Page 26 - Regional Employment & Skills Plan

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Economic Opportunities & Policy Responses
Skill Level of the Workforce
• Percentage of absenteeism by pupils of compulsory school age in primary & secondary schools
• Percentage of population with no qualifications
• Percentage of 16-64 year olds educated to NVQ level 4 and above
Workforce Participation
• Rate of unemployment, people aged 16 -64
• Rate of economic inactivity, people aged 16 – 64 • Economic activity rate, people aged 50 and over
The WG has outlined its strategic objectives in relation to green growth through its document ‘the business of becoming a sustainable nation.’27
2.14 The Apprenticeship Levy
The levy is a UK-wide tax which applies to all UK employers with an annual ‘wages bill’ of £3 million or more.27
Understandably, concern has been expressed by employers in relation to how the levy will work and what it will mean for them. The WG remain committed to delivering its Apprenticeship Programme via the Welsh Apprenticeship provider network and has no plans to operate the voucher system currently being delivered in England.28
Research undertaken during the development of the Apprenticeship levy by the British Chambers of commerce outlined a number of concerns regarding the implementation of the levy and the likely impact. Of particular concern was the limited number of respondents who said that it would have a positive impact on their business. This included ‘11% who say the reforms will increase their recruitment of apprentices, 5% say it will have a positive impact on their wider training budget and 11% say it will improve the quality of vocational training in the sector.’29
2.15 The Political Landscape
The political and policy landscape across Wales and the UK is increasingly dynamic with significant areas of policy divergence across the UK and the devolved administrations of Wales. This includes the significant decision undertaken by the nation in June 2016 to vote to leave the European Union as well as a period of political uncertainty. Within the skills policy area there has been an increasing amount of divergence between the policies of the respective governments of the UK, in particular between the policy for skills in England and within Wales, creating significant challenges for companies with cross border businesses.
The WG has developed a number of policy responses to the skills challenges being faced in Wales. These have included two high profile reviews into the post compulsory education system (Hazelkorn review) and into student financing (Diamond Review) alongside the development of new policy interventions.
The WG’s response to Professor Hazelkorn’s review outlined the development of a single strategic body to provide oversight of the post- compulsory education sector. It is intended that this new body will be given responsibility over planning, funding, contracting, ensuring quality, financial monitoring, audit and performance, and be the lead funder of research.
27 The business of becoming a sustainable nation – Welsh Government - 2016
28 https://businesswales.gov.wales/skillsgateway/apprenticeship-levy
29 Businesses in the dark about the apprenticeship levy – British Chambers of Commerce – 2016
http://www.britishchambers.org.uk/Workforce%20Survey%20Infographic%20-%20Apprenticeships.pdf
Regional Employment & Skills Plan South West & Mid Wales Policy Context