A major outcome of the recent government reshuffle is the transfer of much of the skills agenda from the Department for Education to the Department for Work and Pensions. Claire Penketh, BCS Policy and Public Affairs Manager, looks at what this means.
This week, the Prime Minister announced in a Written Ministerial Statement that the responsibility for apprenticeships, adult further education, skills, training, and careers, as well as Skills England, will be transferred from the Department for Education to the Department for Work and Pensions.
Responsibility for higher education, further education, skills, training, and careers for those aged 19 years and under will remain with the Department for Education.
During the recent cabinet reshuffle, the new direction of travel was set. Skills Minister Jacqui Smith took on a dual role across the Department for Work and Pensions as well as in the Department for Education, where she continued in her role as Women’s and Equalities Minister.
So what does this all mean?
This marks a significant shift in the government’s delivery of skills, aligning closer with the world of work through the DWP. Pat MacFadden became Secretary of State for Work and Pensions in the cabinet reshuffle. His brief includes the government’s Make Work Pay initiative on labour market reform.
The DWP Minister is tasked with increasing employment and reducing the welfare budget. In particular, the government is very keen to reduce the high numbers of young people who are not in education, employment, or training (NEET). All of this sits well with the skills agenda as the means to achieve that transformation.
The issue of underemployment and unemployment is a complex problem to address. In a joint ministerial foreword in November to the government’s Get Britain Working White Paper it was stated: “We’ve got 2.8 million people locked out of work due to long-term sickness. One in eight of our young people are not in education, employment or training. Nine million adults lack the basic skills they need to get on.”
Part of the solution posed in the White Paper was “kickstarting a skills revolution”, and that appears to be what the government wants to achieve with these changes.
At the time of her appointment, Jacqui Smith said on LinkedIn: “I’ll be working in DWP on the skills elements of my role and very pleased to be able to link up this work to Labour market and employment policy and put it at the heart of our Growth mission.”
The DWP Minister clearly highlighted his priorities on LinkedIn too: “Help for those who need it. Getting people into work. Security for pensioners. And increasing skills and opportunity.”
Good news?
The move has the potential to join the dots between the economy, skills, and the labour market.
Annette Allmark, BCS’ Executive Director, Awarding & Assessment, said: “It makes sense for the skills agenda to be in the Department for Work and Pensions, as it's clear that skills and employment are closely linked. Additionally, it aligns well with the government’s growth and welfare agenda – helping people return to work and come off benefits.
“Government will be aware that training providers and employers have had a lot of changes to assimilate recently, and will be working hard to understand how skills provision will be structured, funded, and delivered.
“It is our hope that this move will lead to more clarity and improved cross-departmental working to successfully deliver a skills agenda.”
Skills shuffled, stability awaited
The switching of government department responsibility for skills is nothing new. Between 2007-09 it belonged to the short-lived Department for Innovation, Universities and Skills (2007-09) then it moved to the Department for Business, Innovation and Skills (2009-16), before returning to education, and now it’s the DWP.
With Jacqui Smith and Pat McFadden at the helm, the government will be aiming for improved cross-government coordination. The goal is a system that equips people with the right skills, meets industry needs, helps people return to work, reduces welfare costs, and strengthens the economy.
However, there are still many details to be announced following this latest upheaval. Where, for instance, will the funding sit if the skills agenda is based across two departments?
Education and skills
Another missing part of the puzzle will be how education ties up with skills following these changes. Hopefully, more will be revealed when the Post-16 Skills and Higher Education White Paper for England comes out, which is expected this autumn. Additionally, the Curriculum and Assessment Review is also thought to be imminent.
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Julia Adamson, BCS Executive Director, Education & Public Benefit, said: “Everyone needs digital skills to participate fully as citizens in today’s digital society. Digitisation is transforming jobs across every sector, placing new demands on both the current workforce and young people entering employment.
“While the digital sector is a major driver of UK economic growth, digitisation also creates opportunities for every industry to unlock business benefits and expand. It’s exciting to see how these changes can help close skills gaps, but it’s vital we focus on how to bridge the transition from education into employment.”
Refreshed DfE team
Meanwhile, at the DfE, Bridget Phillipson and Seema Malhotra continue in their posts as Secretary of State for Education and Parliamentary Under-Secretary of State, respectively.
New people at the DfE include Olivia Bailey MP, who has been appointed Parliamentary Under-Secretary of State. She previously worked as a parliamentary private secretary to the former Secretary of State for Work and Pensions, Liz Kendall.
Georgia Gould MP has been appointed as Minister of State. She previously served as Parliamentary Private Secretary in the Cabinet Office. Josh MacAlister OBE MP, a former teacher, has been appointed as Parliamentary Under-Secretary of State.
In conclusion, the recent cabinet reshuffle represents a pivotal moment for the UK skills agenda. While these moves bring opportunities for more integrated policy and delivery, they also present challenges. The success of these reforms will depend on effective collaboration and a sustained focus on equipping individuals with the skills necessary for today's workforce and society.
