Recommendation 35

HM Government Acknowledged

89. The UK is facing a significant challenge on skills. The impact of covid-19 has compounded the already rapid rate of change of our economy and it is clear that we have a considerable skills gap. This needs to be tackled at scale. That is why we are investing £2.5bn in the National Skills Fund alongside those methods designed to offset the impact of covid through the £500m Skills Recovery Package. 90. It is clear that the Unionlearn model—although it has helped many over the years— has its limitations. In particular, it focuses on helping those in work upskill with only 2% of learners supported being unemployed. The impact of covid-19 on the economy has led to increased unemployment. Our priority, therefore, is to help unemployed adults gain the skills they need to secure new work. 91. While Unionlearn support is open to all, the Unionlearn presence is focused on larger employers with a unionised workforce further limiting its reach (76% of learners supported are trade union members with only 5% of learners self-employed). Given that Unionlearn relies on ULRs and the Unionlearn/trade union network to help individuals into learning, this focus would not be overcome by a simple participation target. 92. We are confident that the National Skills Fund and other measures will help all to access training to gain the type of skills they and the economy needs. It is worth noting that the study carried out by Exeter University in 2018 estimated that for every £1 of funding, Unionlearn generated an economic return of £12.24. Set against that, a BIS report in 2015 estimated the average rate of return from Government investment in FE was £14 for each £1 invested.11 Direct comparisons are difficult due to differing methodologies but there is no evidence that the return generated by Unionlearn is exceptional or exceeds that of overall Government investment in skills. It is worth noting only £9.5m of the £12m grant provided by DfE makes up the Union Learning Fund used to support individuals in learning. As such, we chose not to continue to support the Union Learning Fund, and instead will use this funding as part of our wider response to provide skills and retraining that will be fully accessible to everyone.