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UK's first Sector Skills Agreements begin

Some of the pledges to support employers outlined in the government's skills strategy white paper published last summer began to take shape with the announcement this week of the first four sectors to begin drawing up UK-wide Sector Skills Agreements between organisations which demand education and training and those that supply it.

Four of the new employer-led Sector Skills Councils (SSCs) - e-skills UK, CITB-ConstructionSkills, SEMTA (Science, Engineering and Manufacturing) and Skillset (audio-visual industries) - have been tasked with carrying out a detailed analysis of the future skills and productivity needs for employers within their sector, and drawing up a ‘compact' with suppliers of education and training to guarantee that these are delivered.

Sector Skills Agreements will put in place a framework which allows employers across the UK to sign up to a key set of priorities with organisations that fund and supply education and training.

Their development will be overseen by the Sector Skills Development Agency (SSDA) and the Sector Skills Councils, who will work in partnership with the Department for Education and Skills, the Learning and Skills Council (LSC), JobCentre Plus, Regional Development Agencies, the Qualifications and Curriculum Authority (QCA), higher education institutions and other key players - including the CBI and TUC - to broker deals and identify ways in which employers' needs can best be met.

Eventually, every Sector Skills Council will develop and implement a Sector Skills Agreement, giving employers more say than ever before in determining what skills their business needs to increase productivity and profitability and make sure the public education and training system delivers these needs.

Christopher Duff, Chief Executive of the SSDA, said: "A Sector Skills Agreement involves assessing current and future skill needs, a sophisticated analysis of sector trends, areas of low skills and the consequent workforce development and skill needs which are required to increase competitiveness. Sector Skills Councils must prioritise a range of key strategic issues to be addressed in the short, medium and longer term as well as identification of major cross-industry skill needs.

"They must also assess current provision, examine the range, nature and employer relevance of current public and private provision and assess the scope for collaborative action by employers to tackle skill deficiencies, as well as determining what form the action might take and an assessment of what employers are likely to contribute to the agreed measures.

"Finally, each Sector Skills Council will come up with a costed action plan with key delivery partners including the rationale, actions to be taken, proposed contribution of each partner, quantified outputs, estimated impacts on productivity and competitiveness and an evaluation mechanism.

"In short, it's a huge piece of work, but one which is set to fundamentally change the way in which skills are demanded, developed and delivered in the UK."

Ivan Lewis, Minister for Skills and Vocational Education, added: "The government's Skills Strategy depends on true partnership enabling businesses to compete in the global economy and develop the multi-skilled flexible workforce essential for our productivity. Sector Skills Councils are a crucial part of this strategy, putting employers' needs centre stage and giving them a powerful voice in how public money on skills is spent.

"In announcing the development of the first four Sector Skills Agreements, the Sector Skills Development Agency is beginning an ambitious drive for business improvement across all sectors. The agreements will enable Sector Skills Councils to work with government to develop world class learning provision, meet business needs and give individuals the right skills for proficiency in their jobs."

The first Sector Skills Agreements will be developed over the year, and are expected to be approved by ministers in December with implementation beginning early next year. Other Sector Skills Agreements will be drawn up as more Sector Skills Councils are established, and by the end of 2005, over 85% of the UK workforce will be covered by a Sector Skills Agreement.

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