LIFELONG LEARNING – THE BRITISH APPROACH

...improving competitiveness through workforce skills.

Michael StarkDirector, Skills StrategyUK Learning and Skills CouncilBratislava, 9 December 2003

The LSC vision (2001)

By 2010, young people and adults in England will have knowledge and productive skills

matching the best in the world.

Skills Strategy vision (2003)

To ensure that employers have the right skills for business success, and individuals for

employment and personal fulfilment

UK competitiveness

• Productivity gap with US and others.

• Workforce skills a big element (? 40%)

• Main problems: low employer demand for skills, and inflexible supply.

• More state funding is not the solution! We need a co-financing approach.

50%

75%

100%

-2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0%

FranceUK

United States

Comparative economic performance

Korea

NetherlandsFinland

New Zealand

Germany

Italy

Japan

Source: World Development Indicators 2002

Spain

Singapore

Switzerland

GDP per capita, 2001, US=100

GDP growth relative to the US, 1995-2001

Slovenia

Canada

Taiwan

Hong Kong Sweden

Australia

Ireland(92%, +6.6%)

UK has achieved fast prosperity growth, but a 30% gap still remains

Workforce skills

0%

20%

40%

60%

80%

100%

UK US France Germany

HighIntermediateLow

Source: Mahoney, de Boer (2002)

Share of Workforce with Qualification by

Level

UK

• UK behind US in high level skills - and behind France and Germany in intermediate skills

Adult achievement

Targets:

By 2007: 1.5m more adults to improve literacy and numeracy

By 2007: 1m more adults with Level 2 (“good 16 year old”) skills

By 2010: 3m more adults with Level 2 skills – and Level 3?

Historic causes of UK skills gap

• high level, at expense of basic /technician.

• young people, at expense of adults.

• academic, rather than vocational.

• schools/colleges, rather than workplace.

• supplier-led, rather than job-led, skills.

We focused too much on certain skills:

Adult participation in “learning” in previous 3 years

Population Estimates, 2002 Participation Rates, 2002

0

1m

2m

3m

4m

5m

6m

7m

8m

18-19 20-24 25-34 35-44 45-54 55-64Age

72%

51% 49%

44%

30%

Source: ONS and NIACE

80%

Population

Most adults stop learning entirely!

Why don’t adults in UK train / re-train?

• We haven’t offered enough carrots to individuals.

• Nor enough carrots or sticks to employers.

• Our training providers are inflexible.

• Our qualifications are not world-class

• Our subsidies are too generous! but untargeted.

Because until now:

Employers vital to change, because....

• most adults are employed, so have little time;

• alone, 50% fail – but 80% of employer-backed succeed;

• employers spend £££ on private training – but it doesn’t join up with the schools / colleges.

Employers are the magic ingredient !

• Adult employees whose learning is directly backed by the employer achieve up to 70% faster, and have up to three times greater success rates.

• Particularly true of low-qualified adults going for a first qualification (eg basic skills or Level 2).

Findings from our sectoral pilots:

What should employers and others pay for adult training?

• Employers to pay for the job-specific skills for their own employees....

• ..but the state to deliver basics – also second chances...

• ...and individuals must also contribute. In UK, adults pay only 5% of their own learning costs.

• Skills Strategy means more targeting and co-financing.

LSC experiences with employer co-financing

• Employer training pilots – generous in cash, but employer must commit to employee success

• Sectoral pilots: less cash, but make the training outcome highly attractive to employers

• Specific programmes for rail, textiles, road haulage and other sectors

• New qualifications (IT) - employer pays.

Sectoral training (1)

• Automotive• Construction• Rail• Information Technology.

LSC initiatives begun 2001 :

Sectoral training (2)

• Agency/temporary staff• Care• Childcare• Cleaning• Health, first aid• Hospitality, catering, tourism• Retail, reception, call centres• Management/leadership in small firms• Manufacturing, textiles• Voluntary sector.

Further work 02-03:

Sectoral training (3)

• Aviation, aerospace• Health, social services• Financial/professional services• Film, broadcasting, media• Land-based occupations• Plumbing• Printing, publishing• Road haulage, coach drivers• Sales, customer service• Schools and colleges support staff.

Further work 03-04:

Employer training pilots

• Publicly funded training and advice

• Highly targeted at low-paid, low-skilled, mainly in small enterprises

• Entry-level and technician skills

• Payable only for completed qualifications.

Tax credit to employers?

Small employers (all sectors)

Low-skilled, low-paid employees

Payable only on qualification

Cash incentive to the learner too?

Save to learn (to earn)

• A savings account?• Tax incentives for the employee• Contribution from the employer ?• Two signatures to unlock the funds• Managed by financial services industry.

Four big issues for Slovakia

• Achieving co-financing

• Subsidies without deadweight

• Motivating small employers

• Flexible but good qualifications.