Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by the Department for Innovation, Universities and Skills

Questions 76 (Mr Philip Dunne) & 93 (Phil Wilson):   Basic Skills and Level 2 Targets

1.  SKILLS FOR LIFE TARGETS

1a  Skills for Life 2010 target

  The 2010 Skills for Life target is to improve the basic skills of 2.25 million adults between 2001 and 2010, with an interim milestone of 1.5 million adults in 2006.

  The target is measured by adding up the number of different learners who achieve a recognised Skills for Life qualification each year. There is an assumption that 10% of these learners had achieved in previous years.

  The progress towards the target is shown below.

Table 1

CUMULATIVE SKILLS FOR LIFE ACHIEVEMENTS FROM 2000-01 ONWARDS

2000-012001-02 2002-032003-04 2004-052005-06 2006-07
Cumulative achievements (actual)159,000 345,000521,000762,000 1,137,0001,610,000
Cumulative achievements (forecast) 2,121,000





  The table shows that the 2006 milestone of 1.5 million has already been met. Current forecasts suggest that the 2010 target should be met early.

1b  Skills for Life 2011 targets and Leitch 2020 ambition

  The Delivery Agreement for the Skills Public Service Agreement (PSA) was published with the Comprehensive Spending Review in October 2007. It describes the measure as the Proportion of people of working age (ie aged 16-64) achieving functional literacy and numeracy skills.

  The 2011 National Target is for 597,000 people of working age to achieve a first Level 1 or above literacy qualification, and 390,000 to achieve a first Entry Level 3 or above numeracy qualification in the three academic years 2008-09, 2009-10 and 2010-11.

  The most recent baseline for the percentage of the population with Level 1 literacy and Entry Level 3 numeracy is the Skills for Life Survey carried out in 2003. At that time there were 84% with literacy Level 1 and above, and 79% with numeracy at Entry Level 3 and above. The 2011 targets are consistent with 2011 rates of 89% for literacy level 1 and 81% for numeracy Entry Level 3. The ambition for 2020, set in the Leith Review of Skills and endorsed by the Government, is 95% of adults to achieve Level 1 literacy and Entry Level 3 numeracy.

Table 2

BASELINE, TARGET AND AMBITION DATA FOR SKILLS FOR LIFE
2003 survey2011 target 2020 ambition
(%)(%) (%)
Level 1 Literacy8489 95
Entry Level 3 numeracy79 8195

2.  LEVEL 2 TARGETS

2a  2010 Level 2 Target

  The target that was set in previous Comprehensive Spending Reviews is for the number of economically active adults without a full level 2 qualification (equivalent to five GCSEs at grades A*-C) to fall by 40% by 2010. Adults were defined for this target as 18-59 for women and 18-64 for men. In order to meet the target, the number of economically active adults with a level 2 or higher qualification needs to increase by 3.6 million between the fourth quarter of 2001 and the fourth quarter of 2010 as measured by the Labour Force Survey. There was also an interim target of an increase of one million between the fourth quarter of 2002 and the fourth quarter of 2006. This was exceeded by 141,000.

Table 3

PROGRESS TOWARDS 2010 LEVEL 2 TARGET AND 2006 INTERIM TARGET
Cumulative increase:2002 20032004 200520062010 target
since Q4 2001 for 2010 target405,000 599,000785,0001,228,000 1,546,0003,500,000
since Q4 2002 for 2006 interim target 194,000380,000823,000 1,141,000Not
applicable


2b.   2011 Level 2 Target and Leitch 2020 ambition

  The Skills PSA Delivery Agreement describes the measure as the Proportion of working age adults qualified to at least full Level 2.

  In this instance working age is defined as 19-59 for women and 19-64 for men.

  The national target is for 79% of working age adults in England to be qualified to at least full Level 2 by the fourth quarter of 2011 as measured by the Labour Force Survey (LFS).

  The ambition in the Leitch Review of Skills, and endorsed by the Government, is for over 90% to reach that level by 2020 and 95% as soon as possible thereafter.

  The table below shows actual performance up to 2006 and the 2011 target and 2020 ambition. The figures up to and including 2006 are quarter 4 LFS actual estimates and later figures are projections.

Table 4

ADULTS AGED 19-59/64 QUALIFIED TO AT LEAST LEVEL 2
20032004 200520062011 target 2020 ambition
(%)(%) (%)(%)(%) (%)
67.167.568.8 69.779.0Over 90.0


Question 78-9 (Mr Dunne):   CSR Increases in priority learning 2005-11

  Tables 5 and 6 below show how public funding has been allocated for the previous Comprehensive Spending Review period (2005/06—2007/08) and the next Comprehensive Spending Review period (2008/09—2010/11), and the number of learner places associated with that funding. They show how funding has been allocated to support expansion of places in the identified priority areas. Further detail is given in the LSC report, "Our Statement of Priorities", published in November 2007.

Table 5

ADULT FUNDING 2005-06 TO 2010-11
Subject area2005-06 2006-072007-08 2008-092009-10 2010-11
£000's£000's £000's£000's £000's£000's
Adult Learner Responsive
19+ Further Education1,731,703 1,785,1881,612,6551,576,452 1,504,8671,510,199
UfI/learndirect189,834 129,049113,625122,100 122,000122,000
Employability Learning0 1,71324,40929,102 35,52941,770
Adult Learner Responsive Sub Total 1,921,5371,915,950 1,750,6891,727,653 1,662,3961,673,968
of which for planning purposes:
Foundation Learning Tier267,493 254,931230,051243,262 274,962289,738
Skills for Life576,800 567,365539,082568,337 590,037606,114
Full Level 2165,483179,629 197,233217,064233,293 259,521
Full Level 3248,061253,928 268,392313,141372,842 412,374
Developmental Learning729,524 659,727515,931385,850 191,263106,222
Employer Responsive
Employer based NVQs101,177 174,370194,287208,275 214,352230,559
Apprenticeships and work based learning 232,157216,884275,010 290,068317,024333,646
Train to Gain137,256194,060 520,527657,073777,287 1,023,240
Subject area2005-06 2006-072007-08 2008-092009-10 2010-11
£000's£000's £000's£000's £000's£000's
Employer Responsive Sub Total470,590 585,314989,824 1,155,4161,308,663 1,587,445
of which for planning purposes:
Foundation Learning Tier19,133 16,48316,70315,515 14,71814,681
Skills for Life13,415 27,44547,76751,794 56,99461,997
Full Level 2228,016306,196 570,864666,969769,563 834,683
Full Level 335,61241,557 88,309142,531167,659 362,081
Apprenticeships (Excluding Skills for Life) 161,015178,895250,542 269,715297,286313,795
Developmental Learning13,399 14,73715,6388,893 2,443208
Adult Safeguarded Learning228,577 222,004210,000 210,000210,000 210,000
Offender Learning & Skills Service 34,781100,748 113,038122,203 124,770127,933
Total Adult Participation (DIUS) 2,721,3082,823,646 3,063,5513,215,272 3,305,8303,599,346


Notes to Table 5

1.  Main subject areas (or "budget lines") for 2005-06 and 2006-07 are from LSC published accounts. The more detailed breakdown of the figures shown as "for planning purposes" for 2005-06 to 2007-08 under the learner responsive and employer responsive models are based on estimated activity in each of the areas for the corresponding year.

2.  Employer based NVQ figures are estimates based on funding for the academic year

3.  A change in the classification of costs occurred for UfI learndirect between 2005-06 and 2006-07

4.  Train to Gain figures for 2005-06 and 2006-07 include funding for the Employer Training Pilots

5.  Developmental learning constitutes learning below level 2 and outside the national qualifications framework, and learning that is above Level 3. Figures are indicative and subject to further modelling

Table 6

FUNDED ADULT LEARNER PLACES FOR PERIOD 2005-06 TO 2010-11
Subject Area2005-06 2006-072007-08 2008-092009-10 2010-11
Adult Learner Responsive
19+ Further Education2,465,000 1,679,0001,451,0001,372,000 1,127,0001,154,000
UfI/learndirect344,000 217,000217,000204,000 179,000152,000
Employability Skills Programme0 4,00013,00024,000 29,00037,000
Adult Learner Responsive Sub Total 2,809,0001,900,000 1,681,0001,600,000 1,335,0001,343,000
of which for planning purposes:
Foundation Learning Tier397,000 361,000364,000368,000 372,000374,000
Skills for Life1,175,000 822,000845,000923,000 914,000904,000
Full Level 2105,000108,000 126,000133,000143,000 161,000
Full Level 3116,000109,000 122,000137,000157,000 165,000
Developmental learning- --497,000 216,000116,000
Employer Responsive
Employer based NVQs145,000 155,000177,000185,000 195,000216,000
Apprenticeships96,000 92,000106,000114,000 124,000125,000
Train to Gain197,000256,000 461,000600,000638,000 872,000
Employer Responsive Sub Total442,000 505,000745,000 899,000958,000 1,214,000
of which for planning purposes:
Foundation LearningTier13,000 11,00011,00010,000 10,00010,000
Skills for Life274,000 316,000302,000304,000 313,000323,000
Full Level 2 (Excluding Apprenticeships) 294,000319,000505,000 603,000637,000664,000
Full Level 3 (ExcludingApprenticeships) 47,00051,00088,000 136,000144,000356,000
Apprenticeships96,000 92,000106,000113,000 123,000125,000
Developmental learning- --11,000 3,000 0
Total Adult and Employer Responsive excluding Safeguarded Adult Learning 3,251,0002,405,000 2,426,0002,499,000 2,293,0002,557,000
Adult safeguarded learning786,000 658,000666,000 630,000605,000 585,000
Total Adult and Employer Responsive including Safeguarded Adult Learning 4,037,0003,063,000 3,086,0003,129,000 2,898,0003,142,000



Notes to Table 6

1.  Figures for Train to Gain include National Employer Service 24+ and Additional Sector Activity learners

2.  Figures for Employer Responsive Sub-Total also include learners on Entry to Employment provision.

3.  Developmental learning constitutes learning below level 2 and outside the national qualifications framework, and learning that is above Level 3. Figures are indicative and subject to further modelling

Question 82 (Mr Philip Dunne):   Evaluation of the Education Maintenance Allowance programme

  The Education Maintenance Allowance (EMA) programme has been subject to a comprehensive evaluation. The results indicated that EMA increased participation of eligible young people in the pilot areas by 5.9 percentage points. This is equivalent to an increase in participation of all 16 year olds across the whole country of 3.8 percentage points. There was particularly strong impact for key target groups, such as young males, low-to-middle achievers, and those from lower socio-economic groups. The results also showed positive impacts on retention from year 13 to year 14, and also on an individual's attachment to education as measured by the number of terms in which they stay in education to age 19.

  In the first two years since national roll out of EMAs there have been increases in participation. It is not possible to say that all these increases are attributable to EMA, but this was the most significant programme operating in this area. Since the national scheme was launched in 2004-05 for 16 year olds, 16 year old participation in full-time education has increased by 6.0 percentage points. Since the national scheme was launched in 2005-06 for 17 year olds, 17 year old participation in full-time education has increased by 4.5 percentage points.

  The Learning and Skills Council published a report in early December 2007 looking further at the impact of EMA on participation, as well as attainment, by comparing EMA pilot areas with those where EMA was not available. When controlling for background characteristics, the analysis found positive and statistically significant impacts of EMA on participation and attainment across the board. EMA was found to increase attainment at Level 2 and Level 3 by around 2 percentage points for male learners and 2.5 percentage points for female learners. The report suggests that to calculate the impact on those who actually received EMA, these results should be multiplied by 2.5 for outcomes at 16 and three for outcomes at 17. This suggests the impact of EMA on attainment at level 2 and 3 to be 7 percentage points for female EMA recipients and 5 percentage points for male EMA recipients. The report presents further analyses that highlight varying impact for different groups of learners.

Question 88 (Phil Wilson):   Employer training, regional analysis

  The data in Table 7 below are headline findings from the Learning and Skills Council's National Employer Skills Survey which involved interviews with around 79,000 employers (establishments) in England during April-July 2007. The proportion of employers providing any training at all varies from 65% in the West Midlands to 70% in the North East.

  The North East performs best (or joint top) on all these four indicators and West Midlands performs worst. Between these, there are some variations in performance—eg Eastern and Yorkshire & The Humber regions have higher than average proportions of employers providing some off-the-job training but slightly lower than average proportions providing training overall.

  On average, just under half of employers have a formal training plan, varying from 45% in East of England and South West to 52% in North East.

  Formal budgets for training are less common. Only just over a third of employers have these in place and there is relatively little regional variation (34-37%).

  More detailed analyses will be available in the full report of the survey in spring 2008.

Table 7

EMPLOYER TRAINING—REGIONAL BREAKDOWN
Establishments
providing any
training in last
12 months
Establishments
providing any
off-the-job
training in last
12 months
Establishments
with a training
plan
Establishments
with a training
budget
%% %%

ENGLAND
6746 4835
East6648 4534
East Midlands6845 4834
London6747 4637
North East7052 5237
North West6848 5136
South East6945 4837
South West6845 4535
West Midlands6543 4734
Yorkshire & The Humber66 484934
Source: National Employer Skills Survey, 2007






 
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