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Peter Seddon

Skills policy: Current progress and developing the next phase. Peter Seddon. HEFCE strategy to 2010-11. Employer engagement and skills: Enhancing skills of adults in the workforce and addressing immediate skills needs

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Peter Seddon

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  1. Skills policy: Current progress and developing the next phase Peter Seddon

  2. HEFCE strategy to 2010-11 • Employer engagement and skills: • Enhancing skills of adults in the workforce and addressing immediate skills needs • More vocationally-oriented provision in HE and routes for progression from vocational qualifications and employment • Sustaining key subjects, particularly STEM, when student demand has not matched the nation’s needs • Promoting employability, including through placements and internships, and advice on employability • Helping HE respond to the recession, particularly unemployed graduates

  3. And it isn’t all that is happening...

  4. Activity to 2010-11 • Embedding employability: • HE Academy and its subject centres; DLHE and Long DLHE; Public information review (employability statements in the short term); Graduate and undergraduate internships • Supporting key vulnerable subjects: • Promoting student demand and attainment; securing, growing and re-shaping provision • Supporting Foundation Degrees: • Development costs; fdf; T-funding premium / allocation; ASNs, including to LLNs

  5. Workforce Development 2007 Grant letter to HEFCE: ‘I would like you… to develop a new model for funding higher education that is co-financed with employers, achieves sustained growth in employer based student places, and introduces the principle of employer demand-led funding.’ 2008 grant letter: ‘Continue to accelerate progress towards a new relationship between employers and higher education’ Additional funding to deliver 5,000 additional co-funded entrants in 2008-09; at least 10,000 in 2009-10; and at least 20,000 in 2010-11

  6. Workforce development - 2008-11 • £100M investment to develop HE infrastructure for employer workforce development • Diversity of approaches • £50M HEFCE co-funded provision allocated to more than 90 HEIs and FECs • Intention that existing investment provides a sustainable platform for further growth from 2011-12 onwards • National STEM programme to support workforce development

  7. Progress so far (1) • Initial progress (2008-09): • Average recruitment across the sector 59% • Employer co-funding of 30% relative to HEFCE funding of 70% • Private sector 46% of activity and more likely to be cash • Public sector 54% of activity and more likely to be in-kind • HESA data 2008-09 • 8,000 additional entrants against 5,000 target • Over half of learners on short courses • 41% credit; 26% UG cert; 17% FD; 8% PG • 51% of entrants already qualified up to level 3 • Low intensity of learning (2/3 of learners on 29% or less intensity) • Some institutions operating outside their own region

  8. Progress so far (2) • Some challenges: • Recession and impending public sector cuts • SME market particularly difficult and taking longer to commit • Volatility of short course provision and uncertainty about progression • Scalability and scope for full employer funding • Impact and value for money is largely unknown • Lessons to be learned from 2008-11 pilot (HEFCE evaluations): • Business models that work in particular contexts • Costing and pricing mechanisms • Quantifying co-funding contributions • Identifying viable activities that can be sustained and grown • Disseminating good practice and innovations • Impact on employers and employees

  9. New factors • Reduction in state funding (HEFCE and others) • Future role of regional partners in supporting HE on skills • Excess demand for FT ug provision • Browne review and the Government’s response, including changes to HEFCE T-funding • Changing government policy on skills • HEFCE’s review of the teaching funding method

  10. Key questions • What should be a higher priority for public funds: adults in the workforce or school and college leavers? • Should public funds be used to subsidise training by private sector employers? • Should HEFCE funds be used to subsidise training by public sector employers? • Should we continue to seek employer contributions to the HEFCE component, or focus on fees and student support? • If we should: • could we embed it within our core T-funding or must it be ring-fenced? • could there be a model like HEIF? • should we support a wider range of activities than currently? • What should we do in 2011-12, given major change in 2012-13?

  11. We could... • Grow co-funded provision on the current model and in line with initial aspirations, drawing upon lessons of first phase. • Continue at 2010-11 levels of support (27k co-funded FTEs), either as a niche activity or bridging to a new model from 2012-13. • In either case: • Any investment will be at the expense of fully funded provision; • We will need to target our investment to ensure the most impact on employers and employees, and a viable business within the participating institutions; • We will need to adapt our approach to the post-Browne world.

  12. Co-funding post-Browne? To 2011-12 - funded and monitored outside of mainstream From 2012-13 - funded and monitored within mainstream Tuition fee Tuition fee (Full or part employer financed) Tuition fee (Full or part employer financed) Employer co-funding HEFCE co-funding HEFCE co-funding

  13. Thank you for listening

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