Select Committee on Trade and Industry Written Evidence


APPENDIX 8

Memorandum by the Learning and Skills Council (LSC)

INTRODUCTION

The LSC—what we do

  We have a vision of England in 2010. Young people and adults have knowledge and skills matching the best in the world as part of a competitive workforce.

  We exist to make that vision a reality, to make England better skilled and more competitive.

  We are responsible for planning and funding high-quality vocational education and training for everyone over 16 in England, other than in higher education.

  We want to ensure that young people and adults have the skills they need to succeed in the modern workplace and to be personally fulfilled. That employers are able to recruit individuals with the right skills to contribute to the success of their business. That the system responsible for delivering training and education to young people and adults is high performing.

  The key measures of our progress are a step-change improvement in the number of people with basic skills and Level 2, the equivalent of five good GCSEs.

  This is a huge task, so in the short term we are focusing on six priority areas, these priorities are an assessment of what must be done if we are to move quickly towards delivering the world-class learning and skills that our economy needs.

  Our priorities are to:

    1.  make learning truly demand-led so that it better meets the needs of employers, young people and adults;

    2.  ensure that all 14-19 year olds have access to high quality, relevant learning opportunities;

    3.  transform Further Education so that it attracts and stimulates more business investment in training and skills development;

    4.  strengthen the role of the LSC in economic development so that we provide the skills needed to help all individuals into jobs;

    5.  strengthen the LSC's capacity to work effectively at a regional level—particularly with Regional Development Agencies and Regional Skills Partnerships; and

    6.  improve the skills of the workers who are delivering public services.

  To support delivery of our priorities, the LSC is designed so it can operate at a local, regional and national level.

  At a national level we provide leadership to the system and promote a coherent and consistent national message.

  At a regional level we engage effectively with other key agencies—such as the Regional Development Agencies (RDAs)—and on regional issues such as skills in the context of the Regional Economic Strategy.

  At a local level we have a real impact in terms of delivering for young people, adults and employers. Most learners train locally, most employers recruit locally and use local organisations to develop their workforce. It is vital therefore that the LSC reflects the needs of both employers and individuals at a local level.

  Of course, the LSC can't achieve its vision alone; we work in active partnership, nationally, regionally and locally, with those organisations who are critical to delivering our targets and vision, of whom there are many.

Equality and diversity

  We are committed to ensuring that learners of all ages and backgrounds are able to realise their potential, improve their life chances and contribute to economic growth. We recently published our Equality and Diversity strategy for 2004-07 (a copy is enclosed); within this we will challenge discrimination and promote equality across all learning and skills provision. We have also set up a National Equality and Diversity Committee chaired by Shirley Cramer, a member of the LSC National Council and Chief Executive of the Dyslexia Institute. Members of the Committee have input into this response, a list of members is enclosed.

  Equality and Diversity Impact Measures (EDIMs) were introduced by the LSC in 2002 and have now been rolled out across all local LSCs. All local LSCs now collate and analyse learner data from the Individual Learner Record (ILR) for their area from an equality and diversity perspective, particularly the participation, retention and achievement of different groups. Based on the analysis, each local LSC then agrees EDIMs with its providers and local partners to address local priority equality gaps.

  Recent analysis of local LSC updates on EDIMs shows that they cover a range of equality and diversity areas including ethnicity, gender, learners with a learning difficulty and/or disability (LLDD), older learners, offenders and geographic/economic related inequalities. EDIMs addressing a gender inequality were the largest category and within it, increasing female participation was the biggest sub-category.

  EDIMs are still developing—some focus for instance on improving the local capacity to integrate, implement and measure them in some way. There are, however, some examples already of positive impact on an equality gap in relation to gender and these are highlighted below:

    —  North Yorkshire LSC established an EDIM to improve the completion rate of female leavers aged 19+ in all Work-based learning programmes from 34% to 37%. In their EDIM update they reported that based on Work Based Learning ILR (P12 03/04) it had increased to 46%.

    —  West Yorkshire LSC set an EDIM to increase female achievement of frameworks from a baseline of 11.7% to a target of 13.7%. Their progress report for 2003-04, states that it has increased to 25.8%.

    —  Somerset LSC want to increase the representation of female learners aged 16-24 in the construction sector, from 1.5% in 2001-02 to 3% by 2005. In October 2004, they reported that representation had increased by 1.11% to 2.67%.

  The LSC recognises the importance of this opportunity to contribute to the Women and Work Commission and influence actions that will tackle the pay gap between men and women.

  The pay gap is not just a social and moral issue; it is also an economic one. For example, employers are not getting the full benefit of women's skills where they return to work in lower skilled jobs. Equal Opportunities Commission research shows that there is a clear link between a lack of women in certain occupations, industries and skills shortages.

  Crucial to this is an understanding of the relationship between the pay people receive and the skills that they possess. We know there is a difference between the pay men and women receive for doing the same job—currently about 10%, but this is reducing (in the 1980s this gap was closer to 20%) (Source: Women and Equality Unit: The Greater Pay Gap in Great Britain). However, the most significant contribution to the gender pay gap is the fact that men and women tend to be concentrated in different industries and different occupations which affects their levels of pay.

  Consequently we need to understand much more about how the learning and skills individuals obtain—both in education and in work—contributes to their position in the workforce and the pay they receive.

  In particular, if we are to address this disparity, we need to give careful thought to how we up skill and re-skill women to ensure they are able to take up new opportunities. The LSC has a critical leadership role to play within the sector working in partnership with others, such as colleges, providers, Connexions, JobCentre Plus and RDAs.

The LSC has a leadership role

  The LSC has a critical role to play in leading the delivery system ie the post 16- education sector so that it is responsive and is able to transform outcomes for both individuals and employers.

  The issue of gender disparity needs to be looked at across the whole of the post 16- education sector, but the role of FE in particular is critical.

  We are already integrating considerations of equality and diversity into our agenda for change programme[39] and the FE Review[40] to ensure that our development of long-term strategies for the FE sector, tackle a range of equality issues that are linked to productivity, including the gender disparity issue.

  Clearly this is not something that we can do on our own. We need to work in partnership with others to tackle reduce the pay disparity between men and women.

Women are not as well qualified as Men

  Men tend to be more qualified than women overall:

    —  53% of economically active men (in work/available for work) are qualified to level 3 or above—compared to 47% of women. (Source: DfES Statistical First Release: 03/2004.)

    —  14% of working age men have no qualifications, compared with 16% of women (Source: LFS Spring 2004.)

    —  Approximately 49% of men who are of working age gain qualifications at level 3 or above, compared to 40% of women. (Source: DfES Statistical First Release: 03/2004.)

    —  This reflects historic patterns: men have traditionally been more likely to study and gain qualifications. (Source: DfES Statistical First Release: 03/2004.)

The Picture is Changing: Young women in education now out-perform young males

  As we know increased levels of qualification result in increased pay, this goes some way to explain current pay gaps.

  However, there are marked differences by age—simply put, the picture is changing, with younger women overtaking their male counterparts and reversing this pattern: For example 12.3% of women aged between 16-24 hold higher level qualifications (level 4+) compared to 10.6% of men. (Source: LFS Spring 2004.)

  Across all areas of education we can see that women—particularly young women—are now out-performing their male counterparts:

    —  More girls stay on in post-16 education and training than boys—in 2003, 26% of 16-18 males did not participate in education or training compared to 24% of females. (Source: DfES Statistical First Release: 03/2005.)

    —  Girls now out-perform boys in GCSE results—almost 60% of girls gain five or more GCSEs at grades A-C, compared to only 47% boys. (Source: DfES Statistical First Release: 01/2005.)

    —  The same applies at A level. In 2003-04 132,100 females aged 16-18 achieved 2+ A levels or equivalent, compared to 112,100 males (Source: DfES Statistical First Release: 02/2005.)

    —  More women (52%) than men apply to and are accepted on university places.



  This is going some way to reducing the pay gap—however slightly. For example: as a direct result of gaining a degree, women had earned 37% more than they would have done—compared to men who only earned 17% more.

  In addition, social and cultural change means that fewer women are staying at home to bring up children, which means that there is greater "potential" for the pay gap to reduce further. Women are increasingly likely to return to work within a year of having a baby. In 2002, 72% who were at work during their pregnancy returned to work, compared to only 24% in 1979. (Source: DTI—interim update of Key indicators of Women's Position in Britain, December 2004.)

  However, this is oversimplifying the issue; even though women (particularly young women) are out-performing young men in education, their choice of subject is having a direct impact on their future employment and earnings potential.

Young women are concentrated in areas that are traditionally lower paid

  Throughout all areas of further and higher education, women and men tend to follow different (stereotypical) areas of learning. The following highlights from the Equal Opportunities Commission's research into gender segregation of Apprenticeships highlights some of these issues (source—EOC):

    —  41% of all Apprenticeships are taken up by women—but the areas they pursue are very different to men.

    —  in 2003-04, only 3% of Apprenticeships in Engineering and 1% in Construction held by females.

    —  in contrast, 91% of Apprenticeships in Health, Social Care and Public Services are held by females.

  We can see that these patterns of learning are translated into very different work patterns with women tending to be concentrated in particular industries and occupations (for example 60% of working women are in just 10 occupations). This also affects the pay they receive; for example pay in childcare is generally half of that in construction and engineering.

  Research by the Equal Opportunities Commission suggests that two-thirds of young people weren't aware of the pay differentials between various careers, when they where making career choices. For example, 67% of women aged 16-24 said they would have considered non-traditional areas if they had known they paid more than "women's work".

  We and other key partners need to improve the role modelling and careers information and advice that young people receive from a much early age, to promote non-traditional subject choices and then later, to ensure that young people are aware of pay issues and implications as they begin to think about their future learning and employment choices.

We need to learn from what we know works

  The LSC and the wider post-16 sector have considerable experience in engaging young people and encouraging interest and/or entry into non-traditional routes of learning.

  For example: Gloucestershire LSC ran a collaborative project with five work-based learning providers that focused on breaking down the gender segregation in apprenticeship programmes. This offered taster sessions (for 120 Year 10 pupils) offering hands-on experience in non-traditional sectors (boys went into Hairdressing, Early Years and Care while the girls went into Engineering and Electrical Installation). The impact of this one scheme was significant—with participants showing a huge shift in attitude towards working in these respective industries, following their taster sessions.

  There are many other schemes like this running across the country—we need to learn from these and build on what we know works, to challenge people's perceptions, improve the information they receive and encourage wider access into non-traditional areas.

  The area of careers education and guidance and young people's learning is critical. We believe this has the potential to make a major difference in developing a long-term strategy to address the gap between men and women's pay. In particular:

Women can be more excluded from the labour market

  More women are entering the labour market than ever before. However, there is still a significant proportion of women who have the potential to be in employment, and yet they are not. Many women not currently in a job face barriers (both real and perceived) to entering employment. These can include access to affordable/high quality childcare; the ability to work flexibly (family friendly policies) and the opportunity to work part-time or job share.

  This means that we are wasting human resource which damages our competitiveness ie it fails to recoup on the investment in education and training that these women have received and ignores opportunities to close the productivity and skills gap by drawing from the full pool of talent available.

  To overcome this we need to provide women that want to enter employment with the right kind of encouragement and assistance—to give them the skills and confidence and support that they need to take up employment. This means access to tailored and flexible information, advice and guidance, training and support.

  A partnership approach is critical and programmes like the Government's New Deal for Skills[41] are key to understanding and addressing issues.

  However, we need to recognise and understand more about the impact of other factors. For example, social class, ethnicity, geographic location and disability can all have a much greater influence on participation in learning and/or the labour market than gender. We need to really understand the relationship between these variables if we are to promote equality of opportunity, including reducing or removing the pay gap effectively.

Women returning to workforce often face barriers to improving skills

  Research indicates that men and women entering employment from full-time education have similar levels of pay. This consistency remains true for those who are continually employed. However, when people take a break from employment—their pay drops—more significantly so for women.

  In addition, as women are far more likely to take a career break (to have children) they are doubly disadvantaged.

  Similarly, women returning to work often encounter difficulties around access to childcare and the ability to work flexibly.

  Those that do return may find that they have fallen behind in terms of the skills required (for example their product awareness becomes out of date); pay received (the pay gap is greater following return) or experience they can offer (time out doesn't "count" for most employers).

  It is critical that women have access to flexible information, advice and guidance; and training that is delivered at a time and place that meets the needs of women returners.

We need to support women who are in the workforce

  Women employed in certain areas may find it harder to remain and/or progress in their jobs, particularly where they have caring responsibilities.

  For example, research by the DTI found that balancing home and work-lives is an important factor in retaining women employed in the Science, Engineering and Technology industries.

  Their study of 7,500 UK employees found that large numbers of women dropped out of careers in these sectors because of inflexibility in working practices and an inherently masculine culture.

  These inflexible working practices are often reflected in the availability of training courses. That is, although women are more likely to participate in training (18% had training compared to 15% men) there are issues about availability. Further work needs to take place to increasingly understand and then address the issue of "masculine culture".

  For example, at present access to training for people in the workforce varies by gender. This means that not only are women returners potentially discouraged from remaining in higher paid occupations, they may also be excluded from access to further training and development opportunities.

Employer Training Pilots

  The LSC's Employer Training Pilots—soon to be the National Employer Training Programme—are successfully reaching employers who have never previously engaged in training their workforce. They tackle basic skills and level 2 shortcomings by working directly with employers. Learners tend to be female aged between 26 and 45, in full-time low-skilled, low paid jobs. The majority are working towards an NVQ level 2 (or equivalent).

  For example: a female learner on a recent Employer Training Pilot scheme run by London East LSC said: "I don't have a lot of time to go to college because my husband works nights and so for me to be able to sit here in the office and get a qualification and a certificate really is great." Tracy Meakins, Office Manager, Pickhurst Homes.

We need to learn from what works

  Again we need to use experience of what we know works. For women currently not in employment and who need tailored support to move into employment, the New Deal for Skills has a critical role to play. Because we know that women need a much more flexible means of accessing training, at a time and place that is suitable for their needs, the future National Employer Training Programme has a key role to play.

  It is also important not to consider women as a "one size fits all" cohort. Whether it is related to information, advice and guidance, support into work or workforce development, issues of ethnicity, disability and age will compound the gender pay gap and also need to be considered. Again, building on best practice and using programmes such as the New Deal for Skills and the National Employer training Programme are essential to reaching these groups.

RECOMMENDATIONS

  If we are to make a difference to the pay gap, the LSC believes we need to focus on the following key areas:

    —  We need to tackle this issue from an early age and ensure that young people are able to make better and more fully informed choices about future learning and employment opportunities and are able to do this earlier in their education.

    —  We need to build this area into other key government strategies for learning, skills and young people. We will work with partners to influence the 14-19 and Skills White Papers, the Youth Green Paper, New Deal for Skills and the National Employer Training Programme.

    —  We must learn from what works. The LSC can and will provide leadership where necessary: disseminating good practice and influencing related national, regional, local strategies and programmes.

  The LSC is passionate about reducing this pay gap and ensuring that access to all learning and skills opportunities is truly available for all.

  We will work with the Commission to support this investigation and look forward to championing and delivering its recommendations throughout the post-16 learning sector.

February 2005

  Authors:

  Julie Nugent, Director of Planning and Performance, LSC National Office

  Claire Davis, Planning and Performance officer, LSC National Office

  Kit Roberts, Director of Equality and Diversity, LSC National Office

  Jenny Catlin, Policy Advisor, Chairman's Office, LSC National Office.

LEARNING AND SKILLS COUNCIL

EQUALITY AND DIVERSITY COMMITTEE
Chair of Committee
Shirley CramerChief Executive Dyslexia Institute
Members
David BarkerBusiness Development Manager REED in Partnership (North East and Yorkshire)
Jeremy CrookDirector Black Training and Enterprise Group
Nicola DandrigeHead of Equality Thompsons Solicitors
Patrick GrattanChief Executive Third Age Employment Network
Amir KabalChief Executive East Staffordshire Racial Equality Council
Peter LavenderDirector for Research, Development and Information National Institute of Adult Continuing Education
Alyson MalachHead of Lifelong Learning Manchester City Council
Angela MasonDirector—Women and Equality Unit Department of Trade and Industry
Sally McEnhillPrincipal Merton College
Judith NorringtonDirector of Curriculum and Quality Association of Colleges
Yvonne ThompsonManaging Director ASAP Communications
Hilary WisemanHead of Diversity HSBC Bank
Expert Advisers
Nick JohnsonDirector of Strategy and Delivery Commission for Racial Equality
Nick O'BrienDirector of Legal Services Disability Rights Commission
Caroline SlocockChief Executive Equal Opportunities Commission
Observers
Susan PemberDirector Adult Basic Skills Strategy Unit Department for Education and Skills







39   LSC's agenda for change is a key programme of activity to transform the FE sector. It focuses on five themes: skills/employers, quality, funding, efficiency, data. It will also look at the reputation of the sector. Back

40   The FE Review is an independent review being carried out by Sir Andrew Foster and is looking at the role of Colleges within FE. Sir Andrew will report his findings to the Secretary of State for Education and Skills and Chairman of the LSC. Back

41   New Deal for Skills sets out new ways of tackling longstanding barriers that prevent low skilled individuals from entering and remaining in employment. It also encompasses the recommendations in the Welfare to Workforce Development report from the National Employment Panel, published in March 2004. Implementation is underpinned by collaboration between the LSC and Jobcentre Plus. Back


 
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