This morning, the new Chancellor of the Exchequer, Kwasi Kwarteng, unveiled the government’s so-called ‘mini-budget’. Anything other than mini, this plan outlines the Government’s ambitions to cut taxes, target energy prices and reach 2.5% in trend growth. As was expected, Kwarteng’s statement centred around promoting economic growth through the reduction of government intervention in big business, leaving many sectors, such as education, in the dark.
For years now, learning providers in schools and colleges have been calling for a funding uplift. Last year, the government committed an additional £14 billion into primary and secondary education by 2023; however, due to the effects of the cost of living crisis, high inflation and soaring energy prices, many feel this uplift has not gone far enough to protect mainstream schools. This is particularly concerning given that the gap between private-school fees and state-school per-pupil spending in England has more than doubled over the past decade. Schools and colleges are being asked to do more and more to support our young people in their development, so the education system needs to be put on a sustainable footing through a funding uplift which accounts for inflationary costs.
Given the cost-of-living crisis and tight fiscal climate, we need to incentivise employers to invest in education and skills training. The Open University Business Barometer, which monitors the skills landscape of the UK, revealed that employers are paying a high price to ensure their organisations have the skills required to remain productive. This report found that shortfall is now costing employers an extra £6.33 billion a year in recruitment fees, inflated salaries and temporary staff training for workers hired at a lower level than intended. A report by the Learning and Work Institute, in 2019, found that the UK skills shortages will cost the country £120 billion in lost economic output by 2030. Unless meaningful action is taken, skills shortages will continue to cost the UK exponentially. The government must encourage employers to invest in education and skills training if long-term economic growth is truly at the heart of their ambitions.
Similarly, it has been a legal requirement since 2015 that young people must remain in education or training until the age of 18; however, 16-18 apprenticeship provision (for employers with over 50 staff) remains outside of government’s funding remit. Employers are not expected to pay for A level or T level training, so why should we expect them to pay for apprenticeships? 16-18 apprenticeship provision should be fully funded by the Department for Education. This would expand the training opportunities employers are able to provide to young people.
Given the growing cost of living crisis, there is no time like the present than to review apprenticeship pay. According to the low pay commission, the current National Living Wage is £9.50ph whilst apprentices can legally be paid as little as £4.81ph. This significant discrepancy in pay makes it unviable for many individuals to remain on apprenticeship programmes, particularly those from low income backgrounds. Government should seek to align apprentice pay with the National Living Wage to ensure everyone has the opportunity to train and enhance their future prospects.
Finally, we need to see greater support for the teaching workforce. The sector is experiencing a recruitment and retention crisis with one-in-six choosing to leave the classroom after only one year and an estimated 40% leaving after five years. There are multiple factors contributing to this growing issue. However, if government sought to support teachers through salary uplifts, greater learning and development provision and reducing the heavy handed accountability approach, we might see more teachers willing to stay in the profession.
You can read Edge’s response to Spending Review 2021 here.