The Leitch Review of Skills

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1 1. Introduction The Leitch Review of Skills 1.1 In 2004, the government commissioned Sandy Leitch to lead an independent review of skills, in terms of qualifications and accredited training, in the UK. He was asked to identify what skills the UK's workforce would need by 2020 to maximise productivity, economic growth and social justice, and then to consider how these skills could be obtained. 1.2 Additionally, he was tasked with identifying how skills and employment services could better complement each other to support labour market flexibility, better employment outcomes and more sustainable jobs for those with skills needs. 1.3 The government has already set ambitious targets for raising skills levels by However, the Review argues that more is required to improve competitiveness within the global economy. 1.4 Moreover, the Review views skills gaps as being hugely detrimental to those who are the most disadvantaged: those with few or no qualifications or skills. It argues that raising skills amongst those with the fewest qualifications will bring about improvements in social inequality, health, social justice, social mobility and child poverty. 1.5 The current system of qualifications is fragmented and confusing for everyone. People who already have skills are also much more likely to receive more training, whereas those with very few skills are "written off" by the system, and bounced between benefits and entry-level jobs; lacking the skills-development help they need for work to be sustainable and progressive. 1.6 The current system is supply-led, and unresponsive to the needs of the labour market, and employers don't feel they have a voice in helping to make it more relevant. There are more than 20,000 vocational qualifications in the UK, which vary hugely in terms of their quality and relevance to work. The review proposes a demand-led system determined by the needs of employers and their current and future staff. 2. Recommendations 2.1 The Review identifies three main objectives 95% of adults to achieve the basic skills of functional literacy and numeracy, and increase from levels of 85% literacy and 79% numeracy in 2005

2 exceeding 90% of adults qualified to at least NVQ Level 2, an increase from 69% in A commitment to go further and achieve 95% as soon as possible shifting the balance of intermediary skills from NVQ Level 2 to NVQ Level 3. Improving the esteem, quantity and quality of intermediary skills. This means 1.9 million additional level 3 attainments over the period and boosting the number of Apprentices to 500,000 a year. These are to be achieved by 2.2 Increasing adult skills across all levels. The Government is committed to increasing the share of national resources for education and skills. Additional annual investment in skills up to level three will need to rise to billion by Consequently, all public funding for adult vocational skills in England, apart from community learning, will be routed through Train to Gain and Learner Accounts by Strengthening employer voice Rationalise existing bodies, strengthen the collective and better articulate employer views on skills by creating a new Commission for Employment and Skills, reporting to central Government and the devolved administrations. 2.4 Strengthen employ engagement and investment in skills. Reform, relicense and empower Sector Skills Councils (SSCs). Expand skills brokerage services for both small and large employers. 2.5 Launching a new Pledge for employers to voluntarily commit to train all eligible employees up to Level 2 in the workplace. In 2010, review progress of employer delivery. If the improvement rate is insufficient, introduce a statutory entitlement to workplace training at Level 2 in consultation with employers and unions. 2.6 Increasing employer investment in Level 3 and 4 qualifications in the workplace. Extend Train to Gain to higher levels. Improve engagement between employers and universities. Increase co-funded workplace degrees. Increase the focus on Level 5 and above skills. 2.7 Increasing people s aspirations and awareness of the value of skills to them and their families. Create high profile, sustained awareness programmes. Rationalise existing fragmented information silos and develop a new universal adult careers service. 2.8 Creating a new integrated employment and skills service. Launch a new programme to improve basic skills for those out of work, embedding this support for disadvantaged people and repeat claimants. Develop a network of employer-led Employment and Skills, building on current models, to influence delivery.

3 3. Government Response The Government response to the Leitch Review is contained within World Class Skills: Implementing the Leitch Review of Skills in England. (June, 2007) World Class ambition 3.1 The Public Service Agreement (PSA) for employment and skills was published in the autumn of 2007 and by 2011 it is expects that 89% of adults will be qualified to at least level 1 literacy and 81% to be qualified to at least level 3 numeracy 79% of adults to be qualified to at least full level 2 56% of adults to be qualified to at least full level 3 by 2014, 36% of adults to be qualified to level 4 and above participation in full-time education for 16 to 18 year olds will rise to 84% 3.2 The Government has placed an emphasis on employer-focus for resource allocation and a demand-led approach with the Train to Gain programme being the major delivery vehicle. The programme budget will rise from 440 million in 2007/08 to over 900 million in 2010/ The Government will pilot a concept of Skills Accounts. Individuals will be able to access a full range of adult information, advice and guidance services in a new universal adult careers service. They will receive an account number and account card which will help people understand the levels of investment going into their training, whether it comes from them, their employer or the state. Employers leading the way on skills 3.4 Employers have the opportunity to play a leading role in the reform and development of vocational qualifications for their sector through the Sector Skills Council (SSC). It will be easier for employers to have their own in-house training programmes accredited through the Qualifications and Credit Framework (QCF). 3.5 The Government is encouraging employers to invest directly into the recently launched National Skills Academies (NSAs). There will be twelve such Academies in place by the end of this year and, in the longer term; it is the aspiration to have at least one Academy for each major sector of the economy. 3.6 The Skills Pledge is a public, voluntary commitment that was launched in June Any organisation signing up to the Skills Pledge, undertakes to

4 support their staff to get basic literacy and numeracy skills, and to work towards their first level 2 qualifications in an area that will be valuable to the employer. 3.7 By June 2007, more than 150 employers including all central Government Departments, the Armed Forces, the Police Force, Ford Motor Company, McDonalds, BT and Sainsbury have committed to the Pledge, which means more than 1.7 million employees are already covered. 3.8 Employers making the Skills Pledge will be able to access Government support to deliver the Pledge commitment through the Train to Gain service, including the support of an independent skills broker to help them assess their training needs and source the right provision for provision for them, and free literacy, numeracy and first full level 2 training for their staff. 3.9 A Review of whether this voluntary approach is working sufficiently well will be undertaken in Consequently, it may be necessary for the Government to introduce a statutory entitlement to workplace training in England. Equipping young people with the skills they need for work and life 3.10 The major focus of the Leitch Review is on training and skills for adults. This is because 70% of the 2020 workforce is already beyond the age of compulsory education. However, it is recognised by government that the long term skills needs will only be met if young people are also equipped with the skills, competencies, understanding and attributes they need to succeed in a modern, sustainable economy The Government has made a commitment to boost the number of Apprentices in England, and to ensure that all suitably-qualified young people will have access to an Apprenticeship In 2007, the number of Apprentices had risen to 250,000. The Government will introduce a new entitlement to free training for those aged 19-25, in order to help more people in this target group to achieve their first full NVQ Level 3 qualification.

5 4. Implications for the Third Sector 4.1 In 2004, SkillsActive, the SSC for Active Leisure and Learning, was assigned lead responsibility for the Voluntary and Community Workforce Project across the network of SSCs. Working closely with the UK Voluntary and Community Sector Workforce Development Hub. The main aims of the project were to: support the Skills for Business Network in meeting the skills needs of the UK s voluntary and community sector workforce ensure the Skills for Business Network is the central place for advice on the voluntary and community sector workforce. 4.2 The third phase of the project completed in March 2007, and focused on extending the work done in phase one and two, which included building the capacity of SSCs, finding sustainable approaches to workforce development and strengthening the partnership with the UK Workforce Hub. SkillsActive s role as the lead SSC for the voluntary and community sector workforce project across the Skills for Business network ended in Spring Skills for Health are actively engaged at national, and regional level, in cross sectoral activity in relation to the Voluntary and Community Sector (VCS) and Volunteer workforce. Its involvement in the wider Skills for Business network programme of activity provides opportunities for Skills for Health to: Learn from, and share good practice with other SSCs and expert bodies; Be part of a collective influence to inform policy Develop new work streams and projects and Promote and support the skills development needs of the health sector VCS. 4.4 Skills for Health are currently involved in the following related projects and activities: The Strategic Development of the Voluntary and Community Workforce Enhancing Volunteering in Health and Social Care (NSPVHSC) VCS Ambassadors These have been designated within five SSCs SkillsActive, Skills for Health, Skills for Care and Development, Skills for Justice and Lifelong Learning UK (LLUK).

6 4.5 There appears to be seven major areas for the Voluntary and Community Sector to consider when assessing the implications of the Leitch Review Glossary Basic Skills Providing education and training services to support mainstream activities to meet Government targets Supporting those indicators who don not have accredited qualifications (who fall outside the remit of Leitch) Offering opportunities for volunteers and those engaged in voluntary action to achieve better and more appropriate qualifications Providing, as an employer to its workforce, the resources to achieve better and more appropriate qualifications Signing up to the Skills Pledge, committing to all employers being qualified to at least NVQ Level 2 Considering the implications of being commissioned by organisations, statutory bodies and partnership that have signed up to the Skills Pledge Third sector workers having a statutory entitlement to workplace training in England. The UK uses five levels to measure literacy and numeracy skills: Entry Levels 1, 2, and 3, Level1 and Level 2. The Moser Report identified Level 1 Literacy and Entry Level 3 numeracy as the standards necessary to function at work and society in general. Intermediary Skills The OECD considers both Level 2 and Level 3 qualifications in the UK to be an intermediate level. National Vocational Qualifications (NVQ) National Vocational Qualifications (NVQs) are work-related, competence-based qualifications. They reflect the skills and knowledge needed to do a job effectively, and show that a candidate is competent in the area of work the NVQ represents. Sector Skills Council (SSC) 1st April 2008 will see the launch of the Alliance of Sector Skills Councils a collective body made up of all 25 SSCs. The full scope of the Alliance will develop over time, but its initial focus will be to represent and co-ordinate the strategic work of Sector Skills Councils to stakeholders across the four home nations. For more information about SSCs, see

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