A Cinderella story on skills devolution

By Cllr Teresa O’Neill | 16 November 2016

The skills sector is the Cinderella of London’s education system. While 80% of London’s schools are rated good or outstanding by Ofsted and the capital is home to world class universities such as Imperial College and Central St Martins, the skills sector needs urgent reform.

Waving a magic wand won’t deliver the improvements we want to see, but devolving responsibilities and budgets to London would go a long way towards reshaping our skills system so that it works for all Londoners.

That is why London borough leaders and mayors, along with the mayor of London, are negotiating a skills devolution deal with the Government.

London’s proposals are more ambitious than skills devolution deals negotiated with other cities because the capital’s challenges are unlike those faced anywhere else.

The number of job vacancies linked to skills shortages in London is unacceptably high – there were 37,000 in 2015, an increase of 23,000 since 2011.

During the last 40 years, London’s economy has shifted to rely more and more on the services industry, which has generated demand for highly skilled labour.

In 2014, 58% of jobs in London were held by people with degree level qualifications and this is expected to rise to 68% by 2036.

Yet only 49% of Londoners have a degree-level qualification. This comes as no surprise when 84% of accredited skills provision at colleges, sixth forms and training centres in the capital only offer qualifications up to Level 2, equivalent to a good GCSE.

It is high time that we create an efficient skills system that is responsive to the needs of London’s businesses and helps students achieve higher qualifications.

London Councils believes any skills devolution deal for London must allow the boroughs and the mayor to set outcomes and incentives for the whole skills system that reflect London’s economic priorities.

This would include influencing 16-18 education provision in the capital and working with government and businesses to ensure that good use is made of the forthcoming apprenticeship levy.

We want to increase the number of people starting higher level apprenticeships, build capacity within small businesses and work with employers to identify gaps in apprenticeship standards.

The capital also needs to have policy and commissioning freedom over adult provision, informed by engaging with employers and aligned with local services and funding.

This would provide better support for the most vulnerable students, helping them to gain higher qualifications and pursue employment.

This skills devolution deal also presents an opportunity to establish a coherent all-age careers information, advice and guidance service for London, accessed through a single portal that provides impartial, independent and personalised careers education.

In a post-Brexit world, strengthening London’s local skills base is just as important as tapping into talent from across the globe.

We might not have a fairy godmother on our side but central government support for skills devolution would be more than enough to help this Cinderella sector deliver a brighter and more successful future for Londoners keen to contribute to the capital’s thriving economy.

Cllr Teresa O’Neill OBE is London Councils’ executive member for devolution and public service reform

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