Funding Boost for Higher Level Skills in the Workforce

5 Dec 2007

On 5 December 2007 the Government announced new funding, rising to at least £50 million a year by 2010-11, to support innovative ways for Higher Education work with employers to meet their skills needs. This makes a reality of its commitments in response to the higher level skills challenges set by Sandy Leitch in his Review of Skills.

The Leitch report made clear that 70% of the 2020 workforce has already left school, which means that to remain world class in future, the nation needs at least 40% of adults to be qualified to Level 4 or above by 2020. To do this the higher education system needs to reach out beyond school leavers doing traditional degrees to more flexible courses designed and co-funded by employers.

HEIs will need to develop new ways of teaching the workforce, including in the workplace and on-line, tailored to company needs. This could take a variety of forms, ranging from short customised courses to support for management and leadership. The money funded through the Higher Education Funding Council for England (HEFCE) will be used to part fund places with an employer topping up to the actual cost of the place, which might be in cash or a combination of cash and in-kind.

Bill Rammell, Minister of State for Lifelong Learning, Further and Higher Education said:

"To compete globally, in terms of higher level skills, we need to think on a much bigger scale. There is already widespread good practice, but it doesn't go far enough. Every HEI should be considering how it can respond - in ways which match its mission.

The Government is serious about higher education and employers working and investing together in the higher level skills that this country needs. For the first time we are announcing an employer co-funding budget which will enable higher education increasingly to build the capacity to respond to employer needs. But it's not just about capacity. We need a cultural shift too so that employers can access a flexible and responsive service from HE - and one which they value enough to share the costs."

This funding comes alongside increases in the Higher Education Innovation Fund, which supports a wide range of knowledge transfer and business interaction initiatives, including continuing professional development.