Developing skills for competitiveness
Is our current system ‘fit for purpose’?

The Association of Accounting Technicians (AAT) fully supports the Government’s stated objective of increasing skill levels and encouraging lifelong learning to ensure the UK’s economy is competitive. However, we believe this will only be achieved by focussing on four key areas.

1. Recognition for skills-based qualifications
2. Consistency between policy and implementation
3. Reduced regulation
4. Priority funding for skills development


1. Recognition for skills-based qualifications

A strategic focus on practical skills-based qualifications, rather than non skills-based qualifications, will send a clear message that the Government’s priority is to raise the employability and effectiveness of the UK workforce. However much work is still needed to raise the profile of vocational skills-based qualifications to achieve parity of esteem with academic alternatives, and make them a real option for 14-19 year olds.

Improving the credibility of skills-based qualifications depends on ensuring that they lead to worthwhile career opportunities. The AAT has developed a popular and successful fast-track route for those holding the AAT’s NVQ level 4 qualification to become a Chartered Accountant with the Institute of Chartered Accountants in England and Wales (ICAEW). This route provides a high-quality vocational opportunity that puts holders of the AAT qualification on a par with university graduates.

2. Consistency between policy and implementation

The Government and its delivery agencies – the DfES, QCA, LSC and SSDA – must work more effectively together. Consistency between policy and implementation is vital. Where there is not clear understanding or follow-through on the rationale behind government policies at the implementation stage, the outcome is affected.

3. Reduced regulation

The focus must be on skills and outcomes, not input and process. Rigid regulation of NVQs places too much emphasis on administration, and not enough on fitness for purpose or the needs of the market. More emphasis must be given to balancing employer and learner demand with the necessary incentive for training providers to deliver qualifications.

Problems in this area are exacerbated by the overlapping regulatory regimes of the different agencies involved in quality assurance. We are not convinced that these regulatory requirements, which are costly and resource intensive, are adding value to the learner.

4. Priority funding for skills development

There is very little difference between funding for skills-based and non skills-based qualifications. Consequently there is no incentive for training providers to offer qualifications that develop skills as these come with increased regulatory requirements.

Summary

We believe that a failure to focus on the priorities outlined above will seriously undermine government policy and that, without a clear strategy, the Government will not achieve its objective of improving the UK’s skills base and economic competitiveness.