Network Rail Thameslink Programme · 2019-06-17 · Network Rail Thameslink Programme (NR TLP), ......

Report prepared for

Network Rail Thameslink Programme

Social value achieved by

Network Rail Thameslink Programme;

January 2013 to March 2017

Report prepared by:

Liz Holford MBA MCIPS – Senior Consultant

Action Sustainability

1st Floor, 2 Angel Square

London, EC1V 1NY

www.actionsustainability.com

[email protected]

t: 077 100 82 221 11th December 2017

http://www.actionsustainability.com/

mailto:[email protected]

[email protected] 11th December 2017 2 |39 P a g e s

Contents 1. Executive Summary ......................................................................................................................... 3

2. Purpose ........................................................................................................................................... 3

3. About Network Rail Thameslink Programme.................................................................................. 4

4. Contractor contributions ................................................................................................................ 5

5. Social value generated .................................................................................................................... 6

a. Inputs – what NR TLP has put into the community .................................................................... 6

b. Outputs – what’s been done for the community ....................................................................... 7

c. Outcomes – the impact of activities in communities ................................................................. 9

6. Challenges ..................................................................................................................................... 14

7. Opportunities ................................................................................................................................ 15

8. Cost versus value .......................................................................................................................... 17

a. Workplace co-ordination manager ........................................................................................... 17

b. Apprentices ............................................................................................................................... 17

c. National Skills Academy ............................................................................................................ 18

d. Volunteering ............................................................................................................................. 19

9. Key lessons learnt ......................................................................................................................... 20

9. Beneficiaries .................................................................................................................................. 21

Appendix 1: NR TLP organisational structure and activities ................................................................. 32

a. Policy and strategy .................................................................................................................... 32

b. Governance, leadership and implementation .......................................................................... 33

c. Supply chain .............................................................................................................................. 33

d. Measurement and reporting .................................................................................................... 34

e. Risk and opportunity management .......................................................................................... 34

Appendix 2: Social value calculations ................................................................................................... 35

a. Collection of data and information ........................................................................................... 35

b. Methodology behind calculations ............................................................................................ 35

c. Calculations ............................................................................................................................... 37

d. Information about financial proxies ......................................................................................... 38


1. Executive Summary

Network Rail Thameslink Programme generates, monitors and reports social value inputs, outputs

and outcomes, from at least two tiers of its supply chain. It’s approach to doing so is systematic;

flowing from policy and strategy established in 2011/12, through a governance structure, to a

resourced system for implementation, data and information collection and reporting.

By applying financial proxies (from Office of National Statistics and the HACT Social Value Bank) to

outputs and outcomes, total social value benefits to a financial value of almost £8 million.

Social output or outcome Social value

Wages offered by 193 job opportunities shared with people around major works £6 million

88 apprenticeships in London £331,232

15 NVQs (level 1 or 2) gained by unemployed Southwark residents £26,970

88 short courses completed by unemployed Southwark residents £194,128

87 certified construction skills courses completed by people wanting to enter the industry

£191,922

66 previously unemployed Southwark residents entered and remained in work for at least 6 months

£949,080

Charity fundraising & donations £82,000

Total £7,775,332

Of this, at least £1.37 m is unlikely to have been generated without the employment of a Workplace

Co-ordination Manager. The cost of that role totals £318,750. The role has generated in social value,

therefore, of at least 4.26 times its cost.

2. Purpose

The purpose of this document is to summarise:

• The social value generated during the Key Output 2 phase of Network Rail Thameslink

Programme (NR TLP), between January 2013 and March 2017

• The organisational structure and activities that have enabled that social value to be

generated and learning from them.

It is intended that this document will be part of the legacy left by NR TLP when the programme is

completed, and teams disbanded, in 2018.

The methodology used to prepare this document is explained in appendix 2.


3. About Network Rail Thameslink Programme

Network Rail Thameslink Programme (NR TLP), part of Network Rail’s1 2 upgrade Plan, is transforming north-south travel through London by modernising landmark stations, introducing new, longer trains and increasing journey options for the millions of passengers that use one of the busiest stretches of railway each year. When complete in 2018 it will give passengers:

• New longer and more spacious trains running every 2 to 3 minutes through central London in the peak

• Improved connections and better options to more destinations on an expanded Thameslink network including Cambridge and Peterborough

• More robust tracks and state-of-the art signalling and more reliable trains to make journeys more reliable

• Completely rebuilt stations at Blackfriars and London Bridge.

The major aspects of NR TLP’s Key Output 2 works are:

• Major track, signalling and station remodelling works at London Bridge station

• Creation of a grade-separated junction at Bermondsey (“Bermondsey Dive Under”)

• New permanent way and overhead line equipment at Canal Tunnels, just north of St Pancras

station in north London

• Electricity-supply enhancement works; creation of 11 new feeder stations/sub-stations,

upgrade of a further 21 and conversion of 9

• New track sectioning/paralleling equipment installation in 9 locations and upgrades in a

further 4.

Previous (Key Output 1) NR TLP activity has included the remodelling of Farringdon and Blackfriars

stations. The impacts of those works are not addressed in this document.

1 Network Rail is a public-sector organisation that reports into the Department for Transport 2 N.B. NR TLP is an entirely different entity to the Thameslink train operating company, which runs the trains

on the infrastructure that NR TLP is upgrading.

http://www.thameslinkprogramme.co.uk/

http://www.networkrail.co.uk/

http://www.thameslinkrailway.com/


4. Contractor contributions

Permanent and short-term employees from the following companies have contributed to achieving

social value on NR TLP:

Client organisation Network Rail

First tier contractors Balfour Beatty Rail, Costain, Carillion, Siemens Rail Automation,

Skanska, UKPNS

Supply chain members All Stay, Anglewest, Bachy, BCL, BPH, Bowercross Construction,

Cleshar, Cofely, Grimshaw, HM Security Services, Keltbray, MITIE, NG

Bailey, PAD, Prater, Promanex, Pyramid, Severfield, Shannon Rail, SRA,

Sweett Group, Woodlands

Their work has been externally recognised:

At the International Corporate Social Responsibility awards (9 June 2017) NR TLP won gold for its ‘community commitment’, and praise for its established programme of community outreach.

The Network Rail and Costain team behind the £1bn London Bridge station redevelopment project, was recognised as the ‘Greatest Contribution to London’ by the Institute of Civil Engineers. Socially beneficial features identified include improved station accessibility for a wider range of people and design that connects communities on both sides of the station.

https://www.youtube.com/watch?v=P5eJjwMOH8Q

The London Bridge Station Redevelopment (LBSR) project received highly commended for Sustainability at the National Rail Awards 2016

Balfour Beatty Rail won a Bronze Green Apple Award for the Built Environment Community Project

2016.

NR TLP has won additional awards for its wider sustainability work, including CEEQUAL ‘excellent’

awards.

https://www.youtube.com/watch?v=P5eJjwMOH8Q


5. Social value generated

a. Inputs – what NR TLP has put into the community

1 National Skills Academy

established at London Bridge station, that has co-ordinated delivery of many

SV outputs and outcomes

We’re an employer partner in 1

University Technical College; Sir Simon Milton Westminster UTC

Our people have worked to develop skills, career ambition and safety of students at:

12 primary Schools

28 secondary

Schools

4 schools for pupils with

special educational

needs

5 colleges

5 universities

And people approaching release in 3 prisons

At least 193

job opportunities shared with people around major

works

Wages of c. £6m per annum

offered by job opportunities shared with people around major works

5 Supply chain opportunity briefings

provided to businesses in and around Southwark

At least 215

community activities delivered since January 2015

People from 29

different companies have contributed to this social value work

Costain’s Project Skills Co-ordinator explains the effort that goes into providing work placements: “At London Bridge we offer the opportunity for students to get behind the scenes and see for themselves what a challenging and exciting industry construction is to work in, whilst highlighting the broad scope of career paths they could follow. Overall we have had fifty work experience placements. Due to lasting relationships with local schools such as UAE Southbank and BOSCO College we had a regular flow of student’s visiting London Bridge Redevelopment Project. With large volumes of applications for work experience sent either directly, through head office or referrals, we set aside two places quarterly for local schools. Prior to the placement we meet students for an interview to gain a better understanding of their


interests, career aspirations and what they hope to get out of the experience. This helps us tailor a rota including a variety of departments have volunteered to help, including accounts, administration, commercial, CAD, community relations, consents, engineer, environment, health & safety, IT, project skills, quality, security and surveying. In half or a full day, each relevant team delivers an insight into their role whether this be on site or in the office. Each day, students fill out feedback forms where they discuss what they learnt, whether they’d consider a career in that role and how the session could be improved. This helps us ensure the students are getting the best out of their experience. We incorporate a STEM activity called ‘Trainline Challenge’ within one or two week placements. The students work either individually or in groups to come up with a new UK trainline, considering its route, design, marketing, community impact, safety regulations, cost and planning. This activity wraps up what the students have learnt during their placements and helped them understand how teams all works together as a project. We then asked them to present their ideas to the volunteers who have helped out with their placement. We include interview training as part of our programme. In the morning we go through common interview questions, discuss ways to control nerves and talk about the ‘dos and donts’ of interviews. With help from management we arrange a mock interview. This can be quite scary for the student but proves beneficial when we discuss feedback and give advice for future interviews, better preparing them for working life. Lastly, we ask the students to create a newsletter article with a summary of their time with London Bridge, including photos, favourite moments and how they will use the experience.”

b. Outputs – what’s been done for the community

91 new apprentices

recruited at London Bridge of whom just 3 have left our employment

+ unknown number of current apprentices gained experience across our sites

Social value of creating 88

apprenticeships in London £331,232

Apprentices recruited are being trained in: quantity surveying, commercial, electrical, steel fixing, civil engineering, business administration, formwork, piling, scaffolding, fabrication, ICT, maintenance engineering, telecommunications, track maintenance, electrification & plant (E&P), signalling, procurement management, buying, bricklaying, plumbing, demolition.

At least 50 work placements provided to young and unemployed people

Young people and job seekers provided with career advice about our industry

at more than 40

events

Over 350

opportunities for new jobs or skills provided to people

around our major works

15 NVQs & 88 short courses

87 certified construction skills courses

completed by people wanting to enter the


successfully completed by unemployed Southwark residents

industry

Social value of NVQs, short & certified construction skills courses: £413,020

Over £82k cash

fundraised and donated to charities

Building materials, clothes, food, bricks, wood and timber, furniture, buckets of clay and wooden pallets donated to local artists, local charities and the people they help

Examples of jobs that people living local to our work sites have entered and retained are: cleaning operative, security officer, accounts assistant, general operative, administrator, assistant administrator, steel fixer, plant operative, traffic marshal, scaffolder, tester, painter, fire marshal, site engineer, team organiser, steel erector, environmental advisor, joiner/ hand charge, FM operative, project skills co-ordinator, electricians mate, labourer, quality engineer

Heather Spring, from south London, is one of the many jobseekers who has benefited. Now working for Balfour Beatty as a personal assistant, Heather has been in her position since January 2016 having previously been unemployed following redundancy. Heather said: “When I was made redundant, I wasn’t ready to retire and when I saw this opportunity I applied straight away. I have always been interested in the railway and I am really enjoying working on such a huge project that will improve commuters’ journeys immeasurably.”

Snowfield’s Primary School is very close to our London Bridge works. The number of children there eligible for free school meals is significantly above national average. The school contains a centre for children with autism. Some of our staff have been trained up so that they visit the school regularly to read with the children; we’ve also helped with fundraising for the school and charities, explained rail safety to pupils and why it’s great to work in construction. Years 6 pupils have visited our site. We built a “minibeast mansion” in the wild garden area of school grounds and we’ve organised sports (a PPE relay race), creative (hard hat painting) and enterprise projects. We’re told that our long-term relationship with the school is benefiting teachers, pupils and their families.

The 116 tonnes of wood that Carillion has donated to Community Wood Recycling has enabled the social enterprise to provide 210 paid working days to clients seeking to re-enter the workplace.

Skanska buys 100% sustainably sourced timber, all from small medium enterprise South London Timber. The conference facilities at Southwark Cathedral are hired for events.

Costain has Spent £1.8m with local suppliers


c. Outcomes – the impact of activities in communities

66

previously unemployed Southwark residents

entered and remained in work for at least 6

months.

Social value of 66 unemployed people

gaining full time employment

£949,080

(plus £1,020 each for any that have

children aged 11 to 15).

Of the 24 recruits to the Thameslink Sultan Apprenticeship Programme

14 have, so far, successfully completed apprenticeships, are now in skilled, full-time employment.

We’ve made improvements to parks, open spaces and embankments, so that they are pleasanter places for local people:

- Brockwell Park, Lambeth

- Bermondsey dive under, Southwark & Lambeth

- Camley Street London Natural Park, Kings Cross

- Cross Bones Community Garden, Southwark

- Greenwood Theatre, London Bridge

- Millennium Green Park, Cricklewood

- Silwood Street Community Gardens, SE16

- Streatham Common, Lambeth

- Ten Acre Wood, Hillingdon

- Union Street community garden & playground, Southwark

- Whites Grounds Estate gardens, Southwark

We’re transforming people’s expectations of their lives:

Sophie is completing a business administration apprenticeship through Siemens. “I heard about the Thameslink Apprenticeship through a company called A4E who were part of the Work Programme from the Job Centre. The Thameslink Apprenticeship Scheme has helped me… I have been faced with so many different experiences and new things, and yet I have got through them. It has been a massive learning curve, and one I am grateful for. In 5 years’ time… I would like to hopefully have a role that involves a lot of what I do at the minute, with possibly some new challenges along the way.”

Steel fixer, Ben, secured an apprenticeship with Costain after undertaking a 12-week Prince’s Trust Programme and completing 2 weeks work experience. Ben wasn’t previously in employment, education or training

Carillion has changed the career trajectory of Ashley, who had just completed his apprenticeship as a general construction operative and whose family expected him to be a fitness trainer or athlete. Ashley says: “I decided where I wanted to be… which is a Project Manager. I sat down with the Project Manager at Cricklewood and he helped me plan a route to achieve my


goals. So once again I became an apprentice for Carillion but as an Assistant Quantity Surveyor, which is my first step… My expectation and family’s expectation for my future is to become a project manager within Carillion.”

Bradley spent the first 9 months of his Network Rail Advanced Apprenticeship training away, at HMS Sultan in Gosport. He worked with Balfour Beatty Rail at New Cross Gate and London Bridge and at a depot, gaining a wide range of experience, including the installation of track into new London Bridge platforms, including a heavy period of work delivered successfully and on time over the Christmas period. Bradley completed his apprenticeship (achieving an NVQ Level 3 and Institute of Leadership & Management Level 3) and is now working as a Senior Technical Officer.

Network Rail and Sir Simon Milton Westminster UTC organised a pilot mentoring scheme for 12 pupils at Walworth Academy. The Head of 6th form engineering said: “Thank you for your support with the engineering project and the presentation yesterday. The [6th form] students have gained valuable experience doing this project. They have had the opportunity of working with seasoned professionals such as yourselves and have experienced engineering in the real world. I am sure they will use the lessons learnt through this project to advance their careers.” One student went on to secure an apprenticeship with Arup, one won a place at Surrey University and one has applied for an apprenticeship with Costain.

Isaac, commercial apprentice, Network Rail, said: “The best thing about being an apprentice is that I am studying and gaining experience, all while earning a salary. My Network Rail apprenticeship has a lot of variety; I get to work across the business and learn on site. I would recommend an apprenticeship at Network Rail and on the railway to other young people who are considering their options. I was hesitant about going to university as I was unsure what I would achieve. I looked into apprenticeships and found the combination of work and study interesting. I felt, for me personally, I would achieve more by learning on the job and being immersed in the industry. I applied around March 2016, was contacted in June asking if I would be available to come for an interview… got a call around the end of July offering me the job with a start date of August 15th.


Currently I am working in a commercial team. I am involved in a variety of different activities, from raising invoices to project close out tasks. As part of the apprenticeship scheme, I rotate team every 6 months as a way of gaining a variety of experiences. The apprenticeship has a combined duration of six years; built up of four elements. The first two years are spent completing a Level 3 Diploma in Quantity Surveying and becoming an Associate member of the RICS. Following success in both, I shall enrol onto a Level 6 Diploma in Quantity Surveying (Degree Equivalent) as well as becoming a Member of the RICS which has duration of 4 years. Assuming I complete my studies, there are a number of post apprenticeship opportunities. I have the opportunity to find a role in Network Rail, or work for a supplier. By obtaining my RICS membership I will have opened the door to the potential of working abroad as well.” Alongside his work and study, Isaac has been involved in the Thameslink Health & Wellbeing group, which

Eighteen-year-old Lewes, a Network Rail apprentice from Bromley currently working on the vast scheme to rebuild London Bridge station said: “This is a fantastic opportunity for me; when other people are finishing university, I’ll have a career.”

We’re helping young people to aim higher and stay safer:

Our people explain rail and site safety to young people, at all schools, colleges and communities we visit because we want to keep them safe. Over the past 10 years almost 170 young people have died in incidents on the railway; deaths because of unauthorised access to construction sites, electrical sub-stations etc. are, unfortunately, not uncommon. By explaining the dangers of taking shortcuts and thrill-seeking we prevent harm and tragedy.

40 people from UKPNS and partners spent 5 days completely refurbishing the playground at Manor Green, Crawley, which is a special school catering for pupils with a wide range of learning difficulties. Works completed included installation of a new cycle track (for play and road safety lessons) new benches and gates, laying of burgundy tarmac, safety improvements and replanting. The Deputy Head said: “The work of the volunteers has completely transformed the play area for our students. The area has been enhanced, is now looking like new again and is safer and more secure.”

A School said: “On behalf of Walworth Academy and our Year 10 students I would like to thank you so much for allowing us to visit you at Costain last Monday. It was such a great experience and our students were buzzing after the trip… the students walked away thinking about their options and further building their aspirations and directions…”


At the end of the 10 week GO4SET programme, involving 54 students (48% female) in 4 secondary schools 100% of teachers said support was relevant and beneficial to students and beneficial to their own professional development.

“UAE Southbank has been engaged with Costain since October 2016. Our engagement has involved work experience and site visits. The work experience programme has been exceptional and our post sixteen pupils have used it to complete aspects of their coursework. Learners have also used to the experience to cement their idea of taking up engineering as a future career. One of the learners used the experience to secure an apprenticeship civil engineering role at AECOM. The opportunity for learners to explore the world of engineering whilst been involved in real life projects is invaluable to their development. For that, I shall be ever grateful. Apart from work experience, Costain has also engaged our learners through the 'Women in Engineering programme'. It is wonderful to see our female learners actively engaged in the workshops. To see their amazement at all the different sectors of engineering that they can be involved in opens a new world for them. Costain has demonstrated to them that engineering is not just for boys but is for everyone, with the right skills set. A few months of engagement has positively changed the perception of engineering for these learners.” Director for Learning, Design and Engineering / Head of Sixth Form, UAE Southbank

“Having worked with Costain…, I have found them to be truly engaged with the needs of the young people of Southwark. Megan has shown great interest in providing opportunities in whatever department she can for our students and all of them have come back to us feeling empowered and more ready for the world of work. Costain ran workshops for us on site which were a great insight for our students into interview techniques and what kind of vocations need what qualifications. From very senior staff to apprentices currently studying with them, our students received an incredible breadth of exposure to the inner workings and structure of Costain.” Careers Advisor & Placement Officer, BOSCO Centre

Impact of charitable donations made to Salvation Army “It’s been almost a year since we were greatly blessed by your generous donation and I just wanted to share with you, what the donation has been used for. Each Sunday evening, we have a community dinner (which hosts 45-60 people per week),


community choir and book club for homeless and vulnerable adults in the community. It has been going so well with our book club and we are currently reading a book called 'A Street Cat named Bob' about a homeless man whose life was changed by a cat he adopted called Bob. The choir has also been going well, you can see people's faces light up when they get to sing. On a Wednesdays morning, 10-15 people per week come to use the showers, whilst also dropping in for a tea and chat with some of the volunteers. Your donation has made both these programs possible and we would like to say thank you!” Corps Office, Salvation Army

From anecdotal evidence, we believe that:

• work around social value has developed the skills of our employees and made them feel more engaged

• we have attracted and retained a greater diversity of talent than most rail projects, which is good for our industry, as it indicates we are drawing from the full pool of talent and helps us to bridge the talent and skills gap facing our sector.


6. Challenges This section identifies challenges addressed by NR TLP in generating, measuring and reporting social

value, and how the programme has attempted to overcome them.

What the programme has found more difficult than expected

Possible reasons for challenge How the programme has sought to address this challenge

Getting a higher number of local people into sustained employment

Many vacancies are construction and engineering related; (1) skills required are relatively scarce and (2) construction job opportunities are plentiful, particularly in and around Southwark, where many contractors and developers are required to seek to employ local, Southwark residents as a result of section 106 requirements and contractual agreements with the Council.

Identifying and sharing as many different vacancies as possible with local employment services and people, particularly in entry level and non-construction roles. Providing training and apprenticeship programmes in skills that are in high-demand, for new industry entrants.

Testing for drug and alcohol is mandatory in the rail industry; positive tests can result in job offers being withdrawn and suspension of workers. This can deter people from considering career opportunities in the sector.

Providing drug and alcohol guidance to local communities and job seekers.

Getting local, unemployed people to take up training opportunities

There are relatively many opportunities for pre-employment training in and around Southwark

Offering training that compliments (rather than duplicates) other pre-employment provision. Working with local agencies on client referrals. Proving training that could link directly into a job opportunity


7. Opportunities This section identifies how future infrastructure programmes might apply ‘lessons learnt’ from NR

TLP.

Opportunities for programmes such

as NR TLP to do more

Why How

Employment of ex-offenders

To help address the talent and skills shortage. To reduce risk, and associated cost to the public purse, of re-offending.

Partnering with those prisons that already provide PTS training. Creating and delivering traineeships. Provide paid work experience.

Include social value requirements in procurement processes that establish first tier contractors and suppliers.

To save time and resource. At NR TLP, sustainability requirements were determined post-tender and individual targets and commitments were then negotiated. Time and resource would have been saved, in all sides, if requirements had been included earlier.

Integrating social value requirements into specifications; probing track record in pre-qualification processes and approach to delivery in responses to invitations to tender as, for example, Transport for London does.

Streamline reporting process

To save time and resource. As social sustainability activity evolved on NR TLP, new reporting requirements were introduced; the process associated with each had to be briefed out to teams, contractors and supply chain partners.

Designing reporting systems and process early on, and defining reporting requirements from the outset.

Align employment targets with packages

To maximise opportunities for job creation and enable targets to be set that are both realistic and stretching. NR TLP signed a section 106 (planning) agreement with Southwark Council, which set stretching targets to support previously workless local people (i.e. Southwark residents) into jobs lasting 26 weeks or more. As works progressed, it became clear that relatively few packages on site involve works of 26 weeks or more and so staff had to be supported to move to a new employer or tracked as they moved to a different site to demonstrate that targets were being met.

Fully scrutinising resource requirements of individual work packages, through several tiers of supply chain, understanding what is possible, and assigning appropriate targets.

‘Futureproof’ targets

To enable targets to be realigned with the

changing external environment.

At the time NR TLP and Southwark Council

signed their section 106 (2011/12),

discussions with local employment

brokerage services demonstrated that

Including provision for review,

refresh and rebalancing of targets,

particularly where they are set

several years in advance.


there was a sizable pool of workless,

Southwark residents keen to work in

construction and so stretching targets

were agreed around employment of

previously workless people for 26 weeks

or more. This pool shrunk rapidly as

Southwark Council imposed similar targets

on to other developers (through other 106

agreements) and to new Council

contractors (through contract

requirements). The demographics of the

borough also changed. Certain targets

became much harder to meet, than

initially anticipated, whilst others (e.g.

apprenticeships) were exceeded.

Engage with ‘local’ suppliers

To better stimulate economies local to

works.

NR TLP has not progressed sustainability

objective 6, ‘to provide local suppliers with

the fair opportunity to compete for supply

chain opportunities’ as much as other

objectives. The team(s) that needed to be

involved (e.g. commercial) and the types

of organisational change required to

progress this objective were different from

the others and less traction was

established to progress them.

Recognising that the culture

change required to improve

engagement with SMEs, ‘local’

suppliers and under-represented

suppliers (e.g. social enterprises,

BAME businesses) is different to

that around employment, skills

and training – and working with

commercial leads to make it

happen.

Measuring and reporting diversity

To enable diversity profiles to be better

understood and reported, and enable

appropriate actions to be taken to widen

opportunities for a diverse candidate pool;

to help address the talent and skills gap

facing the wider construction, engineering

and rail sectors.

Anecdotally, it is thought that the diversity

of NR TLP’s workforce exceeds industry

benchmarks.

At London Borough of Southwark’s

request, diversity monitoring of

beneficiaries of new skills, employment

and apprenticeships has been introduced.

Utilising ‘good practice’

approaches, such as those

currently being defined by HS2 Ltd

and Highways England.


8. Cost versus value This section identifies cost associated with social value input, outputs and outcomes, and how that

cost has been recovered or created value.

a. Workplace co-ordination manager

Cost Value

NR TLP employs one, full-time workplace co-ordination manager (WPCM) to implement and report social value related activity. The WPCM helps many other individuals, working within NR TLP and supply chain partners, to deliver social value generating activities as part of their ‘business as usual’. The cost of the WPCM role (including wage, on-costs, management and some budget for activities) is estimated as being £75,000 per annum. Total investment in this role since between January 2013 and April 2017 has been around £318,750. The employment of this person was required under the terms of the section 106 planning agreement with London Borough of Southwark, for the redevelopment of London Bridge station. Had this role not been created, NR TLP would have had to pay a sum to London Borough of Southwark that was equal to or greater than the cost of the role. The cost of this role is therefore a ‘sunk’ cost to NR TLP – it could not have been recovered.

It is difficult to determine the social value outputs and outcomes that would have been achieved by NR TLP if the section 106 agreement had not been imposed and the WPCM had not been employed, but they would almost certainly be significantly fewer:

- Conscious effort was required by the WPCM to extract employment opportunities from supply chain partners and engage with local brokerage services; employment opportunities are unlikely to have been targeted at local, unemployed people, without this;

- The WPCM co-ordinated the establishment of the Thameslink Sultan Apprenticeship programme and it is highly unlikely to have been created without this;

- The WPCM supported Costain to establish the National Skills Academy for Construction at London Bridge and they worked together to achieve subsequent outputs and outcomes;

- The WPCM is a key (although not exclusive) point of contact for work experience and engagement with local schools;

- The WPCM organised NVQ and short courses for local unemployed people.

- Certified construction skills courses are likely to have been delivered on the project without the WPCM, as they are an integral part of construction industry ‘business as usual’, although they might not have been targeted at local people. There is a cost to delivering these; CCS, for example, used to cost £47.50 per session. As explained in appendix 2, if we divide the £ value of social value generated from the WPCM being in place, by the cost of the WPCM’s employment we calculate a ratio of 4.26. That is, the financial value of social value generated by the WPCM is more than 4 times the cost of employing them.

b. Apprentices Cost Value / cost recovery


The total cost (including wages, training and lodging) of each Thameslink Sultan Apprenticeship is estimated as being around £70,000. Each apprentice typically requires additional, tailored, cross- discipline training at some point, and so the cost is estimated to be around £85,000 per apprentice, across the period of their apprenticeship. Other apprentices are typically paid a salary of £15,000 to £17,000 per annum. Anecdotally, construction industry employers believe that the time required to support an apprentice means that there is a net cost to their employment in the first year of the apprenticeship, but that productivity increases from year 2 onwards, so that they become a net asset to the business. Anecdotally, the cost of recruiting an apprentice is believed to typically be higher than the cost of recruiting a regular employee, as more evaluation, and liaison with a training provided, is required.

Depending on the age of the apprentices and type of apprenticeship, the employer might be able to recover some costs, through subsidies, so that there might be no net cost to the business of the apprentice. Independent study has identified that the net value (or ‘employer gain’) of an apprenticeship (apprentice output plus apprentice subsidies minus apprentice wages minus apprentice training costs) is positive because:

- Apprentice’s relatively low initial salary can significantly reduce an organisation’s financial risk

- The reduced wage pressure of apprentices can allow employers to offer more competitive pricing

- Employing apprenticeships can improve a company’s reputation and increase consumer demand for the goods and services offered by the organisation

Construction, infrastructure and transport is perceived to be facing a talent and skills shortage, which might become more pronounced with Brexit. The employment of apprentices is considered vital to enabling clients and contractors to deliver pipelines of work. It is a priority, for example, of the Transport Infrastructure Skills Strategy, which Network Rail is committed to help deliver.

c. National Skills Academy

Cost Value / cost recovery

There is a net cost to employing a Skills Coordinator. There are likely to have been some miscellaneous cash costs involved in organising and delivering some training. These have not been identified. Many Costain, Network Rail and supply chain staff contribute to the operation of the NSA.

Costain applied successfully to CITB for funding to host a National Skills Academy. A total grant of £160,000 pays for the employment of the Skills Coordinator, who organises work experience and much of the apprenticeship and other skills and employment activity. CITB, in turn, received its funding from an industry-wide levy. The participation of Costain, Network Rail and supply chain staff is considered under ‘volunteering’.

https://www.aat.org.uk/sites/default/files/assets/The_Value_of_Apprentices.pdf

https://www.gov.uk/government/publications/transport-infrastructure-skills-strategy-building-sustainable-skills

https://www.gov.uk/government/publications/transport-infrastructure-skills-strategy-building-sustainable-skills


d. Volunteering Cost Value

Network Rail and many of its supply chain partners at London Bridge have policies that enable workers to spend a certain number of days, each year, volunteering on pre-approved projects. This time has been utilised by Thameslink to generate some of the outputs and outcomes; for example, tree planting on Streatham Common. Since around April 2016, volunteer time contributed by workers has been recorded and reported by supply chain partners on Community Impact forms. This should, in due course, enable full cost/value calculations.

Companies facilitate volunteering because it is perceived to improve staff morale, commitment and performance, build skills, build connections with local communities, enhance reputation – and hence be good for the employer3. This value is not considered in calculations within this document. Because of company commitment to volunteering, it is anticipated that at least some of the following outcomes and outputs would have been achieved on NR TLP, without the programme having a stated commitment to social value:

- Cash fundraised and donated to charities - In-kind donations - improvements to parks, open spaces and

embankments

3 https://www.bitc.org.uk/blog/post/volunteering-brings-benefits-business-and-employees

https://www.bitc.org.uk/blog/post/volunteering-brings-benefits-business-and-employees


9. Key lessons learnt The following factors have contributed to the successful generation and reporting of social value on

NR TLP:

b. Strong and consistent leadership around social value, advocating its value and requiring

participation, particularly from the Programme Directors, Strategic Change Panel and Head

of Consents and Sustainability

c. Robust and well-structured supply chain relationship management, so that social value

requirements were discussed, agreed and delivered, even when they had not been included

in initial programme tenders. Initiatives such as quarterly sustainability review meetings and

the Suppliers Sustainability Forum support formal process by building knowledge and

capability

d. Clear and defined process, so that when sustainability and social value strategy, objectives

and targets were briefed out to teams and supply chains, a realistic route map to achieving

them was also provided

e. Regular, consistent and objective monitoring and reporting; issues were addressed and

objectives and targets reviewed annually

f. Resourcing; responsibilities around sustainability and social value have been included in the

personal objectives and annual reviews of a wide range of people, within NR TLP and supply

chain partners. Budget has been made available to provide additional resources to kick-start

the work and add specific value at points afterwards

g. Value data is systematically collected and reported. Teams are increasingly comfortable with

assessing and collating data and information about inputs and outputs of community activity

and the benefits accrued for communities, employees and/or the environment. This helps

track performance and facilitates a planned approach to activity as part of ‘business as

usual’. An internal audit demonstrated the value of the programme’s social work and picked

up on the importance of timely and accurate data.


9. Beneficiaries

Type of beneficiary

Beneficiary How benefited Approx. dates of any activity 6/16 to end 3/17

University & students

City University Curriculum and career support from site visit to London Bridge


Kings College Environmental risk assessment training for 22 students July 2016


South Bank University

Lecture about UKPN Graduate Engineering Programme, rail engineering and rail and utility sector safety


University College London (UCL)

Engineering talk Site visit

March 2017

University Westminster University

Local school students taken on tour of facilities June 2016

Parents and student’s recruitment event Oct 2016

University – run facilities, students & users

Greenwood Theatre (operated by Kings College London)

With Team London Bridge, Cityscapes, fashion designer Zandra Rhodes and garden designer and TV presenter Joe Swift, creation of a “pocket park” around the Greenwood Theatre, near London Bridge, which is owned by the Charitable Foundation of Guy’s Hospital

Post-16 college & students

Lambeth College Apprenticeship and skills development opportunities


Oaklands College, Herts

Work experience Sept 2016


Southwark & Lewisham College

Apprenticeship and skills development opportunities


Weston Super Mare College

Site visit


Worthing College Work experience Aug 2016

University Technical College

Sir Simon Milton Westminster University Technical College (UTC)

Network Rail is an employer partner; open evening for young people and parents

Sept 2016

Secondary school & students

Ark Globe Academy, Southwark

Science, technology, engineering and maths curriculum support (10-week EDT GO4SET programme) Work experience



Aylward Academy, Enfield

Careers talk by an ex-pupil, now a Carillion apprentice


Bacon’s College, Rotherhithe

Science, technology, engineering and maths curriculum support Careers information

Careers guidance July 2016

Work experience July & Aug 2016


Beacon College, Crowborough, East Sussex

Careers information


Blenheim High School, Epson

Work experience Oct 2016


BOSCO centre college, Southwark

Work experience May 2016

Pre-employment training Jan & Feb 2017

Apprenticeship workshop March 2017


Charter School Southwark

Young Entrepreneurs Programme Oct & Nov 2016, March 2017


City of London Academy, Southwark

Science, technology, engineering and maths curriculum support Careers information


City of Norwich School, Norwich

Work experience Sept 2016


Haberdashers Aske’s Hatchem College, Lewisham

Science, technology, engineering and maths curriculum support (10-week EDT GO4SET programme) Information about women in engineering shared with 60 year 9 girls


Haberdashers' Aske's Knights Academy, Bromley

Work experience March 2016


Harris Boys Academy, Southwark

Science, technology, engineering and maths curriculum support (10-week EDT GO4SET programme) Tour of Blackfriars station


Langley Park School, Bromley

Work experience June 2016


Mill Hill School, Barnet

Work experience Nov 2016


Newlands Academy, Peckham

Careers talk

Secondary school Oasis Academy Johanna, Waterloo

Advice on energy & green issues


Park Stone Grammar School,

“Greenpower inspiring engineers” programme


Poole


Sacred Heart School Southwark

Science, technology, engineering and maths curriculum safety talks Careers guidance

Work experience July 2016


St Marylebone School, Westminster

Pilot engineering project with 10, female students Nov & Dec 2016, Jan 2017


St Michael’s Catholic College, Southwark

Young Entrepreneurs sessions Jan 2016


St Thomas the Apostle College, Southwark

Science, technology, engineering and maths curriculum support (“Construction Challenge”) safety talks Careers guidance


Sydenham School, Lewisham

Science, technology, engineering and maths curriculum support (10-week EDT GO4SET programme)


Thomas Deacon Academy, Peterborough

Talk on careers in sustainability and STEM Grounds improvements (creation of a 25m2 habitat garden) with needs of mobility impaired people in mind. Students involved in planning and designing. 320 volunteer hours provided Safety advice to 90 students


University Academy of Engineering South Bank

Work experience March 2017


Walworth Academy

Careers information Site visit Presentation skills training Energy options presentation

Tour of Westminster Uni & careers guidance

June 2016

Work experience July 2016

Young Entrepreneurs programme Oct & Nov 2016, March 2017

Site visit for teachers Nov 2016

Careers guidance, industry and apprenticeship awareness

March 2017



Whalley Range High School, Manchester

Women Into Engineering Presentation


Whitefield School, Cricklewood

Safety advice to 300 students from two former Carillion apprentices


Woolwich Polytechnic School, Thamesmead, Greenwich

Work experience June 2016

SEN school & students

Highshore School, Camberwell,SE5

Safety advice, from a visit by the safety bus, to 30 students with complex needs and potentially high vulnerability. BBR handed

out certificates of participation in school assembly, which students can add to their portfolios


Manor Green Primary School, Crawley

Refurbished play areas


Newlands Academy

Careers information and CV advice for yr 11 learners


Octavia School, Southwark

Careers presentation & guidance Apprenticeship workshop

March 2016

Primary school & students

Charles Dickens Primary School

Safety advice from visiting safety bus


Comber Grove School, Southwark

Information about working in construction and rail safety


Friars Primary School, Blackfriars

Information about working in construction Careers advice



Hempstead Infant School, Gillingham

Garden and landscaping improvements; clearing out and re-surfacing the horse shoe path, “fairy garden” and digging pit, edging the paths and fixing up bird & butterfly boxes


Ilderton Primary School, Southwark

Safety advice


North Heath Community School, Horsham

Construction skills and safety talk


Riverside Primary School, SE16

Information about working in construction


St James Hatcham Church of England School, Lewisham

Safety advice


Snowfields Primary School, Southwark

Reading sessions Talk on working in construction Build of “Minibeast Mansions” in grounds Sports and creative activity

Creative session – hard hat painting June 2016

Equipment loan to help fundraising July 2016

Wildlife Week activities Sept 2016

Charity cake sale organisation Nov 2016

Enterprise Week activities March 2016


Surrey Square Primary School, Southwark

Repainting playground walls Oct 2016


Treetops Primary School, Maidstone

Safety advice and information to 200 students Donation of high visibility jackets


Tower Bridge Primary School

Information about working in construction Safety advice

Enterprise Week activities March 2016

Public sector organisation & clients

Jobcentre Plus & clients

Participation in job fairs

Pre-employment support Aug 2016


Southwark Council Youth Offending team

Apprenticeship and skills development opportunities


Southwark Education Business Alliance

Participation in Southwark Employability Fair Funding for and participation in programmes. Sharing experience, information and good practice

Young Entrepreneurs sessions Jan 2017

Prison & inmates HMP Wayland Participation in jobs fair

Prison & inmates HMP Hollesley Bay

Participation in jobs fair


Prison & inmates HMP Thameside Participation in jobs fair

Employment & skills brokerage service & clients

Southwark Works

Sharing jobs and skills opportunities and seeking candidates

Heritage charity The Bay Trust / Rippledown Museum, Kent

Donation of replica V2 Rocket as exhibit

Heritage charity Museum of London

Donation of archaeological finds and records

Heritage charity National Railway Museum

Joint organisation of pop-up exhibition charting the 180-year history of London Bridge station in partnership with Southeastern trains.

Dec 2016

Heritage charity Vale of Rheidol Railway, Aberystwyth

Donation of historic railway columns and beams for new museum display

Charity & clients Barnardos Donations Feb 2016

Charity & clients Bowel Cancer UK Donations July 2016

Charity & clients Breast Cancer Now

Donations

Charity & clients British Heart Foundation

Donations

Charity & clients Cancer Research Donations July 2016

Charity & clients Children In Need Donations Nov 2016

Charity & clients CLIC Sargent Donations Sept 2016

Charity & clients Comic Relief Donations March 2016

Charity & clients Construction Youth Trust

Participation in ‘Budding Brunels’ programme

Charity & clients Crisis Donations Nov 2016

Charity & clients Dementia UK Donation of ‘close call’ funds March 2016

Charity & clients Downs Syndrome Association

Donations

Charity & clients Engineering Development Trust

Funding for/ delivery of their GO4SET programme

Participation in project in South West England July 2016

Charity & clients Explorer Scouts Presentation skills development

Charity & clients Groundworks London

Grounds improvement & planting White’s Grounds Estate

Charity & clients Happy days children’s charity

Donations

Charity & clients Help for Heroes Donations June 2016

Charity & clients Macmillan Cancer Trust

Donations

Charity & clients Norwood Donations

Charity & clients Ordinary 2 Extraordinary

Donations

Charity & clients Philippines Disaster Appeal

Donations


Charity & clients Princes Trust Apprenticeship, skills development opportunities Participation in ‘Get into Construction’ programme ‘World of Work’ site tour and training provided to 10 clients Provision of work experience to 12 clients, 4 of who were subsequently offered jobs

Careers guidance & site visit Nov 2016

Charity & clients Prostate Cancer UK

Using charity materials and speaker to raise awareness, brief workers on symptoms and impact, and respond to 1-1 queries Donations

April to July 2016

Charity & clients Ronald McDonald House

Donations

Charity & clients Royal National Lifeboat Institution (RNLI)

Donations

Charity & clients Salvation Army Donation of close call money

Charity & clients Save the Children

Donations

Charity & clients Water Aid Donations Dec 2016

Charity & clients Wildlife Alliance Donations June 2016

Local charity & users

Bankside Open Spaces Trust (BOST)

Improvement work, with local volunteers, to Crossbones community garden (historically important, post-medieval un-consecrated burial site) and Union Street community garden. Clear-up of Union Street playground

Donations March 2016

Local charity & clients

Blue Elephant Theatre, Camberwell

Enormous improvements to facilities as a result of a “DIY SOS”. 7 people working for 4 days, supported by an extra 30 volunteers: • Replaced both sets of fire escape doors • Repaired the damaged bar, including new kick boards • Re-plumbed the leaking dishwasher • Built new storage cabinets • Installed new shelves in the office floor • Rewired light fittings so, installed a new light in the corridor, made safe some existing electrical work outside the theatre • Repainted the walls, doors and skirting in the whole theatre including, toilets, dressing room, box office, corridors and bar area and even repainted the outside of the theatre. • Minor repairs to internal walls to prevent external leaks


Career Ready Participation in charity’s support for local schools Dec 2016


Cricklewood Millennium Green Trust

Refurbishment and improvement works to park

Local charity & Great Ormond Donations


clients Street Hospital


London Bubble Theatre

Interview skills development


London Wildlife Trust

40 Carillion people volunteered and improved 0.8 hectares of land at the charity’s Camley Street Natural Park 55 NR TLP and other volunteer worked over 6 days on woodland enhancements (including tree planting), at Ten Acre Wood, Hillingdon, Streatham Common and Brockwell Park, added 72 biodiversity units (30 more units than lost from land clearance around the Thameslink route) and contributed towards the Trust’s emergent Great North Wood Living Landscape project


The Manna Society

Donations Jobs and work experience offered to clients


MIND in Haringey

Donations


St Catharine’s Hospice

Donations


St Katherine's with St Bartholemew's Church

Areas cleaned and painted July 2017


St Mungos Worked with clients of Putting Down Roots programme to get them involved in gardening, and donated 50 pairs of boots to help them do so.

Involved charity volunteers and clients in activities at Greenwood Theatre and at Snowfields Primary School.


Southwark Heritage Association

‘Trainline Challenge’ for 12, year 10 & 11 participants in Southwark Young Pilgrims

Aug 2016


The Transformation Trust

Participation in Futures Fair for around 2,000 teachers and students

July 2016


XLP Youth support and mentoring, including volunteering on the youth charity bus

Summer 2016

Public sector Mayor of Donations Dec 2016


organisation, local charities & clients

Southwark’s charity fund

Local not-for-profit organisation

Bermondsey Street Festival

Loan and movement of barriers

Local businesses Associated Clay Workers Union & members

Donation of 20 buckets of clay

Local business Bristows LLP Joint working on delivery of Young Entrepreneurs Programme to 2 local schools

Oct & Nov 2016, March 2017

Local businesses Businesses based in and around Southwark

Briefings about business opportunities

Local business Frutiful Office Purchase of fruit basket; funds used to buy 36 fruit trees for communities in Malawi

April to June 2016

Local business Grow Up Urban Farm

“Just wanted to let you know that the bench has been moved thanks to the absolutely fabulous boys from Costain. Thank you so much for your help!” Kate & Tom at Grow Up

Local businesses Southwark Chamber of Commerce

Breakfast meeting and briefing

Local businesses Team London Bridge (Business Improvement District)

Information sharing and funding.

Organisation of temporary public art installation on St Thomas St, in association with artist Jennifer Abessira and agency MTArt

Sept 2017

Local social enterprise & clients

Transitions & clients

Careers guidance

Local residents Bermondsey Land remediation, installation of 765m2 of green walls under arches and access ramps and planting wildflowers on the railway embankments


Local residents Lewington Community Centre, Rotherhithe

Safety message

Local residents People living and working around routes / sites

Tours around BDU site Job opportunities Apprenticeship opportunities Site visits, including as part of Open Doors

May & June 2016

Local residents Silwood Street community gardens

Donation of 50 wooden pallets to create seven raised plant beds for vegetable growing

Dec 2016

Local residents Residents of Whites Grounds Estate

Improved grounds – a spiral rock garden and timber plant boxes, created by 80 hrs of volunteer time and donations

Local residents Unemployed Southwark residents

Job and skills development opportunities Apprenticeship opportunities

Local residents, workers and visitors

Cyclists Improved safety understanding delivered by London Bridge 'Exchanging Places' scheme


Users of Brockwell Park, Lambeth

Improved parkland (5.9 biodiversity units) because of tree planting



Users of Streatham Common, Lambeth

Improved parkland (38 biodiversity units) because of tree planting

Local residents, and visitors

Users of Ten Acre Wood, Hillingdon

Enhanced environment (28 biodiversity units) because of tree planting

Industry employees

CEEQUAL industry guests from Malaysia

Site visit March 2017

Industry employees

Employees of Berliner Verkehrsbetriebe (BVG)

Information about apprenticeships to German rail professionals

Industry employees

People working on NR TLP sites

Occupational health support provided on-site Health checks provided Health awareness sessions delivered

Industry employees

Railway Civil Engineering Association members

Site visit Feb 2017


Appendix 1: NR TLP organisational structure and activities

a. Policy and strategy Network Rail Thameslink Programme’s strategic approach to social value is defined in a Sustainable

Development Policy, Sustainability Strategy and supporting policies, procedures and processes.

These complement Network Rail’s corporate approach to sustainability and social impact. They are,

however, different and more detailed, because they take account of:

• the specific impact and opportunities of the programme

• communities around the route

• priorities of local stakeholders, such as local authorities

All Policy and Strategy documents are reviewed and updated annually.

Prior to 2011/12, NR TLP’s sustainability focus was primarily environmental. The refurbishments of

Farringdon and Blackfriars stations in central London, for example, won awards for environmental

innovation in their design and construction.

In 2011, NR TLP’s consents and environmental team identified strengthening external forces that

were encouraging them to consider social issues, including:

• Work of the Olympic Delivery Authority (ODA) and London Organising Committee for the

Olympic Games (LOCOG) on achieving social outputs and outcomes (e.g. equality, diversity

and inclusion), as part of their wider approach to sustainability at London 2012

• Crossrail’s adoption of Greater London Authority (GLA) responsible procurement

objectives, related to social issues (e.g. targeted recruitment and training)

• Planning requirements imposed by the London Borough of Southwark (e.g. employment,

skills, apprenticeships and local supply chain development) to enable the redevelopment of

London Bridge station

• Discussion around draft legislation that would go on to become the Public Services (Social

Value) Act 2012

The team worked with consultants from Action Sustainability to undertake peer evaluation and

stakeholder consultation around social issues. This resulted in three social value related objectives

within a 2012 Sustainability Strategy, which have been implemented, reviewed and updated

annually thereafter. These objectives are:

Objective 5: To deliver a social legacy of employment, skills and training to individuals within communities

around TLP works

Objective 6: To provide local suppliers with the fair opportunity to compete for supply chain opportunities

Objective 7: To pro-actively engage with communities around TLP to minimise negative impact and to work in

partnership to maximise our social contribution

http://uhoun19qey9384ovv24t33c1.wpengine.netdna-cdn.com/wp-content/uploads/2014/07/Sustainability-policy-2015.pdf

http://uhoun19qey9384ovv24t33c1.wpengine.netdna-cdn.com/wp-content/uploads/2014/07/Sustainability-policy-2015.pdf

http://www.networkrail.co.uk/sustainability/


b. Governance, leadership and implementation Governance on social value is provided by the NR TLP Strategic Change Panel. This meets every 4

weeks4 . It is chaired by the NR TLP Programme Director and Board Chair and includes other

members of the NR TLP board. The panel:

• Receives and discusses period (4-weekly), quarterly and annual sustainability reporting

• Makes key decisions on sustainability

• Receives and discusses presentations on salient and emerging sustainability issues

Day to day leadership on social value issues is provided by NR TLP’s Head of Sustainability and

Consents.

A Workplace Co-ordination Manager is employed on a full-time basis to work on social value and

community issues. The section 106 planning agreement between Southwark Council and NR TLP

mandated recruitment to and on-going resourcing of this role.

Other members of NR TLP staff spend some of their time on social value issues. For example:

• Within the consents and sustainability team; environment & sustainability manager,

consents & sustainability managers

• Programme sponsors

• Project, engineering, commercial, HR (human resources), communications and health &

safety managers and staff

c. Supply chain Key first tier contractors to NR TLP are Costain, Balfour Beatty Rail, Siemens Rail Automation

(formerly Invensys), Skanska, Carillion and UKPNS.

When, in 2012, NR TLP defined its social value objectives, tenders for work packages had been

completed and preferred bidders identified but not all contracts had been signed. Discussions took

place between NR TLP and the contractors about what social value activity each would commit to

undertake within agreed package scope and price.

NR TLP and the contractors working on and around the London Bridge redevelopment discussed,

together, who would meet which of the section 106 employment, skills and apprenticeship targets

agreed with London Borough of Southwark.

Commitments were written into the Sustainability Delivery Statement5 (SDS) of each contractor.

Implementation of the SDSs was then supported and monitored by the NR TLP consents manager

working with each contractor.

4 Each “period” in Network Rail terminology 5 The SDS is a document that each contractor is contractually bound to produce


First tier contractors are encouraged to involve their supply chains (e.g. sub-contractors, recruitment

and labour suppliers) in delivering social value outputs and outcomes. NR TLP organise a quarterly

Supply Chain Sustainability Forum to discuss specific issues – and social value issues feature

prominently. Staff from NR TLP, first tier contractors and suppliers and contractors at all tiers of the

supply chain are cordially invited to these forums.

Companies and individuals involved in NR TLP have taken experience and learning from NR TLP and

are applying it to other infrastructure programmes, such Network Rail Infrastructure Projects East

Midlands and High Speed 2 (HS2).

d. Measurement and reporting

Data and information gathering Reporting

From first tier supply chain

From NR TLP teams

To NR TLP Strategic Change Panel

To London Borough of Southwark

4 weekly Data submitted via Network Rail Infrastructure Projects’ HSEA tool

Period environmental / social impact [KPI] dashboard

Quarterly Quarterly SDS progress update spreadsheet completed; quarterly review meeting held

Quarterly SDS progress update spreadsheet completed and submitted

Quarterly section 106 report Individual and collated SDS progress update spreadsheets plus narrative

Quarterly section 106 report

Annually Annual environmental dashboard Annual Sustainability Strategy review and recommendations

As activity occurs

Community Impact form(s) completed

Community Impact form(s) completed

e. Risk and opportunity management Social value risk and opportunity is managed within the overall structure for NR TLP risk

management, which aligns with Network Rail’s corporate approach.


Appendix 2: Social value calculations

a. Collection of data and information

To prepare this document, the following types of information and data have been sought and

collected by NR TLP’s consents and sustainability team and shared with Action Sustainability:

• ‘Inputs’ into social value activity – those things that are done to implement a project or activity - e.g. the number of hours of volunteering provided by individuals from NR TLP teams, products that have been donated to create community gardens, time spent by project staff delivering talks to schools

• ‘Outputs’ from social value activity – direct results associated with activity - e.g. number of people completing apprenticeships, number and types of qualifications achieved by people within project teams,

• ‘Outcomes’ of social value activity - effect on individuals and communities of ‘inputs’ and ‘outputs’ - e.g. enhanced life chances for young people

• Information about beneficiaries of the outputs and outcomes. This information enables the

impact of activity to be better gauged

NR TLP has several types of documents in use in which this type of data and information is collected,

and from which it has been extracted for use in this document:

• Community impact forms

• Period environmental / social impact [KPI] dashboards

• Quarterly SDS progress updates

• Annual environmental dashboards

• Sustainability case studies

• Quarterly section 106 reporting to London Borough of Southwark

• Award entry submissions

• Network Rail press releases

Action Sustainability has reviewed all material and passed questions of clarification (e.g. apparent

gaps or lack of detail) back to NR TLP who has taken the query up with relevant individuals and

contractors.

Whilst as much data and information as possible has been collected, there are outstanding gaps and

unanswered questions. Also, it is almost certain that additional social value activity has taken place

on the programme, somewhere in the supply chain, that NR TLP does not know about and so is not

considered in this document.

b. Methodology behind calculations

The social value calculations in this document have been prepared by taking the following steps:


• Mapping social value inputs, outputs and outcomes achieved and evidenced; there is no use

of projections nor assumptions

• Applying financial proxies to types of data for which proxies are available; but only using

proxies from the Office of National Statistics (ONS) or from within the HACT / Social Value

Bank database of values6

• Identifying ‘deadweight’ (what would have happened without any conscious effort being

made to generate social value, that is, without the WPCM)

• Calculating a simple return on investment ration.

There are a range of methods in use for evaluating social value7. This ‘bespoke’ approach is being

used because:

• The applies the general approach of Social Return on Investment (SROI), which is considered

robust for demonstrating social value impacts such as those of NR TLP

• It uses financial proxies from two sources that are, almost unanimously considered to be the

most objective and reliable

• It avoids seeking to find and apply financial proxies for absolutely all outputs and outcomes,

which can result in the use of unrealistically high financial proxies and can be associated with

accusations of “spin” and false reporting.

In October 2017, Action Sustainability (in partnership with Arup and Simetrica) started, for RSSB and

its members, ‘Creating a common framework of how rail can measure and understand its social

impact value as a system’. This work will be completed by June 2018 and is likely to be useful in

identifying how NR TLP or any future programmes might measure their impact in the future.

6 www.hact.org.uk 7 These are all usefully explained in Daniel Fujiwara’s publication A Short Guide to Social Impact Measurement

Confirm scope

Collect data and information from NR TLP and stakeholders:

• Inputs

• Outputs

• Outcomes

Calculate value (i.e. monetarise)

• Inputs

• Outputs

• Outcomes

• SROI ratio

Report

• SROI ratio

• Other relevant summary data

• Relevant summary information

http://www.hact.org.uk/

http://www.simetrica.co.uk/#!wwwsimetricacouk-resources/cs


c. Calculations The following social value outputs and outcomes are clearly identifiable and evidenced in NR TLP

reporting and are considered unlikely to have been achieved if the Workplace Co-ordination

Manager (WPCM) not been employed:

• 193 job opportunities shared with local communities

• 88 apprenticeships in London

o Comprising 91 started minus three who have not completed

• 66 unemployed people gaining full time employment

• 15 NVQs & 88 short courses successfully completed

The following outputs have been achieved but are likely to have been so, even if the WPCM had not

been employed:

• 87 certified construction skills courses successfully completed

• Over £82,000 donated to charity

The number of work experience placements and local spend reported by Costain are not clearly

evidenced and so are not included in social value calculations.

We can apply financial proxies from the Office of National Statistics and HACT Social Value Bank to

calculate the social value of these:

Social value output or outcome Where financial proxies have been obtained and how they have been applied

Wages offered by 193 job opportunities shared with people around major works

The social value of 193 jobs can be estimated to be:

• £5,519,800 wages per annum based on 2017 UK median earning for full-time employees of £28,600 (£550 per week - ONS8)

• £6,944,912 wages per annum based on 2017 London median earning for full-time employees of £35,984 (£692 per week – ONS)

A figure of £6m is quoted in this document. The beneficiaries of this value will be the people who gain the jobs.

88 apprenticeships in London Data point EMP160 from HACT’s May 2016 (v 0.3) release provides a financial proxy of £3,764 per apprenticeship. This represents the value of holding an apprenticeship qualification across a lifetime, to the apprentice. It includes a value for vocational training (EMP1407) plus a value for part-time employmentEMP1403) 88 apprenticeships x £3,764 = £331,232

15 NVQs (level 1 or 2) gained by unemployed Southwark residents

Data point EMP1607 (Vocational Training) from HACT’s May 2016 (v 0.3) release provides a financial proxy of £1,798 per NVQ, in London

8 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2017provisionaland2016revisedresults

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2017provisionaland2016revisedresults

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2017provisionaland2016revisedresults


15 x £1,798 = £26,970 This represents the value of the training to the individual.

88 short courses completed by unemployed Southwark residents

Data point EMP1610 (general training for a job) from HACT’s May 2016 (v 0.3) release provides a financial proxy of £2,206 per short course completed in London 88 x £2,206 = £194,128 This represents the value of the training to the individual.

87 certified construction skills courses completed by people wanting to enter the industry

Data point EMP1610 (general training for a job) from HACT’s May 2016 (v 0.3) release provides a financial proxy of £2,206 per certified course completes in London 87 x £2,206 = £191,922 This represents the value of the training to the individual.

NVQs + short courses + certified construction skills courses

£26,970 + £194,128 + £191,922 = £413,200 This figures is quoted in section 5.

66 previously unemployed Southwark residents entered and remained in work for at least 6 months

Data point EMP1401 (full time employment) from HACT’s May 2016 (v 0.3) release provides a financial proxy of £14,380 per person in London = £949,080. This proxy figure includes benefits to the individual and to the state (e.g. welfare and criminal justice systems).

If any of these people have a child or children aged 11 to 15, then an additional financial proxy (data point EMP1612) can be applied of £1,020 per person.

These figures are reported in the tables in section 5.

The following sets of social value outputs and outcomes were probably achieved as result of the

WPCM having been employed:

Social value of creating 88 apprenticeships in London £331,232

Social value of 66 unemployed people gaining full time employment £805,280

Social value of NVQs & short & certified construction skills courses £221,098

Total £1,357,610

The estimated that the cost of the WPCM role (including wage, on-costs, management and some

budget for activities) is estimated as being £75,000 per annum. Total investment in this role since

between January 2013 and March 2017 has, therefore, been £318,750.

The social return on investment ratio on fully evidenced social value activity can be calculated as

£1,357,610 / £318,750 = 4.26.

d. Information about financial proxies

Calculations make use of financial proxy figures from two sources; the Office for National Statistics

(ONS) and the HACT (Housing Associations Charitable Trust) database. Data from these sources is

generally regarded as the most robust, independent and well researched of its type.


The ONS is the recognised national statistical institute of the UK. It is the executive office of the UK

Statistics Authority, a non-ministerial department which reports directly to the UK Parliament. It

collects, analyses and publishes data covering the economy, population, and society of the UK. The

ONS and the statistics it generates are (because of legislation) independent of government and

based on a model of independence like that of the Monetary Policy Committee of the Bank of

England.

HACT (www.hact.org.uk) is a charity that has, for almost 50 years, has worked to improve housing

provision and pioneer housing solutions for people on the margins. HACT works with voluntary and

community organisations and housing providers to create and test projects, then uses evidence from

the projects to share learning more widely, influence policy, and improve service delivery.

HACT works with leading social impact measurement expert Daniel Fujiwara (Director of SImetrica,

Economist at LSE with 10 years’ experience working in government – including the Department of

Work & Pensions and the Cabinet Office) to maintain and publish “The Value Calculator” and guide

to using this. Together they enable the assessment of the impact of individual activities, generation

of an Impact Valuation Statement, and inform a strategic approach.

The Value Calculator includes “The Social Value Bank”. In 2014, this was the first set of

methodologically consistent, social impact metrics to be researched and published. An updated set –

integrating feedback from users and up to date research – was published in May 2016. The metrics

(or “values”) cover a range of community investment activities and draw on the so-called “wellbeing

valuation” approach. The methodology behind this approach is published9 , and aligns with the HM

Treasury Green Book and Magenta Book guidelines on policy evaluation.

Metrics / values are provided for specific outcomes (e.g. full-time employment, apprenticeship,

vocational training) and according to the age and and/or location (inside or outside London) of the

beneficiary (if known). If age and/or location are not known, then average figures are provided for

use. There is a code associated with each outcome and outcomes are listed under themes (e.g.

employment).

The Social Value Bank does not include metrics/ values around community engagement activities.

NR TLP’s community engagement activities are detailed, in this document, therefore, in terms of

numbers of inputs and outputs, and qualitative information, rather than monetised social value.

9 http://www.hact.org.uk/sites/default/files/uploads/Archives/2014/3/HACT%20Methodology%20Paper%20FINAL.pdf

http://www.hact.org.uk/

http://www.hact.org.uk/sites/default/files/uploads/Archives/2014/3/HACT%20Methodology%20Paper%20FINAL.pdf

http://www.hact.org.uk/sites/default/files/uploads/Archives/2014/3/HACT%20Methodology%20Paper%20FINAL.pdf

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