- The Bill legislates to place Local Skills Improvement Plans (LSIPs) on a statutory footing. These plans will be developed by employer representative bodies – for example, accredited Chambers of Commerce - in partnership with colleges and training providers and in consultation with key local stakeholders, to set out technical training provision for a local area and align it with employers’ skills needs.
- The Bill introduces a new power for the Secretary of State for Education to designate employer representative bodies to lead the development of LSIPs and to remove designation. It also places a statutory duty on all colleges and training providers to co-operate in the development of LSIPs, and act in regard to the plans.
- In Mayoral Combined Authority areas, final drafts of LSIPs will need to be approved in partnership by Mayoral Combined Authorities, while outside of devolution areas, LSIPs will be approved directly by the Secretary of State.
LGA view
LSIP development
The LGA supports the Bill’s ambition to give local employers a strong role in the skills system through LSIPs. However, the wide-ranging role of local authorities MCAs is missing from the Bill. It is vital that they have a core, strategic role in the development of LSIPs, working with ERBs, providers and other partners, to ensure they effectively consider local strategies, take a holistic view of the skills and employment system, and create an integrated offer that works for learners and employers.
We are pleased that the Bill was amended in the Lords to embed greater partnership working between ERBs, FE providers alongside local authorities and MCAs and other stakeholders. We want to work with Government to ensure this passes through the Commons and is carried into legislation.
MCAs have responsibilities for over half of England’s Adult Education Budget (AEB) and are responsible for the planning of adult education in their areas and a range of other related functions. Councils and devolved authorities also have wide-ranging functions that are vital to making the skills and employment system work for their local communities and economies and this should not be overlooked. These include:
- Working directly with existing and incoming businesses, representative bodies (Chambers of Commerce, the Federation of Small Businesses) and further education providers, to develop and connect growth, infrastructure spend, inward investment, SME, employment and skills strategies
- Lead labour market intelligence and scrutiny through Employment and Skills Boards (or similar)
- Performing granular analysis of national data and generate local data to target national and local provision to local labour market and learner needs
- Connecting, simplifying and promoting multiple national employment, training, skills and economic growth initiatives
- Commissioning and delivering adult and community education to level 2.
- Running their own devolved or discretionary employment and skills services, working with Jobcentre Plus and National Careers Service to provide a tailored local offer.
- Statutory duties to plan young people’s learning, including young people with special education needs and disabilities (SEND) and re-engaging people not in employment, education or training (NEETs)
- Supporting people with complex barriers to be training or work ready through wrap-around support services
On 4 November, the Department of Education issued LSIP trailblazer guidance for ERBs, which set out the stakeholders they must engage with when developing LSIPs. This included Mayoral Combined Authorities (MCAs), Local Economic Partnerships (LEPs) and their Skills Advisory Panels (SAPs) but did not include local authorities. We are concerned this could result in parts of England without devolution having unnecessary further fragmentation of the skills system, additional complexity for employers, individuals and providers, and disrupting pathways of progression from lower to higher levels of learning. In practice, many local authorities are already working with their local Chambers of Commerce to support and help them prepare for the introduction LSIPs, so it is unhelpful for their key role not to be acknowledged.
If higher-level technical skills are the primary or sole focus of LSIPs, providers will have a new legal obligation to meet the delivery of this training in a way that they do not currently have for other skills and qualifications at a lower level. Without adequate local coordination, this could result in skewing the balance of provision within an area and disrupt the ‘skills escalator.’ For example, ERBs may identify the need for providers to introduce or expand provision of a higher-level technical qualification to address a local skills gap. Without an occupational pathway of progression from entry-level to higher qualifications, lower-level learners will be unable to access this training, limiting social mobility and potentially undermining employers’ access to a pipeline of talent.
Working with ERBs and other local partners, local authorities and MCAs can add significant value to LSIP process by ensuring they take a holistic view of the whole local skills and employment system, including tying in vital role of council-run Adult Community Learning (ACL), to create a joined-up offer with clear pathways of progression. This will be essential to provide opportunities for people with the least qualifications and to truly level up.
Local authorities and MCAs should have a role as a core, strategic partners in the development of Local Skills Improvement Plans.
LSIP local oversight and accountability
We would also like to secure a role for local and combined authorities in the approval and oversight of LSIPs. This will enable local and combined authorities to understand how LSIPs will support learners and businesses, add value to other local jobs and skills provision, and raise any identified issues before LSIPs are rolled-out. There are various ways this can be done locally, for example, through scrutiny committees or employment and skills boards.
Local authorities should be given a role in the approval process of LSIPs.