Post-16 Skills Plan July 2016 Updated September 2016 1
The current skills system isn t meeting our country s needs The UK faces a longstanding productivity challenge The UK s productivity performance is poor compared to international competitors, and our relative position has worsened since 2007. Output per hour worked, G7 compared to UK (percentage point difference, UK=0) Part of this is directly attributable to weaknesses in our skills base The UK is in the bottom four countries for literacy and numeracy skills among 16 24 year olds. 1 The UK also performs poorly on intermediate professional and technical skills, and is forecast to fall to 28th out of 33 OECD countries for intermediate skills by 2020. 2 Addressing this is a matter of economic and social imperative Source: International Comparisons of Productivity Final Estimates: 2014, ONS, 2014 We live in an age of increasing global competition and ever-faster technological change. The UK cannot afford to be complacent about its economic position in the world. Skilled employment leads to prosperity and security for individuals while unskilled employment often means the opposite. 1. Source: Adult Skills Survey, OECD, 2013; includes results for England and Northern Ireland only. 2. Source: UK Skill Levels and International Competitiveness, 2013, Derek L. Bosworth, August 2014 2
The current skills system isn t meeting learner and employer needs The path for young people who wish to pursue academic education is clear, well established and respected. They take A levels in their chosen subjects, enabling access to undergraduate degree courses. This contrasts markedly with the 16+ skills system: The 16+ skills system is complex and of variable quality Young people wishing to pursue technical education and adults seeking to retrain face a bewildering choice, with over 13,000 qualifications currently available for 16 18 year-olds, including 33 in plumbing alone. 3 There is a lack of clear progression routes to employment. Many existing qualifications are low-quality: only 173 meet the DfE tech level requirements. Competition between awarding organisations has often led to a race to the bottom on standards. Careers education and guidance provides insufficient information and support for those wishing to access technical training for skilled employment. The 16+ skills system has limited value to and buy-in from employers The current system has limited employer engagement in defining qualifications and curricula. Intermediary bodies have not provided an effective voice for business. Many employers have disengaged from the skills system. Many employers do not understand the system, in particular what knowledge and skills they can expect from a person with a particular qualification. Consequently, qualifications have limited labour market currency. There are not enough apprenticeship opportunities to meet potential demand in the economy. Provision is not aligned with local and national economic needs. Availability of training opportunities frequently doesn t reflect employment market demand. The provider base is unsustainable The current network of post-16 education and training providers is financially unsustainable, and there is not enough innovation or effective specialisation in the sector. Provision is not consistently high-quality. 3. Source: Section 96 approved qualifications for 16 18 year olds with plumbing in the title of the qualification as at 5 November 2015 and DfE 2018 16 to 19 performance tables: qualifications in the tech level category as of April 2016. 3
The Post-16 Skills Plan explains how we will create a coherent technical education system fit for the twenty-first century Problem: Too many overlapping and often low-quality vocational qualifications, which do not ensure a clear line of sight to work Solution: Clear technical routes to skilled employment Solution: Delivery of 3 m apprenticeship starts in a coherent technical education system Problem: Not enough apprenticeship opportunities to meet potential demand of the economy; standards not always in line with what real employers need Problem: Financially unsustainable provider base; provision not consistently highquality or aligned with employer needs Solution: A strong, dynamic and locally responsive provider base Solution: Enabling factors: data, careers, funding, accountability, meeting the needs of all learners Problem: Wage returns not visible; careers education isn t good enough; not enough local influence 4
We are reforming and simplifying technical education We have sought advice from an independent panel of experts We appointed an independent panel chaired by Lord Sainsbury to consider what reforms were required. The panel submitted its final report to Government in April and we will publish it alongside the Post-16 Skills Plan. We have engaged a wide range of stakeholders to test the panel s proposed approach to reforming technical education. A reformed technical education option fitting coherently within the wider system Every young person will receive a firm grounding in core academic subjects up to the age of 16. They will then be able to make an informed choice between: the established academic option of A levels to prepare for undergraduate study; and a prestigious high-quality technical education option leading directly to skilled employment at the highest levels. The technical education option will be designed to work for adults as well, including career changers. Technical education will comprise 15 routes, each led by panels of industry professionals, who will articulate the knowledge, skills and behaviours required to move successfully into skilled occupations or groups of occupations. The panels will be overseen by the Institute for Apprenticeships and supported by experienced education professionals. Each route will have two modes of learning, which will be equally valid ways of progressing: Employment-based typically an apprenticeship. College-based typically a two-year, full-time study programme. Each route will begin with a high-quality two-year programme (so that it fits with the final stage of the compulsory education and training system), and it will then extend to the highest skills levels allowing greater specialisation. Although the primary purpose of the technical option is to equip young people for high-level technical study and skilled employment, it should not prevent young people pursuing full-time academic study at university, via appropriate bridging provision if needed. 5
Governance and standards Creating the new system of technical routes The remit of the Institute for Apprenticeships will be expanded to encompass all technical education. This will mean a single body is empowered to develop a coherent strategy across both employment and classroom-based routes. Panels of professionals will advise on knowledge, skills and behaviours needed to fulfil occupational requirements. These employer-designed standards will be at the heart of the reforms, ensuring that qualifications have labour market currency. A single, common framework of standards will cover both apprenticeships and college-based provision. Structure Each route will begin with a high-quality two-year programme (so that it fits with the final stage of the compulsory education and training system). The routes will then extend to the highest skills levels, allowing greater specialisation. Work, transitions and careers Every college-based student on a two-year programme will be entitled to a high-quality, structured work placement in their second year. Individuals not ready to access either the academic option or technical option at 16 (or older if their education has been delayed) will be offered a tailored transition year to help them to prepare for further study or employment. This will include English, maths and digital skills. Bridging provision will enable individuals to move, in either direction, between the academic and technical education and will support adults returning to study. 6
Single standards The role of qualifications in technical routes Occupational standards will underpin all technical education apprenticeships and college-based with one standard per occupation. Each standard will set out the knowledge, skills and behaviours required to be fully competent in an occupation. Apprenticeships will continue to be based on a single standard, but standards for related occupations will be clustered together for college-based technical education. An occupational map will set out the relationship between standards and routes. An employer-led approach Standards will continue to be put forward by trailblazers, but may also be instigated by the Institute for Apprenticeships, particularly where there are gaps. These will be developed by employer panels, appointed by the Institute. Employer panels will be made up solely of employers that are representative of a specific occupation, convened on a task and finish basis. Qualifications Qualifications for college-based technical education may not cover the entirety of an occupational standard there may be some skills and behaviours that require sustained employment. They may include content that is not directly required for the occupation but which enables transferability or wider progression. The core content of technical education qualifications will be drawn from knowledge, skills and behaviours that are relevant to the cluster of occupational standards. These will be identified by the employer panels. A single organisation or a consortium will be granted an exclusive licence for the development of a qualification following a competitive process. There will be one qualification per cluster of occupations. Qualifications approved under the new system are likely to include multiple forms of assessment, depending on the content to be assessed. Overarching quality criteria will apply to all qualifications. 7
Ensuring the new system works for everyone Students who need help with the foundations English and maths As recommended by the Sainsbury panel, we will introduce a single set of maths and English exit requirements in technical education. In addition, we will take steps to raise the quality of teaching and student outcomes and continue to offer free English and maths education for adults. Students of all abilities and needs As explained previously, individuals not ready to access either the academic option or technical option at 16 (or older if their education has been delayed) will be offered a tailored transition year to help them to prepare for further study or employment. This will include English, maths and digital skills. For some, it might be right to undertake a traineeship during or after the transition year, so we will continue to expand traineeships for 16 24 year-olds. Students will special educational need and disabilities (SEND) Routes will be accessible and inclusive, with flexibility to adapt provision for individual needs. Students with education, health and care (EHC) plans should expect to undertake a supported internship unless there is good reason not to. Individuals not in education, employment or training (NEET) and young adults needing extra help We will continue to provide support to 16 18 year-olds not in education, employment or training, and to prioritise free or subsidised training for 19 24 year olds with low-level skills through our adult funding arrangements. Adults Under Universal Credit, Jobcentre Plus work coaches help people to get a job and increase their earnings, reducing reliance on benefits. This includes support to improve skills while recognising that it is not a maintenance grant to extend education. We are considering further our approach to lifetime learning for adults and will say more later this year. 8
Agricultural Technician The 15 new technical routes to skilled employment Network administrator Energy plant operative Sales account manager Catering manager Beauty therapist Welfare counsellor Railway signalling technician Pharmaceutical technician Building/civil engineering technician Audio-visual technician Financial account manager Agriculture, Environmental and Animal Care Business and Administrative (2,204,478) Catering and Hospitality (568,998) Childcare and Education (1,060,804) Construction (1,625,448) Creative and Design (529,573) (454,726) Examples of occupations to which the route could lead Route name Digital (351,649) Engineering and Manufacturing (1,319,645) Hair and Beauty (293,004) Health and Science (915,979) Legal, Finance and Accounting (1,325,482) (Number employed in occupations within route, excluding graduate roles) Protective Services Sales, Marketing and Procurement 9 Social Care (865,941) Transport and Logistics We expect these routes to be delivered primarily through apprenticeships. (398,400) (957,185) (589,509)
How the academic and technical options would work * Where a student does both, the traineeship will follow the transition year. Students doing both the transition year and a traineeship may progress directly to employment. ** Some students will move directly from A levels and/or applied general qualifications to degree and higher apprenticeships. 10
Delivering three million apprenticeship starts within a coherent technical education system Apprenticeships will become part of a coherent technical education system Apprenticeships will be subsumed into the routes, as an employment-based alternative to classroom-based provision. Common standards frameworks will underpin both apprenticeships and classroom-based provision. These will be set by panels of professionals and overseen by the Institute for Apprenticeships. The remit of the Institute for Apprenticeships will expand to cover all technical education (both classroom-based provision and apprenticeships) from April 2018. We have already announced how we plan to reform apprenticeships in our 2020 Vision Our 2020 Vision includes: raising skill levels through apprenticeships reaching three million starts by 2020; putting employers in the driving seat of creating apprenticeships that fully meet their business needs through employer-designed standards; helping employers to offer apprenticeships through the creation of convenient recruitment channels and the Apprenticeship Grant for Employers; supporting routes into apprenticeships through better careers guidance in schools; ensuring that apprenticeships are open to all, with a 20% increase in BAME apprentice starts by 2020; establishing the Institute for Apprenticeships, as an independent employer-led body, will regulate quality; and introducing a sustainable funding basis through the apprenticeship levy. 11
We are creating a strong and locally responsive provider base The current structure of the post-16 college sector is financially unsustainable. A market-based competitive approach has led to excessive duplication, with colleges unable to invest in raising quality or to realise economies of scale, and little alignment with local economic needs. We are therefore supporting a reshaping of the provider base through locally led area reviews. We will work with the sector to identify where future workforce investment should be targeted ahead of first teaching of the routes from 2019, and will continue to invest in English and maths workforce development programmes. We are working on a package of area review implementation guidance and support to help colleges meet the leadership and governance challenges of the new landscape. As a result of area reviews and the other reforms set out in the Skills Plan, by 2020 the provider base will be: Stronger and more financially stable probably with fewer, larger colleges able to realise economies of scale More specialised, through rationalisation of provision, enabling each provider to place greater emphasis on high-quality provision in a smaller number of subject areas Sept 2015 Wave 1 7 areas 83 colleges 25% of 331 We are also developing innovative new providers to meet demand for higher-level skills: More collaborative, with providers working together to minimise unnecessary duplication, share expertise and raise standards Working more closely with employers to plan and deliver high-quality provision that is responsive to local needs Delivering much more apprenticeship training National colleges will focus on key sectors of the national economy (e.g. nuclear, digital, high-speed rail) Institutes of technology will deliver STEM skills at level three and above. Jan 2016 Wave 2 8 areas 156 colleges 47% of 331 Apr 2016 Wave 3 7 areas 210 colleges 63% of 331 Sept 2016 Wave 4 Sixth-form colleges can apply to become 16 19 academies through the area review process. This will help strengthen collaboration between SFCs and schools, including by enabling colleges to join multi-academy trusts. We are committed to further expansion of university technical colleges, with a new expectation that each should be part of a multi-academy trust or similar partnership. 12 Nov 2016 Wave 5 31 Mar 2017 331 colleges 40 areas
Enabling factors A holistic package of reforms will facilitate the transition to a coherent skills system Greater data availability: We will empower students, parents and employers by making more information available about the performance of colleges and other training providers; what students go on to do and how much they earn after taking particular routes or apprenticeships; and trends in the jobs market. More intelligent accountability: We will use destination data to hold providers accountable for the success of their students in progressing to sustainable education or employment, not just gaining qualifications. Better careers education: Careers education increases the likelihood that young people will stay on in education and training, or take up full employment post-16, so we will be introducing a coherent careers strategy. Funding: We ve introduced an efficient national funding formula at 16 19 and are maintaining the base rate at 4,000 per learner. We will through loans put power in the hands of adult learners and provide access to the finance they need to improve their skills. Between 2010 11 and 2019 20, the annual level of spending on apprenticeships will double in cash terms to 2.5 billion, funded by the new apprenticeship levy. In addition, up to 480 million will be available through Advanced Learning Loans for adults by 2019 20. We will be devolving the adult education budget to some combined authorities to enable greater responsiveness to local economic needs. 13
Post-16 skills reforms timeline (July 2016 2022) 2016 2017 2018 2019 2020 2021 2022 Sept 2015 March 2017 Locally led area reviews take place Oct 2016 Legislation introduced to expand remit of Institute for Apprenticeships Autumn 2016 Implementation plan published April 2017 Institute for Apprenticeships begins operating April 2017 Introduction of UK-wide apprenticeship levy Dec 2017 Technical qualification content developed for pathfinder routes April 2018 Institute for Apprenticeships now also responsible for technical education Sept 2018 First teaching of reformed Functional Skills qualifications April 2019 Technical qualifications approved by the Institute for Apprenticeships for pathfinder routes Sept 2019 First teaching of two pathfinder routes Sept 2020 Sept 2022 Phased first teaching of other routes By 2020 Three million apprenticeship starts Sept 2021 First certificates issued on successful completion of one of the pathfinder routes Sept 2022 All 15 technical education routes being taught Sept 2016 First National Colleges open Autumn 2016 Announcement on next steps for establishing Institutes of Technology July 2019 Implementation of area review recommendations complete Jan 2017 New headline measures in key stage 5 performance tables: 16 19 English and maths progress, retention, attainment, and destinations. Expanded to include apprenticeships. 14 Sept 2020 Transition year in place for students not yet ready to progress to further education