Skills England: What’s Needed to Complete the Picture?

Fiona argues that Skills England can transform the struggling UK skills system by bringing together government, businesses, training providers and unions. Success depends on collaborative design, a comprehensive approach, and sector-specific solutions to meet industry needs effectively.

In the recent second reading of the IfATE Bill, Minister Jacqui Smith described the skills system as being in a ‘sorry state’; one that is “overly complex, where people cannot find the training opportunities that would help them achieve and which is holding back our businesses, our public services and our economy from accessing the skills they need to grow.” She also set out her ambition for Skills England to “transform our ability to determine and then deliver the skills that our country needs.”

This analysis is not new or unfamiliar, and the challenge should not be underestimated. The skills system is frequently criticised for being complex, short-term and lacking strategic direction, all of which make it difficult to understand and engage with – for learners and employers alike. As a result, pathways into skilled roles can be unclear, there is a mismatch between skills supply and demand, and UK employers estimate that a growing proportion of vacancies are a result of workforce skills shortages. While this challenge is evident across all regions and in all sectors of the economy, it is particularly critical that we address the needs of those sectors and places that will drive long-term sustainable, inclusive and secure growth.

Those of us who have worked in the skills sector for many years have seen different organisations, policies and programmes come and go – while the issues stubbornly remain. Could Skills England be different? Perhaps… but only if it steps beyond the boundaries of the Department for Education and is allowed to take the strategic oversight role first envisaged by Labour’s Council of Skills Advisors: 

“Skills England will bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade across all regions, providing strategic oversight of the post-16 skills system aligned to the government’s Industrial Strategy.”

At the Skills Federation, we believe that Skills England, operating as a social partnership body, presents an exciting opportunity to introduce some well-needed structure and coherence to a fragmented system by bringing together the voices of industry, trades unions, training providers, and government. At a recent Skills England roundtable, Skills Federation Chair, Dame Julie Mellor identified three key challenges that Skills England must face if it is to succeed:

Consultation to codesign

Firstly, Skills England should move from consultation to codesign. Its remit of bringing coherence to the skills system, of assessing skills needs nationally and regionally, now and in the future, and of ensuring a comprehensive suite of training to meet these needs is vast and complex. Given we all stand to benefit from its success, it’s critical that we also all play our part in ensuring it has the best chance of doing so. Skills England must avoid the temptation to design in detail and only consult afterwards. Instead, it has an important strategic role to play in convening partners, including employers and sector bodies, and in facilitating co-design for a fit-for-purpose skills system.

Whole-system approach

Secondly, Skills England should address the system as a whole and avoid the temptation to simply focus on parts of it. The House of Lords Regulation and Industry Committee recently described the current skills system as operating in a “fitful, short-term fashion” making it difficult to understand and challenging to plan for the long-term. Perhaps the biggest contribution that Skills England can make will be through focusing on whole system oversight and direction, rather than tweaking individual funding streams, qualifications or institutions. In doing so, it should be mindful of the different cultures and ways of working needed for demand-led skills rather than universal education supply. Employers and industry bodies don’t need to be ‘in the driving seat’, but they do need to be meaningfully involved.

Sector-specific

Thirdly, Skills England should recognise that sectors, like places, are different. This means that as well as having many shared needs, they will also need flexibility to meet the specific needs of their sectors. House building is one example of this where the current skills system is insufficiently flexible to meet demand. T Levels are not providing a through-route to vocational skills training and there isn’t enough level 2 training available to meet the labour market need. Sector Skills Bodies have worked closely with employers over many years to identify the skills needs of their sectors and to develop strategies to address them. They will be an important group of partners for Skills England to engage with, particularly in its efforts to unleash the potential of our growth-driving sectors.

While the work of Skills England must clearly be a long-term endeavour, the next few weeks are critically important. With the Industrial Strategy now published, government is working quickly to create sector plans, in part to inform Growth and Skills Levy flexibilities. This focus on sectors is extremely welcome, and one which Skills Federation and its members are extremely well-placed to support. If done well, these plans should enable more effective sectoral targeting of public investment in skills, as well as helping bring in greater employer investment for skills in key growth sectors.

Time is short, so engagement with credible expert partners will be critical to properly understand what is needed to stimulate growth. Skills Federation and its membership of employer-led Sector Skills Bodies stand ready to work with Skills England and the wider government as it seeks to understand and respond to the skills needs of industry. Perhaps then, we can create the step change in skills that our workers and our businesses need.

By Dr Fiona Aldridge, CEO of the Skills Federation (also known as the Federation for Industry Sector Skills and Standards (FISSS)