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What will the impact be of further education loans and Universal Credit?. Richard Blakeley, policy officer, unionlearn Youth employment convention, 9 May 2013. Unionlearn: who are we?. Set up in 2006 by TUC to support union led learning in England, supported by public funding
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What will the impact be of further education loans and Universal Credit? Richard Blakeley, policy officer, unionlearn Youth employment convention, 9 May 2013
Unionlearn: who are we? • Set up in 2006 by TUC to support union led learning in England, supported by public funding • Believe that learning opportunities must be available to the entire workforce, regardless of their employment status or educational background. • Train and support a national network of union learning representatives • Work in partnership with employers, colleges and others
Policy position • TUC opposed the introduction of loans in place of government subsidy for 24+ (studying at levels 3 and 4) • Unionlearn • duty to provide information about the loans ‘product’ to trade union representatives to members, balanced with the alternatives • advised government (communications, advice) and trade unions (advice, bargaining) on mitigating the worst impacts of the policy in the workplace
Feared impacts for 24+ • Death of adult apprenticeship? • Increased barriers for low skilled, low paid • Fall in adult learning participation (24+) • Skills shortages (particularly in low wage sectors) • Employers passing on training costs to employees through the loans system • Big setback for ‘lifelong learning’? • Deferred debt, tightening future living standards?
Impact on young people now (24 and under) • Increased pressure on young people making transition from education to work • ‘Last chance’ for 22/23 year olds this year? • Focus employer training on under 24s? (for now) • Contribute to incohesion with over 24s?
Some issues? • Can loans be ‘marketed’ appropriately? • How can ‘misselling’ be prevented? • Are individuals going to have sufficient CIAG and financial advice to support making the right choices? • Will loans really empower individuals to demand more from providers?
Universal credit: crossover issues • Will unemployed UC recipients take up 24+ Advanced Learning loans to increase their employability? • DWP/BIS agreement on mandating should largely address direct pressure, but indirect pressure? • Will ‘conditionality’ to seek better paid work create pressure to take up the loan? • Some sectors, some localities: studying at a higher level may be the only way to make progress on pay
Future policy issues • Should next government(s) • keep loans? • reintroduce subsidies for over 24s in targeted vocations? • introduce tax relief for loan payers?