In April this year the world of training in the UK underwent a revolutionary change when the methods of funding post-16 training were replaced. The old system of TECs and the Further Education Funding Council deciding on what gets paid for has gone and a new body has replaced it. In England this body is called the Learning and Skills Council (LSC) and in Wales, Education and Learning Wales (ELWa).
The change is more than just rebranding, however, as the move gives more independence and responsibility to the separate countries within the UK. Scotland has had autonomy for some time and has made many changes with its move to a fully integrated system. In Wales ELWa gains responsibility for all education post-16, and in Northern Ireland they are consulting about the future.
The overriding objective of all this change is to enable the learning needs of both individuals and business to be met with a local solution. Each body will take a strategic view adapted to locally identified needs.
So where do the training needs of an industry sector fit in and how are its needs known and passed onto these new bodies?
The government is aware that some sectors could miss out, so to ensure the training and education needs of an industry are recognised throughout the UK it supported sectors to set up a National Training Organisation (NTO).
Once they meet certain conditions – such as proving they are viable and represent a sizeable sector – the government acknowledges that they speak for their industry and it helps promote them to various organisations as being the people to consult with respect to training.
So how does having an NTO make a difference to an industry? A good example is a recent exercise carried out on behalf of the government into the real cost of training for various qualifications and programmes. This formed the basis for much of the funding rates for new apprentices. Each NTO was asked to research its sector and the results were put into a funding formula.
Increase in funding
The Furniture, Furnishings and Interiors National Training Organisation (FFINTO), previously BFM training, has been told that its response led to an increase in funding by 25% over initial proposals. Of course, those industries without an NTO will not have been able to participate in this important consultation.
Future roles for NTOs include assessing existing training availability, recommending locations for regional centres of excellence and extending apprenticeship training to include technician level and graduate training.
At present the timber trade sector does not belong to an NTO, therefore input into these consultations will be limited or non-existent. It will not be considered when regional centres of excellence are planned, nor able to update effectively the apprenticeship system to meet today’s needs.
Established relationship
The furniture and timber industries have a long established relationship. One example is where FFINTO and the Timber Trade Federation worked together to establish occupational standards for training and qualifications in wood machining. These new standards have recently been approved for funding by the government and will be converted into qualifications specifically for the furniture and construction sectors.
The timber trade will need to work with an NTO to establish its own version of the qualifications, otherwise companies in the sector will have to recruit people trained not for the industry but for a similar one. The implication of this is potentially increased costs of initial training.
NTOs have only been in place for about three years – FFINTO since January 2000 – and are the established voice of the sectors the represent. The government is pleased with this approach to industry skill development and is encouraging them to grow. This is because NTOs are the only employer-led UK-wide organisations with a remit to act as a strategic body, with the specific aim of improving the competitiveness of the individual sectors.
Strategic objectives for FFINTO include, among other things:
FFINTO has recently secured funding to revitalise training in Scotland and to investigate training needs in Wales – a role of immense importance.
It is well documented that most sectors in UK industry are suffering from skill shortages. Consequently there is an implicit need to plan for training in the future. At the same time, it is equally important to forge partnerships which mirror the supply chain of the industry; a strategy supported by government.
The timber trade in the UK is important to the furniture industry. Its problems of skill shortages impact on the furniture industry’s ability to produce goods, with a consequent impact on price and competitiveness.
Joint solutions
It makes sense that the two sectors should work together to provide joint solutions. It is logical, therefore, that the timber trade seeks to join with FFINTO to look after its training needs.
Without skilled people there will be no UK timber trade. Joining an NTO is part of the solution, doing nothing means that you are part of the problem – and worse – could be told by government to make alliances for skills with partners you would not choose for yourself.