Education Sector Update - December

Looking ahead to 2021

2020 has been a year of unprecedented challenges and uncertainty for those in the education sector. As we look ahead to January, we will continue to champion the role for universities, colleges and other providers in driving a jobs and skills led recovery from COVID-19 and supporting the UK’s long term economic renewal.

Over the coming months, the CBI will continue to support the rollout and development of the Kickstart Scheme, boosting opportunities for young people and ensuring firms can access and nurture future talent. We will also be consulting with members and responding to the Further Education White Paper, stressing the importance of collaboration between business, further and higher education in widening opportunity, closing skills gaps, and leveling up the economy.

But COVID-19 is not the only challenge our economy faces. Increasing automation, Brexit and climate breakdown, to name a few. In addition to building on our work to enhance and widen lifelong learning, the CBI will be focusing on green skills in the economic transition to net-zero and the critical role education providers must play in this agenda.

These priorities for education and skills are shared by our CBI’s new Director-General, Tony Danker. We hope to update you as soon as possible on opportunities to meet and engage with him directly as a sector.

CBI responds to the Comprehensive Spending Review

The Chancellor delivered his 2020 Spending Review on Wednesday 24th November, headlining by pledging billions of pounds into job creation and support packages. The statement set out the government’s spending commitment for the next year including a £55bn package of measures to support recovery. Further detail on funding for the Kickstart Scheme was accompanied by the announcement of the ‘Restart’ scheme, providing intensive job support to the long term unemployed.

Some further detail was given on the government’s ambitions for the National Skills Fund, with resources targeted at the Lifetime Skills Guarantee, announced by the Prime Minister in September, and digital bootcamps, extended to East Midlands, South West and Yorkshire this week. A nod was also given the boosting of higher technical provision and the roll-out of a Flexible Loan Entitlement, although more detail is required. Frustratingly, the government missed a trick in efforts to give employers greater flexibility in utilising levy funds. The CBI will continue calling for the establishment of flexible skills and training levy, alongside a broad package of skills support, as outlined in our recent Learning for Life report.

In other areas, the government announced £1.5bn in capital funding for FE colleges to £2025/26. There was also an increase in public investment in R&D to £14.6bn in the coming year, and a new £450m fund to build science capability and support the research and innovation ecosystem.

You can read the CBI’s key takeaways on people and skills issues from the Spending Review, as well as a wrap-up on spending announcements around digital and innovation on our website.

The latest on the Kickstart Scheme

The CBI has been engaged in ongoing discussions regarding the implementation of the Kickstart scheme, which is creating 6 months of work placements for young people at risk of long-term unemployment. The CBI hosted a member consultation on the scheme with Employment Minister Mims Davies and senior officials from the DWP on the 13th of November. Additional guidance from the DWP is expected in the coming weeks, and will be reflected in our FAQ doc when published (current version available here). If you have feedback or questions regarding the scheme, please contact Alex Hall.

CBI release ‘Reviving Regions’ report

The CBI have published its new report on ‘Reviving Regions’, recommending steps to redress regional inequalities in living standards and productivity. The report advances a vital role for education and skills providers in this agenda. Recommendations include the creation of regionally led jobs and skills Hubs, and establishing a roadmap for future adult skills to drive an innovative approach to reskilling and upskilling across the country.

To feed in views or find out more detail on CBI regional policy, please contact Hannah Richmond. Meanwhile, Aaron Revel will be happy to hear from you on the FE White Paper.

CBI issue guidance on points-based immigration system

With the UK’s points-based immigration system coming into full effect on 1st January, CBI have partnered with Deloitte to produce guidance to help businesses prepare. This highlights the core detail that firms need to know about the system and provides practical advice on how best to engage with it.

The Home Office will be offering a ‘Graduate Route’ from Summer 2021. The CBI welcomes this step to attract and retain global talent in the UK. Higher Education providers will be vital in supporting transitions from study into UK employment, and the creation of highly-skilled roles. Greater clarity is also needed on how the new ‘Student Route’ will be streamlined for sponsoring institutions and their students to help ensure the UK remains competitive in the global education market.

Please contact Aaron Revel to get involved on matters related to Higher Education and immigration.

In other news

• Last week, the CBI hosted its two-day D&I Conference on building a more equal and fair society, where diverse and inclusive workplaces are the norm. Keynote speeches from CBI President, Lord Karan Bilimoria CBE, and new CBI Director-General, Tony Danker, can be accessed on the CBI website. Other sessions focused on, the learnings and implications of COVID-19 on D&I in workplaces, and driving social mobility within organisations and across civil society. For more details on our ambitions and the ‘Change the Race Ratio’ campaign, please contact Richard DeNetto.
• The CBI welcomed the Prime Minister’s announcement of a green industrial revolution and the prospects for green jobs that a low-carbon economy can bring. Find out more on the government’s package in this article. The CBI have recently called for green technologies and energy efficient investments to be exempt from business rates. If you have taken steps to decarbonise your estate or would like further detail on CBI policy in this area, please contact Adriana Curca.
• The CBI have been working with government across departments to support plans for nationwide mass testing to be rolled out in the new year. We have also been sharing the views and experiences of HE members on the student movement and testing plans in both December and January. We would be eager to hear your experiences of delivering testing and supporting student movement and challenges in preparation and implementation for January. Please get in touch with Aaron Revel.