Education and training policy makers world-wide are emphasising the development of their national skills base to support long term economic growth, ensure competitiveness and to promote ’employability’. All countries recognise the need to tune up for training but are also acknowledging a growing policy problem: how should the costs be shared between the state, individuals and employers. In the English context such concerns are indicated in the Secretary of State for Education and Skills’ 2006-07 Grant Letter to the Learning and Skills Council (LSC):

“We need a step-change improvement in the achievement and participation of young people, providing a strong foundation for adult working life. For adults, we need much higher achievement of basic skills and the platform of skills for employability at level 2, with stronger progression to level 3 and beyond. We need a real determination to change the way training is designed and delivered to meet the priorities of employers. In the Skills Strategy we set out the Government’s intention to rebalance public and private contributions to the cost of learning, so that they better reflect the benefits and financial returns to learners and employers.”

Current English policy targets identify two groups for whom the issues are seen as being particularly acute: 16-19 year olds, too many of whom it is felt are leaving education and training early, and those already in the workforce who lack a level 2 qualification. This issues paper focuses on policy for the latter group.