Vince Cable sets out
vision for radical reform of skills system to support growth
Secretary of State
for Business Vince Cable and Skills Minister John Hayes will today
launch the Government’s strategy for skills, Skills for
Sustainable Growth, and its parallel publication,
Investing in Skills for Sustainable Growth.
The strategy sets out the Government’s vision for reform of the
Further Education and skills system in order to improve the skills
of the workforce, the performance of the economy and engagement in learning.
Investing in Sustainable Growth sets out how
Government seeks to achieve its objectives through investing
strategically in FE and skills over this Spending Review period.
Savings will have to be made, but the Government understands the
importance of continuing high levels of participation and performance.
Dr Cable said:
“If we are to achieve sustainable growth, nothing is more
important than addressing current failings in skills training, and
this strategy reflects this Government’s determination to do both.
“We are not in a position to throw money at the problem, but even
against the backdrop of reductions, resource will be found to
expand the apprenticeship programme for adults and support more
people undertaking an increasingly respected form of vocational training.”
The strategies were launched by Dr Cable during his first FE and
skills keynote speech at the annual Association of Colleges
conference in Birmingham.
The reform of the skills systems includes:
Expanding the numbers of adult apprenticeships available, so by
2014-15 there will be 75,000 more adults starting than under the
previous Government’s plans; 200,000 adults will be able to start
an apprenticeship. We will invest £605 million in adult
apprenticeships in the 2011-12 financial year;Improving the
apprenticeships package, so that level 3 (A Level equivalent)
becomes the level to achieve, and there are clear progression
pathways; Fully funding training for young adults aged from 19 up
to 24 undertaking their first full level 2 (GCSE equivalent) or
first level 3 qualification when they do not already have
one;Fully funding basic skills courses for individuals who left
school without basic reading, writing and mathematics;Protecting
investment of £210 million in adult and community learning, to
support personal development, inclusive communities and a route
into formal learning for the disengaged;Introducing
Government-backed loans from 2013-14 for learners aged 24 and over
undertaking level 3 or higher qualifications. This will give
people access to finance. They will not have to make their
contribution to costs of the course until they are reaping the
benefits of it and earning a decent wage;Initiating a demand-led
growth and innovation fund of up to £50 million of government
investment a year, to support employer-led initiatives within
sectors, such as new professional standards, and to promote
leadership and management in small and medium
enterprises;Replacing Train to Gain with an SME focused programme
to help small employers train low-skilled staff;Helping people who
are on active job-seeking benefits to secure work through
labour-market relevant training; andReducing bureaucracy in the
sector. We will continue to free colleges and training providers
from red tape so they can respond to the needs of employers and
learners. We will simplify the complex funding system and from the
2011-12 academic year there will be a single adult skills budget.
Last month the Spending Review set out that by 2014-15 the
further education resource budget will be reduced by 25 per cent.
In the 2011-12 financial year, we plan to invest £3.7 billion in
further education and skills for post-19 learners supporting
capacity for over 3 million training places in the 2011/12
academic year funded through the Skills Funding Agency.
Further Education, Skills and Lifelong Learning Minister John
Hayes, said:
“The Government’s skills strategy is one of the most important
documents yet published by the coalition Government. Helping
business and individuals gain the skills they need is vital to
helping the country gain economic strength and build sustainable
growth in the long term.
“Despite a reduction in the FE and Skills budget, we are
continuing to protect and invest in programmes that provide the
highest quality and greatest benefit to the maximum number of
people. Replacing Train to Gain with funding for work place
training prioritised on SMEs will to help employers with a small
workforce train low-skilled staff. And as we continue to expand
apprenticeships and reinvigorate community learning more people
will be able to build their skills and fulfil their potential.
“The acquisition of skills enables people to progress in learning
and work and delivers social benefits too. I want to see the
development of a culture of learning with individuals and
employers driving forward the skills system and contributing to
the learning they receive.”
In his speech today, Dr Cable also announced that approval has
been given to funding for a National Skills Academy for Rail
Engineering. It will receive £2.7 million of funding from
Government, which will be matched by £2.2 million from employers,
to deliver a highly skilled and qualified workforce to support the
rail industry and newly announced projects such as Crossrail and
HighSpeed 2.
Notes to editors:
1. A copy of Skills for Sustainable Growth and
Investment for Sustainable Growth is available to view
on the BIS website: http://www.bis.gov.uk/news/topstories/2010/Nov/Skills-for-sustainable-growth.
2. If you would like to interview Skills Minister John Hayes on
today’s launch, please contact Jo Fletcher in the BIS press office
on 020 7215 5951.
3. Copies of Vince Cable’s speech will be available later today
(Tuesday) on the BIS website.
4. Skills minister John Hayes will be speaking at the AoC
Conference tomorrow (Wednesday). For more details, or to attend,
please contact BIS press office.
5. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joanna Fletcher
Phone: 020 7215 5951
Joanna.Fletcher@bis.gsi.gov.uk