Does the Skills Bill deliver on economic growth?

The CBI briefed members of the House of Commons ahead of the Bill’s report stage on 21 February 2022.

The Bill boosts lifelong learning with employers at the heart of the skills system

The Bill aims to make skills/education providers more responsive to local employer skills needs through the introduction of Local Skills Improvement Plans (LSIPs) and by providing higher quality technical qualifications and boosting participation in lifelong learning.

The CBI welcomes this reform agenda, however there are areas where the Bill can be strengthened by creating a more flexible adult training system, maintaining a dual place-based and overarching national approach and ensuring technical qualifications are directly responsive to employer need.

We submitted evidence to the Public Bill Committee during the previous stage of the Bill’s passage.

We called on government to:

1. Remove funding barriers and ramp up flexibility to boost participation in lifelong learning.
2. Put in place a coherent place-based and coordinated national approach to deliver the skills our economy needs.
3. Ensure that reformed technical qualifications remain in lockstep with employer demand and support more young people to progress.

The CBI supported an amendment calling on the government to publish an economic impact assessment of equivalent or lower qualification (ELQ) restrictions on adult retraining. We also opposed an amendment restricting firms’ autonomy over use of the apprenticeship levy.

The Bill needs to actively contribute to economic growth

The CBI submitted to parliamentarians that the Bill can make its fullest contribution by:

1. Amending the Bill to evolve the Apprenticeship Level into a Skills Challenge Fund. 
2. Setting out the criteria for defining LSIP areas.
3. Creating a new and independent Council for Future Skills to understand the demand of future skills and make recommendations for businesses and government
4. Changing the Bill to clarify the role of the Institute for Apprenticeships and Technical Education (IfATE) and the Office of Qualifications and Examinations Regulation (Ofqual) in ensuring qualifications respond to changes in the world of work.
5. Having the Secretary of State keep the timeline for defunding existing vocational and technical qualifications under review.

One change made to the Bill during Report Stage

Despite the long list of amendments, the only change was the introduction of the government’s New Clause 12, giving publication powers on the Office for Students and provides it with protection from defamation claims.

Next steps

The Bill will now go back to the House of Lords for consideration of amendments made in the Commons.

Once the bill is passed, many aspects, including the Lifelong Learning Entitlement, Local Skills Improvement Plans, T Level reforms and new accountabilities for further education providers will still need to be implemented. The LLE is currently being subject to further consultation before being introduced fully by another Bill.

The CBI will continue working to ensure the needs of business, learners and the economy are met – and your business insight is key.

Speak to Victoria to share your feedback on the Skills Bill, or for any other skills queries.