PublicEye
ANALYSIS
Skills reforms a promising start
Labour’s Skills England pledge looks good for accountancy, explains Adam Harper
King Charles III sits alongside Queen Camilla as he reads the King’s speech in the House of Lords chamber, during the State Opening of Parliament.
Image: Getty
The weeks since the general election were as busy as one might expect. Following the decisive result, power transferred to a new government swiftly and seamlessly. Labour then set about the business of enacting the first of the policies outlined in its manifesto.
All of that activity culminated in a comprehensive King’s speech, delivered to Parliament on 17 July. Among the many items announced, the new Skills England Bill took its place alongside other Labour manifesto commitments to be rolled out over the next 12 months.
The speech signalled that Labour’s pledge to create a new overarching body, Skills England, would indeed go ahead. It also announced that the DfE would “undertake a short pause and review of post-16 qualification reform at level 3 and below, concluding before the end of the year.”
The signs are that this government is taking reform seriously. It has pledged that Skills England will “bring together businesses, providers, unions, mayoral combined authorities and national government to ensure we have the highly trained workforce that England needs”.
Reform timing matters
It’s encouraging to see this issue so prominently positioned on the government’s agenda. The new education secretary clearly recognises the time required to get a bill on the books and reforms in place is considerable, so has acted with speed to get the ball rolling.
Timing matters on this. Given the backdrop of poor co-ordination across government and regulators, the previous timetables associated with each of these reforms required in some instances awarding bodies to potentially have to redevelop qualifications very early in their lifecycle.
We’re pleased that the previous government’s plans to defund qualifications overlapping with first-wave and second-wave T-Levels have been paused. AAT has applied for extension to adult funding, should the reform go ahead, and will receive a response after this pause.
That decision provides a welcome opportunity for us to make our voice heard on future plans and to help ensure policy is designed with coherence and clarity in mind. That pause, if used wisely, could end up saving a lot of time and cost further down the line.
Consolidating skills bodies
But of course, the devil will be in the detail. It is telling that the government plans to subsume the Institute for Apprenticeships and Technical Education into Skills England. That points towards a desire to bring skills policy under one roof, with emphasis on coherence, clarity and – hopefully – delivery.
That would suggest that the current system, where various bodies oversee disparate parts of the skills framework – sometimes complementing each other, but often not – has been viewed by the new government as no longer fit for purpose and is ripe for reform.
So, we welcome the move towards a single skills body that feeds into the government’s broader industrial and economic strategy. As one of the UK’s leading awarding bodies, AAT has always maintained that technical qualifications are vital to supporting growth.
Technical qualifications deserve respect
But it’s also true to say that for too long technical qualifications have been relegated to second-class status and denied parity of esteem. This needs to change, and at AAT we believe it’s vital that funding is protected for post-16 qualifications that have a clear employer demand and strong learner outcomes.
The move to better promote technical and vocational education and to set it on an equal footing with higher education is very much welcome – especially given businesses have been repeatedly calling for skills that better meet their needs.
Meeting employer needs
Employer demand is crucial. Ultimately, the development of skills programmes has to serve a wider economic purpose – that is, to provide employers of all kinds with adequately qualified employees to meet their needs.
And while government, academia, training providers and professional bodies are vital stakeholders, we must maintain our focus on employers and their needs. It’s something we have held central at AAT, and will continue to do so.
Conclusion
Of course, these reforms can’t solve everything overnight. We still require investment in other areas, particularly in pushing for greater financial literacy in young people as well as developing a more digitally savvy workforce.
But it’s a good start. And, taking an optimistic view, the developments since the election are leading towards a more coherent skills policy. It may, at long last, create an effective and joined-up framework for the next decade or more.
The signs are that this government is taking [skills and qualifications] reform seriously.
Students see value of apprenticeships as A-Level results come in
After school leavers across England received their exam results in mid-August, a poll by AAT of 1,000 young people aged 14-18 revealed that 60% consider apprenticeships to be a valuable pathway to a career
The survey found that 59% still think that they need to go to university to get the job that they want, including 48.6% of young people who want to land a professional job.
AAT also surveyed 1,000 parents of school leavers, revealing the perceived importance of qualifications and work experience. Sixty per cent agree that their child needs some kind of qualification to be successful.
Two-thirds (66%) want their child to go to university, with their primary motivations being to give them the best opportunities in life, get a relevant qualification and ensure they have a successful career. Yet 47% don’t agree that a university degree is enough to get a job.
AAT chief executive Sarah Beale began her career with the equivalent of an apprenticeship. She said: “Professional employers increasingly value the benefit that apprentices who are keen to learn on the job bring to their businesses. We know from our members, over 6,000 licensed accountants and bookkeepers around the UK, that they are looking for people who are real-world-ready and have the practical skills needed to hit the ground running in a fast-paced work environment.”
Reeves’ arrival as chancellor illustrates need for focus on gender equality in finance
Rachel Reeves’ appointment as the first female chancellor of the exchequer in the role’s 800-year history shows the need for greater focus on gender equality and pay in the finance sector, AAT CEO Sarah Beale has said.
While acknowledging the significance of the moment, Beale emphasised much more has to be done.
“The fight for gender parity is far from over. There is no excuse for it – the finance sector is open and accessible to all,” she told Metro. “For the next generation who are growing up seeing a female in the position of chancellor of the exchequer and it being normalised, is fabulous. But it shouldn’t have taken until 2024 to get here.”
Rachel Reeves is the first female Chancellor of the Exchequer in the post's 800 years of existence.
Image: Getty
She added: “Only one firm within the top 100 UK accounting firms has a higher percentage of female partners than male. There is still a gender pay gap, which we saw when we looked at the average fee takings our licensed members collect from clients.”
