Professor David Eastwood

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Professor David Eastwood Chief Executive Higher
Education Funding Council for England FDF
Conference
The implications of the Leitch report 10 July
2007
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World class economic ambitionThe Prize
The Review has concluded that the UK must commit
itself to a world class skills base in order to
secure prosperity and fairness in the new global
economy. The Prize

• Economic prosperity
• Increased social justice
• Driven by
• Increased productivity
• Improved employment.

Final report of Leitch Review Prosperity for
all in the global economy Executive Summary
pages 14-16
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The Leitch challenge for HE
World class high skills, exceeding 40 of the
adult population qualified to Level 4 and above.

• Encompass the whole working age population
• Shared responsibility for funding growth
  employers, individuals and the Government
• Focus on economically valuable skills
• Demand-led rather than centrally planned
• Adaptive and responsive to market needs
• Building on existing structures.

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The economic contribution of HE
UK higher education is worth 45 billion to the
economy on a public investment of 15 billion

• Income in 2005-06 from
• Collaborative research - 440m
• Contract research - 555m
• Consultancy - 200m
• CPD - 335m

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The unique contribution of HE to workforce
development
A thinking, educated workforce - working
intelligently

• HE can meet the needs of employers for
• High level generic skills communication problem
  solving, creativity, insight, methods of enquiry
  etc
• High level knowledge based skills and competences
  and the ability to apply them.

Dr Marilyn Wedgewood Report to DfES Employer
Engagement-Barriers and Facilitators
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HE already a major supplier of economically
valuable workforce

• Preparing undergraduates for the world of work
  high levels of employability and rates of return
• Excellent post-graduate provision
• Continuing growth in commercially funded CPD
• Long history of collaboration with Professional
  Bodies, now including SSCs
• Research and Knowledge Transfer.

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FDs and fdf have led the way in Employer
collaboration with HE

• SSC collaborative projects, including Cogent,
  Summit, GO Skills, LLUK Skillsmart and others
• Joint projects with major employers across the
  range of skills and qualification levels
• Development of employer-led consortia, including
  rail, utilities, aircraft maintenance and
  bio-pharmacy
• Partnership with British Chambers of Commerce
  now 8 SME focused projects
• Innovation in accreditation of in-house training
  and qualification frameworks

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Wider HE sector response
Engaging with employers on skills is an
increasingly familiar task and over the past year
or so the sector has achieved much with HEFCE
support

• Growth in third stream activity
• Third stream second mission pilots
• Higher Level Skills Pathfinders
• Employer Engagement pilots
• 28 LLNs, many with an employer focus
• New flexibility in funding and risk sharing.

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But there is a new challenge Around 12 million
people in work, most of whom wont progress to HE
unless we innovate
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Meeting the challenge
HEFCE 2007 grant letter

• 5,000 employer co-funded places in 2008-09
• At least 5,000 per year growth in following
  years
• Build capacity to respond to the Leitch Report
• Increase Foundation Degree enrolments to 100,000
  by 2010 .

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Meeting the challenge
Growing the new market of employer co-funded
provision for people in work who may otherwise
never experience HE

• Part-time and short course accredited
  modules/units
• APEL, progression and credit accumulation
• Validation of employer in-house training and
  shared delivery with employers
• Innovation in teaching and learning delivery.

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HE transforming workforce development programme
Action research, to test employer market for
higher skills and HE response to supplying it,
together with building new capacity and
capability in the HE sector

• HE provider projects
• High Level Skills Pathfinders
• Sector skills development projects
• Foundation Degree growth
• Strategy and funding development for next SR
• Communications to drive change amongst employers
  and HE providers

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fdf will be an important partner in taking this
forward

• Welcome fdfs substantial increased investment in
  new FD projects this year more than 2.8m
• Welcome the innovative approaches being taken by
  fdf in collaboration with HE providers, SSCs and
  other key partners
• Delighted that I am able to confirm that we will
  be working with fdf to refine its continuing
  remit to 2010-11

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It will be a joint effort

• Understanding and managing the higher levels of
  risk associated with growing employer engagement
• Removing the barriers and creating enablers,
  where we can, in rules, systems and processes
• Creating the environment in which innovation in
  provision can thrive.

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To finish as we started
In the 21st century our natural resource is our
people and their potential is both untapped and
vast. Skills will unlock that potential. The
prize for our country will be enormous higher
productivity, the creation of wealth and social
justice.
Foreword to Final report of Leitch Review
Prosperity for all in the global economy