In November 2009, the UK government published a new skills strategy to help support the country’s economic recovery and renewal. The strategy drew a positive response from the social partners. However, in the context of a major economic recession and with a squeeze on public funding, delivering this new skills agenda will not be easy. Furthermore, simplifying England’s skills system may not be such positive news for those workers whose jobs and livelihoods currently depend on it.
On 11 November 2009, the UK Labour government published a white paper on Skills for growth: The national skills strategy. The white paper, which applies only to England, is the government’s second skills strategy, the first having been launched in 2003 (UK0307105F). While the first strategy was developed in a period of economic boom, the second strategy Skills for growth comes in the midst of a major recession and is designed to aid future recovery. The new strategy aims to support a more ‘active’ industrial policy approach, as outlined in the 2009 report on New industry, new jobs (458Kb PDF). It also represents the government’s response to recommendations made by the UK Commission for Employment and Skills (UKCES) in their 2009 reports, entitled Ambition 2020: World class skills and jobs in the UK (800Kb PDF) and Towards ambition 2020: Skills, jobs, growth (1.96Mb PDF) (UK0905039I).
Key elements of strategy
In his foreword to the white paper, the UK’s Secretary of State for Business, Innovation and Skills, Peter Mandelson, highlighted that the new skills strategy
sets out an active approach to equipping this country for globalisation by making sure we have the skills that underwrite the industries of the future [and support] high-tech, low carbon driven growth [...] Investing in skills is a vital part of this government’s growth plan for economic recovery.
The white paper, which, according to Mr Mandelson, represents a ‘radical shift in our national priorities’, outlines a number of key commitments, including:
- building a ‘modern class of technicians’, with a ‘new overarching ambition for our higher education and skills system that three quarters of people should participate in higher education or complete an advanced apprenticeship or equivalent technician level course by the age of 30’ (UK0106136F, UK0210105F, UK0405105F);
- doubling the number of advanced apprenticeships to 35,000 places over the next two years, with additional funding for advanced (level 3) and higher (level 4) apprenticeships of GBP 17 million (€19.1 million as at 14 January 2010) in 2010–2011 and GBP 115 million (€129.1 million) by 2014–2015;
- supporting apprentices to progress to higher education through the introduction of a new Apprenticeship Scholarships Fund, offering bursaries of up to GBP 1,000 (€1,123);
- developing a new network of University Technical Colleges for young persons aged 14–19 years;
- empowering learner choice as a means of enhancing provider performance through the use of an updated version of new ‘Skills Accounts’ (UK0612049I);
- introducing lighter touch monitoring arrangements for providers that perform well;
- simplifying the skills system by supporting the UKCES recommendation that the number of skills and funding agencies should be reduced by over 30 bodies within the next three years, including new plans for a ‘substantial reduction’ in the number of Sector Skills Councils (UK0211105F).
Social partner reaction
The social partners welcomed the government’s new skills strategy, highlighting the important role of advanced apprenticeships in raising the skills level of the country’s workforce and young people in particular.
The Director of Education and Skills at the Confederation of British Industry (CBI), Susan Anderson, commented:
This white paper is a step in the right direction. Improving the skills of the workforce will be critical to the UK’s economic recovery and future growth. There are tough decisions ahead for the government, but it is right to focus on delivering valuable skills such as science, technology and engineering, and high-skilled apprenticeships [...] Business will welcome the attempts to simplify the overly-complex system of organisations delivering skills training and support.
The General Secretary of the Trades Union Congress (TUC), Brendan Barber, remarked:
By providing extra funding for advanced apprenticeships and helping trainees to go on to university, the government is putting apprenticeships at the heart of our education system [...] The government’s new target of getting 75% of people under 30 into university or advanced vocational education recognises that both routes matter equally if the UK is to have more highly skilled workers.
Commentary
The new skills strategy seeks to support the development of advanced apprenticeships, an area where the UK has longstanding weaknesses, compared with countries such as Germany. This aspect has been broadly welcomed.
However, in the context of a major economic recession and given the restrictions on public funding, delivering this new agenda will not be easy. Research suggests that demand for technician-level skills remains limited in the UK, and that there is currently no shortage of workers with vocational qualifications at this level. Much will therefore depend on employers’ willingness to provide additional apprenticeship places. Given the relatively limited sums of public money being made available, it is questionable whether this will be enough to develop a ‘new technician class’.
While ‘de-cluttering’ England’s maze-like skills system is long overdue, it will, if achieved in practice, come as cold comfort for those workers whose jobs and livelihoods currently depend on it.
Jonathan Payne, SKOPE, University of Cardiff