Recommendation 11

DfE emphasised the importance of the FE Skills Index as its key measure of the impact of the FE system on productivity. The Index works by estimating the ‘value added’ for all adult learners and apprentices in England who have successfully completed their training during the year. DfE calculates the Index by measuring changes in the number of learners and in achievement rates, and shifts in the mix of learning towards more (or less) ‘economically valuable’ training in terms of learners’ subsequent wages. DfE explained that it regarded the Index as a critical measure because it took account of not just the number of learners on each programme, but also the outcomes people could expect to gain as a result of their training.14