The Leitch Review – headed by Lord Leitch and commissioned by the Government – was tasked with considering the UK’s long-term skills needs. Published as a comprehensive report last December, the Review (see panel ‘The Leitch Review of Skills: an independent appraisal of the UK’) points out that the UK has now enjoyed 14 years of economic growth and stability, has the highest employment rate among the G7 nations and has been privy to a significantly improved skills base of late.
There are several statements made in The Leitch Review regarding improvements in school education and academic standards, but many commentators believe this has been more about closing the historical skills gap.
They also agree that, despite the improvements, skills levels in the UK remain weak by international standards and that this is holding back productivity, growth and social justice. The Review has identified that, even if the Government’s challenging targets to improve skills are met, UK skills will continue to lag behind those of many countries come 2020. Consequently, business in the UK could grind to a halt.
In addition, The Leitch Review states that the global economy is changing rapidly, with emerging markets (such as India and China) growing dramatically. That, too, will impact upon the UK’s competitiveness. Our population is ageing and global economic migration is increasingly evident, but the influx of migrants to the UK – which is clearly providing temporary solutions to both people and skills shortages in the security business sector – has already been factored-in to the equation. It’s not sustainable in the long term and will not, therefore, help us from 2010 onwards.
Competition will be fierce
The birth rate in the UK fell dramatically during the 1990s, from 2.4 live births per woman per lifetime in the census of 1991 to just 1.6 in the 1991 census. For the first time, the UK birth rate fell below the so-called ‘replacement rate’ of 2.1 live births per woman per lifetime – and it fell dramatically.
The major impact of this on the workplace will begin to be felt from 2010 onwards, when the number of young people reaching working age will begin to fall by 60,000 every year from 2010 to 2020. In other words, the number of 15-24-year-olds in the UK come 2020 will be 600,000 less than in 2010. 70% of the 2020 working age population is already in work.
The Leitch Review recognises that unless the UK can make its skills base a particular strength, businesses will find it increasingly hard to compete. With continued low skills, the UK risks the creation of a socially disadvantaged ‘lost generation’ that’s cut off from labour market opportunities and facing increasing inequality.
In truth, many would argue that this ‘lost generation’ of so-called ‘unemployable’ people already exists. In combination with the significant, identified recruitment issues, that paints a bleak picture for sectors like our own which rely heavily on operative-level personnel (the majority of whom continue to fall into the low-skilled category).
Ultimately, the result of continued low skills will be that the UK experiences increased welfare problems such as inequality, deprivation, growth in crime and child poverty. The best way to prevent this is ensure that people are enabled to adapt to change.
Skills are now a key lever for change, with The Leitch Review suggesting that a radical step change is very necessary.
Compelling vision for the UK
The Leitch Review recommends that the UK commits to becoming a world leader in the skills arena by 2020, benchmarked against the upper quartile of the Organisation for Economic Co-operation and Development (OECD). That means doubling qualification attainment at most levels. The ‘stretching’ objectives for 2020 include:
l Shared responsibility – Employers, individuals and the Government must increase action and investment. Employers and individuals should contribute most where they derive the greatest private returns. Government investment must focus on market failures, ensuring a basic platform of skills for all and targeting help where it’s most needed;
l Focusing on economically valuable skills – Skills developments must provide real returns for individuals, employers and society at large. Wherever possible, skills should be portable to deliver mobility in the labour market for individuals and employers;
l Demand-led skills – The skills system must meet the needs of individuals and employers alike. Vocational skills must be demand-led rather than centrally planned;
l Adaptation and response – No-one can accurately predict the future demand for particular skill types. The framework must adapt and respond to future market needs;
l Building on existing structures – Don’t always chop and change. Instead, seek to improve performance of the current structures through simplification and rationalisation, stronger performance management and clearer remits. Continuity is all-important.
Towards being ‘world class’
Probably the most important section of The Leitch Review is that which contains the recommendations for the future. We need to increase adult skills across all levels. Progress towards being ‘world class’ is best measured by the number of people increasing skills attainment. These raised ambitions will require additional investment by the State, employers and individuals.
The Government is committed to increasing the share of GDP for education and skills. Additional annual investment in skills up to Level 3 will need to rise to GB pound 1.5- GB pound 2 billion by 2020. Increased investment is required in higher education, but costings are difficult to project with any real degree of accuracy.
There is also a need to route all public funding for adult vocational skills in England – aside from community learning, that is – through Train to Gain and Learner Accounts by 2010. The employer’s voice must be strengthened, too. Existing bodies need to be rationalised, the collective voice emboldened and employer views on skills better articulated by creating a new Commission for Employment and Skills to report to central Government and the devolved administrations.
The Commission will manage employer influence on skills within a national framework of individual rights and responsibilities.
We must also look to increase employer engagement and investment in skills. Reform, re-licence and empower Sector Skills Councils. Deliver more economically valuable skills by only allowing public funding for vocational qualifications where the content has been approved by Sector Skills Councils. There is also a requirement to expand skills brokerage services for both small and large employers.
A ‘pledge’ for all employers
It’s essential to launch a new ‘pledge’ for employers to voluntarily commit to train all eligible employees in the workplace to Level 2. In 2010, we can review the progress of employer delivery. If the improvement rate is insufficient, introduce a statutory entitlement to workplace training at Level 2 in consultation with the employers and Trade Unions.
The Leitch Review also recommends increasing employer investment in Level 3 and 4 qualifications. The extension of Train to Gain to higher levels is mentioned, so too the dramatic increase of apprenticeship volumes. There is a perceived need for improving engagement between employers and universities, while at the same time increasing co-funded workplace degrees and enhancing the focus on skills at Level 5 and above.
The Review mentions increasing peoples’ aspirations and awareness of the value of skills to them and their families. The creation of high profile, sustained awareness programmes is important, so too the rationalisation of existing and fragmented ‘information silos’ and the development of a new, universal adult careers service for all.
Finally, The Leitch Review advocates the creation of a new, integrated employment and skills service – based upon existing structures – to increase sustainable employment and progression. There is also a suggestion to launch a new programme aimed at improving basic skills for those out of work, embedding this support for disadvantaged people and repeat claimants.
In addition, the Review also talks about developing a network of employer-led Employment and Skills Boards. Building on current models, these would help to influence the delivery of educational learning.
In support of Leitch
As will be the case in most sectors, these recommendations will have a major impact on the security business sector. In partnership with various sector employers, Skills for Security is leading the way in support of Lord Leitch’s recommendations. We are actively engaged with the Learning and Skills Council, and have also led on some groundbreaking employer funding models under Train to Gain.
Skills for Security is a significant developer of National Occupational Standards and qualification specifications on which all qualifications and training programmes in the sector should be based. We are working closely with all of the leading Awarding Bodies – and now with the Higher Education institutions – to develop a dynamic and progressive qualifications route that enables continuous learning for employees in all of our security sub-sectors.
Level 2 qualifications: the new breed
We are also developing a ‘new breed’ of Level 2 qualifications based on The Security Practitioner model, the outcome (and existence) of which is a remarkable three-way collaboration between industry employers, the National Open College Network and Skills for Security supported by the Security Industry Authority. We are making use of every opportunity to research future employment requirements and identify solutions.
None of this could – or would – have been achieved without the drive, enthusiasm and dedication of the hundreds of employers who give of their time and serve on our Sector Consultation Groups, Country Consultation Groups, Systems Co-operatives, Steering Groups and our various Expert Groups.
At Skills for Security, we know that we still have a long way to go before we can say that we’ve achieved everything we set out to do, and that our sector is highly-skilled, competent and profitable – but after just 16 months in existence, we do feel increasingly positive about the future.