BELFAST MET – WRITTEN EVIDENCE (YUN0004)

Youth Unemployment Committee Inquiry

Submitted by Louise Warde Hunter, CEO and Principal of Belfast Met on behalf of the College.

Authors: Louise Warde Hunter, Damian Duffy, Louise Horner, Aidan Sloane and Isaac May.

Summary

1. Belfast Met, as one of the largest Further Education Colleges in Northern Ireland (NI), has a crucial role to play in tackling youth unemployment, through the provision of a range of programmes to help people get a range of qualifications, skills and work experience.
2. NI faces high rates of unemployment and economic inactivity, particularly for young people. The pandemic has exacerbated this problem, mainly because of the sectors they work in being hardest hit by social distancing and as a consequence of the response of many employers, who were able to avail of the furlough scheme.
3. The increasing pace of the impact of technology across a range of sectors is leading to situation where even traditional trades require an enhanced level of digital skills. There remains a stock of people in and entering the labour market who are not educated, and with skills, to the necessary standard. There is an undersupply of skills at levels 3-5 in NI. The narrative, funding and level of enrolments onto Apprenticeship programmes has improved but there is still some way to go to position apprenticeships as a viable pathway for many learners.
4. Compared to England, Scotland and Wales, spending on education and skills is lowest in NI, relative to total spending. Transparency regarding the overall funding for education, training and skills in NI needs to be improved to facilitate better decision making. Colleges and Secondary schools should be jointly funded to support the development and delivery of vocational programmes in schools, in colleges and in partnerships. An NI educational system structured in a way that incentivises people to consider (and choose) the options offered by the best education and training provider – and for FE Colleges to be seen as an equally good option – requires both policy and cultural change. Colleges face, and will continue to face, a reputational deficit compared to Universities, reflective of the valuing of academic over vocational learning.
5. FE Colleges, such as Belfast Met, are developing a more structured dialogue with employers to identify the skills needs of employers and of the economy. We also need closer partnerships between FE and Higher Education.
6. Promoting the role of apprenticeships in terms of how they improve the employability of young people and prepare them for the jobs that employers and wider society need is key. It makes good sense for employers to recruit young people creating new apprenticeship opportunities that will enhance their workforce. The NI executive need to continue to provide financial incentives to employers to offer and keep apprentices, beyond the lifetime of the pandemic. Levy Funding in NI has not delivered any benefits.
7. Short term projects of less than 2 years are not a workable model for youth labour market interventions. Another pre-requisite is accessible careers advice and guidance, which orientate young people towards additional sources of information and advice.
8. In NI, with sufficient reform of entry level – level 1, level 2 traineeship existing level 3 apprenticeship frameworks, to enable young people to progress into Higher Level Apprenticeships - there are employment opportunities in NI across engineering, agri-food, health and social care, business services, tourism and hospitality.
9. In NI, 13.9% of all people aged 16-24 are Not in Education, Employment or Training (NEET), the second highest region in the UK. As an FE College, we see the main challenge facing young people in seeking employment as accessing the right educational opportunities at all levels and ensuring they are ‘work-ready’. This means helping all young people, both to acquire the formal qualifications they need, with some element of work-based learning, and  to develop the softer skills e.g around communication and preparedness for work.

About Belfast Met

1. This is a response from Belfast Met. We are a Further Education (FE) College and a Non-Departmental Public Body of the Department for the Economy (DfE) in Northern Ireland (NI). We provide education and training for approximately 14,000 learners from skills levels 0-7. This includes Essential Skills in IT, Maths and English, English as a Second Language, GSCEs, A levels, FE and Higher Education (HE) courses, Traineeship and Apprenticeships. We provide business support to employers, including delivering Graduate employability with key partners such as PwC, Deloittes, KMPG and Microsoft. 62.1% of our learners (6,392 learners) are 16-24 years old.

Why are we submitting evidence?

2. We are submitting evidence to this inquiry because, as an FE College, we have a dual role in supporting economic growth (i.e. through the acquisition of skills for those entering or in the labour market) and promoting social inclusion (i.e. helping those furthest from the labour market). This role is now more critical than ever, as we enter the period of economic recovery and renewal. FE Colleges are pivotal to building a resilient and responsive skills system, alongside and in partnership with our Schools and Universities, creating opportunities for learners aged 16-24 (and indeed over 25) so they can advance in the labour market. A key objective is to ensure that the College is recognised and resourced by the UK Government and NI Executive so that learners and employers in the wider Belfast Region have the right skills to meet the future needs of individuals and the NI economy. In addition to the core education and skills programmes the College is also committed to an inclusive approach to youth engagement and uses ESF and PEACE programmes to broaden the options for connection with the most disadvantaged and disconnected young people and adults across society.

What are the main challenges facing employers in the labour market today? What barriers do they face in recruiting young workers and setting up apprenticeships and traineeships?

3. Prior to the pandemic, NI was enjoying buoyant labour market, with low rates of unemployment, although it experiences a persistently high rate of economic inactivity and higher levels  of youth unemployment compared to other parts of the UK. As in other parts of the UK, young people have been disproportionately affected by unemployment, mainly because of the sectors they work in being hardest hit by social distancing and as a consequence of the response of many employers, who were in a position to avail of the furlough scheme.

4. Prior to the pandemic, barriers in terms of recruiting young people and setting up apprenticeships and traineeships include
• Challenges in attracting young people to particular occupations, for example regulated health and social care areas where employers required more experience or traditional trades where working environments were more challenging for young people;
• Lower levels of employer recruitment across the full range of apprenticeships with a tendency to focus on engineering, tourism hospitality and health and social care;
• Difficulties which larger employers faced in NI in not being able to use apprenticeship levy money;
• Number of apprenticeship frameworks (standards) in NI were outdated and the range of apprenticeship pathways for young people were fewer compared to their counterparts in the UK.

What future social, economic and technological changes are likely to impact youth unemployment? What impact might these changes have, and how should this be planned for and addressed?

5. The increasing pace of the impact of technology across a range of sectors is leading to situation where even traditional trades require an enhanced level of digital skills. The risk is that those young people and indeed the SMEs they work for are distanced from the new employment opportunities moving forward and that FE Colleges fail to keep pace with the changing needed in digital and technology skills. Demand for digital skills is not limited to those sectors associated with the digital industry, employer skills surveys has identified the scale of digital skills challenges across the economy, key findings indicated that nearly 25% of job applicants lacked advanced IT skills and 20% lacked basic IT skills[1].  For those in the existing workforce it was highlighted that for those require upskilling 42% require basic IT skills, whilst 31% require advanced or specialist ICT skills.

6. There remains a stock of people in and entering the labour market who are not educated, and with skills, to the necessary standard. In NI, the proportion of school leavers achieving at least five GCSEs at grades A* - C or equivalent has increased by 7.8% from five years ago, from 78.6% in 2013/14 to 86.4% in 2018/19. Although an improvement, this still means that just under 15% of school leavers do not achieve the necessary standards. The proportion of school leavers achieving three or more A-levels at grades A* - C or equivalent was 41.0% in 2018/19, an increase of 4.0 percentage points from five years ago (37.0% in 2013/14)[2]. FE Colleges such as Belfast Met therefore have to redress the failings of the school system through the provision of education up to level 2, which represents additional costs to the overall education system.

7. There is an undersupply of skills at levels 3-5 in NI. UUEPC’s Skills Barometer (2019) demonstrates that there is an undersupply of those qualified at levels 3-5, but particularly at level 3 (i.e. A level equivalent). Over the next 10 years, 26,300 job opportunities will become available each year, which will have to be filled from the education system and migration[3]. Skills at level 3 (and then levels 4 and 5) are the most under-supplied, at 2020 per annum. An expansion of provision at level 3, and which FE Colleges are well placed to deliver is required. Despite the current and projected deficit in skills at these levels, there is no clear plan from the Executive and the DfE in unlocking and meeting demand at the right levels. The Skills Strategy for NI, due this year, is eagerly awaited.

8. The narrative, funding and level of enrolments onto Apprenticeship programmes has improved, there is still some way to go to position apprenticeships as a viable pathway for many learners Between the commencement of the programme and 2018/19 (up to October 2019), 37,277 participants started ApprenticeshipsNI 2013/2017. Of this total, 46% have been targeted at Level 2, 10% at Level 2/3 and 43% at Level 3[4]. As a model for delivering at level 3, there is some way to go in promoting and expanding Apprenticeships, and encouraging school leavers to choose this route over going to University

Is funding for education, training and skills enough to meet the needs of young people and of the labour market? How can we ensure it continues to reach those who need it most?

9. Compared to England, Scotland and Wales, spending on education and skills is lowest in NI, relative to total spending.  According to Department for Economy analysis linked to the new SkillsNI strategy NI funding for skills related interventions has decreased by  24% over the period 2011 – 2019 representing a reduction of at least £188 million. In addition, NI has also suffered from entrenched challenges when it comes to skills related metrics:
• Highest levels of economic inactivity compared to any other part of the UK;
• Lower levels of funding for apprenticeship programmes including Higher Level Apprenticeship programmes;
• More people in the labour market with no skills;
• Lowest levels of productivity of any UK region.

10. The combination of these issues in terms of investment in education and skills have continued to push NI lower down the European competitive league table with the potential for this situation to be further exacerbated because of BREXIT.

11. Belfast’s Met’s income from DfE has been static over last 5 years (around £32m), with more income from other sources e.g European Social Funds A lack of certainty over the allocation of Shared Prosperity creates a risk that a substantial number of the most disadvantaged young people who actively participate in ESF funded programmes at Entry- Level 1 in Colleges and the community and voluntary sector will be further impacted in the future. When given the chance, FE Colleges can be very responsive. For example, at Belfast Met, we were able to quickly turnaround at the start of Summer 2020 a suite of programmes across the Colleges and Universities for short-course interventions for those impacted by furlough.

12. However, transparency regarding the overall funding for education, training and skills in NI needs to be improved to facilitate better decision making. Similar data, as per that provided through the Institute of fiscal Studies Annual Report on Educational Spending in England would be of enormous benefit to stakeholders in NI. For example, over the last 10 years: 
• Total spending on further education and skills for 16-to 18-year-olds (2020-21 prices);
• Total spending on adult education and skills;
• Long-run trends in spending per student in 16-18 FE colleges and school sixth forms;
• Spending per student in further education colleges (16-18), sixth-form colleges and school sixth forms; and
• Spending per student in FE Colleges 19 and over, broken down by skills level.

13. Comparative costings for FE Colleges and schools may become available further to the DfE/DE-led 14-19 Project:Transition of Young People into Careers.

What more needs to be done to ensure parity of esteem between vocational and academic study in the jobs market and society? How can funding play a role in this?

14. Colleges and Secondary schools should be jointly funded to support the development and delivery of vocational programmes in schools, in colleges and in partnerships. This approach would support a levelling up of the conversation on the value of both pathways with schools and Colleges working in partnership. This approach would also maximise the value of capital investments being made across the FE and Schools estate and the utilisation of staff resource. The current funding model in NI effectively creates a pressure in the 14-19 space for Schools to hold on to less able learners who would be more suited to vocational pathways or, worse still, to try to attempt to poorly replicate vocational BTEC programmes in a school setting. The way forward is either clear delineation of the respective roles of schools and colleges in delivering academic and vocational programmes or closer partnerships underpinned by a funding model which encourages partnership.
15. An NI educational system structured in a way that incentivises people to consider (and choose) the options offered by the best education and training provider – and for FE Colleges to be seen as an equally good option compared to Sixth Forms and Universities – requires both policy and cultural change.  FE Colleges provide education and skills for a range of learners, assisting learners achieve a minimum acceptable standard, but at the same time, trying to achieve a gold standard in a diverse range of vocational education and skills which competes with A-levels, for example level 3 FE courses and apprenticeships and HLAs. The Colleges up-skill and re-skill the population through a broad range of courses leading to qualifications, particularly at National Qualifications Framework (NQF) and Qualifications and Credit Framework (QCF) levels 2 and 3 and equivalents.

16. As an FE College, we ‘compete’ for both funding and learners at 16-18 with schools and with each other (Level 0-3). We compete with Universities ‘for learners at 18 (Level 4+) and over who want to continue into further learning at level 4 and above. Learners at 16 and 18 can of course choose to go into employment or other activity e.g voluntary work or they may take up caring responsibilities. We compete with private and civil society providers on many aspects of workforce development and training. We compete for working people’s time and money.

17. Colleges face, and will continue to face, a reputational deficit compared to Universities. Individuals and businesses who engage with FE services rate Colleges very highly but despite this, most Northern Ireland parents’ ambitions for their children focus on the grammar school and university route, and many employers still seek their supply of labour from this pool. FE Colleges in NI are “seen as a lower status route, and, in an education system where success is still in many ways defined as academic education, FE is not a first-choice option for many school-leavers”[5] .                                                    

18. The decline in enrolments, and qualifications awarded, is in part evidence of decline in demand for places at FE Colleges. Total enrolments at FE colleges decreased by 4.8% since 2017/18 (155,510) to 148,002 in 2018/19; however. Higher Education enrolments at FE colleges have decreased by a net 8.7%, from 11,722 in 2014/15 to 10,704 in 2018/19[6]. On average, there are around 27,500 in sixth forms in NI.  21,601 people left school in 2018/19. Overall, 95.8% of school leavers were recorded by their school as entering Education, Employment or Training. 42.0% went into HEIs; 32.9% went into FE, 10.6% went into training and the remained were economically inactive (non-student)[7].

19. The expansion of HE at level 6 mitigates against the expansion of intermediate skills. Advanced primarily under the Labour Government 1997, the policy approach to HE across the UK and in NI, has been to widen access to and participation in higher education, for all to aspire to going to University to ‘do a degree’.

20. Originally the preserve of the Universities, by the 1990s, full-time HE became established in most FE colleges and part-time courses in all sixteen colleges in NI. Since the college mergers in 2007, the six regional FE Colleges deliver the vast majority of higher national certificates, diplomas and foundation degrees. Over the past 30 years, enrolments on HE courses at NI Higher Education Institutions (HEIs) have more than doubled, from 23,815 in 1989/90 to 55,755 in 2018/19. Over the 30-year period between 1988/89 and 2017/18, the number of enrolments on HE courses at NI Further Education colleges increased almost four-fold, from 3,175 to 11,848, although this fell to 10,704, a decrease of 9.7% in 18/19[8].

21. The historic decision by the DfE to ensure that FE only offered Level 4 and Level 5 qualifications and the HE organisations only offered Level 6 and above has not been sustained. NI FE Colleges offer Level 6 qualifications (validated by a number of HEIs) and NI HE organisations now offer Level 4 and Level 5 qualifications.

22. Besides the undersupply of qualifications at levels, 3 4 and 5 in NI, there is a strong case for Further Education Colleges in terms of expanding on HE programmes at skills levels 4+; and for strong institutional recognition of this aspect of provision. It appears that this is the direction of travel supported by the DfE and the FE Colleges themselves. DfE see this about ‘collaboration’ between HE and FE rather than ‘competition’, but the incentives and demarcations between the institutions need to be clear so that learners are, in turn, clear about ‘who does what’. There is always the outstanding tension between equipping people to make choices about their learning, and then finding that the labour market is still not supplied with the right people skilled in the right jobs. The role of regulating and capping the market provision in some way, as in Denmark which stops funding courses which lead to unemployed graduates, needs consideration.

What is the role of business and universities in creating a thriving jobs market for young people? How should they be involved in developing skills and training programmes at further and higher education level?

23. This question is not just about Universities, who in many cases are focused on higher level research funding and less on addressing the lower level skills and employability challenges associated with youth employment. An improved framework to support the funding and delivery of collaborative progression pathways, Foundation Degrees, Access Programmes and Higher Level Apprenticeships into Universities working with Colleges should be encouraged. University receipt of core funding for some undergraduate programmes and the delivery of their Widening Access and Participation Plans should be contingent of having defined pathways and development pipelines in place with FE Colleges jointly consulted on with employers.

24. FE Colleges, such as Belfast Met, are developing a more structured dialogue with employers to identify the skills needs of employers and of the economy. This would build on work of the Curriculum Hubs in NI, across the sectors such as Digital ICT and Tourism & Hospitality, for which Belfast Met is the lead FE College. We need to ensure that there is a structured and consistent approach to employer dialogue which helps us to drill down into the detailed needs beneath the macro-analysis contained in Skills Barometer.

25. We need to have pipeline of skills solutions which are under development over a medium to longer term. In some cases, it would not be possible to turn on skill solutions in very short timeframes to deliver new apprenticeships, a medium-term approach is desirable. For example, Belfast Met worked with employer groups in Tourism and Hospitality and Universities to agree on a new Foundation Degree for the sector.

26. We need closer partnerships between FE and Higher Education: Colleges deliver 20% of higher education programmes in Northern Ireland. Belfast Met has the highest number of HE learners in a FE setting. However, the number of students enrolled on Higher Education courses at FE colleges has decreased in recent years. This is partly a result of the ongoing drive to ‘go to University’, but also because the MASN cap for Universities has been raised. Furthermore, because Universities are now offering courses below a level 5, they are encroaching on the space inhabited by FE Colleges. There are opportunities to enhance the higher education (levels 4-5) in further education delivery. In recent years Colleges and Universities have worked very well together to develop a range of new Higher Level Apprenticeships, whilst being clear which institute is responsible for which aspect of training and accreditation.

What can be done to ensure that enough apprenticeship and traineeship placements are available for young people? Is the apprenticeship levy the right way to achieve a continuing supply of opportunities?

27. Promoting the role of apprenticeships in terms of how they improve the employability of young people and prepare them for the jobs that employers and wider society need is key. The role of work-based learning and the growth in apprenticeships in NI is evident, with almost 40,000 people having commenced their apprenticeship journey through the Apprenticeship NI programme since 2013. A clear indication that the apprenticeship pathway is now established as a valued, attractive route to develop a career. The growing profile of apprenticeships is good news. Last year, at Belfast Met, we delivered 843 Level 2/3 Apprenticeships and 146 Higher Level Apprenticeships. This year, we plan to deliver to deliver over 800 Level 2/3 Apprenticeship and over 170 Higher Level Apprenticeships.

28. Businesses provide the vital employment opportunities for those apprentices through work-based learning opportunities across a range of professional and technical areas, in partnership with colleges and other providers to ensure the provision of high quality training. It makes good sense for employers to recruit young people creating new apprenticeship opportunities that will enhance their workforce; and the Department can continue to provide financial incentives to employers to offer and keep apprentices, beyond the lifetime of the pandemic. Employers can develop their skills and talent pipeline by supporting young people through tailored and fully funded apprenticeship solutions. The result is a low risk way to sustainably build the workforce that delivers both economic and social benefits.

29. We need to galvanise ongoing apprenticeship reforms and continue to place quality at the heart of apprenticeships within our skills eco-system so the demand for apprenticeships is accelerated. We want to see a similar number of young people choose an apprenticeship pathway as those that choose to pursue higher academic education, and realise the benefit of doing so.  We also want to see employers and employees choose an apprenticeship pathway as a key access point for recruitment, talent development and workforce development.

30. Levy Funding in NI has not delivered any benefits. Regarding the levy, this does not operate in the same way as in England. NI Businesses whose wage bills exceed £3m pay 0.5%, however, unlike in England, those businesses are unable to claim the money back through government vouchers. The money which comes back in the block grant is not ringfenced in any way and is essentially lost into the education and health budgets which consume the largest parts of the block grant. Accessing the levy may help restore the link between demand and supply for apprenticeships. However, since the pandemic, the DfE have supported apprenticeships through a recovery package of financial incentives paid to employers, aimed at supporting those retain existing apprentices, and recruiting new ones.

What lessons can be learned by current and previous youth labour market policy interventions and educational approaches, both in the UK and in other countries?

31. Short term projects of less than 2 years are not workable model for youth labour market interventions. For example, a commitment to a Youth Guarantee scheme (e.g in Glasgow City Deal) where young people can access high quality education and training opportunities, with guaranteed work placement and interview, based upon local context, employment opportunities and skills needs has potential for longer term impacts.

32. Another pre-requisite is accessible careers advice and guidance, which orientate young people towards additional sources of information and advice, with effective signposting and referral pathways between education and employment providers.

33. From our Futures work at Belfast Met, there is evidence that embedding a youth work approach alongside vocational skills development focused on the personal and social development of the young person is required. Futures is a 6-month personal development programme offering young people the opportunity to develop personal, team and leadership skills to achieve a recognised Level 2 qualification and This includes robust needs analysis and development of person-centred action/progression plan. Addressing financial barriers through support for childcare, travel, interview related costs is required, but unless barriers are directly tackled, they continue to lead to young people being NEET. Employer engagement (of key staff) in the provision of meaningful work experience as well as peer learning i.e. having role models visible and accessible are also necessary elements.

What economic sectors present opportunities for sustainable, quality jobs for young people? How can we ensure these opportunities are capitalised on and that skills meet demand, particularly for green jobs?

34. In NI, with sufficient reform of entry level – level 1, level 2 traineeship existing level 3 apprenticeship frameworks with opportunities to progress into Higher Level Apprenticeships there are employment opportunities across a number of sectors engineering, agri-food, health and social care, business services, tourism and hospitality. Further work is required to better understand how to connect young people into the green jobs, advanced manufacturing and digital technology.  Insufficient attention is being paid by the high level research and development groups such as Innovate UK and UK network of Catapults to understand and develop inclusive skills pipelines which create progression pathways for young people.

35. Expanding the number and the value of traineeships at level 2 and apprenticeships at level 3, 4 and 5 is key to tackling the undersupply of skills, at level 3 and above in particular. This is important across all economic sectors, but also in key areas where NI, and Belfast in particular, is developing sectoral specialisms in the UK economy e.g. cyber security and data analytics. Many of these jobs require a high level of digital literacy, therefore ensuring strong pathways that develop those skills is a real opportunity for NI as a region and future economy prosperity.

36. In terms of resilient skill system for NI, we need an agile response to the volume of people that continue to find themselves unemployed or unable to access the labour market. We need to be able to develop innovative responses quickly both new programmes, and increase the funds available to increase additional programmes which have been successful

37. In NI, Belfast Met supports the development of apprenticeships along the following lines:-

• All Age Apprenticeships
• Higher Level Apprenticeships in Nursing with College and University partnerships
• Public Sector Apprenticeship pathways which create new entry points into NICS
• New apprenticeships solutions in hydrogen, cyber, data analytics, cloud computing, sales and export marketing, procurement and logistics, building information modelling

How might future youth labour market interventions best be targeted towards particular groups, sectors or regions? Which ones should be targeted?

The labour market interventions should be targeted along 3 themes :

38. NI faces a long term, persistent problem in relation to NEETs and economic inactivity. This suggest an intergenerational problem leading to people with multiple barriers to skills and education as well as employment. Rapidly expanding new opportunities that might attract young people in general, such traineeships and apprenticeships, may help contribute to turning around this trend.

What are the main challenges facing young people seeking employment today? How do structural factors impact youth unemployment, and how might these be addressed?

39. As an FE College, we see the main challenge facing young people in seeking employment as accessing the right educational opportunities at all levels and ensuring they are ‘work-ready’. This means getting both the formal qualifications they need, having some element of work-based learning, and being able to develop the softer skills e.g around communication and preparedness for work, which enable them to get and keep jobs in a more challenging labour market. This applies to all young people.

40. In NI, there were an estimated 28,000 young people (aged 16-24) in NI who were not in education, employment or training (NEET) (Dec 2020).  This is 13.9% of all people aged 16-24. The NEET rate among females was 13.7% and among males was 14%. Within the UK, NI had the second highest 16-24 NEET rate at 13.9%. The proportion of young people who were NEET in the UK was 11.3%[9]. The number of NEETS has been relatively consistent over the last 4 years ranging between 21,000 and 24,000 people.

41. Unemployment amongst this group is more likely a result of seasonal unemployment, affecting jobs for younger people in tourism, construction and agriculture sectors, which still provide employment in many of the sub-regions of NI and which result in pockets of local unemployment. We also know that a significant number of young people leave school with no or low qualifications, which is a failing of the school system in NI. We also know that young people who are NEET tend to face multiple barriers, ranging from financial, personal, cultural, physical and mental health issues which lead them to becoming NEET. These are problems associated with the wider social economic inequalities in NI, of which unemployment is one manifestation.
42. From an FE College perspective, we are well placed to deliver targeted programmes that address the personal barriers someone aged 16-24 might face.

5th May 2021