Professor Mike Campbell Director of Development, Sector Skills Development Agency

2. Implementing Leitch:Challenges and Opportunities Professor Mike Campbell Director of Development, Sector Skills Development Agency Adviser to the Leitch Review mike.campbell@ssda.org.uk A Demand Led Approach to Skills: One Year on from Leitch Institute for Employment Studies, Annual Policy Conference 06 November 2007

3. The Leitch Review of Skills:Prosperity for All in the Global Economy: World Class Skills – December 2006 The Leitch Vision and Ambition • UK to commit to becoming a world leader in skills (top 8/top quartile in the OECD at all skill levels) by 2020 • 95 per cent of adults to achieve functional literacy and numeracy, up from 85 per cent literacy and 80 per cent numeracy today; • Exceeding 90 per cent of the adult population qualified to at least Level 2, achieving 95 per cent when feasible. An increase from 70 per cent today; • Shifting the balance of intermediate skills from Level 2 to Level 3. Improving the esteem, quantity and quality of intermediate skills. Doubling the number of Apprentices to 500,000, with most growth coming from adults; • Exceeding 40 per cent of the adult population qualified to Level 4 and above, accelerating the increase of people with high skills, up from 29 per cent today.

4. Implementing Leitch: World Class Skills – July 2007(England!) ‘Economically Valuable Skills’ • Strengthen employer leadership • Commission for Employment and Skills • Sector Skills Councils: SQS, SSAs and driving employer investment • Demand-led funding • Greater responsibility for individuals/employers • Skills ‘Campaign’, Adult Careers Service • Responsive provision ‘Economically Valuable Skills’

5. Implementing Leitch: World Class Skills – July 2007(England!) ‘Economically Valuable Skills’ • Brokerage Services – expand and integrate with business support • The Pledge, ‘Entitlement’ and (developed) Train to Gain • Qualification reform • Higher Education: increased focus on workforce development, collaboration with SSCs and employers • Integration of Employment and Skills Services • Employment and Skills Boards (sub regional) ‘Economically Valuable Skills’

6. Recent Developments • Comprehensive Spending Review • Delivery Plans and PSA Targets • Department of Innovation, Universities and Skills • New Ministerial Team and Prime Minister • Equality, Diversity and Social Mobility • Devolved Administrations

7. The UK Commission for Employment and Skills UK Responsibilities • Advise Ministers on Strategy, Targets and Policies • Assess UK progress towards achieving the 2020 ‘targets’ • Ensure employment and skills services are integrated • UKCES • Institutional change to integrate employment and skills (2010)? • Statutory entitlement to workplace training for allwithout full level 2 (2010)?

8. ‘Plus’ – England • Monitor; challenge performance and recommend improvements in policy, delivery and further innovation • Promote employer investment in people and the better use of their skills at all levels • Manage the performance of SSCs and advise Ministers on their re-licencing

9. Challenges and Opportunities • Employer Leadership • Sector Skills Councils • Reform, re-licence and empower • Remit • Qualifications and funding • Enabling legislation • Employer investment

10. Challenges and Opportunities • Reaching the Parts that Heineken Reaches • Brokerage • Train to Gain and the Pledge • Investors in People • Provider and Employer Responsiveness

11. The Skills and Economic Performance Agenda Economic Growth Non-skill drivers Productivity Employment Rate Non-skill drivers Skills Demand Skills Acquisition Skill Utilisation Macro level * Labour Market Micro level *Workplace Low skills ‘traps’ Qualifica-tions Training non- accredited Econom-ically valuable skills Micro: business strategy Macro: innovation policy etc

12. The Prize • Our Focus