Institutes of Technology Briefing. January 2017

Transcription

1 Institutes of Technology Briefing January 2017

2 2 The Problem: Skills Gap L4-5 STEM Chronic shortage of high-skilled technicians below graduate level (L4/5) Few people are undertaking higher-level skills training1 Of the 75,000 people participating in Advanced Learner Loans in 2014/15, only 5,000 were at Level 4 Fare poorly in comparison with international competitors2: Only 10% of people hold higher-level technical qualifications places England 16/ 20 countries Every year, the UK only produces around a third of people trained at technician level compared to Germany 1. SFA/DfE (Oct 2016) Further Education and Skills Statistical First Release 2. OECD (2014), Skills Beyond School: Synthesis Report

3 3 The Problem: Skills Gap L4-5 STEM Industry demand for these skills expected to grow especially given the rapid pace of technological change By 2020, we will need around 300,000 trained technicians3 entering the labour market annually. These skills shortages acute in STEM based occupations eg manufacturing, engineering and construction This has contributed to the productivity gap with our major international competitors and an over-reliance on migrant labour 3. Estimate based on OECD and IPPR data

4 4 The Solution: Tackling the Root Causes Government is tackling long-standing systems failures with reforms set out in the Skills Plan. But we also need the institutional capability to deliver these reforms IMPROVING WHAT IS TAUGHT Reformed apprenticeships and technical qualifications clear progression/entry to employment grouped around 15 routes Provision IMPROVING WHERE IT IS TAUGHT? New specialist institutions to close gaps in the provider base (eg. National Colleges) General FECs and UTCs creating clear pathways to higher technical skills Content Funding INCREASING PARTICIPATION Apprenticeship Levy Expansion of Advanced Learner Loans Better careers information and advice, including wage returns data

5 5 Closing the Gap in the Provider Base Remains a gap in provision at higher technical level Neither FE nor HE sector have so far expanded to deliver a consistent, high quality offer across the country IoTs developed as a concept to fill gap in provision

6 6 Level of provision Local provision Basic skills Further Education Colleges and Community Learning High density of learners Regional provision Intermediate technical skills Institutes of Technology National provision Advanced specialist skills National Colleges Low density of learners Short travel to learn Long travel to learn Low capital costs High capital costs

7 7 IoT Policy Development Productivity Plan July 2015 Announced proposal for Institutes of Technology Area Review Guidance: March 2016 Announced plans to work with FE stakeholders as part of policy development process Dialogue Process: Autumn 2016 Worked-up detailed case studies in prototyping process Engaged with stakeholders to identify issues and barriers

8 8 IoT Prototyping Process Wide range of stakeholders expressed interest in the development of IoTs. In some cases proposals were stimulated by the Area Review process and in other cases came from providers themselves. Worked with five partners in prototyping process to help us better understand how IoTs can be constituted and prepare for successful implementation. Process was akin to a competitive dialogue, whereby the outcome is specified but the means of delivery is explored together in terms of issues to overcome. This has been supported through a series of show and tell briefings with member associations and industry bodies.

9 9 Dialogue Process: Outcomes Not a one size fits all model. Right approach will depend on specific characteristics of local area eg local skills shortages and existing provider landscape FE providers are confident they can develop viable and attractive value proposition for both employers and individuals Based on: Effectively leveraging employer expertise and the existing provider base High-quality offer on a par with an academic route, clearly differentiated from general FE provision Still need to work through a number of practical issues eg quality assurance

10 10 Critical Success Factors for filling gap at STEM higher levels Strong employer engagement Specialise in STEM Local employers engaged in curriculum and governance Focus on STEM-based occupations, aligned to technical routes set out in16+ Skills Plan Level 3-5 provision Expansion of provision at Levels 4&5, while developing Level 3 pipeline in collaboration with other providers Local focus Clear and autonomous identity Collaboration with other providers Financial sustainability Focus on meeting skills needs of local employers, linking to the Industrial Strategy Differentiated provision (supported by national branding), able to operate autonomously with accountability firmly focussed on meeting the needs of local employers Collaborate with other providers, adding value by building on high-quality existing provision in an area including HE Ensure sustainability by generating enough income from employers and individuals to cover the costs of provision

11 11 Overcoming Barriers to Market Entry Want your views on what are the main barriers Prototyping process part of Government s engagement process on policy This workshop is also part of ongoing dialogue process Which (out of suggested list below) are the main barriers and what should Government do to overcome these? 1. High upfront costs (capital, equipment, professional fees etc.) 2. Viable business model (geographical reach, expanding L4/5 vs over-reliance on L3, securing effective collaboration with other providers) 3. Workforce recruitment (staff with industry expertise, paying competitive salaries) 4. Boost learner demand - How can we expand demand for L4/5? Role of maintenance loans? How do you ensure strong pipeline? 5. Employer engagement How do we ensure employers have skin in the game? 6. Branding How do you confer status? Why is this important? How do you assure quality?

12 12 Further information For further details regarding the IoT programme please contact: Tel: