Hugh Tollyfield, MIoD Higher Education Funding Council for England

2. UK Strategy for World Class Skills - A view from the perspective of English Higher Education Hugh Tollyfield, MIoD Higher Education Funding Council for England Special Adviser, Employer Engagement

3. What do we mean by world class? “A thinking, educated workforce - working intelligently”* *Dr Marilyn Wedgewood -Report to DfES (2007) “EmployerEngagement-Barriers and Facilitators”

4. Two Key UK Government Reports • ‘Leitch’ Review • “Prosperity for all • in the global • economy - • World class skills” • (HM Treasury Dec 2006) ‘Sainsbury’ Review “The Race to the Top A review of the Government’s science and innovation policies” (HM Treasury Oct 2007)

5. Two Strong Themes Across the Reports • High Quality • Workforce • Strategic Demand • STEM and post-graduates • Graduate Employability • Generic and vocational • knowledge and skills • Demand Responsive • CPD • More people at HE level • Include non-graduates • Business-HE • Partnerships • Strategic Engagement • Research partnerships • Business Improvement • Knowledge exchange • Demand Responsive • Consultancy • Enterprise Development • Supporting spin-outs

6. Leitch Review (Dec 2006)* “The Review has concluded that the UK must commit itself to a world class skills base in order to secure prosperity and fairness in the new global economy.” ‘The Prize’ Economic Prosperity Increased Social Justice Driven By Increased productivity Improved employment UK workforce skills in a global economy *HM Treasury, Final Report of the Leitch Review of Skills (December 2006) “Prosperity for all in the global economy – world class skills”

7. Working age adults in 2020: 95% to be functionally literate & numerate (2005 base - 85% and 79%) 90% or more qualified to at least Level 2 (2005 base - 69%) Shifting the balance of intermediate skills from Level 2 to Level 3 with 1.9 million more people achieving Level 3 by 2020 40% or qualified to at least Level 4 (2005 base - 29%) Leitch Review – Ambitions for 2020

8. The Drivers of Productivity Sustainable growth in GDP per head/per hour Increase Productivity (Output per worker) Increase Employment (Adult economic activity) Enterprise Skills Innovation Competition Investment Productivity Drivers

9. Comprehensive implementation plan*: UK Commission for Employment and Skills Sector Skills Councils Vocational Qualifications Diplomas Apprenticeships Train To Gain The Skills Pledge Universal adult careers service New Legislation Moving Ahead *Cmn 7181(July 2007) DIUS “World Class Skills: Implementing Leitch Review of skills in England”

10. The Leitch challenge for HE “World class high skills, exceeding 40% of the adult population qualified to Level 4 and above.” (By 2020) • Everyone of working age • Shared responsibility for funding – employers, individuals and Government • Focus on economically valuable skills • Demand-led rather than centrally planned • Adaptive and responsive to market needs • Building on existing structures.

11. The economic contribution of HE UK HE is worth £45 billion to the economy on a public investment of £15 billion. Income in 2005-06 from: • Collaborative research - £440m • Contract research - £555m • Consultancy - £200m • CPD - £335m And mainstream HE already a major supplier of an economically valuable workforce.

12. Where the focus of HE is critical: Around 12 million people in work, most of whom won’t progress to HE unless we innovate, gain the commitment and investment of employers and take HE into the workplace. *DIUS estimates – Labour Force Survey 2006,Q4

13. Meeting the challenge: Growing the new market of employer co-funded provision for people in work who may otherwise never experience HE through: • Part-time and short course accredited modules/units • APEL, progression and credit accumulation • Validation of employer in-house training and shared delivery with employers • Innovation in teaching and learning delivery.

14. “HE transforming workforce development” Programme 2008-11: We shall be spending more than £100m on a programme of action research: to test employer market for higher skills, increase employer investment and building the HE response to supplying it; together with building new capacity and capability in the HE sector.

15. Our goals for 2008-11 • 20,000 extra entrants to HE based workforce development in 2010-11, backed by strong employer investment alongside public funding (5,000 in 2008-09 and 10,000 in 2009-10) • Transformational development of the HE sector aiming for a third or more of English HE providers involved in shared investment workforce development with employers • Increase Foundation Degree enrolments to at least 100,000 by 2010 • A new funding process to support future growth

16. HEFCE Development Funded projects - breaking new ground • Coventry University • Organisational development inside major national and international organisations • London South Bank University • Central employer engagement unit brings together academic course directors, careers and work-placement services • Salford University • Transformational programme, creating a university-wide workplace learning infrastructure