Memorandum 49
Submission from Merseytravel
SUMMARY
1. Merseytravel is comprised of the Merseyside
Passenger Transport Authority (MPTA) and Executive (MPTE) acting
together with the overall aim to promote an integrated transport
network which is accessible to all to improve the quality of life
on Merseyside. Merseytravel also own and operate Mersey Tunnels
and Mersey Ferries.
2. Merseytravel is an organisation committed
to staff learning and development sponsoring approx ten to twenty
higher-level qualifications each year for members of its workforce,
a third of which would fall into the category of an ELQ. Merseylearn,
the learning and development arm of Merseytravel, also support
upskilling in the wider transport sector within Merseyside.
3. It is the view of Merseytravel that the
proposals regarding funding of ELQs would have a negative impact
of achieving the Leitch Targets of 40% of the workforce to have
a higher education qualification by 2020. This would be in the
main due to a reduction in workers not sponsored undertaking higher
level vocational qualifications and a reduction in number of part
time vocational qualification programmes due to falling student
numbers because of an increase in fees for students who are studying
an ELQ.
4. The exemptions for foundation degrees
are pleasing. Merseytravel however is concerned that these proposals
are to be implemented at a time when foundation degrees are still
in their infancy and are being developed in sectors such as transport
with no consideration of the need to exempt other higher level
vocational qualifications (particularly in areas where foundation
degrees do not exist). A lack of clarity remains in relation to
co-funding for employer training, however it is likely that the
changes proposed may have an impact on employers sponsoring higher
level qualifications.
5. The inclusion of Engineering in the category
of strategically important and vulnerable subjects is welcomed
but Merseytravel is concerned that leadership and management,
which is a transport sector priority, has not been included. This
is particularly surprising when considering such qualifications
do often fall into the category of an ELQ and are critical to
the future competiveness of the UK economy.
6. Merseytravel uses the Open University
for some of its degree provision. The impact and potentially destabilisation
of this university, which has been pioneering in its approach
to reaching out to non-traditional learners is a major cause for
concern particularly when considering the important work this
University is now undertaking in reaching out to learners who
have never considered higher education as an option.
FUNDING FOR
EQUIVALENT OR
LOWER QUALIFICATIONS
(ELQS)
Submission
1. Merseytravel is the operating name for
the Merseyside Passenger Transport Authority and Executive overseeing
passenger transport provision as well as owning and operating
the Mersey Tunnels and Mersey Ferries.
2. The organisation employs over 940 staff
employed in diverse occupations.
3. The Chief Executive of the organisation
Neil Scales OBE is committed to providing learning opportunities
to all staff and developed Merseylearn, the learning and development
arm of the organisation, working in partnership with Unionlearn
and it trade unions. Other partners to Merseylearn include LSC,
Go Skills the Sector Skills Council in passenger transport, Connexions
Nextsteps and Ufi (learndirect).
4. Based on a learning strategy launched
four years ago over 90% of staff now possess a level two qualification.
A whole organisational approach to skills for life has been adopted
within the organisation. Merseytravel was one of the first organisations
to sign the skills pledge and is currently encouraging all its
suppliers to do likewise.
5. Staff are encouraged to progress their
levels of qualifications. Significant numbers progressing on to
level 3 qualifications. In the last three years over 75 staff
have enrolled/and or achieved a level 4 or above qualification.
Merseylearn in the last 18 months has also expanded its remit
to working within the wider transport sector of Merseyside encouraging
transport employers to upskill their workforce. This has involved
working to date with Merseyrail, bus operators and the Merseyside
taxi community, where traditionally higher level qualifications
of this nature have not been a priority.
6. In relation to its approach to skills
Merseytravel, is seen by many as a model employer. Indeed over
the last two years it has been recognised as an Investor in People
champion organisation, been awarded a National Training Award,
received the National Learndirect Working with Employers Award
and the Go Award (skills for life award in local government).
Merseytravel is often used by unionlearn as an example of how
an employer and trade unions can work together on the skills agenda
and as such appears as a short case study within the Leitch Implementation
plan.
7. Merseytravel fully understands the need
for the Government, in view of the ambitious priorities in relation
to the skills agenda, highlighted by the Leitch review, to consider
how funding for higher education is best utilised to ensure economic
success. Merseytravel also understands that these proposals focus
on the need to target funding on the upskilling of workers in
to higher education provision for the first time.
8. That being so having reviewed the proposals
for the changes to the funding to be received concerning Equivalent
or Lower Qualifications (ELQs) a number of concerns have emerged
many of which are due to the speed of implementation with apparent
insufficient thought and planning given to the potential for unforeseen
impact.
9. Merseytravel is particularly concerned
of the potential unintended impact these proposals could have
to achieving the aims of the Leitch Implementation Plan for 40%
of the workforce to have higher education qualifications by 2020.
10. Merseytravel financially sponsors 10
to 20 students each year for staff to progress on to higher education
qualifications with in the vast majority of instances staff undertaking
some or all of their studying in their own time. Due to the current
shortage of specific related qualifications these are often broad
based qualifications. Whilst for a significant number of staff
this will be the first opportunity to progress into higher education,
there remains a substantial number who will fall into the category
of undertaking an ELQ.
11. This is often where staff have undertaken
a generic degree, eg social science have obtained employment and
now wish to develop a career onto a more vocationally related
course. (Anecdotal evidence would appear to indicate many of these
staff "drifted" onto degree programmes not quite sure
what they could achieve, often being the first person in their
family to progress into higher education). It must also be remembered
that due to the poorly perceived image of the transport sector,
working in this area is often not a first career choice. It is
only recently with the work of GoSkills that specific and bespoke
higher-level qualifications have started to be developed. This
means disproportionately there will be a greater number of learners
who will need to study an ELQ within the transport sector as it
is often not a first choice career.
12. Other learners may have undertaken their
first degree 20 or 30 years ago, have not kept updated with latest
developments and as such the degree has no benefit or currency
in the modern workplace.
13. Reading the information relating to
ELQs there would appear to be a lack of clarity in relation to
learners' sponsored by their employers. Foundation degrees with
their vocational focus, which are exempt from the proposals relating
to ELQs, have much to commend them, however they are still very
much in their infancy within the area of transport. Only a limited
number of options currently exist within the North West. Merseytravel
has not been approached to participate in any co-funding activities
with higher education institutions but as a responsible employer
in relation to training, is currently involved working with GoSkills
in the further development of foundation degrees for the sector.
There are however a large number of valid HNCs/HNDs/degrees/master
degrees with a strong vocational content that are relevant and
popular. That foundation degress would be exempt and that these
qualifications would not, at a time when the full range of foundation
degrees have not been developed is not logical and would appear
to restrict employer choice; again something that would appear
to go against the Leitch proposals.
14. Whilst responsible employers like Merseytravel
will continue to sponsor students for higher qualifications, as
within any organisation, even one that is so committed to training,
there is only a predefined financial resource. Increase in fees
for programmes that are not deemed to be exempt from ELQs will
therefore mean that less staff will be able to be funded.
15. When considering exemptions for ELQs,
whilst pleasing to note that Engineering (which in part links
to Transport) falls into the category of a strategically important
and vulnerable subject it is also surprising the business/management
and leadership qualifications have not been considered as falling
into this category also. This has been identified as a priority
by GoSkills (Passenger Transport Sector Skill Council) within
its Sector skills needs assessment as a priority and of course
by the Leitch review. The UK in general and the transport sector
in particular needs to encourage more employees to undertake these
qualifications. Within Merseytravel significant numbers of staff
undertaking management qualifications fall into the category of
ELQ, which within the wider business world would also be the case.
16. Business/management programmes are particularly
critical when the link between these programmes and productivity/competitiveness
of the UK economy is considered. It is therefore somewhat surprising
it has not been considered as a strategically important and vulnerable
subject requiring a different approach.
17. Merseylearn is unusual in that as a
matrix accredited project (working with Unionlearn and it ULRs
supported by next steps and learndirect) in that it provides learner
support (ie information, advice and guidance—IAG)) to transport
workers (including its own staff) who wish to undertake learning
outside of their current vocational areas. These may be workers
who wish to career change and follow their own learning pathway,
recognising perhaps where their true interests lie or perhaps
recognising their first academic degree does not support their
vocational calling. Ensuring such workers get access to high quality
IAG, as of course with all learners, is critical if funding is
not to be wasted. Enabling such workers to undertake a second
degree or above level qualification often does means that ultimately
they are able to reach their true potential and contribute to
the success of the UK economy.
18. Whilst such individuals recognise they
will be responsible for having to fund themselves and study part
time the proposed changes for all learners affected by ELQ will
have an adverse effect on such independent learners choosing to
have a "second chance" at education. Such learners often
have to pay their course fees up front" and for transport
workers, who are often not on huge earnings (Circa £21,000),
even with a first degree, any increase in fees will place their
ambitions out of their reach meaning they will be unable to choose
to follow their own career pathway which ultimately have an impact
on the UK.
19. The Chief Executive of Merseytravel
is often called upon to speak to other employers to persuade them
of the benefits of workforce development linked to skills. What
has sadly become clear is that whilst more and more employers
are becoming switched on to the importance of workforce development,
very few appear are willing to sponsor higher education programmes
arguing that the programmes are too wide ranging for a "a
return on investment" to be achieved for the organisation
and still therefore expect individuals to fully pay for themselves.
20. Merseylearn, again with its partners,
provides advice and guidance to learners employed in the Merseyside
transport sector (but not by Merseytravel) who wish to undertake
higher education within the transport vocational area; a smaller
number of whom will have a degree or higher level qualification
at the same level. The vast majority of such workers are not sponsored
or financially supported in any way by their employer. Again these
workers, many of whom will be developing skills where there is
an economic/sector need will be affected by the proposed changes
having to pay the burden of increased fees with no employer support.
To expect or hope more employers to sponsor more higher level
qualifications at what may be a higher cost with the proposed
changes is too ambitious. Again this will unintentionally work
against the Leitch proposals. There is no doubt that any increase
in fees will reduce un-sponsored employed learners wishing to
return to learning to undertake an ELQ being able to do so.
21. This obviously leads to concerns that
with falling numbers of learners, the breadth of part time degree
courses will be affected. Obtaining sufficient numbers for part
time vocational qualifications at the best of times can be difficult;
any fall in numbers could therefore have a disastrous and unintended
impact in providing employer responsive programmes. As well as
effecting learners who are undertaking ELQs this will also mean
that the choice available for those very learners the Government
want to support, ie first time workforce entrants to higher education
will be adversely affected.
22. Merseylearn, as well as working with
Merseyside based education providers has found the Open University
to be an excellent provider. Woking in an operationally demanding
arena like public transport, with parts of the organisation operating
24/7, the Open University with its diversity of courses and flexibility
of delivery style has been at the forefront of ensuring that part
time students have access to high quality learning; meeting their
needs as working students. It is for this reason over recent years
Merseytravel has sponsored workers and managers within the organisation
to complete graduate and postgraduate degrees eg MBAs, for some
their second degree at this level.
23. The Open University has also formed
strong links with Unionlearn often, attracting first time learners
to higher education through special deals and offers. Merseytravel
are of the view that the Open University has a critical role,
as historically it always has, in widening participation in higher
education. The concern must be as many of the Open University's
students fall into the category of undertaking ELQs, there will
be a potentially large loss of grant due to funding changes for
ELQs that will have a destabilising effect on the institution
not only effecting students studying ELQs but also the wider engagement
of non-traditional learners into higher education.
24. Merseytravel accepts that the current
funding system for ELQs, with the challenges regarding funding
to meet the important Leitch targets a priority, but would make
the following recommendations.
25. RECOMMENDATIONS
— For the proposals to be further reviewed,
to enable greater consideration to be given and a way forward
identified to overcome the unintentional negative impact they
may have on the development of higher-level skills within the
workforce.
— Delay implementation of any changes
to enable the further development of initiatives within the Leitch
Implementation Plan between higher education and employers; this
will allow the further expansion and acceptance of foundation
degrees and the specific identification of initiatives to encourage
employers to engage in co-financing of higher level qualifications
for their workforce. This would ensure that any future changes
to ELQs effect negatively a smaller proportion of the workforce.
— To review categories of programmes
that fall within strategically important and vulnerable subject
with a view to incorporate business and management programmes.
— For a bespoke and specific solution
to be implemented for the Open University due to the large numbers
of learners who fall into the ELQ category and the potential for
destabilising of this important institution.
January 2008
| 
