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Skills Base

My Lords, I, too, thank my noble friend Lord Leitch for calling for this debate. I shall address my remarks to three areas of concern. It will come as no surprise to your Lordships that the first area is how this agenda relates to the needs of women workers. The report of the Women and Work Commission, which I chaired, expressed serious concern at the underutilisation of women in the labour market. The commission estimated that between £15 billion and £23 billion could be added to the United Kingdom’s GDP annually if women were able to work to their full capacity or potential. The argument the commission set out regarding, in particular, women returners getting stuck in employment far below their capacity and the consequent loss of national income fell on fertile ground, and the Chancellor of the Exchequer allocated £40 million in the 2006 Budget to be spent over two years on upskilling or retraining women, in particular those in low-skilled or low-paid employment. That money is being spent as we speak: £20 million is directed to providing NVQ level 3 training in the London area to women returners and women in low-skilled occupations where they are under-represented at level 3 and 21 contracts are in operation to deliver 7,500 level 3 qualifications over two years with funding available for a further 4,000. London’s greatest skill needs, which include engineering, construction and transport and logistics, are all priority areas where women are currently under-represented. The second tranche of the £40 million is being distributed via the sector skills councils. The women and work sector skills initiative, working with employers, will develop a range of projects designed to upskill women in male-dominated occupations. Sectors include food and drink manufacture and process, logistics, the retail motor industry and science and engineering. That Chancellor of the Exchequer is now the Prime Minister, and I shall be calling on him in that capacity to explain that momentum must be maintained until the number of women in non-traditional areas of employment reaches critical mass and we no longer raise an eyebrow at the sight of a woman electrician, plumber or motor mechanic. The women of whom I speak are women with ability who have found themselves at the bottom of the employment ladder. There is equally a problem in finding employment in some sectors for women who have good qualifications. Research published this week by the UK Resource Centre for Women in Science, Engineering and Technology considers whether recruitment practices have a role in bringing more women into IT and related fields. We have a general shortage of skills in these areas, and losing women through poor or inappropriate recruitment practices should not be tolerated. Areas of concern highlighted by the research include the need to attend to the training requirements of hiring managers, the look and feel of websites, highlighting family-friendly policies and culture and having women on recruitment stalls. The research also found that few organisations are doing much to recruit experienced women who want to return to work after a break or career shift. Despite these problems, there was found to be a strong belief that the greater presence of women would strengthen productivity and effectiveness. My second area of concern was mentioned by the noble Lord, Lord Low of Dalston, and is the waste of the talents of those with disabilities. In response to the Leitch report, the Disability Rights Commission pointed out the far greater propensity of people with a disability to be without skills and, indeed, without employment. More than one-third of people in Britain without any qualifications have a disability or a long-term health condition. Every quarter, around 600,000 become sick or acquire an impairment, and within one year 13 per cent of them have left employment. There are strong moral reasons why access to training and upskilling should not operate in a discriminatory way. Economic arguments also hold sway, and it is high time that the world of work woke up to the value of a diverse workforce. Finally, I shall say a few words about social mobility, a debate that has been in the news this week. I promise noble Lords that I wrote my speech on Wednesday, before the debate on the ““Today”” programme this morning. I firmly believe that social mobility over the past 100 years or so has been achieved partly by access to better education but also, importantly, via the world of work. Fifty years ago, poorly educated people could find employment and work their way up, either in an environment more suited to the practical than the academic or by attending night school or via day release. Working one's way up provided role models and extended a work ethic, which in turn influenced the aspirations of a younger generation. The changed nature of the labour market calls for a new settlement, which values vocational as well as academic skill and which recognises the importance of second-chance education or training opportunities. I urge government and employers to work together to build stronger links between schools and employment. We cannot continue to import the skills we require while allowing late-flowering citizens and others who are currently disadvantaged to fall by the wayside.