A new agreement between the Government and employers will deliver more skilled workers to do the jobs of the future in construction, hospitality and processing and manufacturing, Skills Secretary John Denham announced today
25 June 2008
The Government will earmark over £300m from its training budget to tackle current and future skills shortages within these key sectors - with £133m to help construction, £112m for hospitality and £62m for processing and manufacturing. The funding will enable employers in these sectors to improve the qualifications and skills of their workforce, and offer greater numbers of apprenticeships.
It is the first major stage of a radical shake-up of the skills and training system instigated by John Denham to tackle expected skills shortages. He expects to announce similar deals in the future. As part of the shake-up, John Denham will also today meet business leaders in Westminster to discuss what more can be done to ensure the supply of skilled labour matches the emerging skills gaps in key sectors of tomorrow's economy.
Secretary of State for Innovation, Universities and Skills John Denham said: "Industries such as construction, hospitality and processing are key to our future prosperity, but there is a need for more highly trained people if we are to continue to lead the world in an increasingly competitive global economy. The success of our country will depend on doing even more to increase people's skills and their ability to gain jobs in growing and successful industries, such as these.
"We've come a long way. Radical changes to the skills and training system over the past two years, making it more demand-led, have helped ensure that last year £38 billion was spent on training by British businesses.
"But more can be done. It's not enough to have a system that is demand-led. If we're going to skill people for the jobs of the future, then we must work closely with employers to identify those needs and ensure that training providers are ready to deliver. We've listened to employers and taken action to remove barriers to training. Now we must take it one step further."
In return for this funding, the Sector Skills Councils, ConstructionSkills, People1st and Proskills, will use their unique sector understanding to encourage employers to take advantage of Government initiatives such as Train to Gain, to make the Skills Pledge, to offer more Apprenticeships and to ensure their staff are given the opportunity to gain relevant qualifications and training.
Government support will be tailored to meet employers' specific skills needs. Part of the Train to Gain budget will now be available specifically to train employees who already hold GCSE or A-level equivalent qualifications (level 2 and level 3) but who need more specific, or more up-to-date, business qualifications. There will also be more funding for specialist skills training, marketing and recruitment.
Future compact agreements will similarly rely on the expertise of Sector Skills Councils (SSCs) to encourage employers to take up government skills programmes, in return for funding and support. Those sectors in which increased investment in skills is needed to shape a modern, competitive economy will be prioritised. The move follows a recently announced compact with Semta, the SSC for the science, engineering and manufacturing, a consultation on a new right to time to train for employees, and a renewed commitment to ensure the skills system delivers appropriately trained people for industries employing the workforce of the future. Mark Farrar, Corporate Services Director, ConstructionSkills, said:
"This is a great opportunity for us to build on the success we have had in working with the construction industry to meet its skills needs. Through the compact we now have a better opportunity to access funding from the Train to Gain budget to address existing and future skills needs.
We are well placed as both a Sector Skills Council and an Industry Training Board to provide the support that the construction industry needs to ensure that those entering the industry have the skills they need and those already in the industry are able to adapt to changes that will take place."
Brian Wisdom, People1st Chief Executive, said:
"More and more employers are realising the increased need to invest in the best staff to improve their businesses. In an environment of rising costs the most enlightened employers are even more committed to investing in the skills of their people and improving the customer experience and profits - this deal shows that government are dedicated to investing in the areas most critical to industry."
Terry Watts, Proskills Chief Executive, said:
"The skills pledge represents a vital element in our sector's drive to raise skill levels and protect its future. The sector is keen to raise its profile and attract new entrants, and recognises that it is essential to be able to offer employees both a wide range of opportunities together with relevant training and personal development."
Mark Haysom, Chief Executive of the Learning and Skills Council (LSC) said:
"The LSC welcomes these sector compacts as a key part of LSC support to employers through our Train to Gain Service. We have a strong track record of meeting employer skills needs in these sectors and are pleased to be working with ConstructionSkills, Proskills and People1st to increase the number of employers who will benefit from this enhanced support." Government investment in Train to Gain will rise to over £1 billion by 2010-11, supporting over 800,000 learners to improve their skills and gain new qualifications.
ENDS
Notes to editors:
1) Train to Gain
Managed by the Learning and Skills Council, Train to Gain is the Government's flagship service to support employers in England, of all sizes and in all sectors, to improve the skills of their employees, unlock talent and drive improved business performance. An important element of Train to Gain is the skills brokerage service which offers free impartial advice, and helps find the best training solution from high quality and responsive training providers to meet business needs.
Train to Gain is important because skills shortages continue to have a negative impact on UK productivity and competitiveness in the face of fast-growing economies. Train to Gain aims to encourage all businesses and individuals to value and realise the benefits that learning and skills can bring and to invest appropriately. It is expected that by the end of 2010, over 500,000 learners will have achieved a first full level 2 qualification through Train to Gain. Train to Gain was launched less than two years ago. Already more than 88,000 employers and well over 400,000 employees have benefited from the service. We expect the figures to increase significantly over the next couple of years as more employers get involved in training and improving the skills of their workforce.
2) ConstructionSkills
ConstructionSkills is the Sector Skills Council for the construction industry. It is UK-wide and represents the whole industry from professional consultancies to major contractors and SMEs.
The construction sector is central to the UK economy, generating almost 9% of UK GDP and with a turnover of more than £203bn a year. It employs 2.5 million people and requires a further 87,600 new entrants per year to 2011, as forecast by the Construction Skills Network.
ConstructionSkills will drive up the demand for skills in their sector dramatically. The anticipated additional outputs over three years include:
- 6,500 apprenticeship starts;
- 2,111 specialist apprenticeship starts;
- 3,000 Skills Pledge commitments; and
- 50,000 plant operatives qualified at full level 2s; 70% of them will be first full level 2 and about 30% of them will be repeat full level 2s.
3) People1st
People 1st is licensed by Government to work on behalf of the fourteen industries that make up the hospitality, leisure, travel and tourism sector, ensuring that they get the skilled workers they need.
The People 1st team works with Government, educators and employers to research skills needs, provide innovative solutions, and develop qualification frameworks that are relevant to industry.
The compact will help to provide training solutions in areas that have been identified as critical by People 1st research - most significantly in the areas of customer service and management and leadership.
People1st's anticipated outputs over three years include:
- 5500 employer engagements;
- 48,800 additional full level 2 learners and 22,700 additional full level 3 learners - up to 30% of these could be 'repeat' level 2 and level 3s;
- 4,000 customer service qualifications in year one; and
- 28,300 management & leadership achievements, phased over the three years of the Compact.
4) Proskills
Proskills is the SSC for the Process and Manufacturing sector, a major part of the UK economy, including the Coatings, Extractives and Mineral Processing, Glass, Building Products, Printing, Paper and the Furniture, Furnishings and Interiors industries. Visit http://www.proskills.co.uk
Proskills' anticipated additional outputs over three years include:
- 1500 employer engagements;
- over 20,000 level 2 qualifications, comprising 70% first full level 2 and 30% repeat level 2;
- 8,000 level 3 qualifications, comprising 70% first full level 3 and 30% repeat level 3;
- 1500 skills pledge commitments; 100 (Y1), 400 (Y2) and a 1000 (Y3);
- 900 management & leadership outcomes;
- 6000 apprenticeships starts, existing frameworks 3000, new frameworks 3000; and
- 1455 Skills for Life achievements over three years.
