16 January 2009
The Queen's Speech on Wednesday included a bill to introduce the new Skills Funding Agency (SFA). Its creation marks a step change in the development of an adult skills system that is truly demand led. Employers tell us that they can sometimes be frustrated by the bureaucracy and regulation of the current system, and the SFA will be designed to be highly responsive to their needs, to the needs of learners and to the changing economic demands of the country
Following the choices of learners
Central to the new system will be the way in which funding will follow the choices of learners much more closely with the introduction of Skills Accounts. The SFA will focus on results rather than processes, allowing colleges and providers to be more innovative and entrepreneurial in how and what they deliver, and to respond more closely to the needs of their local and regional business and learner communities
SFA responsibilities
The SFA will house the new National Apprenticeships Service and the Adult Advancement and Careers Service, offering new support for employers and for people who want to get on. It will have responsibility for funding Train to Gain and for ensuring that providers are properly accredited. And it will work closely with regional partners to play a much more proactive and innovative role in tackling the countries strategic skills needs.
Education and skills changes
The introduction of the new agency is part of a series of wider changes to the education and skills system which will see the education participation age raised to 18 and the consequent transfer of 16 to 19 education to local authorities. Importantly, this will give a single point of accountability for all Children's Services.
Abolition of the Learning and Skills Council (LSC)
It will also mean the eventual abolition of the Learning and Skills Council (LSC). Since its establishment eight years ago, the LSC has played a central role in improving the UK skills base, and has had a number of important successes. Its introduction of the capital fund to modernise FE college facilities has been important in providing a modern and effective learning environment for tens of thousands of students, and the establishment of Train to Gain as a national service for employers throughout England has transformed thousands of lives. Its staff have shown great commitment in meeting the skills needs of employers and learners alike and most will transfer across to the new bodies.
The current economic challenges which the country faces mean that skills will never be more important, particularly ensuring the companies continue to invest for the future. But a body of the size and structure of the LSC is no longer necessary, particularly given the transfer of responsibility for 16-19 education to local authorities. The old system was one which was necessarily based on complex contractual arrangements but this is no longer the case. It is now time to move the adult skills system from the current planned approach to one which is more flexible and demand led.
LSC staff are working hard to respond to the changing needs of the employers and the economy as a whole as we enter a downturn. It is very important that we continue to support them over the next two years as the SFA is fully established and as the responsibilities of the LSC are handed over to the SFA.
Further education
Our FE system is critical to unlocking the talents of individuals and to respond to the skills needs of employers and to the country as a whole. The changes that we will be introducing over the coming years are designed to ensure that it can do so with the minimum of bureaucracy and the maximum efficacy.
