Lifetime Skills Loan For Adults: A Pledge According to the Government
The UK government has promised to pass a new 16-year Education and Skills Act to promote a “lifetime qualifications guarantee” that will allow people to have access to quality education and training at any time in their lives. Due to the additional battles sparked by the Covid pandemic, a Downing Street statement said that “it is necessary to rethink and rebuild” in order to recover from the pandemic by adding “our skills and our education system will be brought closer to the labour market ”and at the same time the opportunities that are available to everyone will be expanded.
The law is expected to bring about a number of changes. First, a change in the student funding system; Giving adults access to a flexible loan for higher education and training at college or university at any point in their life. Second, employers will play a role in planning publicly funded training programs with training providers through a skills accelerator program. The Secretary of State for Education is expected to have more powers to intervene in institutions that do not meet needs, while at the same time ordering more structural changes for providers to improve them.
Prime Minister Boris Johnson stated: “The system will challenge the outdated notion that there is only one path in career and ensure that everyone has the opportunity to retrain their skills at any point in their life.” As the Prime Minister stated last year, it will give everyone access to years of student loans for higher education. Independent Commissioner for Lifelong Learning Chairman Rajay Naik described the plans as a “vital moment” giving people the opportunity to retrain and retrain.
Universities have advocated for a more flexible approach to student financing to better accommodate part-time, flexible learning, and older students, and guarantee loans are used to reskill via universities. Alistair Jarvis, Chief Executive of Universities UK, has argued that “This is a step in the right direction that acknowledges the notion that individuals should have access to education throughout their life. These new ideas, policy changes, and government assistance will be aimed at helping individuals of all ages and backgrounds to retraining and reskilling at any given point in their lives and thus improving it.
Though Downing Street have said loans were for ‘higher-level study’ or ‘higher-level education,’ the emphasis was on revamping the skills system to place local firms at the centre of skills supply via a ‘Skills Accelerator programme.’ The initiative will strengthen collaborations between companies and their local community colleges or other local training providers, ensuring that provision fits local requirements in industries such as construction, digital, renewable energy, and manufacturing.
However, Jarvis of Institutions UK emphasised that many universities are ready to expand their alternatives to the standard three-year degree, allowing more individuals the opportunity to study recognised modules flexibly, including ‘bitesize’ courses. Jarvis stated, that “this will enable more individuals to gain skills at university, benefiting the UK’s recovery and boosting local economies.”
While welcoming the introduction of the Lifelong Loan Entitlement (LLE) to allow learners to “truly gain skills throughout their lives,” University Alliance CEO Vanessa Wilson cautioned that the role of universities in delivering technical skills should not be overlooked, stating that the divide between academic and technical education “can be overstated.” She described the bill as a chance to create a more integrated education system that “encourages higher education and further education to work in cooperation to give flexibility, choice, and clear career routes between providers for all learners throughout a lifetime.” Boosting social mobility by providing quality higher education, including higher technical education, will be key in the future.
The ideas to empower individuals with funds and loans, mirrors the Independent Commission on Lifelong Learning’s suggestions for a ‘Personal Education and Skills Account’ for all adults back in 2019. The creation of a Personal Education and Skills Accounts (PESAs), opened at the age of 18 for every adult resident of England, promotes saving for the costs of education and training throughout life. According to the commission’s recommendations, the government would make three payments to the accounts, each payment totalling £3,000,when the account user reaches the ages of 25, 40, and 55.
Account holders and their employers could also make payments to the accounts that are stimulated by the government through tax breaks or matching funds on the contributions made by the account holders. The government could also make additional payments to the accounts. for specific events such as layoffs or prolonged unemployment or with the aim of reducing social and economic inequality, such as handing over to low-paid or low-skilled workers.
The proposed idea was that account holders from the age of 25 could use the money saved on the accounts to pay for training courses offered by accredited providers. Receive career counselling sessions to help them select a course or grade that will help them meet their personal or professional development goals. The accounts remain open for life and are available to account holders. The university sector must discover next week how many of these ideas are included in the project of legislation.