What five key things should the new Labour government be targeting to improve the UK skills system and boost growth?
Discussing skills shortages, small businesses and apprenticeship reform at the Employment and Skills Convention
07 August 2024
At the on 10 July in Birmingham there was plenty on the agenda for discussion from both attendees and panellists. With the event happening less than a week after the UK general election that saw a new Labour government elected, it was a great opportunity for key organisations involved in improving training and employment outcomes to come together and talk about the opportunities for the future of skills development.
During the event City & Guilds CEO Kirstie Donnelly took part in a panel titled ‘Carrots, sticks and silver bullets: which way now for employer investment in skills?'
The panel, which alongside City & Guilds included representatives from , and , addressed the challenges facing employers looking to ensure that they have the right skillsets within their organisations. It also explored some of the ways that training providers, local councils and the government can support skills solutions that directly improve employment outcomes.
While there were many important topics covered both during the panel and throughout the day, the panellists identified five key priority areas that need to be targeted to build a better skills system.
1. Creating stability for skills development
While the election of a new government presents an exciting opportunity for change, it was clear that the panellists were also looking for some consistency and clarity for skills and education.
The reforms and changes to funding that have impacted education at every level have left providers and in an uncertain position and has frequently left key decision-makers forced to rely on short-term solutions.
Multiple panellists made it clear that enabling providers and councils to plan for the long-term is vital to delivering training that supports learner success and meets employer needs, while Kirstie called for a halt to qualification reforms and defunding to reduce the funding challenges facing many colleges. This call was answered just two weeks later with the Department for Education's announcement of a review of qualification reforms for level 3 and below and a pause to defunding for qualifications overlapping with T Levels in four key sectors.
2. Providing support for small businesses
Across the board there was a clear desire to improve access to skills for smaller businesses who might not have the funding, or personnel dedicated to learning and development opportunities.
For certain professions, including plumbing and electrical work, this presents a significant challenge. Many individuals work in micro businesses, or as sole traders, meaning that without the right training available it can be difficult for people to either enter the industry or to reskill to keep up with changing technology and practices.
By helping small businesses to identify their training needs and ensuring that they have access to funding for high-quality, outcome focused training, decision makers and providers can help to close skills gaps and reduce workforce shortages in key industries.
3. Maintaining focus on localised skills solutions
The introduction of employer-led Local Skills Improvement Plans (LSIPs) in 2022 has significantly changed the way local authorities and training providers plan and deliver skills solutions, as regional priorities are identified based on employer needs.
Although the panel acknowledged there may be room for changes to the current execution of LSIPs, they recognised the value of some level of decentralisation for skills to help providers to deliver training that matches local needs.
Increased collaboration between employers and providers was high on the agenda throughout the day. And promoting a more localised view of skills development allows colleges and other providers to better support the businesses in their region, closing local skills gaps and preparing learners for the employment opportunities most relevant to them.
4. Boosting apprenticeship numbers and reforming the Apprenticeship Levy
Since the introduction of the Apprenticeship Levy in 2017, there has been a , with small and medium-sized enterprise (SME) apprenticeship starts also dropping by almost 50%.
While outside factors like the coronavirus pandemic have had an impact, it’s clear that there are significant barriers for both employers and potential apprentices when it comes to apprenticeships. In our apprenticeship levy research report released last year, we found that only 4% of employers were spending their full levy and 96% of UK businesses wanted to see changes to the levy.
Apprenticeships can be a powerful tool to help young people to enter an industry, providing them with technical training and mentorship from experienced sector professionals at the same time as offering a paid role. Finding a way to make the apprenticeship levy work for a wider range of employers and showcasing the positive journeys of previous apprentices could help could renew the appeal of apprenticeships for businesses and young people.
5. Putting skills at the heart of solving UK issues
The new government has , a body which will include representatives from businesses, training providers, mayoral combined authorities and national government working to ensure that here is a talent pool of individuals with the right skills for the jobs of today and in the future.
For Kirstie and her fellow panellists this is a step in the right direction but must be correctly executed and accompanied by a coordinated local and national skills strategy in order to succeed.
The panel also referenced a desire to see the government truly centre skills, with Kirstie calling for the introduction of a skills strategy for each government department. Discussing the importance of beginning a cultural revolution that tackles the inequality of skills and enables real lifelong learning, she commented “Creating that wider learning culture will inspire employers to be part of the solution.”
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