Bridging the UK's Skills Gap - The Leitch Report

We thought it a worthwhile exercise reminding everybody about a report published by Lord Leitch in Decemeber 2006. The Report is titled 'Prosperity for all in the Global Economy: World Class Skills', and examines the UK's long-term skills needs, and was commissioned by the Treasury.

The report outlines that the UK as made "good progress" over the last decade however does indicate that more must be done if we are to compete with emerging economies such as India and China. It points out that their is still a significant gap in some aspects of the UK's skills base compared to other developed economies, for instance:

• out of 30 OECD countries, the UK lies 17th on low skills, 20th on intermediate skills and 11th on high skills;
• 5 million adults in the UK lack functional literacy;
• 17 million adults in the UK have difficulty with numbers; and
• more than one in six young people leave school unable to read, write or add up properly.
  

The report projects that, even if current targets are met, by 2020 the UK's skills base will be inferior to that of many other developed nations and some form of radical change is necessary.

The report recommends that in order for the UK to become a world leader in skills by 2020. we have to achieve a number of goals:

• At least 95% of working age adults shouldhave basic skills in both functional literacy and numeracy - rising from 85% and 79% respectively in 2005;
• More than 90% of adults should be skilled to GCSE level or to vocational equivalents - rising from 69% in 2005;
• the number of Apprentices in the UK needs to iuncrease to 500,000 each year, with improved quantity, quality and esteem for intermediate skills; and
• more than 40% of adults should be skilled to graduate level and above - up from 29% in 2005.

Lord Leitch recommends an number of wholesale changes:

• Increasing skill attainments at all levels;
• Routing public funding of vocational skills through Train to Gain and Learner Accounts;
• Strengthening the employer voice on skills through creation of a new Commission for Employment & Skills, increasing employer engagement and investment in skills, reforming Sector Skills Councils who will simplify and approve vocational training;
• Launching a new 'pledge' for employers to voluntarily train more employees at work. If insufficient progress has been made by 2010, introduce a statutory right for employees to access workplace training;
• Increasing employer investment in higher level qualifications, especially in Apprenticeships and in degree and postgraduate levels; significantly more training in the workplace;
• Raising people's aspirations and awareness of the value of skills, creating a new universal adult careers service to diagnose skill needs with a skills health check available for all;
• Government to introduce compulsory education or workplace training up to age 18 following introduction of new Diplomas and expanded Apprenticeship route; and
• Integrating the public employment & skills services to deliver sustainable employment, enabling more disadvantaged people to gain skills and find work, developing employer-led Employment and Skills Boards.

The report estimates a potential net benefit of at least £80 billion over 30 years, equivalent to an annual boost of £2.5 billion if these changes are implemented and targets are attained.

Lord Leitch concludes:

"Skills were once a key lever for prosperity and fairness. Skills are now increasingly the key lever."