Re-skilling for recovery: After Leitch, implementing skills and training policies - Innovation, Universities, Science and Skills Committee Contents


Memorandum 7

Submission from the Learning and Skills Council (LSC)

INTRODUCTION

  1.  This document is the submission of the Learning and Skills Council (LSC) to the House of Commons Innovation, Universities and Skills Select Committee Inquiry: After Leitch: Implementing Skills and Training Policies.

  2.  The Committee has posed specific questions about progress against the Leitch report. This submission summarises evidence that relates particularly to:

    —  The role of the Learning and Skills Council in this context;

    —  The respective roles of the further education and higher education sectors in delivering a region-based agenda for Leitch and their co-ordination with one another.

  3.  The LSC welcomes the opportunity to report to the Committee, and would welcome the chance to attend as a witness to highlight the central role it plays in taking forward the Leitch ambition and targets. Working with the Department of Innovation, Universities and Skills, the LSC was involved in the development of the Leitch implementation plan World Class Skills: Implementing the Leitch Review of Skills in England published in July 2007.

EXECUTIVE SUMMARY

  4.  Raising Expectations: enabling the system to deliver, recognises that the LSC has been successful in developing a more coherent and responsive FE system, with greater consistency between local areas and clearer progression routes. The LSC also responded to Leitch and the sub-national review by introducing regional structures and partnership teams to improve its ability to respond to the economic development agenda, and the needs of regions and sub-regions.

  5.  The LSC is a key partner in regional economic strategies and sub-regional arrangements such as multi and local area agreements. For example in the North West, the LSC has been an active partner in the development of a Greater Manchester approach to employment and skills. The LSC also works with emerging Employment and Skills Boards, and is actively involved in the London Skills and Employment Board (LSEB), chaired by the Mayor of London.

  6.  The LSC has successfully focussed its services towards low-skilled individuals, enabling more people to improve their employment and career prospects as well as boost their quality of life (see annex 1 for performance information).

  7.  The LSC is working to ensure that a greater proportion of its budget is progressively spent on more responsive and flexible employer-focused training. Sector Skills Councils, on behalf of employers, advise the LSC on which vocational qualifications are a priority for public funding—with funds increasingly focused on tackling low skills to improve employability and progression. A new communications campaign around the value of skills and fostering a new culture of learning also began in 2007.

  8.  Train to Gain, the national service to support employers of all sizes and in all sectors to improve the skills of their employees, is a major driver in addressing Lord Leitch's recommendation for increased investment in skills, UK economic competitiveness; increased investment by employers, individuals and the state.

  9.  World Class Skills signals the proposed support that will be available to individuals to improve their skills and progress in work. The focus on a new joined-up system of support for adults who want to progress in their lives; whether that be moving from a low-skilled, low-prospects job onto a new and better career path, or from worklessness into sustained employment, builds on the work of the LSC.

  10.  Following the publication of Raising Expectations: enabling the system to deliver in March 2008, a consultation is taking place on the transfer of planning and funding for 14-19 from the LSC to local authorities, along with proposals for reforming the post-19 landscape. The LSC is actively developing shadow working arrangements to support the proposed changes, and continuing to develop demand-led funding arrangements. Significant work to prepare for the Skills Funding Agency (SFA) and its constituent services in 2010 is underway.

REGIONAL AGENDA

  11.  The LSC works with each Regional Development Agency (RDA) to align and integrate skills with the priorities set out in the regional economic strategy. In each region, the LSC publishes a regional commissioning plan, setting out investment priorities and identifying key sector and occupational skills priorities and where new and additional provision is required. Each plan identifies priority groups of learners, and how the region intends to engage these groups to increase equality of opportunity and social inclusion.

  12.  Each LSC region has developed regional plans to implement the strategy for Train to Gain set out in A Plan for Growth, detailing local and regional approaches. Plans to manage smooth transition of brokerage activities from LSC to RDAs in April 2009 have also been developed.

  13.  The LSC actively participates at regional level in a variety of ways to take forward work to support the achievement of the Leitch ambition. For example, in taking forward the Regional Minister's priorities for skills, the RDA (Advantage West Midlands) and the LSC have developed a sub regional Skills Action Plan (attached at Annex 2). The plan is nested within the Regional Economic Strategy and delivery framework. Uniquely, Leitch's priorities sit at the heart of the Skills Plan and the RES priorities. The plan is led by employers and proposes a streamlined and simplified approach to skills and employment in the West Midlands. It clarifies the roles and responsibilities of key partners and stakeholders, and sets out a broad summary of actions to achieve agreed goals with annual numerical targets.

  14.  Launched in March 2008, the plan has been endorsed and supported by a wide range of partners, notably by the CBI, regional Chambers of Commerce, and the Local Government Association.

  15.  In the North East, collaboration at regional level is crucial in achieving strategic impact and economies of scale. The LSC and the RDA have worked together closely at all levels (from Chief Executives down) across the whole spectrum of employment and skills issues. Specific examples include the development of the "People" chapter of the Regional Economic Strategy, written jointly by RDA and LSC—with the LSC formally committing to deliver a significant amount of the activity—and the wider Regional Skills Partnership adopting this as its overall strategic plan. The RDA and the LSC have joint procurement and performance management of a fully integrated, regional skills brokerage service—delivering both the Business Link and Train to Gain branded brokerage services for the region.

  16.  Ongoing development and implementation of the North East's "Regional Employability Framework" brings to life the concept of Integrated Employment and Skills; co-ordinating and enhancing the efforts of a wide range of strategic and delivery partners—led by a group of senior RDA, JCP, and LSC staff. This work has led to the alignment of LSC and JCP European Social Fund co-financing plans.

  17.  The key benefit of this activity is the development of operating protocols that define the roles and responsibilities of each key partner, in the context of the sub national review including the enhanced role of local authorities around economic development and worklessness. We are systematically tackling barriers to employment through a comprehensive, system-wide approach that brings a more coherent offer to the employer and individual. This approach binds together all services at neighbourhood level, including health, housing, transport and childcare to address skills and personal barriers to employment.

KEY NATIONAL PROGRESS TOWARDS ACHIEVING OUR WORLD CLASS SKILLS AMBITION

  18.  The LSC has made considerable progress to raising achievements to the levels we need to secure the Leitch ambition—progress against key LSC targets is outlined in Annex 1. We expect to achieve the 2010 target of 2.25m for skills for life achievements at least two years early. The 41.6% increase in participation by adults (aged 19 or over) on full level 2 programmes between 2005-2006 and 2006-2007 to 470,400 is fundamental to the strategy for delivering the level 2 element of the adult skills PSA target.

  19.  The LSC's latest statement of priorities Better skills, Better jobs, Better lives sets out our plans to meet ambitious new Government targets for learning and skills and where we will invest our £11.5 billion of funds in 2008-09. Through the Train to Gain service we have an opportunity to get more people qualified to levels 2 and 3 (and increasingly level 4). To engage more people in learning (including learning below level 2), over £1 billion a year of public funding supports a range of learning opportunities, including Foundation Learning Tier, Skills for Life and personal and community development learning.

Train to Gain

  20.  Train to Gain is the national service to support employers of all sizes and in all sectors to improve the skills of their employees as a route to improving business performance. Train to Gain: A Plan for Growth (November 2007), details how the responsiveness of Train to Gain to employers' needs will be improved for Train to Gain to play its part in delivering the skills trajectories set out in World Class Skills.

  21.  The plan details the actions and investments that are required to meet the challenging targets for Train to Gain to play its part in delivering the skills trajectories set out in World Class Skills. The plan projects the numbers of employers and individuals it aims to help up-skill, an estimated increase from around 242,000 learners in 2006-2007 to 786,000 in 2010-2011.

  22.  Enhancing skills not only boosts competitiveness, productivity and profitability, it also greatly enhances the career and salary prospects of individuals. From the low skilled to the highly skilled, Train to Gain aims to help employees improve their employability, career and skills progression. Train to Gain has had a significant impact in the workplace since it commenced in April 2006, and is transforming the way that Government and providers support employers. Current activity in 2007-2008 (data between August 2007—January 2008), has seen 22,810 employers engaging with brokers resulting in 128,000 learner starts. In its first full year of operation, 2006-2007, over 52,000 employers were engaged by brokers, involving around 240,000 employees into training activities.

  23.  A Plan for Growth focuses upon the need to expand and measure the success of Train to Gain. It involves working with partners at national and regional level to consider the best way to improve performance measurement, looking at other indicators such as productivity, tackling disadvantage in particular groups and other economic and social factors. New measures and flexibilities include broadening out skills brokerage to cover all sizes of employer, and flexibilities for people recruited through a Local Employment Partnership (LEP). Train to Gain will have increased flexibility to train people from priority groups who obtain employment through LEPs.

Skills Pledge

  24.  The Skills Pledge, launched by Gordon Brown in June 2006, is a public commitment by employers to invest in the skills of their employees. The LSC promotes the Skills Pledge, which is now positioned within "Our Future it's in Our Hands" branding. The Skills Pledge is relevant to all employers, regardless of size or skills needs, and aims to increase employers' interest and demand for developing the skills of their lowest qualified employees.

  25.  At the end of February 2008, the number of employers making the Skills Pledge was 2,130, and is increasing steadily each month. There are now 3.3 million employees working in organisations who have made a commitment to the Skills Pledge. The top three performing sectors are Construction Skills, Skills for Care and Development, and Lifelong Learning. The LSC also continues to work with other Sector Skills Councils, and through our Sector Compact arrangements we are expecting SSCs to support a minimum of fifty of their most influential employers annually to make the Skills Pledge.

Sector Qualification Strategies

  26.  Employers, via Sector Skills Councils (SSCs), have a lead role in reforming vocational qualifications for their sector. The Sector Qualification Strategy (SQS) from autumn 2008 will set out the "fit for purpose" skills and qualifications in a specific sector, as identified by employers (via SSCs). The SQS is therefore a key source of information to the LSC in identifying the courses that should be supported by public funding. The SQS Action Plans will provide a sufficient level of detail to allow the LSC to focus funding where it can make most difference to employability and productivity.

Integration of Employment and Skills

  27.  A framework of stronger partnership working, performance management and targets for JCP, the LSC and a new adult advancement and careers service (aacs) is developing in response to World Class Skills, and the subsequent DIUS and DWP report Opportunity, Employment and Progression: making skills work (November 2007). Aspects of the new "careers service," envisaged by Leitch includes joined up advice services and a new skills health check, will start to be delivered from 2008-2009. LSC has positioned the careers service as a gateway to skills accounts and as a building block for the integrated employment and skills service, which will also be trialled from 2008-2009. The new advancement service for adults will have the potential to help every adult progress in learning and work.

  28.  Individuals will have greater ownership and choice over their training, through Skills Accounts, backed by joined-up services providing information and advice on jobs, skills and training. Our vision is that every individual who receives publicly funded vocational provision—whether that be via college, through JCP, via an Apprenticeship or through Train to Gain will have a Skills Account to support their ongoing progression over a lifetime. We are designing and testing a high quality Skills Account product and supporting systems through trials in 2008-09 and 2009-2010 to inform the national roll-out of skills accounts from 2010.

Joint Working with Jobcentre Plus

  29.  Considerable progress has been made in joint working between LSC and Jobcentre Plus (JCP). JCP and LSC are now fully involved in each other's internal project management arrangements for the forthcoming Integrated Employment and Skills trials and Local Employment Partnerships (LEPs). (LEPs are the key activity for JCP in engaging employers to recruit from their priority customer groups).

  30.  The LSC's flexible and responsive pre-employment provision Skills for Jobs has been rolled out across the country, providing pre employment provision for JCP priority groups, including those recruited through LEPs. LSC provision is the primary source of pre-employment training required by employers. This area of provision will be further supported by up to £195m of European Social Fund monies in the period 2008-2010.

  31.  The LSC has rolled out its employability skills programme (literacy, numeracy and vocational skills) across the country, enabling more JCP customers to access tailored basic and employability skills provision, including enhanced information, advice and guidance.

Apprenticeships

  32.  World-class Apprenticeships, unlocking talent, building skills for all published in January 2008 is central to the Government's response to Leitch on skills and was launched as part of the Government's skills and welfare reform programmes. The report articulated the need for a National Apprenticeship service (NAS).

  33.  The NAS has clear economic and social benefit goals which will help the country to compete successfully in the global skills race and to ensure that more people have the broad base of skills needed to get in and on at work. World-class Apprenticeships fundamentally re-positions Apprenticeships as a major learning route way for young people and for employers wanting to recruit and up skill their workforce. The NAS, its delivery partners and stakeholders have a massive task to stimulate a culture shift in the attitudes of employers, young people and adults and their advisers towards Apprenticeships as a key part of in-work training and development.

  34.  The LSC grown the Apprenticeship Programme considerably, introducing 5,000 Adult Apprenticeship places, due to increase to 8,000. Also many more young people complete their training successfully, with an increase in completion rates to 63% of those starting. The LSC's National Employer Service has continued to grow apprenticeship programmes, with approximately 22,500 starts in 2007-2008, an increase of just over 9% over the previous year.

  35.  A new national Apprenticeship vacancy matching service will be trialled in three test bed regions from October 2008, following a series of developmental pilots. This service will ensure easy access to Apprenticeship vacancy details for young people and adults; provide a free vacancy service to employers wanting an Apprentice; and enable the NAS to monitor and support the successful use of the system by both employers and individuals.

THE ROLE OF THE FE SECTOR AND CO-ORDINATION BETWEEN HE AND FE

  36.  A comprehensive programme of FE reform and the move towards a demand-led approach for adults and the system change proposals set out in Raising Expectations: enabling the system to deliver will ensure that FE is able to deliver the Leitch agenda. The FE sector has improved performance successfully over the last decade, demonstrated by positive inspection ratings and increasing success rates in the standard of management and leadership, and teaching and learning.

  37.  The FE and HE sectors share a common goal of helping young people and adults to develop the skills needed for employment. An increase in joint working between FE and HE is demonstrated by the high level of HE delivered by FE colleges. The LSC's Higher Education strategy Partnership, Provision, Participation and Progression published in 2006 contains a clear commitment to HE in the FE sector and to collaboration between HE and FE institutions, recognising the sector's unique position with regard to HE, in preparing individuals to progress to HE and HE delivery in FE.

  38.  We believe that FE and HE collaboration can be further developed, for example, through a clear and collaborative focus on employment related higher level skills including Foundation Degrees, with the joint capacity to stimulate demand and growth at level 4.

  39.  We have begun discussions with HEFCE and UCAS about extending the availability of Higher Apprenticeships at Level 4 and attributing tariff points to Apprenticeships for entry to HE.

  40.  We are exploring new approaches to collaboration—in National Skills Academies, through FE colleges and HE institutions working together to become recognised awarding organisations in the QCF; through collaboration in the delivery of the new Diplomas, through credit accumulation and transfer across the sectors.

April 2008

Annex 1

Targets and Impact

1.  PARTICIPATION IN FULL-TIME EDUCATION AMONGST 16-18 YEAR OLDS

  1.1  Participation of 16-18 year olds in education or training at the end of 2006 reached 77.3% of the age cohort, an increase of 0.5 percentage points on the previous year.

  1.2  This represents 1.55 million young people in education or training and is the highest level ever recorded. 61.1% (1,223,000) of 16 to 18 year olds are in full time education, the remaining 16.2% (324,000) of young people are in other education or training.


  1.3  Early information relating to 2007-08 indicates that growth in young people's participation is being maintained. Based on the number of learners in learning on 1 October 2007 the number of learners aged under 19 has increased by 2.5% to 852,400.

  Young peoples participation as at October 2006 / October 2007
AgeType of programme 2006-072007-08 % change 2006-07
Under 19Total learners 831,200 852,400 2.5%
of which is Full level 2 231,100 234,700 1.5%
of which is Full level 3 319,700 339,000 6.0%

2.  NUMBER OF ADULTS QUALIFIED TO AT LEAST LEVEL 1 LITERACY, AND TO AT LEAST ENTRY LEVEL 3 NUMERACY

  2.1  The latest information confirmed with Ministers (October 2006) shows that the 2007 milestone of 1.5 million adults with improved skills had been exceeded one year early. Confirmed figures for the end of July 2006 show that 1.76 million adults actually achieved qualifications that count towards the target.

  2.2  Latest available information shows that we expect to exceeded the 2010 target at least two years early. Indicative figures to July 2007 (shown in sky blue below) show that 2.294 million adults have achieved a Skills for Life qualification since 2001. Using final year data, it is forecast that this will rise to 2.296 million.

  2.3  Before we can confirm meeting this target, thorough checks on Skills for Life Achievement data for repeat learners will need to be completed. Detailed analysis, commissioned by DIUS looking at each year since the start of the target and up to and including 2007-08 is due for completion by the end of May. Following this we should be in a position to publish robust data, and to measure accurately progress towards the 2010 target.


  2.4  It is too early to measure our progress against the new PSA targets, to ensure 597,000 people of working age achieve a first level 1 or above literacy qualification and 390,000 to achieve a first entry level 3 or above numeracy qualification. In 2007-08 we are planning to deliver 222,100 literacy and 85,900 numeracy achievements.

LSC funded Learners
2005-06 2006-07 (provisional)2007-08 (planned)

Learners achieving first L1 Literacy
181,400217,900222,100
Learners achieving first entry level 3 Numeracy 71,30083,00085,900


  2.5  In the LSC's statement of priorities, Better skills, Better jobs, Better lives the LSC expects its providers to assess the numeracy skills of all their literacy and language learners, and to offer appropriate provision if necessary. The LSC is also working with DIUS to develop a numeracy plan to help raise the profile of numeracy skills, to increase learner numbers and to ensure there are appropriate levels of qualified numeracy teachers.

  2.6  Recent developments include a numeracy marketing campaign launched by the LSC on 17 March 2008. The first phase has received positive publicity and a very good response rate. The campaign has generated over 24,000 confirmed responses so far, with around 10,000 calls coming through the Learndirect helpline and almost 14,000 coming via the website. This is in excess of the responses generated by the most recent "gremlins" campaign and is also higher than the responses to the initial skills campaign adverts in July 2007.

3.  ADULTS QUALIFIED TO AT LEAST FIRST FULL LEVEL 2

  3.1  There has been a 41.6% increase in the number of adults (aged 19 or over) on full level 2 programmes to 470,400 between 2005-06 and 2006-07. This increase in participation is a fundamental part of the strategy for delivering the level 2 element of the adult skills PSA target.
AgeType of programme 2006-072007-08 % change
2006-07
19 plusFull level 2 332,300470,40041.6%


  3.2  The latest PSA agreements include new targets for Levels 2 and 3 based on the population aged 19 to 59 for women and 19 to 64 for men designed around the Leitch ambitions for 2020. 70.6 percent of all working age adults have a qualification at Level 2 or above, equating to 20.3 million people from a population of 28.8 million. There has been an increase of 5.7% since 2001. The PSA target is 79% by 2011.


  3.3  The Quarter 4 figure for 2007 is approximately 200,000 lower than the planned trajectory to reach the 2010 target. The LSC is continuing to build upon the Level 2 action plan agreed with DIUS to ensure we focus on actions to drive up performance to levels needed to meet the target. This work has included a specific focus on achieving higher levels of adults undertaking Level 2 for the first time. Other work includes ensuring under-performing colleges and providers falling short of meeting target numbers will have their allocations reviewed for 2008-09 to ensure funding continues to be directed at those that are able to deliver.

4.  ADULTS QUALIFIED TO AT LEAST FIRST FULL LEVEL 3

  4.1  50.5 percent of people aged 19-59/642 have a qualification at level 3 or higher—an increase of 5.8 percentage points since 2001

Adult participation as at October 2006 / October 2007
AgeType of programme 2006-072007-08% change
2006-07
19 plusFull level 3 235,800242,1002.7%


  4.2  Early data from 2007-08 indicates there has been a 2.7% increase in the number of learners participating on full level 3 courses compared to 2006-07.

5.  ADULTS QUALIFIED TO LEVEL 4 AND ABOVE

  5.1  30.8 percent of all adults aged 19-59/642 have a qualification at level 4 or higher. This represents an increase of 5.6 percentage points since 2001 (25.2 to 30.8 percent), equivalent to around 1.8 million more people having Higher Education (HE) level qualifications than in 2001.

  Notes:

  1  Economically active adults are defined as males aged 18-64 and females aged 18-59 who are either in employment or ILO definition unemployed.

  2  Males aged 19-64 and females aged 19-59

Annex 2

West Midlands Regional Skills Action Plan

  (see http://readingroom.lsc.gov.uk/lsc/WestMidlands/nat-skillsactionplan-mar08.pdf)






 
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