Setting the skills sector stage for the next twenty yearsIn this exclusive article to mark FE News’ 20th anniversary, AELP’s Paul Warner warns of the serious situation the skills sector finds itself in right now and outlines the urgent need for action to ensure we have the sustainable skills system the country needs.A huge congratulations must go to FE News on their 20 th anniversary. It’s a considerable feat to have lasted 20 years in a media environment where many bigger organisations have ceased trading over that period, and it is well worthy of celebration!AELP URGES IMMEDIATE GOVERNMENT ACTION TO PRESERVE THE SKILLS SECTORAELP and our members are certainly extremely grateful for the vital role FE News has played over the last two decades in shining a light on the skills sector . It’s true to say the skills system, like FE News itself, has developed significantly over the last 20 years. Countless people have benefited from training that has seen them launch or relaunch their careers, and many of the jobs people train for today simply didn’t exist twenty years ago. With the rise of AI , it’s safe to say that in two decades’ time there will be a whole swathe of jobs we can’t even imagine today. Many of these new roles will provide real opportunities for the skills sector to develop. However, we’re now at a vital crossroads and we’ll need significant government action if we’re to see the skills system survive as we know it.Across society we are seeing the impact high inflation rates are having and, earlier this summer, we launched the AELP “Save Our Skills System” campaign highlighting the serious situation the skills sector finds itself in right now. This came on the back of yet another major training provider announcing in July that it was facing significant financial difficulties. Driving this dire situation is those rising costs that all businesses are impacted by, but given the large proportion of funding that training providers receive comes directly from government sources, without uplifts the skills sector is extremely vulnerable to high inflation rates – and, quite frankly, the government have been far too slow to act.Analysis carried out by AELP over the summer shows that over the past three years the skills sector has been short-changed by over £1 billion, caused not least through HM Treasury not allocating the increased Apprenticeship Levy take to the apprenticeship programme budget. This is obviously a huge figure and is expected to continue over the next two years. On top of that there have been a number of issues affecting the sector that have made life difficult for providers including the removal of 16-18 Traineeship contracts from July 2023; delays to the non-devolved ESFA adult education budget (AEB) procurement process; whilst all the time vital suppliers in the sector (such as end point assessment organisations and awarding organisations) are experiencing their own cost increases which are passed on to providers to absorb.All these issues are mounting up and means the need for intervention is urgent.THAT’S WHY TO SAVE OUR SKILLS SYSTEM, AELP IS CALLING FOR:- Immediate support for apprenticeship providers with an across-the-board uplift of 10% in funding for all apprenticeship standards; raising the maximum government contribution above the current £27,000 cap and introducing a minimum government contribution of £5,000 per year across all apprenticeships.- A long-term plan to stabilise the skills sector, through a sustainable and integrated National Skills Strategy that identifies and properly funds the country’s skills needs.On the back of this call, AELP has launched a survey to gain further insight into the supply of apprenticeship standards and how this is being impacted by providers’ financial health – we’ll be publishing the results of this shortly.Furthermore, our open letter to the Secretary of State, the Rt Hon Gillian Keegan MP, has attracted significant support across the skills se...

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