Source · Select Committees · Public Accounts Committee
Thirtieth Report - Developing workforce skills for a strong economy
Public Accounts Committee
HC 685
Published 14 December 2022
Conclusions (12)
1
Conclusion
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Education (DfE) and the Department for Business, Energy & Industrial Strategy (BEIS) on government’s approach to developing the skills of the workforce in England.1
Government Response Summary
The government acknowledges the Committee's report and its evidence from DfE and BEIS on developing workforce skills.
12
Conclusion
Acknowledged
Overall, the FE Skills Index fell from 100 in 2012/13 to 54 in 2020/21, a decrease of 46%, which means that the FE system was estimated as having a declining impact on productivity over the period. However, in 2020/21, the annual change in the Index was a rise of 7%. …
Government Response Summary
The department advises against using the FE Skills Index as a sole indicator to measure performance, believing that stipulating an arbitrary target level of improvement for this index would not be a valuable measure of performance and could create issues about achievability.
15
Conclusion
Acknowledged
Skills Bootcamps are courses lasting up to 16 weeks for people looking to change sectors or progress in their current industry. By April 2022, 24,500 people had started a Bootcamp.18 DfE told us that Skills Bootcamps were particularly important for those in low-paid work who are looking for opportunities to …
Government Response Summary
The government is simplifying the further education funding system and skills offer, integrating the Traineeship programme into existing provision from 1 August 2023, and simplifying the careers guidance system.
19
Conclusion
Acknowledged
DfE’s overarching philosophy is to put employers at the heart of the skills system, specifically by giving them a central role in identifying local and national skills needs, and in developing and designing qualifications and training. New local skills improvement plans (LSIPs) are intended to provide a framework to help …
Government Response Summary
The response reiterates the committee's conclusion, emphasising the importance of employers in the skills system and the role of LSIPs. There is no commitment or rejection. This is pure acknowledgement.
20
Conclusion
Acknowledged
DfE carries out an employer skills survey every two years. These surveys indicate that the average amount per employee that employers spent on training fell, in real terms, from £1,710 in 2011 to £1,530 in 2019. The 2021 survey suggested that the COVID-19 pandemic had amplified the decline in workforce …
Government Response Summary
The government acknowledges the decline in employer investment in training and states it is already considering the evidence base and potential options to support increased investment, particularly for SMEs.
21
Conclusion
Acknowledged
The NAO found that government had not made clear to what extent it was seeking to influence employers to invest more in developing the skills of their own workforces.28 We asked whether there was scope for government to do more to reach out to employers who were unwilling to invest …
Government Response Summary
The government acknowledges the concerns around SMEs and their investment in training and states it is already considering the evidence base and potential options to support increased investment, particularly for SMEs.
22
Conclusion
Acknowledged
In written evidence, several organisations raised concerns about the apprenticeship levy, and suggested that reforms to the levy would improve the training opportunities available. The British Retail Consortium suggested that employers should be permitted to spend levy funds on high-quality shorter courses, including functional skills training, 25 Q 42 ; …
Government Response Summary
The government recognises the levels of participation of small and medium enterprises (SMEs) in the skills system needs to increase in order to realise the potential of government skills reforms and is making apprenticeships more flexible with new flexi-job apprenticeships, front-loaded training and accelerated apprenticeships.
23
Conclusion
Acknowledged
In January 2021, we reported on the financial sustainability of the college sector.34 Our report emphasised that colleges play a crucial role in developing the knowledge and skills the country needs, and in reaching disadvantaged groups and deprived areas.35 In giving evidence on workforce skills, DfE told us that people …
Government Response Summary
The government will provide an additional £1.6 billion for 16-19 year olds education, uplift funding rates, increase cost weighting for specific subjects, address uneven monthly payments to colleges, and invest in direct support for the FE sector including bursaries and recruitment campaigns.
24
Conclusion
Acknowledged
Our 2021 report also noted, however, that the financial health of the college sector had previously been, and remained, fragile and that financial pressures were affecting provision for students. These pressures had caused some colleges to narrow their curriculum and reduce the length of courses. Some colleges had significantly reduced …
Government Response Summary
The government will provide an additional £1.6 billion for 16-19 year olds education, uplift funding rates, increase cost weighting for specific subjects, address uneven monthly payments to colleges, and invest in direct support for the FE sector including bursaries and recruitment campaigns.
25
Conclusion
Acknowledged
We asked about colleges’ ability to recruit and retain teaching staff. DfE explained that it was trying to promote teaching in the FE sector as a positive career, especially for people who were mid-career and could offer industry experience. However, it accepted that recruitment was a significant challenge, particularly because …
Government Response Summary
The government will provide an additional £1.6 billion for 16-19 year olds education, uplift funding rates, increase cost weighting for specific subjects, address uneven monthly payments to colleges, and invest in direct support for the FE sector including bursaries and recruitment campaigns.
27
Conclusion
Acknowledged
We asked how DfE could give the Unit for Future Skills a profile so that it had a meaningful impact on cross-government policy development and local design and practice. DfE stated that the key was for the Unit to produce outputs that stakeholders could easily use to inform their decisions. …
Government Response Summary
The government acknowledges the importance of the Unit for Future Skills and its role in cross-government policy development, highlighting its growth and planned activities.
28
Conclusion
Acknowledged
DfE told us that the Unit for Future Skills currently had 18 staff. It said that the Unit had struggled to recruit the highly skilled analysts it needed. We therefore asked whether these staffing pressures had been resolved. DfE explained that it had experienced some of the same challenges of …
Government Response Summary
The government acknowledges the staffing challenges of the Unit for Future Skills but expresses confidence that it will achieve a full complement, highlighting its growth, analytical products, and assessment by the UFS Board.