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


Memorandum 21

Submission from Ufi

EXECUTIVE SUMMARY

1.  Background

  1.1  Ufi is the company behind the nationally renowned brand of learndirect, aiming to transform skills in the UK using technology. Established in 1999, Ufi is now the largest provider of skills and training in the UK.

  1.2  Ufi is responsible for three customer-focused services which are all unique to the UK:

    —  learndirect skills and qualifications, web delivered learning with 1-1 tutor support

    —  learndirect business, learning services to employers

    —  learndirect careers advice, the national careers and advice service for adults currently available by phone and over the web

  1.3  Ufi operates across the nine English Regions, Wales and Northern Ireland. Over 300,000 people do learndirect courses each year and nearly 90% have either no or only Level 1 qualifications.

  1.4  Ufi welcomed Lord Leitch's findings and recommendations published in December 2006[61]. As implementation gets underway across the sector, as outlined in the DIUS Implementation Plan[62] and more recently the DIUS/DCSF Machinery of Government announcements[63], Ufi has stepped up to the challenge by strengthening its regional delivery and increasing its contribution to new PSA targets, thereby establishing itself as a major provider in the new demand-led landscape.

2.  Key Messages for the Inquiry

  2.1  Effectiveness of regional structures. Ufi believes there is a lack of consistency with regard to the effectiveness of structures and partnerships across the regions. For example there is often tension between the LSC and RDAs in the regional planning process due to conflicting priorities, eg LSC focus on Level 2 v RDA focus on higher level skills (Level 3/Level 4 and beyond). The North East is one region where the key agencies work well together, and this view is supported by the fact that the North East is often a pilot region for new policy initiatives.

  2.2  Reform of the FE sector post Leitch. There is a danger that the recent Machinery of Government proposals in the White Paper "Raising Expectations: enabling the system to deliver" may replace one complex system with another. Ufi welcomes the adult responsiveness model to create a truly demand led system through the development of Train to Gain and Skills Accounts. The responsibility on employers and learners to choose their provision needs to be supported by clear information and a genuinely level playing field for providers. In managing the transition, the lessons from Train to Gain should be applied to Skills Accounts so that performance meets ambitions.

  2.3  Impact on students. The impact of these initiatives on students will become clearer as more funding is routed through Skills Accounts and Train to Gain over the next three years. In order to make the system work, individuals and employers need informed choice and greater personalisation of services. The AACS pilots need to be undertaken against a robust blueprint which urgently needs to be developed, including full use of web and phone technology.

  2.4  Further detail on these key points can be found below.

SPECIFIC AREAS FOR CONSULTATION

3.  Role of RDAs in implementing skills and training policies

  3.1  Ufi has been delivering skills training at regional and sub regional level since learndirect was launched in 2000 and since then we have developed variable relationships with the RDAs as a strategic and delivery partner. We believe the RDAs do not always work well with Regional LSC given their focus on Level 3 skills and above and the LSC's priority to focus funding on Level 2. This often creates tension in the regional planning process.

  3.2  RDAs have a broad remit; we believe they are strong in reinforcing messages but weak on implementation of policy.

  3.3  We have also experienced inconsistencies across regions in relation to partnership working. For example, Ufi has secured representation on Regional Skills Partnership Boards in only three regions. Where we have been successful, for example in the South East, Ufi has worked hard to build strong relationships with RSP members, and to ensure that they fully understand how Ufi/learndirect can add value at regional and local level. Ufi is not a member of the first Employment and Skills Board (ESB) in London but our aim is to be involved in the relevant sub-groups as they are established and to ensure that regional ESBs understand Ufi/learndirect's contribution to regional objectives.

  3.4  Policy affecting the role and remit of RDAs in relation to skills and training is still evolving through implementation of the DCLG Sub National Review. Under the proposed changes top-tier councils will be given a new duty to assess the economic conditions of their area: those assessments would then form the basis of a Regional Strategy, drawn up by the RDAs and covering areas including skills. Strategies would then be scrutinised by regional forums of Local Authority leaders. Also under new legislation, Councils rather than RDAs could lead on projects using funding delegated to them from the RDAs.

4.  Regional structures

  4.1  It could be argued that the recent Machinery of Government proposals in the White Paper "Raising Expectations..." may confuse the regional and sub-regional landscape further—with one complex planning and funding structure being replaced with another. Ufi believes further clarity is needed around the potential gaps that will be left when the LSC ceases to exist in 2010, including the current role of LSC Regional Councils and potential constraints imposed by Local Authorities, DIUS etc.

  4.2  More clarity is needed around responsibility and leadership of regional bodies. In Ufi's experience, unless bodies such as Regional Skills Partnerships have clear authority with budget, they do not have impact. For example the Regional Skills Partnership in the Eastern region only became effective when it became responsible for managing ESF funding.

  4.3  As skills and employment policy and delivery become more integrated it will be increasingly necessary to bring together the key agencies and delivery partners in a region. In the North East the key bodies, including LSC, JCP and Regional Skills Partnership, are focused on delivering the Regional Employability Framework (REF). Ufi supports the focus of the Framework to remove duplication of funding however it is proving difficult for some providers to enter the employability market as the regional LSC already have provision that JCP refer into to meet their targets.

5.  The role of the LSC

  5.1  The LSC restructure in 2005 strengthened their regional presence by creating regional LSC bodies with a responsibility for strategies, planning, some commissioning and delivery across the nine English regions, in addition to the National Employer Service.

  5.2  Pre-19 funding will transition to Local Authorities in 2010 and the LSC will move to become the Skills Funding Agency (SFA) within the next three years. It is still unclear where the balance of power will lie for Adult Skills Strategy in new regional structures post 2010. It is possible that DIUS will take responsibility for strategy and that the SFA will become a planning and funding body. This may create a significant distance between the policy makers and the delivery, although it may create opportunities for national providers such as Ufi to respond to policy on a national level, providing an opportunity to become a significant national delivery partner and potentially securing national contracts.

6.  The role of SSCs

  6.1  Ufi believes SSCs have struggled with the regional agenda and not had the impact expected because of their national focus on qualifications reform, 14-19 and apprenticeships. Ufi agrees with Leitch's observations that SSC performance is variable but much of this is down to their differing heritage and start up resourcing.

  6.2  It is believed that SSCs have not successfully addressed the employer engagement agenda partially due to weak strategies for partnership working, particularly with brokers and Chambers of Commerce. SSCs are the voice of the employer, but they often do not make a significant contribution to regional priorities. SSC membership is not always a true reflection of businesses in a region, eg not representative of sole traders/micro-businesses.

  6.3  There have been difficulties in aligning Sector Skills Agreements (SSAs) with local strategies such as Regional Economic Strategies and there is a danger that since the closure of SSDA there will be little attention to SSAs going forward. Some SSCs may feel their future is uncertain given the UK Commission's plans to re-license later this year and there is an expectation that the number of SSCs may be rationalised.

7.  Respective roles of FE and HE in delivering a region-based agenda

  7.1  Bridging the gap between FE and HE is still a policy priority. Ufi is a national organisation which delivers regionally and sub-regionally and is the only national organisation with an offer ranging from Entry Level to Post Graduate level. Ufi believes more innovation is required in the sector to make the adult responsiveness model successful. Ufi's unique learning model packages technology, outreach, tutors and products enabling a personalised learning experience to be delivered to individuals and employers cost effectively.

  7.2  The online, flexible nature of learndirect makes learning "portable" and Ufi has been particularly innovative, for example the development of a secure model delivering learning into prisons. learndirect has now been rolled out in 25 prisons, with another 10 prisons coming on board by July 2008. The offer includes a tutor-supported portfolio of learndirect skills and qualifications including Skills for Life, IT and work based learning—offering a pathway which can lead to employment. Offenders have an Individual Learning Plan which can be transferred to the learner on release enabling them to continue to access their learning and learner records online in the community.

  7.3  Ufi is also using the learndirect model to address regional issues such as graduate migration. Through its Learning through Work programme, Ufi partners with a number of HEIs and FECs to deliver qualifications from Level 3/4 to Level 7 including Foundation Degrees, Honours Degrees and short CPD courses so that graduates can be "grown" in a region where there is a shortage of skills. learndirect Learning through Work is delivered through a custom-built Learning Support Environment enabling the development of tailored programmes for individuals and groups. It particularly responds to the needs of business because it:

    —  enables staff to gain relevant (and QAed) learning and qualifications without taking time off work;

    —  demand led: programmes can be tailored specifically to the work related needs of the employer and the individual;

    —  tailored programmes can be developed for employers within a short timescale.

    —  existing, relevant in-house courses an be incorporated;

    —  includes a range of on-line learning packages relevant to business need

8.  Impact on students

  8.1  To date, the impact of Leitch's review has been more on systems and processes rather than the learner. The impact of these initiatives on students will become clearer as more funding is driven by demand over the next three years. In order to make the new system work, individuals and employers need informed choice and greater personalisation of services and Ufi supports a contestable, demand led system which routes funding through Skills Accounts and Train to Gain to empower students to make informed choices based on quality and flexibility of provision in an area.

  8.2  The AACS pilots need to be undertaken against a robust blueprint which urgently needs to be developed, including full use of web and phone technology.

April 2008






61   Prosperity for all in the global economy-world class skills (December 2006) Back

62   World class skills: implementing the Leitch Review of Skills in England (July 2007)  Back

63   Raising Expectations: enabling the system to deliver Back


 
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