Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 21
21
Accepted in Part
Robustly and regularly evaluate publicly funded skills schemes addressing workforce shortages.
Recommendation
Targeting consumer demand on its own is necessary but not sufficient and public funding is needed aimed at addressing the supply of skills directly. The commitments in the Spending Review and Industrial Strategy are welcome as is the direction of travel. At some point market signals will be strong enough and funding can be scaled back but we are not at that stage yet. While public funding could be deployed across a variety of worthy initiatives, the schemes the Government chooses to fund must be robustly and regularly evaluated to ensure they adequately address the skills shortages identified in its workforce strategies. (Conclusion, Paragraph 93)
Government Response Summary
The government partially agrees, intending to ensure fair work and skills requirements are considered in commercial contracts and grants where feasible, and that conditionality will be carefully considered case-by-case, recognizing existing requirements for departments to have due regard to equality.
Government Response
Accepted in Part
HM Government
Accepted in Part
As outlined in the Warm Homes Plan, the government intends to ensure that fair work, skills and sustainable supply chain requirements are considered by default in commercial contracts and grants, where it is feasible and appropriate to do so. This aims to ensure that there is a greater focus by suppliers and grant recipients on supporting longer-term commitments in areas such as skills and the creation of good-quality jobs when delivering goods and services through public funding. The government partially agrees with this recommendation. The government recognises the importance of understanding and considering the impacts of grant funding and procurement regimes at the point of design, including impacts on protected groups and businesses, value for money and effective targeting of support. Departments are already required to have due regard to equality considerations when exercising their functions, and to undertake appropriate analysis to inform ministerial decision making. However, in line with the Better Regulation Framework Guidance set out by the Department for Business and Trade, the use of conditionality within procurement or grant funding frameworks would not be within scope of requiring the publication of an impact assessment. The integration of conditionality will be carefully considered on a case-by- case basis to ensure it is appropriate and proportionate for the relevant market and supply chain, having regard for the nature of the funding lever and the wider context in which it is introduced. Where it is decided conditionality will be integrated into a government programme, the government will clearly communicate the rationale and design approach.