OPPORTUNITY AND SKILLS IN THE KNOWLEDGE ...dera.ioe.ac.uk/15194/7/Opportunity and skills in...

THE NATIONAL SKILLS AGENDA

Department forEducation and Employment

OPPORTUNITY AND SKILLS IN THE KNOWLEDGE-DRIVEN ECONOMY

A final statement on the work of the National Skills TaskForce from the Secretary ofState for Education and Employment

PHOTO REDACTED DUE TO THIRD PARTY RIGHTS OR OTHER LEGAL ISSUES

PHOTO REDACTED DUE TO THIRD PARTY RIGHTS OR OTHER LEGAL ISSUES


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David Blunkett Secretary of State for Education and Employment

Foreword

Our ‘Opportunity for All in a World of Change’ White Paper has been published totake the country forward in a new century: to harness the skills needed for individual,business and national competitiveness.

I want to set out in more detail my Department’s plans to build on the work of theNational Skills Task Force.

Success depends, as never before, on education and skills. Where once we couldsucceed on the abundance of natural resources, today we depend on fullemployment and social justice and on the skills and knowledge of our people. The new century brings fresh challenges, and it is the creativity and enterprise of the British people upon which we depend to meet them. In this new century thedivide will not be between new industries and old but between those industries and services that have grasped the opportunities of change and those that have not.

I find myself in step with the vast majority of people who marvel at the dot.comcompanies which appear to make nothing, employ nobody and make no profits; butcan still produce millionaires. And while we must recognise that it is this so-callednew economy that is helping to spearhead growth and change, we must not forgetabout the real economy. Manufacturing and service industries - established and new- still provide for the vast majority of livelihoods that underpin much of the wealthand prosperity of our local communities and nation as a whole.


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1. This booklet sets out what we are doing tohelp people develop the skills that they need.Without these skills people are unable tomake their full contribution to our economicprosperity or benefit from the rewards thisoffers. This is the agenda before us and onethat we are determined to meet. Before wecame to office in 1997, Britain was a countrybedevilled by underinvestment in our keypublic services, underachievement andwasted human potential. The dividebetween the skills rich and skills poorwas widening. There was no nationalstrategy for tackling youth and long-termunemployment. A lost generation of youngpeople - 227,000 18-20 year olds - werelocked out of employment, training andwork.1 The number of 16 and 17 year-oldsclaiming hardship allowances doubled duringthe period 1979 to 1997. Unemploymenthad reached 1.6 million, including the loss of a million manufacturing jobs. Althoughmany of our schools, colleges and universitiescould claim to offer a world-class education,too many people were denied the range ofopportunities or life chances taken forgranted by others.

2. Over the lifetime of this Parliament we havepursued policies for the many. We now have the fourth largest economy in theindustrialised world, recording sustainablelevels of growth and historically low interestrates and inflation compared to the early1990s. This has produced a stable economicplatform, which, through the spendingreviews announced in 1998 and 2000, will allow education spending to increase by a third in real terms between 1998-99 and 2003-04. [Education spending as aproportion of national income will increasefrom 4.7% in 1996-97 to a forecast 5.3% in 2003-04.]This unprecedented investmenthas also enabled us to begin tackling theskills and productivity gaps that hamper our competitiveness. Sound economicmanagement has also produced the lowestlevels of unemployment for a generation.

3. My first priority upon becoming Secretary of State was to put in place a robust andchallenging framework to raise standards inour schools. With the strong foundations ofa modern and progressive education systemavailable to all, we will prosper as a nation inthe 21st century global economy. I ampleased that our determination to raisestandards in our schools is already deliveringthe fruits of both individual and socialsuccess. For the first time in a generation,the number of pupils fully proficient inliteracy and numeracy is rising. Infant classsizes have fallen. More parents than ever are able to celebrate the hard won successand rising qualification levels of their children.

4. Following the Learning Age Green Paper I set up the National Skills Task Force in 1998.I asked the Task Force to develop a NationalSkills Agenda to ensure that we had the skillsneeded to sustain high levels of employment,compete effectively in the global marketplace and provide opportunity for all.

5. I believe that the outcome of the Task Force’shard work will be its lasting impact on theskills and economic prosperity of our country.During the lifetime of the Task Force anunprecedented coalition of business interests,trade unions, voluntary organisations andindividuals contributed to the extensive effortand research that went into producing fourmain reports. This innovative and impressiveco-operation has forged new alliances in theworld of education and training. That is whywe did not wait for the outcome of their finalreport before taking action. In particular, theTask Force was instrumental in persuadinggovernment to modernise the post-16education and training system.

Introduction

1 “Non-participation and dissaffection in Education, Training and Employment among 18-20 year olds”. (1996) TEC National Council Equal Opportunities and Special Training Needs Advisory Group.


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6. The Learning and Skills Act 2000 tackles anumber of fundamental weaknesses in ourlevels of skills and productivity performance.The new Learning and Skills Council (LSC) has a century of relative economic under-performance to put right, and will play aleading role in meeting the workforcedevelopment needs of individuals andemployers.

7. I have asked the LSC to take forward thefindings of the National Skills Task Force. Key objectives are to raise the sustainablelevel of employment through the updating of skills and embracing of new technology;and to reach out and draw into learningthose who were previously economicallyinactive or have been victims of industrial oreconomic change. The Council will updateand develop the information provided by theSkills Task Force (STF) on current and futureskill needs and skill gaps in the workforce;and will work in partnership with others toproduce a clear agenda for action. This willinclude strengthening the commitment ofemployers to the development of theworkforce, and promoting new andinnovative approaches to learning in the workplace.

8. We must overcome the false divisionsbetween our foundation learning and thepost-compulsory system. A new era oflearning and skills will put the old distinctionbetween academic education and work-related training behind us. In the knowledgeeconomy academic courses must give peoplethe essential skills for success in an increasinglycompetitive labour market. Put simply,schools, colleges and universities must getmuch better at responding to business needs.Similarly, workplace training must expand toprovide people with the knowledge and skillsto sustain their long-term employability. TheLSC will have a key role in raising the profileof work-based learning for young people andlearning in the workplace by adults.

9. Higher skills lead to higher earnings. Thehistorical differences between the qualificationsand experience of women and men have hadan impact on average levels of pay. TheEqual Pay Action Plan, which the Governmentwill publish shortly, will set out the range ofmeasures we are taking to tackle thesedisparities. We have asked the Learning and Skills Council to draw up an equalopportunities strategy and action plan withtargets and performance indicators to tackleunderrepresentation and underachievement.It will encourage wider participation in allforms of education and training and willensure that both men and women have anequal opportunity to realise their potential. In drawing up its national framework forworkforce development we have asked theLSC to ensure that its strategy will deal withinequalities such as too little learning amongstpart-time workers (where women comprise80% of the workforce and where too littlelearning has a damaging impact on subsequentearnings), low-qualified or disabled workersand those from ethnic groups.

10. In my initial response to the Task Force, Iendorsed their concept of a national skillsagenda. We also set out the Government’sstrategy for achieving a high-skills, highvalue-added economy. The four key elements of our strategy remain:

• strengthening links between what peoplelearn and the jobs they will do;

• creating excellence in vocational learningso everyone can achieve their potential;

• reaching out with basic skills training tothose the system failed first time within aflexible system of lifelong learning for all;

• working with employers to give everyonethe chance to boost skills andproductivity.


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My vision

11. My vision is of a society where high skills,high rewards and access to education andtraining are open to everyone. Otheradvanced nations have shown that aninclusive society will also be a prosperousone. We must put behind us the false trade-off between economic efficiency and socialjustice. In tomorrow’s economy there will benothing to gain from paying people poorly,failing to provide them with the necessaryskills or leaving whole communities cut offfrom the rest of society.

My priorities

12. Delivering the National Skills Agenda meanstargeting public resources where they willachieve our vision of a high skill, inclusiveeconomy. We must challenge employers andindividuals to invest alongside government sothat we can achieve the best return for ourjoint efforts.

13. My main priorities are to:

• encourage the Learning and Skills Council, a strengthened National TrainingOrganisations (NTOs) Network, theRegional Development Agencies (RDAs)and others to meet skills needs;

• improve the efficiency with which wematch people and their skills to jobsthroughout their working lives includingtackling the impact of redundancies andindustrial change;

• open up a ladder of vocationalopportunity for young people, offeringparity of esteem with more academicstudy and progression to higher education;

• ensure that there is a coherent and strongsupport for learning in the workplace,and a strategy for gaining commitmentand action from those employers whohave not been interested in the skills oftheir employees;

• increase the employability and basic skillsof adults as part of a pathway to lastingemployment;

• ensure equal opportunities for both menand women in their search for jobs, skillsand learning, acknowledging differencesthey experience in the labour market;

• ensure we have a set of clear targetsagainst which to measure our progressand that everyone is clear about their rolein taking forward the skills agenda.

The action plan for a highly -skilled, inclusive economy

Strengthening the link between learningand employment

14. The UK has not succeeded in developing itsproductivity, competitiveness or qualificationlevels to anything like those of its maincompetitors. This has to change. Over thenext three years we will work closely withpartners to strengthen the link betweenlearning and employment.

15. Matching people’s aspirations to the skillsemployers need will be a key priority. It iscritically important that we strengthen thelink between learning and employment,starting in the schools, and that youngpeople are properly informed about all theavailable choices open to them. I plan totake a number of further actions in this areato respond directly to the Task Force’srecommendations.

16. Work-related learning in schools improves therange and quality of opportunities availablefor 14-16 year olds. Over 98% of pupils ofthis age undertake a period of workexperience. Vocational A-levels wereintroduced from September 2000, and from2002 we will introduce new vocationalGCSEs. These will be important elements in the vocational ladder of opportunity,leading to employment or higher education,including new vocational foundation degrees.


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17. The number of specialist schools providingacademic and vocational excellence hasdoubled in recent years, giving more choiceand responding to the needs of youngpeople. These schools, with the strongbacking of employers, aim to strengthen the link between learning and employment.My Department plans to recognise up to 800specialist schools, nearly one in four of allsecondary schools, by 2004.

18. But we must also respond to what the TaskForce has described as ensuring better andmore informed choice. Our ConnexionsService is a radical attempt to modernise the quality of advice, guidance and supportreceived by 13-19 year olds. A budget of£420 million by the end of 2002-03, togetherwith the wider resources that partnerships willsecure locally, will ensure that all our youngpeople gain access to high-quality supportand guidance, according to their needs. Thisfunding will allow Connexions to be a trulyinclusive service, supporting the decision-making that all young people undergo andthe development of skills that they all needfor success in learning and work.

19. Establishing an integrated and coherentapproach to the availability and promotion oflearning and work opportunities is essential.For young people and adults we are providinghigh-quality web-based information andonline support. We will build on andimprove the Learning and Work Bank, whichoffers Internet access to the EmploymentService Job Bank. University for Industry’slearndirect information and advice helplinehas handled over 2.3 million calls since itslaunch in 1998. The 800 learndirect centresand Capital Modernisation Fund UK (CMFUK) will offer flexible, accessible opportunitiesto learn online to a wide audience includingsome of our most disadvantaged communities.The service is also available online atwww.learndirect.co.uk and we expect to have over 1,000 centres operational by April this year. Career education, informationand guidance in higher education will bestrengthened through the implementation of recommendations for the recent sector-ledreview of Higher Education careers services.

20. I am extremely proud of what theGovernment’s welfare to work policies havebeen able to achieve in a short period oftime. The key to their success is the focus on the individual to raise their employabilityand skills. By extending the New Deal wewill continue to open up opportunities foreveryone who can work. The Job TransitionService will provide a framework for flexible,intensive and demand-led local and sectoralaction, which focuses on those affected both directly and indirectly by large-scaleredundancy, by helping them with thetransition into sustainable employment.

21. Getting a good match between individualskills and jobs is not only about helpingpeople into work. We must have workforcedevelopment strategies that improve theways skills are used. Too many people saytheir skills and talents are not being used fullyin their jobs. This waste of talent and skills isunhealthy for individuals, their employers andthe nation. Too many women are going intotoo few occupational areas and often theseare not highly-paid jobs. We will, explorewith the NTO National Council the role forsector workforce development plans inaddressing the specific issue of gender-stereotyping. We will stress the importanceof encouraging women to train and take upjobs in non-traditional areas as an effectiveway of dealing with skill shortages.

22. I am concerned about the information thatemployers receive on skills. It is one of thereasons why we need to strengthen NTOs,working more closely with UfI and the SmallBusiness Service (SBS), to help plug thisimportant gap. Up-to-date and accessiblelabour market intelligence about current andfuture skill needs is critical to achieving a moredemand-led education and training system.


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23. My Department, working with the LSC, RDAsand NTOs, will take an important lead on thisover the next two years. Above all, we mustbe clear about the roles of the various agenciesto ensure that their work is complementary. I also want to see a much closer fit betweenthe skills and labour market assessmentsprovided by industry, regions and occupationalsectors and the funding and planning of post-16 learning and skills now being drawn up bythe LSC. This will help ensure that the £5.5billion of investment in skills through the LSC,and the £15 billion total that it is estimated isspent on training by employers in the UK eachyear, are used wisely.

Case Study: The Sector WorkforceDevelopment Plan for the Land-basedSector

Lantra is the National Training Organisationfor the land-based sector, representing theinterests of 1.5 million people and 360,000businesses engaged in the land-basedindustries, comprising agriculture, animalcare, environmental conservation,equestrianism, fencing, fish farming, floristry,game conservation, production horticulture,landscaping and professions allied toveterinary science.

The aim of Lantra’s Sector Workforcedevelopment plan is to inform, advise,influence and persuade key partners to takeeffective action to raise the skills levels andcapability of all those involved with the land-based sector.

The development plan has been producedafter extensive research into the sector’s skillsneeds, undertaken through a comprehensiveSkills Foresight programme. To date, over8,000 employers have contributed to theresearch, allowing a clear picture of currentand future skills needs to be developed.

Creating excellence in vocational learning

24. The relative weakness of our vocationaleducation and training system has long been the subject of major concern, dating back tothe establishment of the Samuelson RoyalCommission on vocational training in 1884.The authoritative research conducted for theTask Force confirms an-all-too familiar trendin terms of our economic performance. Overa quarter of businesses report significant skillsshortages. Other surveys have consistentlyhighlighted a declining number of peopletaking traditional technician and associatelevel qualifications.

25. It is why we will act in this new century toavoid falling further behind our internationalcompetitors. Beyond compulsory school age,we are determined to build a coherent andhigh-quality vocational education and trainingsystem that is the envy of the world. MyDepartment, working with the new Learningand Skills Council, is committed to developingan integrated vocational learning pathway for every young person, on a par with theresources and prestige afforded other typesof post-16 provision.

26. The Task Force’s second report estimated thatbetween 65% and 70% of employmentopportunities will require Level 3 qualificationsby 2010. Only 48% of UK 25-28 year oldsheld such qualifications in 1999, and thefigure for 19-21 year olds was only marginallybetter at 50%. My message is unambiguous.We must set our sights much higher if we areto secure both individual and nationalprosperity in future. To fail in this task is tocondemn future generations to low skills andconsequently, ever-decreasing living standards.


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27. That is why I have decided that there is meritin the Task Force’s central recommendationthat there should be an extension in theentitlement for young people and adults tofree education and skills training and for thisto be underpinned by additional financialsupport, including income-contingent loans.We are now looking at the options availablein this area and will announce a decisionshortly. These important new entitlementswill build on the right to study for 16 and 17 year olds. They will also take account of lessons learned from the EducationMaintenance Allowance pilots which Iintroduced specifically to test the extent towhich additional financial support encouragesmore young people from low-income familiesto stay on in education.

28. To achieve our ambitious goal of vocationalexcellence for all, we must modernise ourfurther education colleges. In Colleges forExcellence and Innovation, I set out anambitious agenda in England to rebuild thetechnical instruction that once symbolised the very best of our industrial training system.

29. Our goal is to have up to 50% of generalFurther Education colleges specialising in a specific vocational area by 2004/5. TheLearning and Skills Council will make £100million of new investment available over thenext three years, to those colleges which candemonstrate that they are at the forefront of addressing the skills needs of industry and commerce, locally, regionally and at the sectoral level.

30. The development of a world-class vocationalsystem ultimately rests on the quality of theapprenticeship system. I do not support theview put forward by some that apprenticeshiptraining is the best alternative for those notsucceeding in academic education. I ampleased that both Foundation and ModernApprenticeships have delivered more successin recent years, but we still have some way togo to build the kind of system envisaged bythe Task Force.

31. The Apprenticeship Diploma will be a singleand recognised award bringing togetherunderpinning knowledge, key skills andvocational specialisation, which willdemonstrate that the holder is qualified forskilled work and capable of further learning.

32. Technical certificates will accredit theunderpinning knowledge required to work in a particular sector, complementing thepractical training of the related NVQ.

Case Study: Christopher Eastwood

When Christopher Eastwood finished hisModern Apprenticeship he had plenty tocelebrate. Not only was he one of the firstpeople in the country to complete anapprenticeship in Heavy Goods VehicleMaintenance, but he was also voted Student ofthe Year by Accrington and Rossendale College.

Christopher works for Gilbraith Tankers inClayton-le-Moors, Lancashire, where he helps tokeep the company’s fleet of chemical tankers fitfor the road. When he was at school he hadan ambition to become a car mechanic, but acouple of weeks’ work experience at Gilbraith’sconvinced him that working with heavy goodsvehicles would make a better career. Aftertaking his GCSEs, Christopher signed up withlocal training providers, Training 2000, whomatched him up once again with GilbraithTankers, who happened to be looking for anapprentice mechanic.

Christopher is proud of the many qualificationshe has gained in the course of his ModernApprenticeship. These include an NVQ Level3 in Passenger Carrying Vehicle Maintenance(Mechanical) and Key Skills at Level 3. Hehas also passed courses in Vehicle Inspectionand Heavy Vehicle Recovery.

Christopher’s next step will be to study for anHNC in Motor Vehicle Technology. He hopesto become a manager and may even set uphis own business one day.


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33. To complete our new vocational ladder ofopportunity, I am committed to themodernisation of our higher educationsystem. Many of our universities are alreadythe envy of the world, offering high-qualityacademic and postgraduate study. But notenough are building the kind of bridgesbetween the campus and employers, whichcould substantially improve on our levels ofworkforce skills, productivity and innovation.Responding to the Task Force’s originalconception of an associate degree, weintroduced the new Foundation Degree.

34. The Foundation Degree is intended to providea clear progression route of vocationallyrelevant study for those already in theworkforce or those young people who haveperhaps taken vocational A-levels. Above all,the aim of foundation degrees is to appeal to employment sectors and local businesseswhich want to reskill or upskill their peoplebeyond Level 3. A prospectus invitingconsortia to bid for the development of theprototype foundation degrees was issued inJuly 2000.

35. As recommended by the National Skills TaskForce, Graduate Apprenticeships (GAs) arenow being extended to cover a wider rangeof business and industry sectors. Nineframeworks are already available and afurther five are expected by April 2001.

36. DfEE has made £5m available to the HigherEducation Funding Council for England(HEFCE), to be used over two years starting in September 2000, to support the furtherdevelopment and delivery of GAs. HEFCE hasinvited HE institutions to bid for this funding.

Case Study: Foundation Degree inCreative Digital Broadcast Technology

The foundation degree in Creative DigitalBroadcast Technology, awarded by theUniversity of Sussex and offered from autumn2001 through Ravensbourne College ofDesign and Communication, is one of threenew foundation degree programmes that are being developed through the Consortiumof Arts & Design Institutions in SouthernEngland (CADISE) with an impressive range of employer and industry support.

The foundation degree programme, availableboth part-time and full-time, is expected toattract mature and experienced professionalsin broadcast-related employment withoutformal qualifications; mature returnersseeking a career change or who are currentlyunemployed; as well as young people whoare clear about their career aspirations andwant a qualification which will quickly getthem into their chosen field. The course iswell supported by employers, NTOs andprofessional bodies.

The foundation degree in BroadcastTechnology will enable students to progressseamlessly into employment within thebroadcast industry equipped with theknowledge and skills required to beimmediately effective in an employmentenvironment characterised by rapidtechnological change.


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37. In the coming years we will take further stepsto ensure that higher education continues todeliver on our vision. We have introducedthe £150m Excellence Challenge programmeto encourage those school students fromdisadvantaged backgrounds who are capableof benefiting from higher education to beable to do so. We want to support ouruniversities - physical and virtual - to developnew ways of learning, with different modelsbased on the way people live their lives.Part-time learning, returning to study in later life and distance learning using newtechnologies will be particularly encouragedand will provide increased flexibility ofprovision for mature students.

Case Study: South Kilburn INNIT Project

The project opened on 23 February offeringfree community access to high-specificationcomputers, software and digital equipment.The project is run with a number of specialist sessional staff using InformationCommunications Technology (ICT) toencourage local people in video production,digital arts, music writing and web design.There is a particular focus on older peopleand disaffected young people.

The project also works in partnership withthe local community and voluntary sector,with the centre acting as a ‘community hub’for ICT-orientated community developmentwork and initiatives. The project is alsohelping to develop a local ‘communityidentity’ and is examining the feasibility of a computer recycling initiative in the area.Developmental work on forging community-based partnerships in the context of a widerICT development strategy is seen as animportant next stage locally, extending thefocus beyond the South Kilburn.

Qualifications to Fill the Gap

The challenge facing the IT sector is how toprovide a consistent flow of skilled people.Only the concerted efforts of government,industry and education will generate this levelof new recruits and there is evidence that thisis happening. A notable example is the linkingof government and IT vendor qualifications.

The UK Government offers Scottish andNational Vocational Qualifications (S/NVQs) toprove candidates can do their job. In parallel,IT vendors, such as Microsoft, Cisco andNovell also offer qualifications that are highlytechnical and well recognised by the IT industry.

E-skills NTO and IT vendors are now workingto bring these parallel tracks closer together.They have found that the optimum way toqualify the workforce is to combine thetechnical skills of a vendor qualification withthe soft skills and measure of competenceoffered by a S/NVQ.

Each vendor qualification is mapped onto theNational Standards and the results publishedon the e-skills NTO website. Individuals,employers and assessors can see exactly howthe different types of qualification work andhow they sit together.


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Second chance opportunities for adults

38. If we are serious about creating a learningsociety, where everyone has the opportunityto learn and to upgrade their skills throughoutlife, we need to give adults the opportunity tolearn in a wide variety of different ways andsettings - from the local community to theworkplace. We have given priority to thedevelopment of more accessible learningopportunities for adults at community levelthrough a wide variety of routes, includingthe work of local education authorities in theprovision of adult and community learningand the Adult and Community Learning Fund.The resources available to the LSC to widenthe learning opportunities available to adultsin the community will increase by 9% from2002-03.

39. At the heart of the Government’s approachto boosting skills is a single-mindeddetermination to improve basic levels of adultliteracy and numeracy. It is a shameful legacythat up to seven million adults lack basic skillsin England alone. Research carried out forthe Task Force shows that if we were able toraise numeracy skills to the standard weexpect of 11 year olds, we would increaseour gross domestic product by up to £40billion. This demonstrates that tackling basicskills is not just a social issue, but aneconomic imperative too.

40. Building on the recommendations of the TaskForce and the pioneering work of Sir ClausMoser’s report - A Fresh Start - I am consultingon a national strategy to improve basic skills.In Skills for Life, we set out a number ofproposals to take forward our drive to boostadult basic skills. Our proposals include:

• family literacy programmes in whichparents and their children learn together;

• tailor-made strategies for targetingresources on disadvantaged areas;

• targeting of groups at risk of sustainedsocial exclusion;

• more opportunities for workplace basicskills training;

• basic skills screening for Jobseeker’sAllowance claimants.

41. Over the next few months, we will belaunching ten pathfinder projects in eachEnglish region. Each pathfinder will use newadult basic skills standards, the new nationalcurriculum and national tests.

42. In 1998 we promised to double the numberstaking part in basic literacy and numeracyprogrammes to 500,000 by 2002. I ampleased that we are on course to meet thattarget with 390,000 adults participating thisyear. We have now set a target to reducethe number of adults who have difficultywith literacy and numeracy by 750,000 by2004. Current DfEE expenditure on literacyand numeracy is £241 million in 2000-01.This will rise to £313 million in 2001-02,£366 million in 2002-03 and at least £403million in 2003-04. This work will beoverseen by a new Cabinet Committee which I chair, supported by an Adult BasicSkills Strategy Unit, which will lead thedevelopment and implementation of policy, in partnership with the Learning and SkillsCouncil and others.

43. I also want to build on the exemplary work of the Union Learning Fund by expanding the role of union learning representatives.Experience so far has shown that unionlearning representatives provide vitalencouragement to those who missed outwhen they were younger to see the benefitsof learning as the route to security andprogress at work. As set out in our WhitePaper, we will shortly come forward toconsult on detailed proposals forstrengthening the role and status of unionlearning representatives in the workplace.


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44. I believe that this will help kick-start thebeginning of a meaningful process, whichwill redeem generations of neglect. It signalsa new settlement for lifelong learning thatwill be good for individuals, business andcommunities as they strive to cope with thecompetitive pressures of a new global age.

Engaging employers in the skills challenge

45. Our Opportunity for All in a World of ChangeWhite Paper has identified the need toachieve a step change in investment byemployers in training. Although our overalltraining performance has improved in recentyears we are still concerned that our countryis not improving at the rate we need tocompete successfully in a global economy.

46. The Performance Innovation Unit (PIU) in theCabinet Office is currently undertaking areview of training and development providedby business and the options for change ingovernment policy, building on the analysisand recommendations put forward by theSTF. We expect the Learning and SkillsCouncil to take on board the findings of the PIU’s review and the STF, when puttingtogether the Council’s first nationalworkforce development strategy

47. As I noted in my initial response to the TaskForce, we must also engage more employers,and more informed employers in the skillsagenda. I am looking to the Learning andSkills Council, with over 40% of businessinterests serving on national and local boards,to make strong links with employers, theirrepresentative bodies, and their sector-basedNTOs, to ensure that they are actively engagedin shaping our education and training system,and to ensure a proper balance between thelabour market needs of regions and localitiesand the skills needs of employment sectors.A rolling programme of biennial SkillsDialogues within 15 broad sectoral groupshas been implemented. Each dialogue willproduce a report providing assessments ofskill needs within the sector and will be of

use to a range of partners, such as the RDAs,the LSC and careers companies and will helpinform the assembling of Sector WorkforceDevelopment Plans.

48. I do not propose, and the Task Force did not recommend, the introduction of astronger statutory framework or obligationon employers to train. I believe that in amodern economy, we must look at a moreimaginative set of levers that help ensureemployers make the right decisions about theimportance of skills and developing people totheir business.

49. As part of this I am ready to use existingpowers, in consultation with my ministerialcolleagues in Scotland and Wales, to providestatutory backing for proposals in any sectorfor collective skills investment, provided thesocial partners agree there is a clear evidenceof a skills deficit and that this is the best wayforward. This already happens, for example,in the construction and engineeringconstruction industries, where employerssupport the raising of collective funds tosupport the sectors’ training needs throughIndustry Training Boards (ITBs). It is why wewill continue to provide the necessarystatutory backing to underpin their work.

50. To achieve more effective sectoral skillsdevelopment within existing voluntaryarrangements we have launched aconsultation about the development of asmaller, stronger and more effective NTOnetwork. I am working with employers,trade unions and my ministerial colleagues in Scotland, Wales and Northern Ireland tofurther develop their role over the next fewyears. Our combined proposals for NTOs areset out in the “Building a Stronger Network:Developing the role of National TrainingOrganisations” consultation document.


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51. We will be making an additional £45 millionavailable to invest in the network over thenext three years. We believe that in future,sector-based bodies should concentrate onthree core roles: assessing and articulatingthe current and future skills needs of theirsectors; leading action on addressing sectors’skills needs; and actively reviewing progresswith employers and others on how thesectors’ priorities are being met. Governmentrecognition of NTOs will depend on theimpact NTOs make on the quality and level of skills in their sectors.

52. At the launch of the final report of the Skills Task Force, I announced a £2.5 millionchallenge fund to encourage innovation andbest practice in collaborative working amongnetworks of employers. Eighteen projects arebeing funded all of which will be completedbetween 31 March 2001 and 31 July 2001.These projects will be fully evaluated to informhow best to foster further collaborative actionby employers. These are just some of the newforms of service delivery that we are keen to encourage. I welcome the work of the NTO National Council working with UfI indeveloping new learning models, based on thenotion of sector learning partnerships in whichemployers and individuals access high-qualityweb-based support.

Collective Funds

There are currently two Industrial Training Boards, covering the construction and engineeringconstruction sectors. They are Non-Departmental Public Bodies (NDPBs) operating under theIndustrial Training Act 1982 and their scope is defined by statutory order. As NDPBs they aresubject to periodic and challenging review, taking into full account the views and needs of theircustomers, staff and other stakeholders.

Their primary role is to set standards for training and to ensure the adequate provision of trainingto meet the current and future needs of their industries. Both operate a grant scheme and a widerange of centrally funded training initiatives.

They have statutory powers to:

• raise a levy from employers in the industry to fund their training activities and operating costs;• provide or approve training courses and facilities;• publish recommended training standards and assessment methods;• assess and certificate the achievement of those standards;• pay grants and FE fees for approved training.

Each Board is also recognised by the Government as the NTO for their industries.

Skillset, the NTO for broadcast, film, video and multimedia, operates a voluntary training levy. The levy’s main aim is to improve the supply of skilled labour and secure the sector’scompetitiveness. It is based on the voluntary payment of 0.05% of turnover. The target is over £1m per year.

One aspect of this levy is focused on film production (Skills Investment Fund). The funds aremanaged and distributed on behalf of the sector by a Skillset Training Committee.


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53. I want to see firms - particularly smallcompanies - regularly update the skills oftheir people. The government recognisesthat most small firms have limited personnelresources, in-house training facilities, or lackthe obvious links with local and sectoralbodies. A major strategic objective of NTOsworking with learndirect will be to engagewith these businesses by promoting thebusiness benefits of online learning at times and places that suit the needs of the employer and individuals.

54. But individuals in the workplace must alsoshare some of the responsibility for skillstraining with their employers. It is why weintroduced Individual Learning Accounts(ILAs). We must build on this success bymainstreaming ILAs across the entireworkforce. I believe that the full potential ofILAs is yet to be realised in encouraging theindividual to take more responsibility in termsof purchasing their own learning. Similarly,we must look at innovative ways of enablingemployers, unions and individuals tocontribute to these accounts.

55. We must ensure more businesses, especiallysmall firms, achieve Investors in People (IiP)recognition. IiP has recently been updated and made more accessible for use by smallfirms. My Department will work with IiP UK,the Small Business Service and the Learningand Skills Council to ensure progress towardsthe target of 10,000 small firms achieving the IiP standard by 2002. The LSC will give a particular priority to the promotion and take-up of IiP, as part of its overall workforcedevelopment strategy. I do not, however,intend to pursue the Task Force’srecommendation that tax relief should begiven to small firms achieving the Standard.

Conclusion

56. The combined resources of Government,business and individuals are poised to achieve the goal of a highly-skilled, inclusiveeconomy. This is essential if we are to graspthe opportunities of a new learning age.

57. We must embrace the future by building on the great learning traditions of the past,including the pioneering efforts of thecommunity movements which helped somany men and women to improve theirlives through the power of learning.

58. My Department, working with the newLearning and Skills Council, will take anactive role; forging the necessary partnershipsthat will equip men and women in a newquest for self-improvement through learning.It is this changing world and the policies weneed to develop and deploy which will be atthe heart of my Department’s delivery of theNational Skills Agenda.

59. The doors that once opened for a few needto open for the many. We need to see morelearning take place, not only in the classroom,but also beyond it. The workplace mustbecome a faculty of learning and personaldevelopment as well as the university campusand library. Our future economic prosperityand inclusiveness as a society depend on it.


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