Raising Employer Ambition and Investment in Skills

Presentation to the Superfast Broadband event 26th March 2012

Jeremy Horton

Senior Investment Manager

2

UK: Skills challenges (000s)

Policy(Ch 7)

(Ch 3&4) (Ch 5)(Ch 6)

(Ch 2)

63 1,702 18,682 2,780 2,092

The UK’s economic position

Our employment and productivity rates are not amongst the highest leading nations and are fallingIn the last 2 years our Global Competitiveness has fallen 4 places

Government (England)

Department of Business, Innovation and Skills (BIS)

Skills Funding Agency (£4bn)

Further Education

400 colleges

Private training providers

National Apprenticeship

Service

UKCES

(£100m)

Investments,

NOS, Apprenticeships

LMI

Investors in People

HEFCE

Universities

(£6.5bn)

Introduction

The UK Commission for Employment and Skills provides strategic leadership on skills and employment issues in the four nations of the UK. 

Our mission is to work with and through our partners to secure a greater commitment to invest in the skills of people to drive, enterprise, jobs and growth.

There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs.”Vince Cable, Secretary of State for Business, Innovation and Skills

“The skills and capabilities of our people are ultimately the basis for our long-term competitiveness.” Charlie Mayfield, Chairman

Our Commissioners are leaders in their fields who contribute their expertise and resources to the full range of UK Commission activities.

Our Commissioners

Charlie Mayfield, Chairman of John Lewis Partnership

Sir Adrian Webb, Chairman Wales Employment and Skills board

Dr Bill McGinnis, NI Advisor on Employment and Skills

Willy Roe, Chairman Highlands and Islands Enterprise

Chris Hyman, Chief Executive of Serco Group PLC

David Fairhurst, Chief People Officer of McDonalds Europe

James Wates, Deputy Chairman of Wates Construction Ltd.

Larry Hirst, Former Chairman of IBM Europe, Middle East and Africa

Valerie Todd, Director of Talent and Resources at Crossrail Ltd.

Trevor Matthews, Director of Aviva UK

Nigel Whitehead, Group managing director of programmes and support, BAE Systems

Lucy Adams, Director of Business Operations, BBC

Jeremy Anderson, Chairman Global Financial Services, KPMG LLP

John Cridland, Director General, CBI

Sean Taggart, Owner and Chief Executive, The Albatross Group

Julie Kenny, Managing Director of Pyronix Ltd.

Grahame Smith, General Secretary of the Scottish Trade Union Congress

Dave Prentis, General Secretary, UNISON

Brendan Barber, General Secretary, TUC

Seyi Obakin, Chief Executive, Centrepoint

Liz Sayce, Chief Executive, Radar

Lord Victor Adebowale, Chief Executive, Turning Point

Dr. Deidre Hughes, Lead Consultant European Lifelong Guidance Policy Network

Tony Lau-Walker, Chief Executive officer, Eastleigh College

Prof. John Coyne, Vice Chancellor, University of Derby

From Left to Right Key: Chairman Devolved Administrations Large Employers Small/Medium Enterprises Trade Unions Voluntary Sector FE and HE

Our Goal

Our goal is to ensure that good market intelligence drives increased investment to achieve greater impact on skills, jobs and economic growth.

The 21 SSCs

•SEMTA

•Cogent

Manufacturing

•Improve

•Proskills

Manufacturing

•Creative and Cultural Skills

•Skillset

Creative and Media

•Energy and Utility Skills

Energy

•Skills for Logistics

Transport

•Skills for Justice

•Skills for Health

•Skills for Care and Development

Public sector•Peo

ple 1st

•Skillsmart Retail

•SkillsActive

•IMI / Retail Automotive

Hospitality Leisure, Retail

•Construction Skills

•Asset Skills

•Summit Skills

Construction

•Lantra

Agriculture

•e-skills

•Financial Services Partnership

Business Services

Driving increased investment

The Growth and Innovation Fund (GIF) and the Employer Investment Fund (EIF)

provide seed capital to build skills solutions to stimulate enterprise, jobs and growth, secure greater skills investment and help employers take greater ownership of skills, as a vital source of competitive advantage.

Our first rounds of investment have demonstrated a clear appetite for

employer and government co-investment for ‘best market solutions’.

“I am discussing with the UK Commission for Employment and Skills what would happen if government were really to get out of the way – leaving employers, trade unions and the education sector to drive the vocational skills agenda...’The Rt Hon Vince Cable MP, Secretary of State for Business, Innovation and Skills 5 October 2011

Driving increased investment

•90 GIF proposals from 58 employer organisations

•31 EIF proposals from 21 Sector Skills Councils

Proposals received in 2011

•We have supported 14 EIF and 10 GIF projects, investing over £11m, matched by £12m employer investment

Investments made

•109 proposals from 21 SSCs in the second round of the Employer Investment Fund

•69 Investment plans total £61m

•Start January to April 2012

•End January submission

•£25m available

•Rolling programme

EIF Round 2 Proposals

GIF Round 2 Proposals

Investments to date in 2011

Investment by strand

Figures based on 10 Growth and Innovation Fund and 14 Employer Investment Fund projects Growth and Innovation Fund and employer total investment

£14,589,997 Employer Investment Fund and employer total investment £8,711,477

Growth and Investment Fund

• On a continuously open basis• Investment Board to meet x3 a year• Employer led bodies • Wider eligibility including LEPs • Simplified application process; outline or full

proposals• Assessment criteria, scored by UKCES, with BIS,

SfA input• Commissioners decisions – no appeals• Two strikes.....

A successful GIF Best Market Solutions bid

Ownership

Innovation and added

value

ImpactDeliverabilit

y

Sustainability

What are we looking to invest in?

Strong Business Ownership

Investment In Innovative Solutions

Scale and impact Enterprise, Jobs & Growth

Issue Solution Outputs & Outcomes Impact

Evidence?

Support?

Activities?

Leadership

Measurable believable, sustainable

ROI: Enterprise,

Jobs & Growth

Logic Chain

Employer ownership agenda

1. Employers should have the space to own the skills agenda

2. Skill solutions should be designed by employer-led partnerships to reach more people and businesses

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3. Grant funding should flow directly through responsible employers giving them greater purchasing power in the skills market with providers

For further details…

www.ukces.org.uk

Please get in touch with us if you would like more information about the UK Commission for Employment and Skills. You can email us at info@ukces.org.uk or call our main reception on 01709 774800

Or Jeremy.Horton@ukces.org.uk07785 512389

Wath-Upon-Dearne office Renaissance HouseAdwick ParkWath-Upon-Dearne South Yorkshire S63 5NB

London Office 28-30 Grosvenor Gardens London SW1W 0TT Tel: 0207 881 8900

Employer Investment Fund: Investment details

Asset Skills:The projects supports 425 women to improve low level skills and qualifications and leads to a rise in women occupying senior and management positions.

Equality & Diversity£318,750Carol Shillitocshillito@assetskills.org

Cogent:The project will deliver 355 opportunities for women in the sector to give them confidence to move into non traditional roles, and build on existing skills to take on more responsibility and duties. It will also assist women into leadership and management roles

Equality & Diversity£353,225Chas HubbardChas.hubbard@cogent-ssc.com

Cogent:To explore the applicability of a Licence to Practise model based on the existing Cogent Gold Standard, for SMEs in the Life Science sector.

Licence to Practise£100,000John HoltonJohn.holton@cogent-ssc.com

ConstructionSkills:The project will provide employers with female only training courses in order to improve soft skills such as confidence building, career building, leadership training and networking.

Equality & Diversity£255,500Judith SuttonJudith.sutton@cskills.org

ConstructionSkills:Building the infrastructure to support a government initiative designed to help the UK meet stringent targets on the reduction of energy. This will require the retrofit of 14 million homes between 2012 and 2020.

Standards£500,000Richard BaylissRichard.bayliss@cskills.org

Employer Investment Fund: Investment details

e-skills UK:The project if for an improved pipeline of talent into the IT industry.

Employability£499,630Mark FeeneyMark.feeney@e-skills.com

IMI:The project is to build on existing work of the Automotive Technician Accreditation Scheme and develop a profession register which will reinforce the need for continuous professional development.

Licence to Practise£450,000Lesley Wooley, Steve Schofield, Stirling Wood, Ruth HallLesleyw@motor.org.ukSteves@motor.org.ukStirlingw@motor.org.ukRuthh@motor.org.uk

Lantra:To raise the skill levels of 500 women in both technical and more generic business areas such as management and leadership.

Equality & Diversity£395,500Lyndsay BirdLyndsay.bird@lantra.co.uk

People 1st:The project will provide entry level into passenger transport industry training and management development for women working in hospitality, leisure and travel.

Equality & Diversity£395,425Dan PowerDan.power@people1st.co.uk

Semta:The project will increase integration within the organisation, maximising progression opportunities and influence good practice with employers.

Equality & Diversity£281,600Michelle Hendersonmhenderson@semta.org.uk

Employer Investment Fund: Investment details

Semta:The project will ensure that high valued skilled employees displaced following the strategic Defence and Security Review are retained and employed within the growing Advanced Manufacturing and Engineering sector.

Redeployment£450,000Carolyn Masoncmason@semta.org.uk

Skills for Health:To develop a skills passport for the health sector.

Skills Passport£400,000Andrew ButcherAndrew.butcher@skillsforhealth.org.uk

Skills for Logistics:To explore the potential in developing a Modern Logistics Guild.

Feasibility Study£100,000Dr Ross MoloneyRoss.moloney@skillsforlogistics.org

Skillset:To create a gold standard for creative industries indicating the very best in training and education. The project aim is to extend the quality mark to Apprenticeships, Internships, vocational progression or feeder courses. It will provide a navigation tool to identify good practice.

Course Labelling£450,000Nicole Haynicoleh@skillset.org

Growth and Innovation Fund: Investment details

Employment Related Services Association:The project will introduce a Professional Institute which will act as a regulatory body for the development and maintenance of quality standards, in addition to developing a voluntary licence to practise scheme.

Professional Standards£480,760www.ersa.org.uk

Renewables UK:The project will create a Renewables Training Network to address the need to reskill the workforce and support recruitment by identifying and tackling skills gaps by providing new forms of training provisions.

Employer Networks (ATA/GTA)£579,583www.bwea.com

Cogent: The project will develop an Apprenticeship Training Agency that will double apprenticeship numbers in Small and Medium sized Enterprises (SMEs) and deliver over 1000 new apprenticeships into the sector by 2017.

Employer Networks (ATA/GTA)£889,665www.cogent-ssc.com

Cogent: Life SkillsThe project will provide over 400 new higher level apprenticeships, 500 individuals receiving technician training and 1500 work ready graduates through an employability kite marking scheme.

Career Progression£890,876www.cogent-ssc.com

Cogent: Gold StandardA bespoke approach will be developed for SMEs that increases employer investment in skills and raises professional standards through the use of the ‘Gold Standard’ competency framework.

Professional Standards£612,968www.cogent-ssc.com

Growth and Innovation Fund: Investment details

People 1st:The project will create a Hospitality Guild which will broker 500 new apprenticeship places, introduce four voluntary licence to practise schemes and support 15,000 unemployed people to find work.

Career Progression£1,745,785www.people1st.co.uk

Energy and Utility Skills:The project will establish a Talent Bank which will provide a skills brokerage service, a vacancy matching service and launch a voluntary levy. This will create 400 new Apprenticeship places and support the training of 400 high skilled technicians by 2014.

Employer Networks (ATA/GTA)£100,000 (first stage only)www.euskills.co.uk

Skillset:Skillset will develop a quality assurance framework to ensure clearly signposted training and provide employers with an effective mechanism to identify high quality job applicants.

Professional Standards£516,535www.skillset.org

SkillsActive:The project will create a Group Training Association that will enable employers to have a single route to shape and invest in training. The aim is to increase the volume of apprentices from 11,000 to 18,000 per year.

Employer Networks (ATA/GTA)£456,103www.skillsactive.com

Lantra:The project will develop a Professional Standards Framework allowing employers to identify the skills they require to meet business objectives including health and safety requirements and leadership and management skills.

Professional Standards£49,434 (first stage only)www.lantra.co.uk