Closing the Skills Gap

View Latest News Publish Date: 19-Jan-2007

Closing the Skills Gap

New proposals were unveiled for consultation today to achieve world class skills for adults.

Sweeping reforms announced in the Government's Further Education White Paper last year, endorsed by Lord Leitch's report on skills, committed to a demand-led system to put purchasing power for learning in the hands of the employers and individual learners. The consultation seeks views on what this will mean in practice for the FE system.

Key measures will enable employers to determine the content of qualifications and advise on curriculum design. Funding will follow employers' demand and they will be able to choose their preferred suppliers.

Adult learners will be given purchasing power to use entitlements to learning through new learner accounts. A new career service will give them a free 'skills health check' and high quality information advice and guidance.

Comparable activity for 16-19 year olds will attract comparable funding, encouraging broad programmes of learning and embracing Diplomas.

To reduce bureaucracy for colleges and providers detailed plans will no longer need to be agreed with colleges and providers. Funding for adult and employer provision will depend on numbers of learners providers can attract.

Higher and Further Education Minister Bill Rammell said:

"Our proposal is simple - place the power to choose in the hands of the individual and the employer, and empower and enable the best of providers to engage and excite more learners and employers.

"Our Further Education system is delivering ever greater success. Our sweeping reforms are renewing its economic mission and making plain its central role in equipping people with the skills they need for productive sustainable employment in a modern economy.

"A new ambition for world-class skills has been set in the Leitch Report last month and echoed in the Chancellor's Pre-Budget Report. We have to raise our game if we are to continue to compete in an increasingly competitive global context.

"The Leitch Report made bold recommendations for radical change. We need to be imaginative in our response, with government, employers and individuals taking increased responsibility and building on recent successes.

"The FE system needs to operate in an open and competitive market, driving up quality and delivering more innovative provision. This means moving away from the traditional planning role that exists to delivering through a demand-led system.

"Coupled with a funding system that reflects customer choice, a demand-led approach will free up the system to respond flexibly to customer demand. This is at the heart of our consultation."

Schools Minister Jim Knight said:

"We also want to expand choice and increase the quality of 14-19 provision to ensure that more young people continue to participate and achieve. New Diplomas, the expansion of the International Baccalaureate and the guarantee of an Apprenticeship place are crucial mechanisms for realising this priority.

"We want comparable funding for comparable activity undertaken by 16-19 year olds. A consistent approach to funding to all post 16 providers including school sixth forms is a key part of addressing the funding gap."

Mark Haysom, Chief Executive, Learning and Skills Council said:

"The LSC/DfES document sets out how we plan to build on the great successes already achieved and respond to the challenges set out by the Leitch Review. We want to make what is already good even better. We need the sector's views so we can move forward together to drive both individual success and business competitiveness.

"It is vital the FE market changes so that customers have the power to choose, based on a wide range of quality provision. The LSC will focus on raising awareness and informing choice, while creating the right environment for supply to meet demand. Ultimately, provision which is not in demand will wither away, but that which is in demand will expand to meet supply. Quality provision will be the norm and new providers will be encouraged to enter the market. Suppliers of unwanted or low quality provision will not be protected.

"Greater engagement of employers is also a critical part of this to ensure they are investing in training and using skills productively. Employer investment must match the best in the world.

"Our aim is to deliver a better service for young people, employers and for adult learners and shape a market where high quality, innovation, and excellence are standard. The opportunities are great for colleges and providers who rise to the challenge - and the benefits to the nation will be significant."


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