Skills Policy and Computer Science Nicola Turner, MBE Head of Skills, HEFCE April 2016

Today I will cover Key policy driver: Productivity The importance of Computer Science What HEFCE is doing on skills

UK productivity lags behind other developed economies… Action is needed to address current trends UK productivity lags behind other developed economies… Number of employees who worked fewer hours than usual because they attended a training course away from their workplace … and employers are investing less in training …and employers are investing less in training

Importance of IT & Internet industry Tech sector contributes 6% of UK economy, estimated GVA of £91,800 per person, well above average E-commerce sales by businesses with 10 or more employees were £573 billion, representing 20.1% of business turnover (ONS 2014) “..digital skills are of particular strategic importance to the nation” including cyber security, big data, the Internet of Things, apps, mobile and e-commerce. Source: BIS/DCMS, “Digital skills for the UK Economy” January 2016

Government is committed to you Digital Economy Unit £1.7bn on superfast broadband Ada National College Open Data Institute Alan Turing Institute Shadbolt Review Institute for Coding

Skills bottlenecks in the ICT industry Lack of digital skills linked to 1 in 5 of all unfilled jobs The digital skills of staff across the education and training system are uneven, and it is often not mandatory for staff to ‘upskill’ digitally 72% large companies and 49% SMEs report tech skills gaps Source: BIS/DCMS, “Digital skills for the UK Economy” January 2016

HEFCE’s role in skills policy Apprenticeship reform Shadbolt Review into Computer Science Engineering Conversion Courses

Degree Apprenticeships Content, level and mode to suit occupational needs Employers design education to suit their needs Who can deliver the content around work commitments Who may need to deliver the same content in different ways for different employers Employers choose a provider of that training Including degree and masters level This is a job, with training, with no fees for the learners

A working education Employed for 30 hours a week Achieve full Bachelors degree, e.g. within 4.5 years Study around work commitments Pay no tuition fees, levy pays Curriculum designed by employer, delivered by University in new formats e.g. distance, block release, blended Apprentice downloads lecture on daily commute

What is the levy? The Apprenticeship Levy will be a levy on UK employers to fund new apprenticeships The levy will be 0.5% of the pay bill, paid through PAYE An allowance of £15,000 to offset against levy liability The levy allowance is not a cash payment and cannot be used to purchase apprenticeship training Any UK employer, in any sector, with a pay bill of more than £3 million per year is liable to pay the levy Employers in England who pay the levy and are committed to apprenticeship training will be able to get out more than they pay into the levy, through a top-up to their digital accounts

Non-levy paying employer How the Levy will work Government Training Provider Paid by SFA and balance by employer HMRC collect levy (PAYE) Employs Apprentice. Commits to training Provides training to apprentice Timely data on training Employer views funds in digital account to spend in England Check training is complete If funding unlocked: Pay provider Registers with SFA Employer and Provider Identity Assurance Pass data on levy payments from HMRC to BIS Unused levy funds expire after 18 months Receives training for apprentice SFA draws down levy funds monthly Offers apprenticeship training 10% Top up Levy paying employer Employs Apprentice. Commits to training Receives training for apprentice Employer pays for proportion of cost direct to training provider SFA pays proportion to the training provider Non-levy paying employer Provides info via ILR to SFA that training has taken place & that employer has made contribution

Growth and opportunities Degree level is level 6, Masters is level 7. 40% of the new apprenticeship Standards coming through are at levels 4- 7. Business, Finance and Legal Engineering / Technology, Health & Social Care 1,300 employers on Trailblazer groups Development Funding Predict innovations in way apprentices study using technology and more flexibility 70 HE Providers are now Registered to offer apprenticeships.

Degree Apprenticeships Development Fund Secretary of State announces £10m fund HEFCE to distribute £8m of funding to prepare sector to offer degree apprenticeships Competitive call, details published today Skills Funding Agency £2m on developing interest from learners http://www.hefce.ac.uk/kess/apprentice/

Engineering Conversion Course £1.8m distributed to HEIs to help develop and market the new courses. 1500 students transferring into Engineering & Technology

Upward shift in employment outcomes 2011-12 most HEIs are achieving between 88.1%- 94% leavers in employment or further study. In 2013-14 the most populated bracket is 94.1% – 96% 2011-12 there were 34 HEIs achieving less than 88% employment or further study. In 2013-14 there were 3 HEIs.

Student attributes and employment outcomes: Shadbolt review If employed more likely to be in grad level job and paid well than other STEM graduates, but CS has highest levels of unemployment across STEM discipline (11.7% vs 8% STEM) Diversity matters – Computer Science attracts worryingly few women (13% vs 32% STEM), but growth in proportion of entrants from LP Neighbourhoods has been double that in STEM. Discipline has also successfully attracted more mature students and entrants from BME backgrounds than STEM subjects generally. Non-graduate level roles occupied by 31% BME vs 17% white graduates. The type of course matters – pick a sandwich course or integrated masters and you more than double your chances of being employed, whatever your background (6% sandwich unemployment vs 15% non sandwich unemployment). What effect can less formal work experience have? Most employers said it is “critical” for students to have work experience, but those choosing this response were only slightly more likely to offer work exp than those who didn’t value it at all. Individual choice matters – Clear difference in outcome between planners and drifters when it comes to type of course, institution, decision to do work experience.

Thank you for listening.

How to find out more e-mail hefce@hefce.ac.uk Twitter http://twitter.com/hefce #heskills web-site www.hefce.ac.uk governance-hefce e-mail distribution list HEFCE update, our monthly e-newsletter