Government seeks to bridge skills gap with 25% less funding
19 Nov 2010
London – Secretary of state for business Vince Cable and skills minister John Hayes have launched the UK government’s strategy for reforming the further education and skills system.
The government’s Spending Review has already set out that by 2014-15 the further education resource budget will be reduced by 25%.
“We are not in a position to throw money at the problem, but even against the backdrop of reductions, resource will be found to expand the apprenticeship programme for adults and support more people undertaking an increasingly respected form of vocational training,” said Cable
Further Education, Skills and Lifelong Learning Minister John Hayes, added: “Despite a reduction in the FE and Skills budget, we are continuing to protect and invest in programmes that provide the highest quality and greatest benefit to the maximum number of people.
Replacing Train to Gain with funding for work place training prioritised on SMEs will to help employers with a small workforce train low-skilled staff, according to Hayes.
“And as we continue to expand apprenticeships and reinvigorate community learning more people will be able to build their skills and fulfil their potential,” he predicted.
“The acquisition of skills enables people to progress in learning and work and delivers social benefits too. I want to see the development of a culture of learning with individuals and employers driving forward the skills system and contributing to the learning they receive.”
The reform of the skills systems includes:
- Expanding the numbers of adult apprenticeships available, so by 2014-15 there will be 75,000 more adults starting than under the previous Government’s plans; 200,000 adults will be able to start an apprenticeship. We will invest £605 million in adult apprenticeships in the 2011-12 financial year;
- Improving the apprenticeships package, so that level 3 (A Level equivalent) becomes the level to achieve, and there are clear progression pathways;
- Fully funding training for young adults aged from 19 up to 24 undertaking their first full level 2 (GCSE equivalent) or first level 3 qualification when they do not already have one;
- Fully funding basic skills courses for individuals who left school without basic reading, writing and mathematics;
- Protecting investment of £210 million in adult and community learning, to support personal development, inclusive communities and a route into formal learning for the disengaged;
- Introducing Government-backed loans from 2013-14 for learners aged 24 and over undertaking level 3 or higher qualifications. This will give people access to finance. They will not have to make their contribution to costs of the course until they are reaping the benefits of it and earning a decent wage;
- Initiating a demand-led growth and innovation fund of up to £50 million of government investment a year, to support employer-led initiatives within sectors, such as new professional standards, and to promote leadership and management in small and medium enterprises;
- Replacing Train to Gain with an SME focused programme to help small employers train low-skilled staff;
- Helping people who are on active job-seeking benefits to secure work through labour-market relevant training; and
- Reducing bureaucracy in the sector. We will continue to free colleges and training providers from red tape so they can respond to the needs of employers and learners. We will simplify the complex funding system and from the 2011-12 academic year there will be a single adult skills budget.
