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


Memorandum 51

Submission from the Equality and Human Rights Commission

  1.  The Equality and Human Rights Commission (the Commission) was established on 1st October 2007 under the Equality Act 2006. It champions equality and human rights for all, works to eliminate discrimination, reduce inequality, protect human rights and build good relations, and to ensure that everyone has a fair chance to participate in society.

  2.  The new Commission brings together the work of the three previous equality commissions, the Commission for Racial Equality (CRE), the Disability Rights Commission (DRC) and the Equal Opportunities Commission (EOC). The Commission's remit now covers race, disability, gender, gender reassignment, age, sexual orientation, religion or belief and the application of human rights. Working across Britain, the Commission has offices in Manchester, London, Cardiff, Glasgow and Edinburgh.

INTRODUCTION: THE POTENTIAL OF SKILLS TO IMPROVE LIFE CHANCES

  3.  The potential of skills acquisition to improve employment opportunities, tackle disadvantage and poverty and to change lives for the better is well evidenced. If skills can be secured even for those currently most distanced from them, then these ambitions could become a reality. Leitch proposals for increasing skills levels and subsequent implementation plans, have set out an exciting agenda for delivery of change by 2020.

  4.  It is encouraging that the implementation plan recognises the equality and diversity agenda that needs to be set and addressed through implementation policies and practices:

    "The skills deficits in England are heavily differentiated by age, disability, ethnicity, and gender, but also by geography and socio-economic group. We will ensure that our policies, collectively and individually, act to narrow gaps in attainment and participation where these gaps are detrimental to social justice and economic success." Equality and Diversity section in implementation plan.

  5.  In our evidence, we set out some of the key equality challenges, the extent to which current implementation arrangements for skills and progression opportunities will be delivered for individuals and groups identified, and suggest where additional actions are needed to catch those falling through the implementation "gaps".

ASSESSING THE EQUALITY IMPACT

  6.  The Skills Strategy Equality Impact Assessment (EIA) identified a risk that existing inequalities will not be reduced by a one size fits all approach, particularly for people who experience multiple disadvantage. It recognised that other vulnerable groups, while not covered by equality legislation, may also experience disadvantage in terms of skills and employment and ought to be able to benefit from the Skills Strategy.

  7.  The EIA identified groups affected by multiple or other disadvantage as including:

    —  part-time and temporary workers

    —  people with caring responsibilities,

    —  women in certain communities, particularly of Bangladeshi or Pakistani heritage

    —  people on welfare benefits, especially incapacity benefits as a result of mental health problems

    —  people over the age of 50

    —  people employed in businesses lukewarm to training

    —  migrants especially from EU accession countries and/or with English language needs

    —  offenders and ex-offenders

    —  young people not in education, employment or training (NEET)

    —  adult with literacy levels at or below entry level 2

  8.  The EIA explained that some of the most serious inequalities are long standing and are affected by a wide range of factors which can not be fully addressed by the Skills Strategy on its own. "Nor can they be removed overnight. These include deep-seated patterns of gender segregation throughout the labour market, and high levels of unemployment amongst disabled people and certain ethnic minority communities."

  9.  It also identified that data that is collected often gives a broad picture but does not capture the finer-grained distinctions that can affect equality and diversity.

  10.  It is therefore disappointing that despite recognising the data limitations, and the persistent and wider challenges of skills inequality, the Leitch implementation plans include no equality strategy or action plan to focus skills initiatives on those most in need.

  11.  We recommend that as a matter of urgency an equality impact assessment should be made available for the Leitch implementation arrangements and new delivery initiatives for skills. We also recommend that the evidence in the Skills Strategy EIA and our own evidence to this Select Committee raises sufficient concerns about the impact of initiatives on disadvantaged groups to warrant the development of a separate equality strategy and action plan. (For more information on the skills issues and challenges for particular groups, please see annex 1).

THE IMPACT OF LEITCH IMPLEMENTATION INITIATIVES

  12.  Raising Expectations: enabling the system to deliver (the Department for Innovation, Universities and Skills and Department for Children, Schools and Families consultation document), regards the advent of Skills Accounts and the growth of Train to Gain as heralding a radically different model of organising the skills system, where the role of government is to make sure customers are well-informed and supported so that their demand for learning leads supply.

  13.  The Commission is concerned about how this demand-led system will serve to support those currently deficient in skills, the hard-to-reach, and those at the margins who have failed to make—or be heard in—demands for skills acquisition and progression opportunities to date.

Employers

  14.  For example, employers will be responsible for the skills of those in work (approximately 29 million people ). However, evidence to date suggests that the delivery of skills by employers has not been a major driving force in tackling disadvantage and inequality.

    —  Evidence shows that employers have very negative attitudes to training the over 40s.

    —  Small employers (employing more than 58% of the private sector workforce and 12 million people) are less likely to train, as is the service sector—both of which are most likely to employ low-paid workers, dominated by women and ethnic minority workers.

  15.  Articulating the training and progression needs of workers and those returning to the labour market —including those trapped in low-skilled jobs and under-using their skills -and the pay-back to employers, needs to be a key focus of discussions between skills brokers and employers and should inform the delivery plans of all the partners to work-based training. Currently there is little evidence to show that this is happening.

  16.  We would also like to see more emphasis on sectoral initiatives, with Sector Skills Councils (SSCs) and employers, particularly where there are skills shortages, targeting low-skilled and under-represented groups for training. Also, different regions face different demographic challenges so geographically-based initiatives should be created through Local Employment partnerships and Forums.

  17.  Train to Gain, because of its focus on low-skilled people, and employer support, has the important potential to engage employers and reduce inequalities. A key area of concern at the end of the precursor Employer Training Pilots (ETPs) was disability, given the low take-up of only 5% against a background population of 12%.

  18.  This data raises questions about results for other groups, even for those where take up was a closer match to the background population. For example, we know that the ETPs were regarded as beneficial to women, but in fact, training had no impact on job segregation. It is therefore important to carry out further analysis against the proportion of low-skilled people in the background population. We are pleased to note that the LSC (or the new Skills Funding Agency) with responsibility for planning and implementing the Train to Gain service will be working with its partners, including Sector Skills Councils and Regional Development Agencies, to ensure that all information on the programme is carefully monitored, to check that all learners and potential learners are benefiting, particularly those affected by multiple disadvantage. We look forward to seeing this data.

  19.  In addition, the Train to Gain brief should be extended to give funding and brokerage support to employers for skills training for different groups at different levels to secure progression and best use of employees, not just skilling at levels for current roles. Where union learning reps are working with employers to draw up action plans for delivering the pledge, we would like to see an explicit focus on skills proposals for all workers at all levels, with targets for groups under-represented.

Those not in work or on welfare

  20.  Public policy focuses on those in work (approx 29 million) or those on welfare (approx 5 million). In addition, there are approximately 4 million people neither working or on benefits—but this group, silent rather than vocal in their skills demands— is the hardest to reach and potentially the most in need. The make-up of this group, their skills and work potential, barriers and needs, should be identified and directly addressed in delivery arrangements. This group will include, for example, women taking time out for caring, Bangladeshi women, and older people.

  21.  We do have concerns about the extent to which the new adult careers service and advancement agency, and Skills Accounts, will capture the voice and potential of this silent group and create appropriate arrangements for securing skills and progression throughout the lifecycle. We know that within the resources available for the universal adult careers service, more intensive support face to face will be targeted on particular groups such as benefit recipients, the low-skilled, those cycling between welfare and work, and others at key transition points in their careers. The service has to recognise that many people face multiple barriers to re-entering work, gaining new skills and better jobs and the extent to which the arrangements will permit outreach and tailor-made solutions is unclear, particularly for those not falling clearly into the target groups.

Skills across the lifecycle

  22.  The link between skills and employment is vital and should be developed further, with a lifecycle approach delivered through skills accounts and the adult careers/advancement agency to support acquisition and use of skills. Focusing funding at front-loading young people with skills is important, but life-cycle-sensitive skills initiatives need to be developed, recognising the importance of re-skilling so that people are able to move in and out of work without losing ground, to stay longer in work, improving individual prosperity and contributing higher levels of productivity to the fast-changing global economy.

  23.  We welcome the proposal for further work between DIUS and the Department for Work and Pensions (DWP) to define a clear prospectus for Jobcentre Plus (JCP) and the careers service which acknowledges the range and nature of the problems people face and which recognises the different customer journeys which will be undertaken according to need. We look forward to seeing more detail of this.

Advancement agencies

  24.  We also look forward to more information about the role of the advancement agencies. As well as tackling persistent movement in and out of low level work, advancement agencies provide an exciting new opportunity to identify ways of securing progression for all groups.

TARGETING AND ENTITLEMENTS

  25.  The specific and urgent priority for skills delivery is identified as tackling the skills and employment needs of those out of work or who have low skills, with entitlement to a first full level 2 qualification. While we recognise the need for this entitlement, we are concerned that the importance of enabling people who have been out of the labour market to re-fresh outdated skills to improve their employability is not recognised through current proposals. We suggest that consideration should be given to extending the entitlement to support lifelong learning and re-training in skills that have currency in the labour market for people to support effective re-entry and progression into sustainable work.

  26.  Similarly, we have concerns about the impact on many adult workers of entitlement to level 3 training only for first level 3 and for those up to age 25. We note that women currently are under-represented in those holding level 3 qualifications but over-represented in those at level 2. The importance of creating progression routeways suggests that more consideration should be given to targeting the level 3 entitlement more broadly.

  27.  We welcome the Women in London, level 3 Train to Gain pilots as an example of this. These are aimed at supporting women to qualify at level 3 in occupational areas where they are currently under-represented, and place an emphasis on engaging women in ethnic minority communities. Early data indicates that 15.5% of learners were from such communities, with the highest single proportion of these (5.6%) being of South Asian heritage. We are also aware of the successful Ambition-energy scheme for women and recommend that consideration is given to how these successful skills programmes can be rolled out more widely.

  28.  National Skills Academies (NSA) are expected to apply high standards on equality and diversity in all their provision. NSAs will be evaluated after an initial period of operation, in early 2008. The evaluation will determine whether the NSA programme or a specific NSA has promoted equality and diversity, and attraction of under-represented groups in the sector into provision."This will include attention to issues relating to age, disability, ethnicity and gender. NSAs will be expected to record data relating to equality as part of their on-going management information. We look forward to this equality evaluation and we would like to see NSAs having equality targets for participation and progression.

  29.  The Commission welcomes the entitlement to apprenticeships, recognising the benefits that quality apprenticeship programmes can bring. However women are more likely to participate in Apprenticeships at level 2, and men are more likely to participate in Advanced Apprenticeships at level 3. This is partly because the sectors dominated by women are less likely to offer apprenticeships at level 3. Latest figures show that of the 100,000 young people on Advanced Apprenticeships in England, just 30 per cent are female. The EHRC has recently responded to the Review of Apprenticeships. In particular, we have highlighted the need to address overt gender segregation and differential pay rates across sectors, creating a significant gender pay gap. We have also provided data on wider diversity issues.

  30.  We also welcome the new Commission for Employment and Skills and recommend that delivery of equality and diversity should be a key strand of its remit. In addition to reporting on progress towards skills ambitions across all groups, the new Commission should monitor equality impact, best use of human capital, return to education and skills, and matching of skills to jobs.

UNDER-USE OF SKILLS

  31.  The National Adults Learning Survey points to the need to extend flexibility of training provision and to extend support to help people to overcome wider barriers currently limiting advancement in their careers, such as lack of childcare. Trends in average earnings over a lifetime show that women often fail to progress, and lack of skills is not necessarily the barrier. However, Leitch implementation plans and funding arrangements do little to address redundant skills and under-use of skills.

  32.  Recent EOC research found significant evidence that education and skills investment was leaking out of the system with women particularly trading down and under-using skills. Irrespective of qualification levels and career aspirations, there is a mismatch between the quality of jobs people hold and their qualifications. This is a key feature of the labour market, particularly for women:

    —  4 out of 5 part-time workers are working below their potential.

    —  12% of women with level 4 qualifications or above are working in the bottom 25% jobs

    —  The proportion of graduates in good quality jobs has decreased significantly from 72% in 1995 to 54% in 2005.

    —  6.5 million people are working in jobs below their skills levels or outside the labour market because they are unable to find sufficient flexibility in work.

    —  people with level 3 and above qualifications have no source of guidance or support to place them in jobs commensurate with their skills. HEIs don't provide careers advice and support beyond the present cohort—former graduates have no where to go for careers advice.

  33.  An important part of the progression agenda is recognition that acquiring skills and moving up the skills ladder needs to be supported by opportunity to re-skill for opportunities in the changing labour market and to use skills at the right level, to deliver the pay return and therefore the increase in social mobility. The role of new flexible ways of working in translating skills acquisition into use and reward need to be much higher on the agenda for employers, the new advancement agency, skills brokers and JCP. Other barriers to progression need to be identified and addressed in delivery initiatives. These include prejudice, discrimination, stereotyping, lack of flexibility, and childcare.

April 2008

Annex 1

Skills issues and challenges for particular groups

Ethnic minority workers

  People from different backgrounds and communities do not all enter the labour market with similar levels of qualifications. Attainment is lowest amongst young men of African-Caribbean heritage—in summer 2005 only 21% obtained five A*-C passes, compared with a national averages for young men of over 38%, and for all young people of 43%.

  People from South Asian, black and other ethnic minority backgrounds are almost twice as likely to be unemployed as the national average. The employment rate amongst white people is 77%. For people of Indian and African-Caribbean heritage it is 70% and 69% respectively. For those of Pakistani heritage it is 44% and for those of Bangladeshi heritage 39%.

  The greater percentage of people from ethnic minority backgrounds in post-16 education is not reflected in the numbers that enter employment or government-sponsored training: only 4% are enrolled in work-based training or apprenticeships as compared with 10% for white young people.

Skills challenges

    —  reducing and removing inequalities in success rates between different communities

    —  increasing the participation of people from ethnic minority communities in work-based learning

    —  ensuring that issues of religious identity, faith, values and affiliation are taken into account in race equality policies and projects

    —  enhancing the quality and coverage of statistical information, for example by providing breakdowns by region and gender as well as ethnicity.

Older workers

  The over 40s make up 50% of the working age population and 65% of those without level 2 qualifications.

Skills challenges

    —  reversing the decline in the numbers of adults in their 40s, 50s and 60s taking part in training and re-skilling, particularly to support change and transition in mid- and later career

    —  challenging and removing prejudice against providing training for older workers

    —  enabling older people to update their skills in order to remain in, or return to, the labour market

    —  establishing ICT skills as a major priority for development and investment by employers and funding agencies, to support retention and recruitment of older people

    —  developing forms of skills training particularly appropriate in the late-working and early-retirement ages

    —  increasing the number of older people in the workforce as the pool of younger workers declines

Disabled people

  Disabled people account for a third of all those without formal qualifications. 21% of disabled people aged 16-24 have no qualifications, compared with 9% of non-disabled people of the same age. Only 8% of disabled people have a degree-level qualification, compared with 17% of non-disabled people.

  Participation in learning in the last three years is lower amongst those who are disabled (73%) than among those who are not (84%), although the proportion of disabled people participating in learning has increased.

  Only 44% of disabled people are economically active compared with 79% of non-disabled people.

Skills challenges

    —  increasing the meaningful participation of disabled people in higher and further education

    —  ensuring that disabled people are more actively involved in the design, development, review and delivery of policies that affect them

    —  ensuring that capital funding covers reasonable adjustments and specialist support services to enable access to learning for disabled learners

    —  developing information, advice and guidance (IAG) for disabled people, including those with learning difficulties, so that they are fully aware of learning, career and work opportunities, and of funding and assistance available to them

    —  addressing low levels of awareness and understanding of disability issues amongst the general public and amongst employers, employees and providers of skills training,

Women and men

  Men are under-represented in nearly all adult learning programmes. Although men may need more encouragement to learn at Level 2 and Level 3, overall they still have higher qualification levels than women. Amongst people of working age, women are slightly more likely than men to be qualified to Level 4 and above (27% of women, 26% of men) and women are also more likely to be qualified to Level 2 (23% of women, 21% of men). Men are much more likely than women to be qualified to Level 3 (23% of men, 16% of women) and women are more likely than men to have no qualification, or qualifications below Level 2 (33% women, 29% men).

  Fewer than half of female graduates are now in high-level jobs and the trend is getting worse (45% qualified to Level 4 compared with 65% 10 years ago).

  Women generally work in a narrow range of lower-paying occupations, mainly those available part-time, that do not make the best use of their skills.

Skills Challenges

    —  closing the gender gap in pay

    —  removing barriers to women working in occupations traditionally done by men

    —  addressing the educational underperformance of young men, particularly those in low socio-economic status categories

    —  addressing the under-representation of women in science (including computer science), engineering, construction and technology (SECT), as learners, teachers, researchers and practitioners, and on SECT-related public bodies

    —  improving the participation of young women in government training schemes such as apprenticeships, particularly in construction and engineering

    —  improving the information base, for example by collecting and analysing data which cross-tabulates gender with age, disability and ethnicity.






 
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