Leitch Review

The Review recommends that a portion of higher education funding for vocational courses, currently administered through HEFCE in England, be delivered through a similar demand-led mechanism as Train to Gain. This should use government funding to lever in greater investment by employers at Level 4 and Level 5. The Devolved Administrations should consider how best to ensure that provision is effectively led by the needs of employers and individuals.

The Review recommends strengthening the voice of employers through the creation of a single, employer-led Commission for Employment and Skills to deliver leadership and influence within a national framework of individual rights and responsibilities. The Commission will replace the SSDA and NEP across the UK. In England, the Commission will also replace the Skills Alliance.

The Review recommends a new, clearer remit for Sector Skills Councils, focused on: raising employer engagement, demand and investment; lead role in vocational qualifications; lead role in collating and communicating sectoral labour market data; and considering collective measures.

The Review has developed recommendations to ensure qualifications deliver economic value. The Review recommends that Sector Skills Councils continue to lead in developing National Occupational Standards, the building blocks of qualifications. It recommends that SSCs are also placed in charge of a simplified process of developing qualifications that follows this.

Sector Skills Councils should be responsible for approving qualifications after their development by examining boards or lead bodies, rather than the QCA. SSCs will be able to approve qualifications developed by an organisation, including education institutions and employers, if these meet the required standards.

For vocational qualifications, only those approved by SSCs should qualify for public funding. This would apply to funding for work based learning qualifications such as NVQs, including Levels 4 and 5, through the LSC. SSCs should develop a short list of such qualifications, with a very significant reduction in the overall number, by 2008. Arrangements in Wales, Scotland and Northern Ireland should be developed by the Devolved Administrations.

Achieving world class skills will require shared action between employers and the Government. The Review recommends a partnership to drive increased attainment at each level and better use of skills.

To further improve the UK's management and leadership, the Review recommends that Sector Skills Councils drive up employer investment in these skills by employers. The Review recommends that the Leadership and Management programme be extended to firms with between 10 and 20 employees, so that smaller firms are able to access its help and grow.

It is vital that current business support is simplified and strengthened. Skills advice must be integrated as part of this wider system of support. As Train To Gain continues to roll out, the National Employer Service should be expanded to provide a more effective advisory and brokerage service to larger firms.

The Review recommends a major campaign to encourage all employers in the UK to make a skills pledge that every employee be enabled to gain basic skills and a first full Level 2 equivalent qualification.

In 2010, the Government and the Commission should review progress in the light of take-up and employer delivery on their "Pledges". If the improvement rate is insufficient, Government should introduce a statutory entitlement to workplace training for individuals without a full Level 2 qualification or equivalent. The entitlement will need to be carefully designed so that it minimises bureaucracy and avoids being overly prescriptive. It must be designed in consultation with employers and trades unions.

The Review recommends that employers drive up attainment of intermediate and high skills, including in Apprenticeships, led by SSCs and skills brokers. As with qualifications, SSCs should control the content of Apprenticeships and set attainment targets by sector. This should lead to a boosting in the number of Apprenticeships in the UK to 500,000 a year by 2020.

The Review recommends widening the focus of HE targets to encompass both young people and adults via workplace delivery. This will dramatically improve engagement between HE and employers.

The Review recommends a new offer to adults to help further embed a culture of learning across the country, ensuring everyone gets the help they need to get on in life: raising awareness and aspiration; making informed choices; increasing choice; and ensuring individuals can afford to learn.

The Review has developed fresh recommendations to raise awareness and aspiration among adults across society. At the heart of these is a new universal careers service for England, bringing together current separate sources of advice. The Review recommends that this service operate under the already successful and well-known learndirect brand.

The Review recommends that all adults should be entitled to a free 'Skills Health Check', building on the success of a similar approach in Sweden, that would identify an individual's skill needs and strengths.

To improve individuals choice and control, the Review recommends that all adult further education funding for individuals in England, including the current Level 2 entitlement, be channelled through Learner Accounts by 2010. Over time, the Government should consider rolling other forms of financial support into these accounts, such as the learner support discussed in the following section and any childcare support.

The Review recommends a new system of financial support, based on the principle of transparency and building on best practice elsewhere: clear and transparent financial support for those considering skills development as well as for existing learners; and greater use of Career Development Loans particularly for those looking to progress to intermediate level and beyond.

The Review recommends that a Skills Development Fund (SDF) replace the LSF. Based on clear eligibility criteria, advisers should use this fund flexibly to tackle the immediate financial barriers to learning that potential and current learners face.

The Review recommends a new integrated employment and skills service to help people meet the challenges of the modern labour market. To ensure people can access an integrated employment and skills service, the Review recommends: a new programme to help benefit claimants with basic skills problems. Including a new programme to screen all benefit claimants, and more help to improve their basic skills; a new universal adult careers service, providing labour market focused careers advice for all adults. The new careers service will deliver advice in a range of locations, including co-location with Jobcentre Plus, drawing on Jobcentre Plus information and services, creating a national network of one stop shops for careers and employment advice; a new integrated objective for employment and skills services of sustainable employment and progression. Meeting this will require all involved in such services, from Departments, the LSC and Jobcentre Plus, to front line staff and colleges, to focus on people's long-term, as well as short-term, prospects; and a network of employer-led Employment and Skills Boards to give employers a central role in recommending improvements to local services, mirroring the national role of the Commission for Employment and Skills. The Boards will work to ensure that local services meet employer needs and the workless are equipped to access work.

The Review recommends a new ambition to achieve world class skills. Achieving world class skills will require the UK to commit to achieving by 2020: 95 per cent of adults to have the basic skills of functional literacy and numeracy up from 85 per cent literacy and 79 per cent numeracy in 2005; more than trebling projected rates of improvement to achieve a total of 7.4 million adult attainments over the period; exceeding 90 per cent of the adult population qualified to at least Level 2, with a commitment to achieving world class levels as soon as feasible, currently projected to be 95 per cent. An increase from 70 per cent today; a total of up to 5.7 million adult attainments over the period; shifting the balance of intermediate skills from Level 2 to Level 3. Improving the esteem, quantity and quality of intermediate skills. Boosting the number of Apprentices in the UK to 500,000; a total of 4 million adult attainments over the period; and world class high skills, with a commitment to exceed 40 per cent of the adult population to be qualified to Level 4 or above. Widening the drive to improve the UK's high skills to encompass the whole working-age population, including preparing young adults for their working lives; a total of 5.5 million attainments over the period.

The Review recommends a new partnership approach, building on the success of recent initiatives to build a more demand-led system, meeting the new challenges the UK faces through common action. In practice, this means: Government, investing more, focusing on the least skilled. Ensuring that the education system delivers a highly-skilled flow into the workforce. Creating a framework to ensure employers and individuals drive the skills system to deliver economically valuable skills. Being prepared to act on market failures, targeting help where it is most needed. Regulate if necessary and with care to reach the UK's skills ambitions; employers, to increase their investment in skills to impact productivity, wherever possible increasing investment in portable accredited training. Ensuring the skills system delivers economically valuable skills by effectively influencing the system. Pledging to support their low-skilled employees to reach at least a first full Level 2. Introducing sectoral measures, such as levies, where a majority of employers in the sector agree; and individuals, raising their aspirations and awareness. Demanding more of their employers. Investing more in their own skills development.

The Review recommends a simplified demand-led system with employers and individuals having a strong and coherent voice. The Review recommends that all publicly funded, adult vocational skills in England, apart from community learning, go through demand-led routes by 2010. This means all adult skills funding should be routed through Train to Gain and Learner Accounts by 2010. The switch to demand-led funding and end to the supply-side planning of adult skills provision fundamentally changes the role planning bodies, such as the LSC, which will require further significant streamlining.