The Skills Funding Agency and further education funding - Business, Innovation and Skills Committee Contents


Memorandum submitted by Energy and Unity Skills

MEMORANDUM

  1.  EU Skills is the Sector Skills Council that works with employers in the Gas. Water, Power and Waste Management sectors and employs 536,000. EUSkills works through strategic industry groups that provide intelligence and employer leadership to drive action on key industry issues. EUSkills has recently been relicensed by the UKCES and as part of the relicensing process EUSkills was deemed as Outstanding by the National Audit Office. Our mission is to ensure that our industries have the skills they need now and in the future.

  2.  EU Skills is a strategic body that operates across the UK, working with a range of partners including trade associations and trade unions, in and in collaboration with our fellow Sector Skills Councils on areas of common interest and with the nine Regional Development Agencies.

  3.  The current proposals for revised skills funding processes based on a regional agenda run contrary to the requirements of many of our employers who operate both national and international companies. Our employers make a significant contribution to the UK Economy and provide vital services which our society depend upon on 24/7 basis, this has not been in the past reflected in the priority areas given by regional and national funding agencies. Consequently our employers and their employees have failed to benefit from previous initiatives as the numbers of learners within each company within each region does not meet with the regional priorities. We would wish to see established a funding mechanism that is not solely driven by the regional agenda but allows for funding on a national basis to support significant sectors that contribute to the wellbeing of the UK economy

  4.  Our employers in many instances have been very supportive of previous government initiatives such as National Skills Academies and Apprenticeship programmes. However our employers have met with increasing frustration in attempting to draw down funding to support initiatives which are fully in line with the government skills strategy. Additionally our employers have met with increasing difficulties by the current "Train 2 Gain" processes and would wish to witness significant improvements so that the best value is driven into the skills funding system for both employers and government alike.

  5.  Our employers in many instances have invested significant funds in the development of their staff and as such are in principle supportive of the future initiatives such as the Joint Investment Scheme (JIS). We believe that this provides a real opportunity to create a fully demand led FE funding mechanism which would embrace training provision in both the public and private sectors.

  6.  We believe a successful JIS would have the following feature:

    — RDAs leading delivery (through SFA) etc. of the key areas of our employers skills needs.

    — Employers would be in the driving seat because:

    — They would be paying half the costs.

    — They would have nationally set the priority.

    — Delivery would be through NSAP or EUSkills approved suppliers.

    — Skills development would lead to new jobs particularly in the low carbon and sustainability sectors.

    — The JIS would run for a number of years.

    — Although piloting regions in the first instance we believe would eventually work across the whole country.

    — EUSkills/National Skills Academy for Power would facilitate future national/regional funding structures.

  7.  We would welcome the opportunity to present our views to the Select Committee particularly on future funding mechanisms that would exist in the future Joint Investments Schemes.

11 January 2010





 
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