Demand / Supply Assessments. Welsh Government guidance for Regional Skills Partnerships. April 2015

Transcription

1 Demand / Supply Assessments Welsh Government guidance for Regional Skills Partnerships April 2015 This guidance document provides a structure for regional skills partnerships to develop Demand/Supply Assessments by 30 September 2015, following the completion of their Regional Employment and Skills Plans by 31 March The Skills Implementation Plan (SIP) set out a key role for regional skills partnerships in providing a mechanism to advise Welsh Government on future regional prioritisation of skills funding in line with employment and skills needs. The Demand/ Supply Assessment for each region is the mechanism for partnerships to provide this evidence base to Welsh Government. The strategic vision is for annual Regional Employment and Skills Plans to act as a mechanism for regional partners to steer and prioritise their own budgets to support economically focused, regionally important priorities. Welsh Government also has a key role to play but this is against a backdrop of reducing public sector budgets and is more about influencing where investment is focused rather than increasing the overall level of investment. Welsh Government will provide feedback on the annual plans to regional skills partnerships by the end of May 2015, following an internal and external assessment process. It is expected that plans will be refreshed on an annual basis from March Welsh Government will also be open to receiving in-year reports if there are unexpected regional issues that need to be addressed by a national and regional response (e.g. new infrastructure projects, closure of a significant employer, economic downturn, etc.). How will the Demand / Supply Assessments influence funding? The Demand/Supply Assessment offers an opportunity to influence the prioritisation of funding in key areas as outlined below: Apprenticeships For this employed status programme, the current allocation process is based on industry sector data. There is an opportunity for the Demand/Supply Assessments to replace the current methodology and to influence which apprenticeships Welsh Government delivers on a cost neutral basis. The overall budget will not increase. The earliest opportunity to affect any change will be 2016/17, given the planning cycle. When undertaking the research, consideration should be given to national apprenticeship priorities, particularly for entrants aged and Higher Apprenticeships. We would welcome information on how delivery should be changed to ensure the region develops a higher skilled workforce with sustainable and secure employment prospects. Assessments should identify where major investment projects will have an impact on the demand for apprenticeships including Shared 1

2 Apprenticeships within the region. Details of the investment pipeline for activity should be based on robust evidence and a commitment from employers, recognising commercial sensitivities regarding the release of data. In such cases, employer data may be submitted in year to respect strategic project timelines. Assessments should also influence prioritisation of apprenticeships post-25. We would expect plans to be cognisant of national sector priorities (e.g. Early Years) and also to comment on the efficacy of initiatives such as Shared Apprenticeship Schemes. Further Education Further Education Institutions (FEIs) and Local Authorities (LAs) deliver programmes of learning funded under the Post-16 Planning and Funding Framework. Delivery at a programme level leads to a planning process with FEIs, LAs and key stakeholders that aims to improve the flow of information across networks to support and influence curriculum planning decisions. The Demand/Supply Assessments will provide an opportunity to target post-16 funding for the academic year 2016/17 on a cost neutral basis. The priorities identified at a regional level will be considered as part of the FE and LA planning process and will be articulated in guidance issued during the cycle. Providers will be required to consider Demand/Supply Assessments when developing their curriculum offer and will be expected to prioritise their funding allocations according to the identified regional needs to meet regional skills gaps. Regional planning arrangements via regional skills partnerships should be strengthened to encourage the universities and colleges to collaborate to expand HE in FEI delivery and share resources. It would be beneficial for Demand/Supply Assessments to outline the approach to regional delivery of HE in FEIs. Partners need to build on and exploit their strengths and specialisms through the regional approach to planning, whilst recognising clear principles of demarcation between the sectors. The planning of delivery should reflect the varied structure of relationships between FEIs and HEIs in Wales, where many HEIs manage more than one franchise FEI partner and FEIs may well be managing their own range of HEIs. Traineeships The Demand/Supply Assessments will provide an opportunity to influence the allocation for Traineeship provision from 2016/17. We would expect plans to state how interventions to support NEETS/ young people are complementary. Employment Programmes, including Essential Skills The Demand/Supply Assessments will provide an opportunity to influence the allocation of adult employability provision funded by DfES. This encompasses the Work Ready programme, which is due to be replaced in September 2015 by a new adult employability programme, Skills for Employment Wales. It also encompasses the forthcoming Essential Skills in the Workplace II programme. In addition, as a result of information provided by regional skills partnerships, DfES will consider opportunities to influence Work Programme provision funded by the UK Government as part of emerging arrangements for joint commissioning of Work Programme 2

3 contracts. The Work Programme is a Department for Work and Pensions programme designed to provide support to long-term (either 9 or 12 months) unemployed people into sustained employment. Skills Priorities Programme (SPP) The Demand/ Supply Assessments will provide essential evidence to underpin and influence Skills Priorities Programme priorities from April 2016 onwards. Regional skills partnerships thus have an opportunity to play a fundamental role in identifying the need for relevant high quality skills provision at a level, time and place required by employers and their workforce. The programme will deliver new employer-led skills provision in line with national, regional and local demand. It will play a pivotal role in driving wider cultural change and underpin a sustainable skills strategy post- 2020, providing a solution to the emerging higher level skills delivery shortage. A phase 2 pilot is currently being developed aimed at trialling approaches to developing capacity and capability within the FE sector to deliver industry-relevant higher level skills provision. This will inform full rollout of the programme from April 2016, which it is anticipated will be delivered through a regional approach. Higher Education Development of a Demand/Supply Assessment is consistent with the Policy Statement on Higher Education published in June 2013, which stated that Higher Education Institutions (HEIs) should work better together to plan delivery on a regional or collaborative basis where appropriate, but recognising the distinctive missions of different institutions. The Policy Statement also says that there should be a co-ordinated and sustainable approach to the delivery of HE in FE which is firmly embedded in the regional strategic planning of higher education. The Higher Education Funding Council Wales (HEFCW) will be requested to ensure that HEIs engage fully with, and take account of, the Assessments when making decisions as to where to prioritise higher level skills delivery, including undergraduate routes where appropriate. HEFCW will continue to focus on developing greater regional coherence in the provision of higher education in Wales and, in particular, will have regard to regional coherence when exercising its functions to allocate funding to providers of higher education. ESF The Demand/Supply Assessments will have a key role in ensuring alignment of European-funded skills projects with regional needs and in highlighting areas of potential duplication. WEFO is placing a strong emphasis on the role of regional partnerships, as effective regional partnership working and co-ordination will be critical to their integrated approach to delivery. DfES European Social Fund (ESF) Policy team will provide ongoing advice and guidance, working closely with WEFO. The DfES ESF Footprint Document outlines the full range of current and proposed ESF activities relevant to DfES policy areas. It includes activities that are supported by ESF and those that are funded through 3

4 other sources i.e. through the Welsh or UK Government. In addition, information on approved and emerging ESF projects will be available on the WEFO website. Priority sectors and LMI related to transformational/ infrastructure projects We expect future growth to come from an increasing demand for, and investment in, priorities which are informed by employers. We know that better educational attainment, fewer hard to fill vacancies, a more highly skilled workforce and lower youth unemployment are directly relevant to employers. Each of these key drivers will have a positive impact on productivity and economic prosperity. It would be helpful if the Demand/Supply Assessments articulate economic and sector based priorities for the region, reflecting employer skills needs. The Assessments should also include, where available, LMI on regional transformational investment / infrastructure projects which identify gaps in current supply across both the HE and FE sectors. DfES will also work closely with the Department for Economy, Science and Transport (DEST) to assess inward investment projections and supply chain data to support key infrastructure projects. Once data from investors in relation to major infrastructure projects is available, this will be assessed in year and not be subject to the annual employment and skills plan timeline process. This is to recognise the need to retain a flexible approach to respond to individual project timescales. Skills Performance Measures The information contained in the Demand/Supply Assessments will help inform the development of regional performance measures. Our model for regional skills delivery will be used to gain the expertise of the organisations involved to achieve a more sophisticated input from employers at a local and regional level. 4

5 Annex 1 - The Demand/ Supply Assessment Introduction and Context The Demand/Supply Assessment should directly relate to the content and priorities referenced in the Regional Employment and Skills Plan. This will include the production of a detailed provision map for each region, underpinned by a detailed LMI analysis. Economic Priorities for the Region Priorities should be evidenced within the Regional Employment & Skills Plans Overview Regional priorities and any changes Major transformational investment projects / infrastructure projects How this reflects employer skills needs? Detailed Sector breakdown of Current workforce Total employment Industrial structure Occupational profile Qualifications and attainment. Regional priorities, including transformatio nal/ infrastructure projects Current skills provision Projected employment and skills gaps Key recommendations E.g. Wylfa Current skills provision Identify where employment and skills needs to be prioritised in order to meet the demand for the regional Assessments should influence prioritisation of: 5

6 Newydd (Schools to Higher Education) - LA 6 th forms Apprenticeships - College provision - University provision priorities Identify any soft skill needs Identify impact on the demand for apprenticeships including Shared Apprenticeships within the region. (the training pipeline must be based on robust evidence and a commitment from employers) apprenticeships pre- 25. apprenticeships post TH Form provision Headline Performance Indicators? Overview of job vacancies in the region and the sectors, to help support information from JC+ in respect of vacancies hard to fill and how much labour is brought into the region? Identify higher-level skills provision in line with regional demand linked to priority sectors Identify gaps in current supply across the 6 th form, FE and HE sectors FE full-time provision FE Part-time provision FE targeted higherlevel skills provision HEI delivery on a regional or collaborative basis where appropriate, Assessments should influence the alignment of ESF projects Identification of key priorities How will priorities be taken forward? 6