Making Skills Work: The Path to Solving the Productivity Crisis
Making Skills Work: The Path to Solving the Productivity Crisis
This report provides a critical assessment of the new Labour Government’s proposal for Skills England as an institution to provide strategic coordination and oversight over the technical and vocational branches of the skills system in England. It places the plans for Skills England in the context of over five decades of policy change and puts forward recommendations to help Skills England solve the nation’s productivity problem.
Published:
23 September 2024
Key recommendations include:
Skills England should ensure equal representation at board level from all stakeholders - government, business, education providers, learners, workers, and local communities.
Skills England should have the ability to redirect resources to address needs and assess the productivity prospects across each part of the country, taking measures to redress where necessary, and producing an annual report to generate more transparency of how the productivity issues in localities are being addressed.
Skills England’s relationship with regulation needs clear definition. It should coordinate with existing bodies to ensure a more joined up system. It should make recommendations to government about how existing regulation should be streamlined to remove unnecessary duplication.
Skills England should co-advise with the OBR on all Budget measures to ensure that public spending on skills are not just fully costed but also evaluated explicitly according to their likely productivity returns.
Skills England should also co-advise with Ofqual, the OfS, Ofsted, and QAA, as well as the ISC, on how to boost the accessibility and flexibility of skills training options, with a memorandum of understanding between the OfS and Skills England in relation to higher education (Level 4 and above).
Skills England should have oversight of the National Career Service. Improving access to quality careers advice for people in-work will be vital to driving productive growth through the take-up of skills training.
Skills England should play a key role in shaping vocational and technical education as part of a comprehensive post-18 skills system. This should involve advising government on the balance of provision across all skill levels, to meet the aims of an industrial strategy, including the relative volume of degrees in non-vocational and non-stem subjects.
Skills England should have a convening role with Mayoral Combined Authorities, to develop a single picture of national and local skills needs, and make sure that national and sub-national systems are aligned.
Skills England should develop Regional Skills Observatories in partnership with MCAs and other local partners, to provide a valuable shared resource for all partners engaged in skills strategy and workforce development.
Skills England should prioritise the higher skill needs of the existing workforce to maximise productivity gains via investments in human capital, whilst recognising the importance of Level 2 and 3 qualifications in kickstarting careers, filling industry gaps, and enabling progression into higher education.