Source · Select Committees · Business and Trade Committee
Recommendation 24
24
Accepted in Part
Commission and publish analysis of skills gaps across eight growth-driving sectors.
Recommendation
We recommend that: • Skills England commission and publish an analysis of the skills gaps across the eight growth-driving sectors and report to Parliament within six months. This should include an estimate of the current and future skills gaps across these sectors over the course of the 10-year period of the industrial strategy and provide recommendations on the funding and policy changes needed to fill these shortfalls, including funding gaps for courses that need to be filled. • The Government’s plans in the English Devolution White Paper to devolve more responsibility for skills to local leaders should go further. Responsibility for technical education and training post-16 should be devolved, to the maximum possible extent to Mayoral Combined Authorities and newly created Strategic Authorities, once they have demonstrated capability to manage local systems. 74 • Responsibility and funding for skills policy at a national level should be transferred to the Department for Business and Trade. This will help ensure national skills policy is more attuned to the needs of employers and is more aligned with the Government’s industrial strategy and growth mission. • The Minister for Skills should be a joint ministerial role across the Department for Business and Trade and the Department for Education to ensure there is a coordination between the two departments, as people transition from school to post-16 education and training. (Recommendation, Paragraph 107)
Government Response Summary
The government refers to Skills England's ongoing assessments of skills needs, partially addressing the recommendation for analysis. It outlines how the English Devolution White Paper will strengthen local leadership in skills and states a commitment to exploring further devolution, but does not address the recommendations to transfer skills policy responsibility to the Department for Business and Trade or create a joint ministerial role for the Minister for Skills.
Government Response
Accepted in Part
HM Government
Accepted in Part
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.