Tag Archives: BIS

Improving basic skills levels in England

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by Stacey Dingwall

At the end of last month, the OECD published its review of adult skills in England, Building Skills for All. The review was commissioned by the Department for Business Innovation and Skills (BIS) after a 2013 Survey of Adult Skills in 24 OECD countries ranked England at 22nd and 21st in terms of young adults’ (aged 16-24) levels of literacy and numeracy respectively. For all adults (aged 16-65), the country was ranked in 11th position for literacy, and 17th for numeracy.

England’s skills levels reviewed

The latest review produced similar results, estimating that there are around nine million adults of working age in England with low levels of numeracy and/or literacy. This represents more than a quarter of adults aged 16-65 in the country. The lower levels of basic skills among young people are also noted again: while older adults (aged 55-65) in England have basic skills levels broadly similar to their peers in other OECD countries, the same cannot be said for younger adults. As the older generation reaches retirement age, this obviously raises concerns over the skills levels of the current and future workforce.

The findings prompted the OECD to recommend that as universities in England are “failing to develop quite basic skills” among their students, some students would be better suited to enrolling in further, as opposed to higher, education. If universities didn’t allow students to enrol without at least a GCSE C grade in maths, for example, or graduate without achieving a reasonable level of basic skills, the think tank believes that this would allow a rebalancing of the country’s education system, by targeting resources in areas where they are best suited.

Who or what is to blame?

Higher education bodies did not agree with this assessment of the current system, contending that the survey involved too small of a sample of students to support such a large reform. However, research conducted with employers on their experiences of recruiting young people has found evidence of a basic skills issue. Surveys carried out by the CIPD and Education and Training Foundation both heard from employers who were particularly concerned about young employees’ (current and potential) literacy and numeracy skills, as well as their ability to communicate in a professional manner, i.e. not in text speak.

Following the publication of the OECD’s 2013 report, the president of the International Council for Adult Education, Alan Tuckett, blamed England’s poor results on constant changes to the curriculum, arguing that this had distracted attention from adult education. He argued that there needed to be more investment in lifelong learning, highlighting that South Korea had achieved second place in the rankings, following such an investment. The country enacted its second Lifelong Education Act in 2007, defining lifelong learning as including “all types of systemic educational activities other than traditional school education”, including basic adult literacy.

Despite Tuckett’s criticism, the 2015 OECD review concludes that while it is still too early to evaluate the success of the government’s education reforms, including making maths and literacy courses a requirement in most 16-19 education, their objectives are the correct ones. In terms of funding for adults skills and education, however, recent news of a leaked memo suggesting that BIS agencies including the Skills Funding Agency are at risk of abolition due to further budget cuts is a cause for concern. It has already been confirmed that funding for the UK Commission for Employment and Skills (UKCES) is being withdrawn in 2016-17; supposedly as part of the government’s commitment to protecting core adult skills participation budgets in cash terms.

Good practice: the Citizen’s Curriculum

In 2014/15, NIACE developed the Citizen’s Curriculum approach, with the aim of ensuring that everyone is equipped with a core set of skills required for the 21st century:

  • English;
  • maths;
  • English for speakers of other languages (ESOL); and
  • digital, civic, health and financial capabilities.

The approach was piloted in 13 areas, delivered by a range of organisations including local authorities, colleges and charities. This initial phase sought to understand adults’ motivation for learning, as well as ensuring that they are being provided with opportunities for learning that are suited to their particular needs. This co-production aspect of the approach is seen as key to its success. With a particular focus on disadvantaged groups, including the homeless and ex-offenders, the pilots provided insight into what works in engaging disadvantaged learners. For example, the pilot carried out by the homeless charity St. Mungo’s Broadway found that embedding skills such as maths and English within independent living skills was particularly important, and helped to adequately prepare learners for moving on and progressing in life.

Following an impact assessment that saw 92% of participants indicate that they were motivated to progress to further learning opportunities, the second phase of the pilots was launched in October 2015. This will see previous participating organisations returning to build on their work in the previous phase, alongside new pilots testing the approach in different settings, or with different sets of learners.

 

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Further reading: if you liked this blog post, you might also want to read our other article on STEM skills in the UK.

The UK digital economy: how can the government support digital businesses?

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By Steven McGinty

Last month, the House of Commons Business, Innovation and Skills (BIS) Committee launched an inquiry into the UK’s digital economy. Iain Wright MP, the Chair of the Committee, explained that:

“Digital technology is rapidly changing the economic landscape in which firms operate. Nothing short of a digital and tech revolution is taking place, with new entrepreneurs and business models emerging and existing businesses having to adapt quickly to keep pace.”

The inquiry will focus on three areas:

  • Government actions affecting businesses in the digital economy;
  • how to maximise the opportunities and overcome challenges in the sector;
  • how the sector can contribute to improving national productivity.

The BIS Committee is asking for submissions from those involved in the digital economy, including digital businesses and companies hoping to benefit from technology.

 Why should the government support the digital economy?

Innovate UK expect that, by 2015, the UK digital economy will account for 10% of GDP. Tech City UK report that the sector employs 1.5 million people (about 7.5% of the total workforce); although this is expected to increase by 5.4% by 2020. In 2013-2014, 15% of all the companies formed were digital businesses. Most were based outside of London (74%) and nearly all were SMEs (98%). The majority (90%) of digital companies expect revenues to grow within the next year.

Technology clusters

Technology clusters play an important role in the UK’s digital economy. There are 21 clusters across the UK, with expertise ranging from software development to marketing and advertising. The majority of digital businesses consider themselves part of a cluster (65%). Bournemouth has the fastest growing digital cluster, with a 212% increase in the number of companies formed since 2010. Its specialism is digital marketing and advertising.

This growth suggests specific focus should be given to technology clusters. Tech City UK found that a third of digital companies highlighted access to funding as a challenge, particularly outside of London and the South East.  One suggestion offered by Tech City UK is that businesses need to take advantage of European funding where possible.

Other forms of support could include: providing fast and accessible broadband; access to a pool of skilled employees; suitable workspace, particularly in the South East; and business and mentoring advice.

Digital Economy Strategy 2015-2018

At the beginning of the year, Innovate UK set out a strategy to support UK businesses in getting the most out of digital technology. It sets out five main objectives:

  • Encouraging digital innovators
  • Focusing on the user
  • Equipping the digital innovator
  • Growing infrastructure, platforms and ecosystems
  • Ensuring sustainability.

Within the strategy, actions are put forward for how these goals will be achieved. For instance, to ensure sustainability, Innovate UK would work closely with UK research councils to encourage cross-disciplinary academic collaboration and help connect it to real-world business needs. If even some progress is made with each of these objectives it would be hugely beneficial for the UK digital economy.

Innovation centres – the Digital Catapult

The Digital Catapult is a national centre that aims to accelerate the UK’s best digital ideas to the marketplace, in order to create new products, services and jobs. It was established in 2014 by Innovate UK and is based in the Knowledge Quarter in Kings Cross. There are also three local centres in the North East and Tees Valley (NETV), Brighton, and Yorkshire.

The Digital Catapult centres focus on the challenges associated with: closed organisational data; personal data; creative content; and the internet of things (IoT). The centres are involved in a number of projects, including IoTUK, which has been launched as part of a £40 million government investment in the internet of things (the use of networks to allow the exchange and collection of data from everyday objects, such as fridges). The programme aims to increase the adoption of high quality IoT technologies and services throughout business and the public sector.

Regina Moran, CEO at Fujitsu UK&I, notes that:

“The IoT has the potential to turn ideas in a hyper-connected world into fully realised digital services but it has challenges ahead and it’s encouraging to see the Government investing in its development.”

 Regulation

The Prime Minister, David Cameron, has managed to convince the European Commission (EC) to review the VAT regime for tech start-ups, arguing that it punished British entrepreneurs. The regime, which was implemented in January, forced companies to pay tax in every country they traded in rather than their headquarters. It also eliminated a £81,000 threshold for which companies have to register for VAT duty.

However, the Commission has recognised that this was adversely affecting small businesses. Therefore, measures such as the reintroduction of the VAT threshold and a single registration scheme for cross-border taxes, will be included in the Commission’s consultation.

The UK government’s approach shows a commitment to providing a competitive business environment and a single European market in digital services. It’s likely that most digital businesses would support the government’s approach.

Concluding remarks

The upcoming BIS Committee inquiry will provide an opportunity to reflect on the government’s approach so far. Although evidence confirms that the digital economy has been growing, there may be areas that the UK is failing to capitalise on. In a highly competitive globalised economy, it’s important that the UK exploits any strategic advantage, ensuring that innovative ideas are brought to the market quickly.

The inquiry will also provide an opportunity for a dialogue between the government and the private sector. This increased collaboration can only be good news for the UK’s digital businesses.

Here at Idox, we take an active interest in the future of the digital economy and eagerly await the Committee’s findings.

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Enjoy this article? Read our other recent blogs relating to the digital economy:

IDOX Plc announced on 8 October 2015 that it had acquired the UK trading arm of Reading Room Ltd. Reading Room, founded in 1996, is a digital consultancy business with a focus on delivering websites and digital services that enable its customers to make critical shifts into digital business and client engagement. It has an international reputation for its award winning and innovative approaches to strategic consultancy, design, and technical delivery.