Chambers of Commerce reveal gaps in reaching young people in skills system

In an analysis of Local Skills Improvement Plans (LSIPs), the British Chambers of Commerce (BCC) have?revealed their limits in engaging young people with the workplace.

While the Chambers’ report found the business-led skills planning approach has engaged thousands of people and employers in the training and education, it also identified the fragmented nature of funding and limited scope in skills plans to target young people.

There are 39 LSIPs in England, which have been running for four years. They are led by Employer Representative Bodies which bring together businesses, education providers and other stakeholders in their areas to identify the skills needed to support local economies. 

Chambers of Commerce run 33 of the 39 LSIPs, including in Greater Manchester, and the report assesses their impact and the opportunities to improve the system.

Feedback from Chambers also identified a number of opportunities to unlock potential and further join-up the system. These include a lack of influence in education for under-16s, opportunities to replicate the system for business support and more effective engagement with young people. 

Kate Shoesmith, Director?of?Policy?at the?BCC, said:

“LSIPs have been really successful – involving thousands of businesses, training providers and learners over the past four years, to deliver great employment outcomes. 

“But they are being held back from achieving more. For instance, there is an urgent need to plug gaps in the quality and consistency of careers advice available to schools – something we’ve been saying for years now. Many LSIPs report that schools are not aware of the growth areas in their local economies or the breadth of careers different sectors can offer.  

“That isn’t the fault of teachers – they have enough on their plate. But with almost one million Gen Zs not in employment, education or training, earlier intervention is essential to connect young people to the world of work. 

“The longer they are allowed to drift away from employment the harder it becomes. By linking the government’s Youth Guarantee scheme to ERBs who have strategic oversight of their local economies, a pathway into work can be created. 

 “The tools required to do this already exist through LSIPs. It is just a matter of giving them the long-term funding and authority to make it happen.” 

Commenting on the report and the work being led by Greater Manchester Chamber on the GM LSIP, Chris Fletcher, Executive Director of Skills Policy, said:

“This report is welcome and highlights the breadth of activity taking place across the country as LSIPs bring together employer?identified skills needs, link these to provision, and work with a wide range of critical partners to begin mapping what needs to be done in the years ahead.

“In Greater Manchester, the Chamber has captured the views of thousands of employers, worked closely with all further education colleges, begun to deepen engagement with higher education institutions, and maintained ongoing dialogue with independent training providers. This work has been underpinned by the role and influence of the Greater Manchester Combined Authority, as co?owner of the LSIP, enabling a joined?up approach to tackling skills challenges. Importantly, this is not limited to supporting young people entering the labour market, but also addresses the needs of employers and individuals across all age groups and stages of their working lives.

“We are now in the final stages of a significant refresh of the LSIP ahead of the summer. We look forward to continuing to drive positive change and take practical action to ensure that Greater Manchester businesses – both those already established and those looking to locate or grow here – are able to access the skilled workforce they need to succeed.”