Source · Select Committees · Business and Trade Committee
Recommendation 23
23
Accepted
Skills shortages and fragmented system deter growth and investment across UK economy.
Conclusion
Skills shortages are holding back growth and deterring investment across large parts of the economy, including within the UK’s growth-driving sectors. The skills system is too fragmented and inflexible. The needs of employers must be at the centre of the UK’s approach to training. Local leaders are best placed to know the needs of local employers and work with training providers to adapt provision accordingly. (Conclusion, Paragraph 106)
Government Response Summary
The government accepts the conclusion by outlining how Skills England will address skills needs through data-driven assessments and co-creation of training, and how the English Devolution White Paper strengthens the role of Mayors and Strategic Authorities in local skills planning to meet employer needs.
Government Response
Accepted
HM Government
Accepted
14.1. Skills England will be data-driven. It will be the single authoritative voice on current and future skills needs allowing Government to make informed decisions. 14.2. It will use this data to find the right solutions at a national and regional level to improve the training available to young people and adults. It will co-create training products with employers and others to meet economic need. 14.3. It has already begun to deliver its assessments of current and future skills needs, having published two documents, and a third document coming out shortly: • Skills England’s first Report, published in September last year, set out how the problems in the current skills system hinder economic growth, such as skills mismatches and falling private skills investment, and an initial assessment of skills need in four high-demand sectors. • Skills England’s second publication, published in June, assessed the skills needs in priority sectors (the eight Industrial Strategy sectors, health and housebuilding), and the barriers employers experience within the skills system. The insights were based on engagement with over 700 stakeholders including businesses, local government and education providers. Skills England found a strong need for high-level training especially for High Technical Qualification (L4/5), demand for digital skills across all sectors, and foundational skills around employability. Employers also found the skills system was inflexible and supported policies around shorter apprenticeships. • Skills England is aiming to publish a new Report this summer to build on its priority sector skills assessment, and provides the first quantitative estimate of the job demand in these sectors and the education pathways that need to grow to fill that demand. 14.4. Skills England will use these assessments to ensure that there is a comprehensive suite of apprenticeships, training and technical qualifications for individuals and employers to access and work together with regional partners to ensure that regional and national skills needs are met. The analysis will also feed into the Skill Strategy to shape funding priorities. 14.5. The enhanced skills offer set out in the English Devolution White Paper will strengthen the important role that Mayors play in driving local growth and supporting labour market and skills needs. 14.6. As well as consolidating various adult funding streams, we have also committed to giving Strategic Authorities a strengthened role in Local Skills Improvement Plans, through joint ownership of the model with Employer Representative Bodies. 14.7. We agree with the intention that the devolution framework is the floor not the ceiling and continue to work with Mayoral Strategic Authorities (MSAs) to explore where we can go further on devolution, including through the Greater Manchester Task and Finish Group. 14.8. We will work with the MSAs on delivery of the Construction Skills Package to enable them to bring a place-based approach to the delivery of this crucial funding.