1. Adult skills: policy, funding and provision

2. Contents The new Adult Skills/FE landscape Priorities and funding changes 10/11 Wider changes What next for FE? North East Statement of Priorities 11/12

3. The new Adult Skills/FE landscape Skills Funding Agency  Funding & regulating a system which is responsive to customer needs  Not a planning body and rarely intervening  Includes the National Apprenticeship Service (NAS) Colleges and Training Providers  Responding to the demands and needs expressed by employers and learners (who in turn will be informed and advised by the new Integrated Adult Careers Service – Next Step)  Able to direct funding within and across programme areas  Rewarded for performance and meeting priorities Stakeholders Expressing needs of their area/sector and attempting to influence the provision of colleges and training organisations by using intelligence to ‘nudge’ it in the right direction

4. How does this differ from the past? Skills Funding Agency = a national adult skills organisation with a single business model and single (national) Account Management Performance management – not partnership management – and much lighter touch, proportionate to risk An expectation that colleges and providers will meet local, regional and national priorities as they see fit rather than as determined by top- down planning and government intervention A presumption of more direct engagement between Colleges/providers and wider stakeholders to ensure the skills offer is meeting their need

5. Priorities for 10/11 BIS Secretary of State’s Revised Grant Letter to the Skills Funding Agency (17 June 2010) set out the Coalition Government’s key goals and ambitions: –Supporting progression and strengthening supply of technician level skills, particularly through Level 3 Apprenticeships –Reducing the number of 18-24 year-olds who are NEET –Opportunities for the unemployed to get the skills needed for work-readiness and sustainable employment –Inform and empower individuals through independent careers guidance and Lifelong Learning Accounts whilst giving colleges and training organisations the flexibility to respond –Increased participation in adult and community learning Plus previous announcement of £200m out of Train to Gain and into FE Capital (£50m) and Apprenticeships (£150m)

6. 10/11 funding changes To coincide with the issuing of the Revised Grant Letter, John Hayes wrote to all Skills Funding Agency providers and Colleges: –Removal of the 19+ Summary Statement of Activity –Single budget for post-19 Adult Learner Responsive (LR) and Employer Responsive (ER) provision for Colleges (ER only for other providers) –No in-year performance management or reconciliation of activity in single College budget (quarterly for other providers) –No Ofsted inspection for colleges with outstanding performance (in-line with the policy announced for schools) Colleges and training organisations are being freed to deliver a more responsive and flexible offer to learners and employers

7. Apprenticeships 2010/11 National Minimum Wage * Introduction of National Minimum Wage from 1/10/10 - £2.50 per hour * Applies to all apprentices aged under 19 plus apprentices aged 19 or over in their first year of an Apprenticeship Programme Led Apprenticeships * No new PLA starts from April 2011 * Providers should continue to reduce the volumes of PLAs and support learners into employment at the earliest opportunity

8. Wider changes (1) The new DWP “Work” programme The abolition of RDAs and GOs (tbc) NHS reform – abolition of SHAs/PCTs (workforce development implications) Changes to policy re. business support (Business Link)

9. Wider changes (2) Local Enterprise Partnerships Letter from SoS BIS and CLG inviting EoI by 6 September 2010 LEPs to provide “strategic leadership” in their areas Rebalancing economy towards the private sector Issues such as planning & housing, transport, employment and enterprise, low carbon economy …..but not yet clear what resources will be available LEPs ‘will want to work closely with Universities and Further Education Colleges’ Government not prescribing LEP footprint – bottom up 5 proposals received from the North East plus a proposal for a “North East Economic Partnership”

10. What next for FE? Funding settlement – Comprehensive Spending Review 20 th October Skills Consultations White papers The Maude review of NDPBs

11. Skills Consultations Consultation documents can be found at : www.bis.gov.uk/skills-consultation www.bis.gov.uk/FE-funding-consultation Closing date 14 October 2010

12. North East Statement of Priorities 2011/12 Summer 2009 RDAs given the responsibility for setting skills strategy Requirement at that point was for regional priority statements to be published for each academic year - setting out key features and skills needs of the region, and the shifts in provision required RDAs have produced statements for 2011/12 academic year North East – widespread consultation and engagement (RESP)

13. Core objectives Focus on economically valuable skills to meet employer demand Provide the skills and qualifications to support growth sectors and stimulate emerging industries. Stimulating employer demand for intermediate and higher level skills. Providing support for disadvantaged areas and groups

14. Emerging Sectors (1) Industrial Biotechnology: The National Industrial Biotechnology Facility is forecast to generate over £11bn by 2025. To achieve this growth will require graduate and postdoctoral level skills in science and technology – with a particular requirement for combinations of skills in chemistry, biology and engineering. Plastic Electronics:. Electronics and electronic engineering and subsequent application in the fields of energy, defence, and medical-related technologies all have the potential to create up to 1,500 high value added jobs and businesses through targeted incubation, supply chain development and university spin outs.

15. Emerging Sectors (2) Offshore Wind: It is estimated that the industry has the potential to create up to 16,000 new jobs in the North East. This will include 7,000 professional and technician engineers mainly in core electrical and mechanical areas, with jobs split across manufacture, construction, installation and maintenance. It is anticipated that the North East offshore wind industry will require 3,000 skilled engineers by 2019. Ultra – Low Carbon Vehicles: The world’s first affordable mass produced zero emission cars will be manufactured from the Nissan base in Sunderland, securing £420m new investment and maintaining 2,200 jobs. The bulk of the skill needs to support this manufacturing capability will be operative/technician electrical engineering competencies.

16. Thank You