What will the impact be of further education loans and Universal Credit? Richard Blakeley, policy officer, unionlearn Youth employment convention, 9 May 2013

Unionlearn: who are we? Set up in 2006 by TUC to support union led learning in England, supported by public funding Believe that learning opportunities must be available to the entire workforce, regardless of their employment status or educational background. Train and support a national network of union learning representatives Work in partnership with employers, colleges and others

Policy position TUC opposed the introduction of loans in place of government subsidy for 24+ (studying at levels 3 and 4) Unionlearn – duty to provide information about the loans ‘product’ to trade union representatives to members, balanced with the alternatives – advised government (communications, advice) and trade unions (advice, bargaining) on mitigating the worst impacts of the policy in the workplace

Feared impacts for 24+ Death of adult apprenticeship? Increased barriers for low skilled, low paid Fall in adult learning participation (24+) Skills shortages (particularly in low wage sectors) Employers passing on training costs to employees through the loans system Big setback for ‘lifelong learning’? Deferred debt, tightening future living standards?

Impact on young people now (24 and under) Increased pressure on young people making transition from education to work ‘Last chance’ for 22/23 year olds this year? Focus employer training on under 24s? (for now) Contribute to incohesion with over 24s?

Some issues? Can loans be ‘marketed’ appropriately? How can ‘misselling’ be prevented? Are individuals going to have sufficient CIAG and financial advice to support making the right choices? Will loans really empower individuals to demand more from providers?

Universal credit: crossover issues Will unemployed UC recipients take up 24+ Advanced Learning loans to increase their employability? – DWP/BIS agreement on mandating should largely address direct pressure, but indirect pressure? Will ‘conditionality’ to seek better paid work create pressure to take up the loan? – Some sectors, some localities: studying at a higher level may be the only way to make progress on pay

Future policy issues Should next government(s) – keep loans? – reintroduce subsidies for over 24s in targeted vocations? – introduce tax relief for loan payers?