninety percent of nurseries in the constituency are rated as good or outstanding by Ofsted, worse than the national average of 93% and ranking Sunderland Central as 429/533 for this measure.

The youth stage sees Sunderland Central fall to rank at 357/533. Eighty-eight percent of young people who were eligible for free schools find themselves in a positive destination (defined as being in education, employment, or training) after completing Key Stage 4.

In the other measure for this life stage, the percentage of children eligible for free school meals achieving a ‘good level of development’, Sunderland Central is ranked 351/533; only 51% of those children achieve a good level compared to the national average of 53%.

But only 27% of FSM-eligible young people will achieve two or more A Level or equivalent qualifications by age 19, and those that do take A Levels will have an average points score per entry of 25. Sunderland Central ranks at 386 and 339 for these measures respectively.

School Life Stage

Adulthood Life Stage

Ranking at 94/533 at the school stage, Sunderland Central is in the top 20% of constituencies. Ninety-eight per cent of pupils eligible for free school meals attend good or outstanding primary schools, with 48% of them achieving the expected level in reading, writing, and maths at the end of Key Stage 2, the national average being 39%.

At the adulthood life stage, Sunderland Central ranks at 319/533. Although 26% of jobs pay less than the real living wage, average earnings are £387 weekly – the English average is £443.

Housing is five times the annualised salary, the 63 area in England (where houses are eight times the annualised salary), and home ownership is at 66%, the 275 area for this measure.

Although at secondary level, attendance of FSM eligible pupils at good or outstanding schools is only 62%, there is no impact on the average Attainment 8 score which at 39 matches the average.

The percentage of jobs in the area that are managerial and professional stands at 22%, ranking Sunderland Central at 455/533 for this measure.

40 Opportunity Action Plan

True Potential Analysis

Early Years, 446 Percentage of Nursery providers rated outstanding or good by Ofsted

Percentage of children eligible for free school meals achieving a good level of development

Sunderland Central

90

51

England

93

53

Area

Schools, 94

Area

Percentage of children eligible for FSM attending a primary school rated outstanding or good

by Ofsted

Percentage of children eligible for FSM achieving at least the expected level in reading, writing and maths at the end of Key Stage 2

Percentage of children eligible for FSM attending a secondary school rated outstanding or good by Ofsted

Average Attainment 8 score for pupils eligible for FSM

Sunderland Central

98

48

62

39

England

83

39

72

39

Area

Percentage of young people eligible for FSM that are not in education, employment or training (positive destination) after completing KS4

Average points score per entry for young people eligible for FSM at age 15 taking A-level or equivalent qualification

Percentage of young people eligible for FSM at age 15 achieving two or more A-Levels or equivalent by the age of 19

Sunderland Central

88

25

27

England

88

26

34

Area

Median weekly salary of all employees who live in the local area

Average house prices compared to median annual salary of employees who live in the local area

Percentage of people that live in the local area who are in managerial and professional occupations

Percentage of jobs that are paid less than the applicable Living Wage Foundation living wage

Percentage of families with children who own their home

Sunderland Central

387

5

22

26

66

England

443

8

30

25

65

Youth, 357

Adulthood, 319

41

True Potential Analysis

Part B - Coronavirus As well as considering the social mobility baseline for a community, our analysis also reflects the developing impact of Coronavirus on opportunity.

The Office for Budget Responsibility’s Covid Reference Scenario predicts that the economy of the United Kingdom will contract by 35%, with unemployment potentially peaking at 10million.

But just like the issue of social immobility, the impact of the coronavirus pandemic is varied across the UK. While the 35% national average figure is high in itself, it is the case that some areas – predominantly in the North West and Midlands – will see their economic growth reduce by almost 50%. Only one of the twenty hardest hit areas are in the South East or London.

In addition to the significant diversity of geographic impact estimated by the Centre for Progressive Policy, the Resolution Foundation point to previous data suggesting that there is likely to be a large impact on those leaving full time education and graduating into an economy in the midst of turmoil. In the 2008 Recession, the unemployment rate across the whole population rose from 5.2% in 2007 to 8.5% in 2011; for those with GCSE equivalent qualifications the unemployment figures were 22% in 2007 and 32% in 2011.

An exacerbating factor for those leaving full time education without a degree is the varied impact of the virus on different sectors of the economy.

While sectors such as financial sectors will emerge from the coronavirus pandemic relatively unscathed, with a contraction of just -5%, sectors like retail and hospitality, which have a higher proportion of workers who haven’t completed higher education, will contract by -50% and

42 Opportunity Action Plan

-85% respectively. See Appendix 1.

So the data suggests a varied and profound impact across locations, ages, and education levels. This has a worrying impact for social mobility in the United Kingdom, as we predict that 8 out of 14 measures used to calculate social mobility will be impacted.

We have combined existing place based social mobility analysis with the predicted impact of coronavirus to estimate the size of a communities developing “Opportunity Gap” and ranked these throughout England.

FROM OUR ANALYSIS WE BELIEVE THAT THERE ARE 16 AREAS IN ENGLAND AT RISK OF A ‘DOUBLE OPPORTUNITY HIT’: ALREADY AMONGST THE WORST AREAS FOR SOCIAL MOBILITY, THEY ARE GOING TO BE PARTICULARLY BADLY HIT BY CORONAVIRUS. These areas are Babergh, Bolsover, Broxtowe, Cannock Chase, Corby, Crawley, EastCambridgeshire, East Northamptonshire, Erewash, Melton, North Warwickshire, Norwich, Rutland, South Derbyshire, Tamworth and Wellingborough. See Appendix 2.

A list of the top 20% areas with the largest opportunity gap is included in Appendix 3, we refer to these as “COVID Opportunity Coldspots.”

True Potential Analysis

Northumberland’s Economy 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

GVA (£m)

222

122

295

287

280

53

466

44

984

175

175

930

162

509

156

GVA (%)

4.6

2.5

6.1

5.9

5.8

1.1

9.6

0.9

20.2

3.6

3.6

19.1

3.3

10.5

3.2

Decline (%)

-85

-40

-17

-70

-90

-5

50

-45

-55

-40

-20

-20

-35

-50

-60

Sector 1

Northumberland’s biggest sectors are manufacturing, real estate, wholesale and retail, human health, and agriculture &c.

Northumberland’s largest sectors

One of these, manufacturing, is in the biggest impacted sectors. Northumberland’s economy is predicted to contract by 36.3%, slightly worse than the UK average.

A human health sector that is large compared to many sectors in Northumberland and the presence of large agriculture sector, which is amongst the least impacted sectors, helps prevent worse shocks, but Northumberland’s Opportunity Gap remains the largest in True Potential’s area.

Biggest impacted sectors

Sector

GVA (£m)

Manufacturing

984

Real estate

930

Wholesale and retail

509

Human health

466

Agriculture &c

295

Sector Sector

GVA (£m)

Education

-90%

Accommodation and food

-85%

Construction

-70%

Other services

-60%

Manufacturing

-55%

Sector Key: 1 accommodation and food services; 2 administrative and support services; 3 agriculture, mining, electricity, gas, water, and waste; 4 construction; 5 education; 6 financial and insurance activities; 7 human health and social work activities; 8 information and communication; 9 manufacturing; 10 professional, scientific, and technical activities; 11 public administration and defence; 12 real estate activities; 13 transportation and storage; 14 wholesale and retail (including repair of motor vehicles); 15 other.

1

43

True Potential Analysis

Gateshead’s Economy 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

GVA (£m)

133

203

60

303

190

58

273

153

744

137

309

475

198

639

106

GVA (%)

3.3

5.1

1.5

7.6

4.8

1.5

6.9

3.8

18.7

3.4

7.8

11.9

5.0

16.1

2.7

Decline (%)

-85

-40

-17

-70

-90

-5

50

-45

-55

-40

-20

-20

-35

-50

-60

Sector 2

Gateshead’s biggest sectors are manufacturing, wholesale and retail, real estate, public administration and defence, and construction.

Gateshead’s largest sectors

Two of these, manufacturing and construction, are also in the five most impacted sectors.

Overall, Gateshead’s economy is predicted to contract by 40.1% - the worst impacted of True Potential’s locations.

However, the area’s relatively strong ranking on the social mobility index prevent a larger Opportunity Gap from opening up – though the need for a recovery plan is most acutely felt here nevertheless.

Biggest impacted sectors

Sector

GVA (£m)

Manufacturing

744

Wholesale and retail

639

Real estate

475

Public admin

309

Construction

303

Sector Sector

GVA (£m)

Education

-90%

Accommodation and food

-85%

Construction

-70%

Other services

-60%

Manufacturing

-55%

Sector Key: 1 accommodation and food services; 2 administrative and support services; 3 agriculture, mining, electricity, gas, water, and waste; 4 construction; 5 education; 6 financial and insurance activities; 7 human health and social work activities; 8 information and communication; 9 manufacturing; 10 professional, scientific, and technical activities; 11 public administration and defence; 12 real estate activities; 13 transportation and storage; 14 wholesale and retail (including repair of motor vehicles); 15 other.

2

44 Opportunity Action Plan

True Potential Analysis

North Tyneside’s Economy 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

GVA (£m)

103

393

54

251

173

212

449

676

382

377

154

608

86

367

134

GVA (%)

2.3

8.9

1.2

5.7

3.9

4.8

10.2

15.3

8.6

8.5

3.5

13.8

1.9

8.3

3.0

Decline (%)

-85

-40

-17

-70

-90

-5

50

-45

-55

-40

-20

-20

-35

-50

-60

Sector 3

North Tyneside’s biggest sectors are information and communication, real estate, human health, administrative and support services, and manufacturing.

North Tyneside’s largest sectors

Only one of these, manufacturing, is also in the worst impacted sectors. The large human health sector, which makes up over 10% of the area’s GVA, is able to provide a buffer against economic shocks, and North Tyneside’s economy is predicted to shrink by ‘just’ 33.6%, less than the 35% UK average.

Biggest impacted sectors

Sector

GVA (£m)

Information and communication

676

Real estate

608

Human health

449

Admin

393

Manufacturing

382

Sector Sector

GVA (£m)

Education

-90%

Accommodation and food

-85%

Construction

-70%

Other services

-60%

Manufacturing

-55%

Sector Key: 1 accommodation and food services; 2 administrative and support services; 3 agriculture, mining, electricity, gas, water, and waste; 4 construction; 5 education; 6 financial and insurance activities; 7 human health and social work activities; 8 information and communication; 9 manufacturing; 10 professional, scientific, and technical activities; 11 public administration and defence; 12 real estate activities; 13 transportation and storage; 14 wholesale and retail (including repair of motor vehicles); 15 other.

3

45

True Potential Analysis

Newcastle upon Tyne’s Economy 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

GVA (£m)

346

479

34

328

688

592

1030

820

452

582

876

934

362

668

526

GVA (%)

4.0

5.5

0.4

3.8

7.9

6.8

11.8

9.4

5.2

6.7

10.0

10.7

4.2

7.7

6.0

Decline (%)

-85

-40

-17

-70

-90

-5

50

-45

-55

-40

-20

-20

-35

-50

-60

Sector 4

Newcastle upon Tyne’s biggest sectors are human health, real estate, public admin, information and communication, and education.

Newcastle’s largest sectors

Only one of these, education, is amongst the biggest impacted sectors, but it is the single most impacted sector. The very large human health and social care sector is able to act as a slight buffer to this, and Newcastle’s economy is predicted to decline by 32.6%.

That, combined with a decent position on the Social Mobility Index, see Newcastle as the area with the 39th least big Opportunity Gap.

Biggest impacted sectors

Sector

GVA (£m)

Human health

1030

Real estate

934

Public admin

876

Information and communication

820

Education

688

Sector Sector

GVA (£m)

Education

-90%

Accommodation and food

-85%

Construction

-70%

Other services

-60%

Manufacturing

-55%

Sector Key: 1 accommodation and food services; 2 administrative and support services; 3 agriculture, mining, electricity, gas, water, and waste; 4 construction; 5 education; 6 financial and insurance activities; 7 human health and social work activities; 8 information and communication; 9 manufacturing; 10 professional, scientific, and technical activities; 11 public administration and defence; 12 real estate activities; 13 transportation and storage; 14 wholesale and retail (including repair of motor vehicles); 15 other.

4

46 Opportunity Action Plan

True Potential Analysis

Sunderland’s Economy 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

GVA (£m)

108

177

912

301

325

642

912

293

1374

90

407

602

303

504

169

GVA (%)

1.5

2.5

12.8

4.2

4.6

9.0

12.8

4.1

19.3

1.3

5.7

8.5

4.3

7.1

2.4

Decline (%)

-85

-40

-17

-70

-90

-5

50

-45

-55

-40

-20

-20

-35

-50

-60

Sector 5

Sunderland’s biggest sectors are manufacturing, human health, administrative and support services, financial and insurance activities, and real estate.

Sunderland’s largest sectors

While Sunderland’s single biggest sector, manufacturing, is one of the most impacted sectors by coronavirus, the large human health sector (predicted to grow) and large financial sector (minimally impacted) are able to provide comfortable buffers to Sunderland: its economy will contract by ‘just’ 27.8%, the ninth least impacted area in England.

This prevents significant Opportunity Gaps from developing, with Sunderland being the 30th least vulnerable area to widening opportunity as a result of the coronavirus crisis.

Biggest impacted sectors

Sector

GVA (£m)

Manufacturing

1374

Human health

912

Admin

912

Financial

642

Real estate

602

Sector Sector

GVA (£m)

Education

-90%

Accommodation and food

-85%

Construction

-70%

Other services

-60%

Manufacturing

-55%

Sector Key: 1 accommodation and food services; 2 administrative and support services; 3 agriculture, mining, electricity, gas, water, and waste; 4 construction; 5 education; 6 financial and insurance activities; 7 human health and social work activities; 8 information and communication; 9 manufacturing; 10 professional, scientific, and technical activities; 11 public administration and defence; 12 real estate activities; 13 transportation and storage; 14 wholesale and retail (including repair of motor vehicles); 15 other.

5

47

In partnership with HCSM and the Social Mobility Pledge

E: discover@tpllp.com T: 0871 700 0007 Head Office: Gateway West, Newburn Riverside, Newcastle upon Tyne, NE15 8NX True Potential LLP is registered in England & Wales as a Limited Liability Partnership No. OC380771.