The Scottish Government

Scottish Employers need to have access to people with the right skills to do the job. Individuals need to have access to the right kinds of training to help them to remain and flourish in work. The way that these skills are acquired and developed needs to be closely aligned to demand, both from individual employers and the broader labour market.

In 2007 we set out our ambitions and guiding principles for skills in Scotland, which remain valid today.

A key ambition for us then, as now, was to create a fully cohesive learning system that is clearly understood and accessible by all. This means long term, strategic change and we are still on the journey towards achieving this. However, we have already taken a number of significant steps to make sure that all our key agencies are working in complementary manner towards the same overall objectives. These show how skills is at the top of this Government's strategic agenda and is woven into everything that we are seeking to achieve:

• With the skills strategy, we have set out our philosophy for what skills can achieve for Scotland. This has provided all of those involved with the delivery of learning and skills in Scotland with a strong base to work from. This is the first strategy to focus on skills that has been produced in Scotland since devolution;
• We have developed and launched a national performance framework, which gives shape and direction to our ambitions for Scotland. This does not prescribe how we want our agencies to go about achieving our aims, but is a clear reflection of what we all need to achieve to make our visions of an economically sustainable Scotland a reality. This is the first time that Scotland has had a unifying strategic framework to drive activity;
• We have created a Strategic Forum, which brings together Skills Development Scotland, Scottish Enterprise, Highlands and islands Enterprise, VisitScotland and the Scottish Funding Council. This is the first time since devolution that agencies leading on skills and economic development have been able to come together to discuss how best to progress their agendas in complementary way;
• We have created a Council of Economic Advisers who have been able to offer a range of insights on our skills plans. This is the first time Scotland has been able to listen to and act on the expertise of internationally renowned experts;
• We have created an employer led National Economic Forum which has led on skills at their initial meetings and will continue to do so. This is the first time that corporate and public Scotland has been able to come together to discuss skills firmly in the context of economic development.
• We are seeking to make the Scottish Funding Council's Skills Committee into a committee that is jointly led by the Scottish Funding Council and Skills Development Scotland. This is the first time Scotland will have had a jointly managed, strategic level committee who will have a direct influence on how best to drive forward skills in post school settings.

Realising our ambitions will take more than a cohesive system however. We will also need to have:

• a system that is smart about developing and deploying the right skills interventions in the right place and at the right time;
• a range of different types of intervention at our disposal, that are tailored to specific needs and that are delivered by the right agents in the right environment;
• a funding model that supports a more agile delivery; and
• an ability to be able to mobilise our resources quickly and effectively in order to respond to the skills and employment needs of a workforce that is feeling the effects of the current economic situation.

In the following section, you will find information on new activities and approaches that we and our partner organisations will take in going forward on the delivery of improved skills for Scotland.

OUR ECONOMIC RESPONSE

We are working to ensure that our investment in skills can make a strong contribution to Scotland's long term economic health. In addition to this however, we have immediate economic needs that must be addressed quickly and comprehensively. Some of the action that we are taking is highlighted below.

Partnership for Continuing Action on Employment (PACE)

PACE was set up in 2000 to provide support to employees when an organisation announces redundancies, with one of its key tasks being to identify, early on, ways of helping companies facing financial difficulties to minimise job losses and last year PACE teams helped more than 70 companies, employing 7200 people who were at risk of redundancy. In recent months, teams have been active across the country in responding to redundancies in a range of companies.

A PACE Summit on 9 February brought together those involved in delivering PACE support to share best practice and consider how the service can be further improved. A report of the Summit was published on 1 April 2009 and includes a synopsis of the day and actions to take forward to further enhance the operation of PACE.

The key outcome from the Summit was that the Scottish Government would establish a PACE Partnership as a high level strategic group comprising all agencies with an interest in PACE. The remit of the PACE Partnership is to look at ways of making the service more flexible and effective. The first meeting took place on 23 June 2009 when member organisations signed up to the PACE Partnership Protocol. An action plan was approved which will be taken forward through six workstreams with the following key areas for consideration:

• Promoting and communicating PACE services
• Improving the organisation of PACE at a local and regional level
• Developing those involved in providing PACE support so that they are aware of the full range of support available
• Improving and sharing intelligence amongst key partners.

Time Scales

In progress

Strategic Use of European Structural Funding

Scotland has gained much from the European Structural Funds programmes over the years and they remain a significant source of funding for activity that makes a contribution towards sustainable growth in the size and skills of the Scottish workforce.

We have front loaded spending on the 2007-2013 programmes and to date, we have announced almost £335million of support for 472 projects nationwide. For the European Social Fund the total allocation is divided between £14.4m from the European Social Fund (ESF) in the Highlands and Islands and £112.6m in Lowlands and Uplands Scotland (LUPS) including ESF LUPS funding of some £29m for Community Planning Partnerships (CPPs) to support partnership employability projects in the 13 eligible areas. CPPs have also received over £11m European Regional Development (ERDF) support.

A further round of funding applications will be considered in both Programme areas over the coming months. The levels of funding available in the LUPS area, in certain priorities, are fairly low. The Programme Monitoring Committee (PMC) met in May 2009 to consider a number of options for the next round to ensure that the funding is allocated wisely, at a time when the current economic crisis is putting substantial pressures on both Government spend and on the areas covered by the ESF Programme. The options considered by the PMC were based around the findings of an independent review of the use of the 2007-2013 European Structural Funds in the LUPS area which was undertaken by Fraser Associates earlier in 2009. The report concluded that the European Structural fund Programmes - ERDF and ESF - are aligned well with the Government Economic Strategy and both programmes are contributing to delivering sustainable economic growth over the medium term, along with other public and private funding streams. The report also noted that the front loading of both ESF and ERDF has been useful but more targeted use could now be made of the remaining funding.

Further information on the projects and outcomes from the next funding round will be available in March/ April 2010.

MAKING SKILLS WORK FOR SCOTLAND

In 2007, we stated that it was our intention to seek a clear economic payback from our investment in skills.

To achieve this we needed to take a broad approach that comprised a range of activity including encouraging employer demand for skills, listening to employers, improving how skills are used in the workplace, improving employer access to Information, Advice and Guidance, training and support and ensuring that our National Training Programmes meet the needs of both individuals and employers.

Since then, we have been working with all our providers to enable them to deliver on these aims.

Flexible Skills Interventions

In Skills for Scotland, we made it clear that our approach to funding is not driven by targets but by the needs of employers, individuals and the wider economy, and it is this philosophy of flexibility and need which will continue to underpin our approach going forward.

Building on the strengths of the National Training Programmes (Training for Work, Get Ready for Work and Modern Apprenticeships), we have asked SDS to consider its funding methods with a view to delivering flexible and responsive provision that meets the demands of industry and employees. It is the intention to move towards a system that promotes improved articulation and addresses needs with the right types of interventions that are co-created with employers, employees and young people. In practice this may mean a move away from a structured suite of "one size fits all" programmes towards a tool box of skills interventions that can be configured, funded and delivered in a way that will meet needs and support growth. This does not mean a dilution of service or quality but rather a widening of choice for both employers and employees.

This will deliver:

• The right skills interventions that are maximized to suit local, individual and employer needs.

Time Scales

In progress.

Modern Apprenticeships (MA)

ScotAction is an integrated package combining new and improved measures to help individuals and businesses through the recession and will provide skills assistance - including wage subsidies in some circumstances - for training for work, training in work and training from work to work to help Scottish people and businesses survive the downturn and thrive when the economy starts to recover. Phase One of ScotAction is our 'Adopt An Apprentice' Scheme in which employers will be paid up to £2000 to recruit a redundant apprentice. This is a key aspect of delivering on the Scottish Government's guarantee to apprentices to find them alternative employment to enable them to complete their Modern Apprenticeship.

'Adopt An Apprentice' is a £1.7 million initiative, supported by the European Social Fund, which will help 575 redundant apprentices. This scheme is open to all ages of apprentice and all sectors. As a result of this initiative there is the potential for all apprentices across Scotland to be given the opportunity to complete their training.

• 18,500 apprentice places in 2009/10
• An increased number of Level 2 MAs
• 100 "2 for 1" Life Science apprenticeships (50 free)
• 170 early years apprenticeships
• an additional 500 all-age apprentices in the hospitality and tourism sector

Time Scales:

In Progress

Workforce Plus

"Workforce Plus - an employability framework for Scotland" supports action at a local level to increase the number of people in sustained employment and reduce the number of people dependant on benefits. To date, there are 26 Employability Partnerships working in local areas to achieve shared objectives in terms of outcomes and a managed local infrastructure.

There are 2 groups which support the development of employability across Scotland.

The National Delivery Group (NDG) focuses on supporting local areas to develop their employability 'offer' for individuals and has, among other things, developed an Employability Learning Network to create a resource for all those engaged in employability work. This is facilitated by the Scottish Government and has proved a useful collaboration to resolve issues and to highlight good practice. The NDG consists of 'employability leads' from across Scotland

The Scottish Employability Forum (SEF) has reviewed its remit to ensure that its considerations remain fit for the economic challenges that we face. It will oversee a fresh analysis of targets and review what impact we have made. It will consider what additional or revised policy and funding tools might be necessary to ensure that we can be flexible as the challenges that we face change rapidly in the current economic climate.

We are aware that the funding and policy framework on offer can appear complex and difficult to understand. Also, some aspects of policy are the responsibility of the UK government, whilst others are devolved in part, or fully. The SEF is reviewing what is on offer in Scotland for individuals and employers and ensure that there is a clearer picture of "the offer" and communicate this more clearly.

Time Scales

In progress

Improved Skills Services for Employers

We have asked SDS to look at how best to deliver information, advice and guidance to employers of all sizes across Scotland. We have asked in particular that they consider the specific needs of SMEs in priority sectors, with a clear focus on supporting skills development in the workplace. All activity will be developed in a way that will complement the services to business that are already offered by the Enterprise agencies and the Business Gateway programme.

This will deliver:

• Improved and streamlined access for employers to information on skills and learning, including information on available funding;

Time Scales

Starting April 09 with completion by Summer 2010

DEVELOPING POTENTIAL

16+ Learning Choices

As the economy heads into recession, labour market opportunities for school leavers and young people are likely to contract and this may mean an increase in demand for education and training places. Against this background, we continue to emphasise to local More Choices More Chances (MCMC) partnerships - and to their strategic partners, at a national level - the importance of improving the match between supply and demand. 16+ Learning Choices is bringing this issue into sharp focus.

Building the Curriculum 3 makes it clear that 16+ Learning Choices is an integral part of planning the senior phase of learning for young people. For many young people, this will be staying at school for S5 and S6; for others, it will be going to college or university, taking part in workbased learning including the Modern Apprenticeship programme, or taking part in a range of options with community or third sector providers. For this to happen effectively, three key elements - the right learning opportunities, financial support and information, advice and guidance - must come together to deliver. There are considerable challenges involved in ensuring that the model is rolled out and delivered across Scotland by December 2010 and we are already working to address these.

To support the delivery of 16+ we will:

• Develop a new model for supporting and recognising young people's learning in a community or third sector setting, following our recent consultation on 16+ Learning Choices: First Step Activity and Financial Support - with the first young people benefiting from this in June 2009
• In response to this, we will consider how best to reflect young people's participation in Community Learning and Development (CLD) as a mainstream learning activity and as a positive destination in the context of our National Performance framework indicator on positive and sustained destinations for school leavers;
• Provide long-term funding and other support to a portfolio of 24 third sector organisations who are actively engaged and ready to deliver through Inspiring Scotland;

Time Scales:

Ongoing with full roll out by December 2010

Higher Education Futures

This is a period of change, challenge and significant opportunity for higher education. Over the next 5 - 10 years the changing shape of our working population will become much more marked and the pool of young potential entrants to high level study will reduce considerably.

The report of the Joint Future Thinking Taskforce on Universities ,New Horizons, sets out a vision of a dynamic Scottish Higher Education (HE) sector, recognised as having a crucial role to play in Scotland's future economic and social success. New Horizons sets out a new approach to funding and a new relationship between the Scottish Funding Council and individual Higher Education Institutions (HEIs).

Delivering increased flexibility in provision, improved responsiveness to learner needs and employer demand and enhancing HE's strategic contribution to our economic performance are all central strands within the new approach. Getting the right balance between full-time and part-time learning and extending the range of part-time and flexible learning opportunities available will be crucial.

Universities and colleges are already planning ahead and understand the need to respond to these trends. Future HE funding will develop a new approach to delivering shared economic and social goals and outcomes and will open up increased flexibility for individual HEIs to shape and focus their high skills offering to best meet evolving learner and employer needs, including part-time provision where that is most appropriate.

This Will Deliver:

• a new set of relationships between the Government, the Funding Council and the universities, encapsulated in a different and more innovative approach to the funding of higher education which will start to be implemented from academic year 09/10.
• activity that is supported through the Horizon Fund to demonstrate how Government funded HE activity will respond better to the needs of students and the economy.

Timescales

In progress

INFORMATION ADVICE AND GUIDANCE

In 2007 we said that "To achieve our vision for skills it is not enough just to provide high quality training and learning and to stimulate jobs growth, we must also encourage and support individuals to access learning and employment.

We need a support infrastructure for the 21st century that targets services at those who need most help and to smaller workplaces, which are less likely to provide training for staff. Clear information about the benefits of learning and advice on how to use learning to improve job and pay prospects encourages people into learning. We need to give the support that builds a flexible workforce and will allow people to make best use of their skills throughout their lives.

Our aim, therefore, is to strengthen the impact of this support infrastructure on the acquisition of skills through a service that gives individuals information, advice and guidance (IAG) about careers, work and employment, education and training and funding. This service will be focussed on the learner, all-age in its approach, simple to use and understand, offer value for money and be accessible to all.

A key route to achieving this lies in the commitment to "bring together the public agencies involved in delivering information, advice and guidance services and skills provision and build improvements around the needs of individuals."

Therefore, in 2008, we created and launched Skills Development Scotland (SDS) - an organisation charged with the explicit objective of providing a more streamlined skills brokerage and delivery service. SDS is there to equip individuals with the skills they need, to make skills work for employers, and to be a catalyst for real and positive change to the acquisition, development and use of skills in Scotland.

Improved access to information on learning and careers

We have asked SDS to develop and deliver new ways in which to link individuals with learning and support. This should include making best use of new technologies to improve access to information and support on skills and learning as well as developing improved person to person access to information, advice and guidance, including career development services, information on career management, support for CV writing and interview preparation.

We have also asked SDS to develop a balanced careers management service which makes best use of both technology and face to face services. Web services should be improved and optimised to enable individuals to carry out learning and skills research with signposting services by telephone and face to face available to those who need them. The aim will be to enable individuals to be as self-sufficient as possible and to learn the particular skills they need in order to manage their career and support their own future transitions.

SDS should continue to provide more intensive, targeted services for those people who may need more intensive support or who are most at risk of not sustaining their job in the labour market, particularly at a time of economic uncertainty.

This will deliver:

• Improved access to information on skills and learning;
• An enhanced web based portal for learning opportunities available in Scotland;
• Clear connections between the services offered by all skills organisations;
• A change of approach from giving advice to coaching and mentoring;
• A move towards an individually tailored service; and
• An improvement in the career management skills of individuals.

Time Scales

Starting April 09 with completion by Summer 2010

A New Integrated Employment and Skills Service (IES)

In Skills for Scotland we said that we would "work with Jobcentre Plus to integrate job and labour market information with learning information, advice and guidance to better help those wishing to learn or find a job." This commitment is moving forward rapidly and we have asked SDS to partner with Jobcentre Plus to ensure that the right support is available to adults seeking work where and when it is needed. As IES rolls out, SDS should also work with Community Planning Partners to widen its scope and to create integrated local solutions to worklessness.

This will deliver:

• A "no wrong door approach" to skills and employment services;
• A new Skills Health Check tool;
• A refreshed Training for Work to support skills development;
• Information sharing to improve customer journeys and resource planning;
• Information capture and sharing between key partners about potential redundancy situations through PACE (Partnership Action for Continuing Employment).

Time Scales

In progress

FUNDING: USING OUR RESOURCES TO DRIVE IMPROVEMENT

With an annual multi billion pound investment in skills, it is imperative that we are ambitious about what we demand in return. That has not changed since 2007. Neither has the view that we are investing in is "a broad and sustainable infrastructure for individual opportunity that should focus on the needs of individuals, employers and wider society"

A lot of headway on reforming support for learners has been made since 2007. This is taking us ever close to where we want Scotland to be: a place where the funding system is responsive to the needs of individuals, employers and the wider economy.

A key component of a mature system for funding of learning and development is flexibility and this is at the heart of the approach that SDS are taking as they currently review how best to deliver effective skills development advice and interventions.