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

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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

14. 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.

15. 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

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

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

18. 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.

19. Thank you for listening.

20. How to find out more e-mail hefce@hefce.ac.uk
Twitter
#heskills
web-site
governance-hefce distribution list HEFCE update, our monthly e-newsletter