ePolitix.com speaks to Chris Banks, chair of the Learning and Skills Council, about the organisation, its focus, future plans and the National Apprenticeship Service.
Question: We know the LSC will only run till 2010 – what will happen after that?
Chris Banks: Responsibility for 16-19 funding will transfer to local authorities, working with a new Young Person's Learning Agency (YPLA), a non-departmental public body sponsored by the Department for Children, Schools and Families (DCSF). A new Skills Funding Agency (SFA), an agency within the Department for Innovation, Universities and Skills (DIUS) will work with employers, providers and learners over the age of 19 to invest in skills development.
The current responsibilities of the LSC will therefore be split between the SFA, the YPLA and local authorities. While these are all being set up we are working closely with DIUS and DCSF to manage the development of the new arrangements and the transition.
We expect these changes to come into place by autumn 2010, though some elements, such as the new National Apprenticeship Service (NAS) and the new Adult Advisory and Careers Service (AACS), will be launched in advance of this.
Question: So with the YPLA, SFA and NAS being set up, has the LSC been running down its operations?
Chris Banks: Absolutely not. At the same time as preparing for the new organisations to come into place, it is very much business as usual. And we have been doing this very successfully. In fact, the LSC and its partners have hit just about every target we have ever been set and, with the help of the further education sector, we have achieved some fantastic results. The LSC has made a huge difference to the lives of millions of young people and adults. But it does not stop there. The LSC has helped towards the success of many thousands of businesses and organisations too.
This has been possible thanks to some highly successful programmes and initiatives; whether through funding qualifications, improving the buildings in which students learn, providing a learner support programme to help people to meet the costs of their learning, or simply inspiring them to learn through our skills campaign. We have worked really hard to keep further education and skills high on the country's agenda.
We are absolutely committed to ensuring that we continue to work closely with DIUS, DCSF and the sector to deliver everything that is asked of us through this period of transition. We want to be ready to hand over services which are seen as excellent by employers and learners, and relationships which are recognised as robust and effective by key partners. The LSC will support the system to ensure that the transition is as smooth as possible and that the achievements of the LSC are built on, to the benefit of millions of adults and young people across the country.
Question: You mentioned that the new National Apprenticeship Service will be launched early?
Chris Banks: Yes. The NAS will be launched in April 2009. The chief executive has just been appointed and we expect the full service to be up and running in April. The service will be wholly focused on providing apprentices to businesses, and apprenticeships to those who want to learn in a working environment.
Apprenticeships are a huge success story, with programmes for both adult and young people continuing to improve and grow. Contrary to what many people may think, they are not restricted to the traditional industrial or manufacturing industries either. There are now 180 apprenticeships available in over 80 sectors ranging from animal care to accounting, from engineering to environmental conservation. There is a real need for a new service to cater for this increased demand and I am delighted that the NAS has been set up, which will benefit apprentices and employers across the country.
The launch of the NAS will also see the creation of at least 10,000 apprenticeships in sectors that are likely to be hit hard in the economic downturn. It is investments like this that will ensure the construction and retail sectors are well placed when the economy starts to recover.
Question: Talking about the economy, what are you doing to encourage businesses to continue training staff in this challenging economic time?
Chris Banks: Day in, day out, we work to ensure everyone in England gets the chances they deserve. This is a demanding task in any climate and even tougher in the current economic situation.
There is no avoiding the fact that the next 12 months are going to be hard for the UK economy with businesses facing many challenges. But it is how we respond to these challenges that can really make a difference, determining who is best placed to survive the downturn and take advantage of opportunities when the economy recovers.
Investing in training and development during a period of economic downturn is vital. Figures recently published by the Association of Colleges (AoC) reveal that three quarters of company directors believe it is important to invest in training their staff during the recession. And work by the Institute of Fiscal Studies suggests that an increase in the proportion of workers trained, is directly linked to a proportionate increase in value-added per worker. Training has a positive impact on productivity, morale and staff retention: all critical factors towards ensuring a successful business at any time, let alone now.
We have also seen research confirming that those companies that do not train their staff are 2.5 times more likely to fail than those that do. Talented, motivated and trained staff help build resilience and provide the firm foundations for growth as the economy recovers. So our job is to work with employers to ensure they take every opportunity they have to continue training their staff.
Question: So you would encourage businesses to continue training?
Chris Banks: Definitely. We will all need to be at the top of our game to ride out this economic storm, and to maintain our strong track record on performance, adaptability and quality. The more skilled the workforce is, the more motivated and productive it is likely to be - and ultimately more profitable.
One way employers can show their commitment to this is by signing the Skills Pledge. More than five million employees already benefit from their employer's commitment to training through the Skills Pledge and I look forward to seeing many more employers sign up to this important partnership. With many people concerned about their job security, signing the Skills Pledge demonstrates a clear commitment to investing in people's talents.
Question: Won't small businesses find it difficult to afford training?
Chris Banks: We know they will find it hard. That is why the government recently announced a £350m package of flexibilities for small businesses to help them through the difficult climate.
As part of this package, we are increasing flexibilities within our successful Train to Gain service. These changes will ensure that there is funding available for the training modules that are important to SMEs, extend the leadership programme to small businesses, and relax the rules to allow all members of staff to get relevant training up to Level 2 (the equivalent of GCSEs).
One of the important things when the economy contracts is to be able to respond quickly and effectively to the needs of businesses. This responsiveness can make a big difference to their survival. As a result we continually assess what is on offer to employers, to ensure they are getting the training they need. It is this adaptability, flexibility and quality of provision that will help us succeed together.
Question: Do you have a New Year message?
Chris Banks: There has never been a more important time for everyone to improve their skills, and those of all the people they work with. The LSC is committed to providing the opportunities to learn. I'd encourage you to take advantage of them.
