INNOVATION, UNIVERSITIES, SCIENCE & SKILLS COMMITTEE AFTER LEITCH: IMPLEMENTING SKILLS AND TRAINING POLICIES Memoranda of Evidence o Submission from: Page AL 01 Government response 3 AL 02 University of Sheffield 29 AL 03 Research Councils UK 31 AL 04 Royal Academy of Engineering 35 AL 05 ABPI 37 AL 06 Learning and Skills Council 41 AL 07 EEF 54 AL 08 157 Group, Stoke on Trent College 59 AL 09 CIWEM (Chartered Institution of Water and Environmental Management) 64 AL 10 Engineering Professors’ Council 67 AL 11 Skill: National Bureau for Students with Disabilities 73 AL 12 IChemE 76 AL 13 AAT (Association of Accounting Technicians) 79 AL 14 Open College Network Yorkshire and Humber Region 83 AL 15 Energy and Utility Skills Limited 85 AL 16 SCISUS (City & Guilds Centre for Skills Development) 92 AL 17 Nutrition Society 99 AL 18 Alliance Employment & Skills Board 103 AL 19 HEFCE 107 AL 20 Ufi 117 1 AL 21 CRAC 121 AL 22 Council for Mathematical Sciences 125 AL 23 University of Hertfordshire and Oaklands College 127 AL 24 CIHE (Council for Industry and Higher Education) 131 AL 25 HEAcademy 137 AL 26 University of Central Lancashire 140 AL 27 YWCA 144 AL 28 ASC (Academy for Sustainable Communities) 148 AL 29 CIPD (Chartered Institute of Personnel and Development) 153 AL 30 Semta 158 AL 31 Open University 163 AL 32 ELSPA 166 AL 33 Age Concern England 168 AL 34 Lifelong Learning Networks in the Yorkshire and Humber Region 176 AL 35 The 9 English RDAs 181 AL 36 Million + 187 AL 37 UNITE 194 AL 38 GoSkills 197 AL 39 CFE (Centre for Enterprise) 199 AL 40 NIACE 209 AL 41 Birkbeck College 215 AL 42 Lifelong Learning UK 218 AL 43 ASE (Association for Science Education) 223 AL 44 Skillset 238 AL 45 AoC (Association of Colleges) 246 AL 46 Universities UK 255 AL 47 Barry Johnson 259 AL 48 Design Council 263 AL 49 ConstructionSkills 265 AL 50 Equality and Human Rights Commission 274 AL 51 Alliance of Sector Skills Councils 281 AL 52 FSB (Federation of Small Businesses) 294 AL 53 Yorkshire Forward 296 2 Memorandum 1 Submission from the Department for Innovation, Universities and Skills, with input from the Department for Communities and Local Government, the Department for Children, Schools and Families, the Department for Work and Pensions, and the Learning and Skills Council. Contents: 1. Introduction 2. The Government’s world class skills ambitions 3. The role of RDAs and the Regions in achieving our skills ambitions 4. Skills Strategy at sub-regional level 5. The roles of the LSC and SSCs 6. The roles and coordination of the FE and HE sectors 7. Summary Statistical Annex 3 1 1. INTRODUCTION 1.1 The Government welcomes the opportunity to report to the Committee on the progress it has made in realising the world class skills ambition described by Lord Leitch. 1.2 A nation that is able to unlock the talents and get the best out of its people will be able to take on new challenges and harness new opportunities with confidence. And a nation that can help more people to find work, stay in work and progress will be well equipped to succeed. To compete effectively in the global economy we need a workforce with world-class skills, from basic literacy and numeracy through to higher level qualifications. Our vision for the workforce of the future is of one unrivalled in its skills, dynamism, equity and inclusiveness. 1.3 The creation of the Department for Innovation, Universities and Skills brings together three closely-linked strands of policy that are critical to determining Britain’s future economic and social wellbeing. Britain can only succeed in a changing world if we develop our skills to the fullest possible extent, carry out world-class research, and apply knowledge to create innovative products, services and companies. 1.4 A more highly skilled workforce tends to be a more productive workforce, better able to innovate, and adapt to and maximize the impact of new technologies and business practices. DIUS is working closely with the Department for Business Enterprise and Regulatory Reform (BERR), and with employers through the new UK Commission for Employment and Skills and the network of Sector Skills Councils to ensure that the skills delivered are those which businesses need to raise productivity and competitiveness. 1.5 Developing skills is also one of the key ways of enabling people to find jobs and progress in work, and to creating a cohesive, engaged society. DIUS is working in partnership with the Department for Work and Pensions to create an integrated employment and skills service which provides low skilled and unemployed adults with the support they need to develop their skills, find and progress in work. 1.6 Following the publication of Lord Leitch’s review in December 2006, the Government set out detailed plans for implementing the recommendations and realising the world class skills ambition he set in World Class Skills: Implementing the Leitch Review of Skills in England, published in July 2007. And since the publication of World Class Skills, further detailed plans have been put in place through a number of important documents: • Adult Learning and Skills – investing in the first steps, published in November 2007 alongside the LSC’s Statement of Priorities and Grant Letter, set out on how, with our partners, we can accomplish our ambitions to deliver economic prosperity, social justice and stronger communities. 4 • Opportunity, Employment and Progression: Making skills work, published in November 2007 put forward further detailed plans to support the integration of employment and skills services. • Train to Gain: A Plan for Growth, published in November 2007, set out how Government would build on the experience of Train to Gain’s first full year of national operation, to continue to expand and improve the service to help employers identify and address their skills needs. • Raising Expectations: Staying in education and training post-16 – from policy to legislation, published by the Department for Children, Schools and Families in November 2007 announced detailed proposals for raising the participation age to 18, following the consultation, and identified which aspects would require legislation, ahead of the introduction of the Education and Skills Bill to Parliament. • Informal Adult Learning – Shaping the Way Ahead, was published in January 2008. This consultation starts a discussion that will lead to a new vision for informal adult learning for the 21st century. • World Class Apprenticeships, unlocking talent, building skills for all: The Government’s strategy for the future of Apprenticeships in England, published in January 2008 set out the Government’s plans for reforming and expanding the Apprenticeships service. • Focussing English for Speakers of Other Languages (ESOL) on Community Cohesion, published in January 2008, initiated a consultation on our plans to prioritise ESOL provision in support of social cohesion. • Ready to Work, Skilled For Work: Unlocking Britain’s Talent, published in January 2008, described how the Government wants to work with employers to support them in tackling their recruitment and skills challenges. • An analytical discussion paper: Life Chances: supporting people to get on in the labour market, was published in February 2008 to stimulate a debate on how best to support adults to develop their skills, find and progress in work. • Raising Expectations, enabling the system to deliver, published in March 2008, initiated a consultation on the transfer of planning and funding responsibilities for 16-19 year olds from the Learning and Skills Council to Local Authorities, and proposals for reforming the post-19 skills landscape. • Higher Education at Work: High Skills – High Value, published in April 2008, initiated a consultation that will seek views from employers, students, colleges and universities on how to raise the skills of those 5 already in work and also ensure graduates are equipped with the knowledge and abilities that businesses need to compete globally. 2. THE GOVERNMENT’S WORLD CLASS SKILLS AMBITIONS 2.1 Improving skills and supporting individuals to unlock their talents has a number of important benefits for individuals, businesses and the economy as a whole. As set out in the recent analytical discussion paper: Life Chances: supporting people to get on in the labour market,1 improving skills provides benefits to individuals in terms of improved employment prospects, labour market progression and social mobility. For example, recent evidence shows: • A first degree can add an average of 25-30% to annual earnings; • Achieving 5 good GCSEs (A*-C) can lead to increases in earnings of up to 30%; • Apprenticeships produce strong increases in earnings potential at levels 2 and 3. Completing an advanced apprenticeship produces an average wage return of 35%; and • Basic numeracy and literacy skills can explain up to 10% of wage differentials. 2.2 Gaining skills also benefits individuals in a wide range of other ways: • More skilled people are less likely to suffer from depression, obesity and respiratory problems2; • Improved learning levels in a community are associated with enhanced cohesion and social capital. 3 Half of learners in FE felt it had encouraged them to take part in voluntary and community activities4; and • Gaining skills leads to increased political participation: 37% of those with a Level 2 or less did not vote in the 2005 General election compared to 24% of those with a level 3 qualification or above.5 Progress so far 1 Life Chances, Supporting People to get on in the Labour Market, an analytical discussion paper, March 2008 (DIUS, DWP, Cabinet Office Strategy Unit). 2 Centre for Research on the Wider Benefits of Learning 3 Feinstein et al 2003, and Green et al 2003.