HEFCE, the Higher Education Sector, Skills and Productivity

Nicola TurnerHead of Skills

#heskills

26 November 2015

1. Head of Skills – why this new role? 2. Green paper and HEFCE’s role in the policy

landscape 3. Vocational pathways through HE – degree

apprenticeships, choices for learners and crossovers between HE/FE.

4. HEFCE priorities

What I will cover

Head of Skills role

Apprenticeships & Pathways through HE

Productivity

Skills & SubjectsCross-cutting relevance to Teaching, WP, Research &

Knowledge Transfer

Skills Strategy

Government defines apprenticeship as follows:

‘An apprenticeship is a job, in a skilled occupation, that requires substantial and sustained training, leading to the achievement of an apprenticeship standard and the development of transferable skills to progress careers.’

Apprenticeship: definition, varieties, providers

Higher Apprenticeship variations

Higher Level Apprenticeship

Degree Apprenticeships

• Delivered by FE or HE• Can be UG or PG• Funding from SFA,

employer, HEFCE, EU• Standards & Employer

engagement

• Mode of study can be: • block release • intensive block release• blended, distance

• 2 year accelerated models up to 4.5 year

• HEFCE funds and regulates 130 HEIs and also 200+ colleges who deliver HE courses and receive direct funding from HEFCE

• HE/\FE space • “Young people” still dominate the commentary• Spending review adds pressure • Looking local - agenda still unfolding (Area reviews & regional

devolution, Adult skills budgets)• Part-time decline, HEPI publication “It’s the Finance, Stupid!”

• Underlines the need to work together, collaborate and partner

Strange bedfellows: HE and FE

Levy – driving up demand, are we ready?

The UK skills challenge

By 2022, two million more jobs will require higher level skills.

More than one in five of all vacancies are ‘skills shortage’ vacancies – where employers cannot find people with the skills and qualifications needed.

Furthermore, almost half of all businesses say they have staff with skills and qualifications that are beyond those required; so there are 4.3 million workers whose skills are not being used fully at work.

UKCES Forging Futures Report 2014

Changing nature of employment

Series1

-600 -400 -200 0 200 400 600 800 1,000 1,200 1,400

Change in occupation type 2012-2022, total employment ('000s)

Managers, directors, and senior officialsProfessional occupationsAssociate professional and technicalAdministrative and secretarialSkilled trades occupationsCaring, leisure and other servicesSales and customer serviceProcess, plant and machine operativesElementary occupations

IER estimates, from Working Futures 2012-2022, UKCES

Occ

upati

on

George Osborne’s Productivity Plan

• “Employers in the driving seat”

• Hefce taking active role in developing policy around boosting productivity

• “Mismatch of skills” says Jo Johnson

• Work ready = soft skills

• Undersupply = ongoing STEM shortage, Wakeham, Shadbolt

• What is a graduate level job?

Mismatch of skills

Absorptive capacity

Work ready

graduates

Over-supply

Skills gaps

Hourglass economy

Employer led

Hefce’s long term support for STEM skills• Catalyst investment & STEM Teaching Capital Fund• Funded projects in maths (Sigma), QSS (Q-Step)

November 2015• Engineering Conversion Course pilot• NCUB report into STEM placements just out

Looking ahead• Independent reviews by Wakeham & Shadbolt

STEM skills and HEFCE support

£200 million STEM Teaching Capital Fund

Anglia Ruskin University

Build flexible workstations so that a variety of subject

disciplines can be taught in one place.

£5 million STEM teaching capital investment and is

planning to invest £40 million of its own funds

Aims to create additional 600 STEM graduates.

University of Exeter

Equip labs with industry-standard technology and to create virtualisati7on and

simulation labs

£5 million STEM capital plus £5.3 million of its own funds

to

Aims to increase overall STEM student numbers by 23 % over

the next 4 years.

Catalyst Fund Examples

£3.3m for technical routes through levels 4-7 in advanced manufacturing and technology

• OfS proposed- Stronger emphasis on students, tax-payers & employers

• “Responding to the marketisation of HE” but a lot already happening

• Productivity references including “mismatch of skills”

• Social mobility – student confidence, social capital, regional cold spots, proposed emphasis on outcomes rather than access

• TEF – HEFCE given task of creating metrics around outcomes, lot of debate around graduate employment and whether this can be an outcome of excellent teaching?

Green paper

• Develop first skills strategy since 2007

• Increase capacity amongst providers for more Higher and Degree Apprenticeships

• Government have put employers in the driving seat for skills

• Influence policy on productivity and skills - Wakeham and Shadbolt recommendations end January 2016, Engineering Conversion Course

• Pathways through HE – Collaboration and effective partnership with the sector and vocational bodies such as UVAC, NIACE to develop effective pathways and the space between FE and HE

Priorities for HEFCE

Thank you for listeningn.turner@hefce.ac.uk

How to find out moree-mail hefce@hefce.ac.uk

Twitter http://twitter.com/hefce

#heskills

web-site www.hefce.ac.uk

governance-hefce e-mail distribution list HEFCE update, our monthly e-newsletter