HL Deb 07 July 2004 vol 663 cc35-7WS
The Parliamentary Under-Secretary of State, Department for Education and Skills (Baroness Ashton of Upholland):

My right honourable friend the Parliamentary Under-Secretary of State for Education and Skills (Mr Ivan Lewis) has made the following Written Ministerial Statement.

In July 2003, the Government launched the National Skills Strategy, 21st Century Skills. The skills strategy is primarily a strategy for England, reflecting the devolution of responsibility for education and training to Scotland, Wales and Northern Ireland.

The strategy's aim is to ensure that employers have the right skills to support the success of their businesses, and individuals have the skills they need to be both employable and personally fulfilled. Significant progress has been made in the first year of the strategy, and today we are holding a key conference and the Skills Alliance is publishing a progress report to set out the successes to date and the challenges for the year ahead. There is now a real momentum for change and a strong sense of shared purpose and enthusiasm, and I would like to make you aware of the following achievements.

The Skills Alliance has brought together key partners with an interest in skills and productivity—the Department for Education and Skills, the Department for Trade and Industry, the Department for Work and Pensions, the Treasury, the CBI, the TUC, the Small Business Council and the key delivery organisations led by the Learning and Skills Council. The Skills Alliance's role is to oversee effective implementation of the strategy and, today, has published its first annual report on progress.

The skills strategy emphasised the need to move away from a supply-driven education and training system towards a demand-led approach. We are driving this forward by: improving our understanding of employers' skills needs and their contribution to raising productivity; working with employers to ensure that the skills of their employees are effectively deployed to support business development; and ensuring that skills demand drives the design of training programmes and qualifications.

The Success for All reform strategy, launched in November 2002, has been a key factor in raising standards, improving quality, and ensuring that colleges and post-16 providers become more flexible and responsive to employers' needs. I am very pleased with the way in which the further education sector is embracing these reforms and that standards and responsiveness are improving.

During the year, colleges and other training providers have successfully continued to expand the existing flow of people with skills, training and qualifications, thus meeting the needs so far of individuals and of employers, including: basic skills—200,000 learners achieved at least one skills-for-life qualification this year. Since 2001, 2.3 million learners have taken up 4.6 million skills-for-life learning opportunities. Level 2—260,000 more adults in the workforce achieved qualifications at least to full level 21 at the end of 2003 compared to autumn 2002. The proportion of adults in the workforce qualified to level 2 is now 71 per cent2. Apprenticeships—246,000 16–24 year-olds were enrolled by the end of March 2004. There have been over 1 million entrants to the programme so far.

Foundation degrees—currently 24,500 students are enrolled on foundation degree courses, with employers involved in both the design and delivery. Overall flow of qualifications—nearly 3 million qualifications were achieved by adults in 2002–03.

Other progress on the key areas within the strategy includes: for employers—there are over 60,000 employees on ETP through 10,000 employers, 18 sector skills councils, better business support, in particular for SMEs, and new apprenticeship family launched.

For individuals—over 2,200 low skilled individuals benefiting from financial help with adult learning grant pilots, we are about to begin phased introduction of new level 2 entitlement in package of support in NE and SE, fewer adults without a full level 2, better IAG all over the country with reformed service standards.

On qualifications—the work on reform of qualification system for adults will be set out at the Skills Strategy One Year On event, the Tomlinson proposals for 14–19, and new qualifications to meet employer need. With colleges and training providers—we continue to build on Success for All reform, strategic area reviews underway, new LSC business cycle, plan led funding, upwards trend in college success rates, and we are about to consult on reform of fees and funding.

Through partnerships—new Skills Alliance and regional skills partnerships, NEP report to drive welfare to workforce development agenda including through New Deal for skills, Government leading by example and addressing skills issues in all departments/bodies.

These achievements represent significant progress during the year. We have been heartened by the widespread support that the strategy has received, the recognition that we have to get the implementation right if we are to achieve our national economic and social objectives, and the determination shown by organisations and individuals across the board to play their full part.

However, there is much more to do, and it will require sustained commitment over a period of years to address the deep-seated barriers to skills investment, and so achieve our economic and social goals.

Copies of the Skills Alliance: Skills Strategy Progress Report; Skills Strategy Progress Report Technical Supplement On Underlying Data and Evidence; Government Meeting Its Responsibilities; and the Skills for Life Annual Review 2003–2004 have been placed in the Library and are available in the Vote and Printed Paper Offices.

1 A full level 2 refers to any qualification equivalent in standard and breadth to 5 GCSEs at A*—C or a national Vocational Qualification at level 2.2 Labour Force Survey, Winter 2003–04