Question to the Department for Education:

To ask the Secretary of State for Education, what steps his Department is taking to support (a) further education and (b) skills development in less economically productive regions.

This government has introduced long-term structural reforms and investment, which is designed to give people the skills they need to get good jobs and boost productivity across the country, including in less economically productive areas.

Last year HM Treasury launched a public sector productivity review which found that the department has a crucial role to play in driving up productivity in the economy as a whole. Skills are responsible for a third of productivity growth between 2001 and 2019. As a result of its efforts to drive up education standards since 2010, the department has improved pupil and learner outcomes and thus contributed to wider productivity gains. The department also contributes to wider productivity in other ways, such as through support with childcare costs that helps new parents to take up jobs that fully utilise their skills. Moreover, the education sector is one of the UK’s largest construction customers, representing around 17% of total construction output.

Last year, the government also published its Levelling Up White Paper aimed at tackling geographical inequality and skills gaps. The department’s skills mission is for 200,000 more people to successfully complete high-quality training each year in England by 2030, with 80,000 more in the lowest skilled areas. Achieving this will require strong and dynamic local leadership.

The department has committed to devolving core adult education budget (AEB) to every new area of England that wants a devolution deal by 2030. The department has already devolved over 60% of the AEB to ten areas, with new deals agreed with a further eight areas. This enables devolved authorities to use the AEB to shape education and skills provision in a way that best fits the needs of their residents and local economy, including in disadvantaged areas.

In summer 2023, 38 local skills improvement plans (LSIPs) were rolled out across all areas of the country. These employer-led, locally-owned plans have galvanised and brought together businesses, providers, local leaders and stakeholders everywhere, to help better align provision of post-16 technical education and training with local labour market needs.

In disadvantaged areas and communities, LSIPs are also supporting the identification and removal of specific local barriers. For example, in some rural areas, the LSIP has reviewed ways that local and regional stakeholders can collaborate to leverage funding to help resolve the impact of a lack of accommodation and transport on the recruitment and retention of employees, tutors and students. The department has also made it clear in statutory guidance that LSIPs should add value to relevant local strategies and effectively join-up with other parts of the local skills system, including universal credit claimants via Job Centre Plus. This will mean that any new proposed skills provision is also suitable for people who may encounter additional barriers to gaining the skills needed to fill local job vacancies and ensure all learners are able to unlock their full potential and progress in work.

The department has provided a £165 million local skills improvement fund to help respond to the skill needs identified in the LSIPs. LSIF funded projects will enable learners and employers across all areas of the country to access new innovative technology and industry standard teaching and facilities, with allocations to each area taking account of existing attainment and productivity levels. LSIF projects were announced in November 2023 and include training to plug key skills gaps identified by employers through the local skills improvement plans as priorities. Together, LSIPs and LSIF are a great tool to spread opportunity across the country and boost local economies to the benefit of all.

The department has committed to supporting freeports in England, which are special areas within the UK’s borders where different economic regulations apply aimed at stimulating growth. The department will do this through establishing linkages between key partners and freeports to strengthen the skills offer available to freeports, championing joint working between freeports, local colleges and institutes of technology and raising the profile of freeports and investment zones, when established, with relevant provider sector bodies.