CII warns of widening skills gap

September 4 2009

The CII (Chartered Insurance Institute) has joined with leading UK awarding body Edexcel in calling for a more transparent and accessible network of skills agencies.

The Government has acknowledged that the UK faces a skills shortage and that the United States and other European countries are better placed to develop their workforces. Current thinking suggests that by 2020 the UK will not be in the top quartile of the skills 'league table'. A recent survey of CII members found that nearly half felt that if we carry on as we are, the UK will be left trailing by our competitors.

Although some positive progress has been made the fact remains that other countries are moving faster than the UK and thus in relative terms we are falling behind in some areas. Four in ten CII members feel that the UK has already slipped behind other countries in terms of skill levels. This is of particular concern given that those countries with skilled workforces are expected to recover earlier from the impact of the current global recession.

A new paper published by the CII , "Progress on the skills agenda: Are we making enough?" looks at the efforts being made to realise the recommendations of the 2006 Leitch Report.

Steve Besley, author of the paper and head of policy at Edexcel added: "Unfortunately due to the economic climate and the subsequent tightening of public spending, progress in this area has been painfully slow. The Leitch Report was commissioned by the then Chancellor, Gordon Brown, and recommended a range of reforms aimed at raising employee skill levels and better positioning the UK to meet the challenges of a global market economy. The current work being undertaken in the focussing of the skills arena remains very welcome but we need to accelerate these changes if the goals of the Leitch report are to be realised. Against such a competitive financial and economic landscape it is imperative that tackling the skills gap remains high on the political agenda."

Caspar Bartington, higher and further education manager at the CII, said: "There are around 60 different organisations tasked with improving skill levels. Such a diverse range of providers is, in part, due to the continuous introduction of new agencies and departments without the removal of ineffective or replaced agencies

"A simpler and more accessible framework of suppliers would allow employers to gain more funding and tackle the skills gap, not least in the financial services sector, where consumers have clearly articulated a desire for greater levels of CPD and training. Until such time as the current system has been overhauled and there is a clearer understanding of the skills landscape we remain happy to work with employers to help them access the available training and any associated funding."

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