In Further Education Lies National Renewal and a Richer Future

The UK economy is in a dire state and we are all feeling the effects.
Hold on – that’s a bit of an understatement. The UK economic situation has been poor since the financial crisis, almost twenty years ago.
Productivity
At the same time, the outlook isn’t positive: British productivity is 10% below France and 20% below the US; our economy is up barely 3.5% compared to before the pandemic compared to 5% for the Eurozone and 12% for the US. And more cuts and tax rises are expected.
If any sector knows it, it is ours: stagnant to lower funding, rising costs, and changing policy directives altering how we support those who use our services.
There is no wonder that so many people see there being little hope of national revival.
As with our sector and the wider economy, the UK has a conundrum: how to grow the economy when the finances mean cost savings must be found. The mantra that ‘you cannot cut your way to growth’ might have some truth, but, as a CEO of a small company, I know the importance of prudent finances to secure the wellbeing of all our staff and all our learners.
Yet for a government and a chancellor seeking to solve the UK’s ailing economy, there is one place that we know where investment will generate outsized returns both today and in the future: the education sector.
In fact, it’s not only a moral duty but a fiscal imperative too. Compared to other areas for government spending, further education has a huge return on investment
For every £1 invested in Entry Level Qualifications the social benefit is £20
And support can be targeted for maximum impact. For every £1 invested in Entry Level Qualifications the social benefit is £20, versus what might seem like a small £5 for a Level 3 Apprenticeship. That’s still a range of 500% to 20,000% return. This makes the gains of other government spending choices look small. R&D, undoubtedly important, returns £1.40 for every pound invested. While the government doesn’t make decisions just based on ROI and, indeed, investing in education is so much more enriching for students than just any additional wealth it might bring, it’s an important consideration in our cash-strapped time.
Maths yesterday, Construction today
Right now our sector is faced with increasing pressure. This year alone, the Adult Skills Fund budget has been cut by 6%; the UK SPF budget has been cut 40%; the multiply scheme has ended; there has been significantly less provision for those not in education, employment, or training (‘NEETs’) since the end of the European Social Fund. Our sector, still true to its guiding light, scrambles to support those most in need, even as the government’s focuses – maths yesterday, construction today – mean that we often need to reorientate our direction.
That all said, there is a path forward – one where our sector works hand in hand with the government to ease the economic malaise. I still believe that we would benefit from a joined-up strategy that links employability and skills together with a long-term plan. Alongside real investment, reversing the 75% decline in spending on training since 2005 and bringing us in line with our EU peers, the evidence is clear: with more investment in education, we will safeguard our economy and alter the life chances of those who need it most. We will reverse our current situation and reignite talk of national revival.
By Alex Glasner Managing Director, Workpays
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