Interquest : Will Budget 2017 Narrow The UK’s Skills Gap?

8thMarch 2017

At 12.30pm today all eyes will be on Chancellor Phillip Hammond as he delivers his first budget promising to equip the British workforce for life after Brexit. We can expect Hammond to address the startling 'productivity gap' between the UK and many other developed nations along with a plan to make major steps towards solving our deficiencies. Like us, you'll have to tune in to hear the plans in full but we've already had some indications of what to expect:

Creating 15 new 'world class routes' of 'equal value' to A Levels is part of the plan to streamline the rather confusing 13,000 different technical qualifications down to just 15. Backed by a £500 million per year budget Chancellor Hammond believes that reducing the skills gap is the 'only sustainable way' to improve living standards.

The government also wants to work with employers and colleges to create new sector pathways for young people to gather knowledge and skills that are in demand. Lord Sainsbury first set out the reforms in his review of Technical Education, which the government is expected to announce plans to fully implement.

In the recommendations, there is an emphasis on increasing technical training for 16 to 19-year-olds by more than 50% to over 900 hours a year. To begin in 2019/20 this training would also include the completion of a high-quality industry work placement. Maintenance loans will be made available to students studying higher technical education courses in colleges and Institutes of Technology.

Technical skills are proving to be largely in demand as Lord Sainsbury's report found only 10% of 20 to 45-year-olds hold technical education as their highest qualification. This places the UK 16th in the list of 20 OECD countries but by 2020 the UK could be set to fall to 28th for intermediate (upper-secondary) skills unless we act now.

'The news that the Government is to commit significant investment to the development of technical education should be welcomed by everyone who cares about increasing national prosperity and improving social mobility' said Lord Sainsbury.

'Targeted investment of this type makes economic sense - our international competitors recognised long ago that investing in technical education is essential to enhancing national productivity. But it is also essential if we are to equip people with the knowledge and skills they need to obtain rewarding and skilled employment in the future.'

If these plans are implemented, it could be the technology industry that stands to benefit the most as more young people will have technical skills and knowledge to prepare the economy for a digital future. Watch this space to find out…