John Denham - Unionlearn 2nd Year Conference
TUC Congress Centre, London - 18 Jun 2008

Introduction

Thanks to Frances and Brendan for giving me the opportunity to be here to help celebrate not only another successful year for Unionlearn but also as they have already mentioned, two significant anniversaries - the tenth anniversary of the Union Learning Fund and the fifth anniversary of Union Learning Reps gaining statutory rights. If there ever was a time for Government to back an initiative or idea and give it a try then it was Unionlearn and goodness how you have repaid us for that support with your tremendous achievements.

Let me begin by saying a little about my department for those who might not yet be familiar with us. The Department for Innovation, Universities and Skills (DIUS), was created by the Prime Minister, almost a year ago. We aim to create prosperity in this country and allow individuals to share in that prosperity.

So our job is to make the most of the skills and abilities of every single citizen; to sustain first-class research and scholarship; and to create the environment in which those skills and that research are translated into innovative products, services and businesses. We could not achieve those aims without the support of the trade unions.

Skills

We know that an ever-increasing proportion of jobs require higher level skills - if we are to going to be successful as a country in the future. And we know that nearly three quarters of the 2020 workforce has completed their compulsory school education, so we can't get to where we need to be and rise to the top without investing in the skills of people already in the workforce.

We have already made a start in this. We have increased the level of funding for post 16 learning and skills to over £11 billion this year. And by 2010 it will rise to £12.5 billion - double what it was 10 years ago.

This type of investment will allow, among other things, over 200,000 apprenticeships a year to be offered by 2010 and over 800,000 people a year to improve their skills and gain new qualifications through Train to Gain.

But we know that Government action alone will never be enough to deliver the world class skills we need. We need a revolution in this country's attitude to skills and that is why the involvement of trade unions helped and supported by Unionlearn is so vital.

Key Role in Skills Agenda for Trade Unions

The trade unions movement has always recognised the value of education and the importance of encouraging skills development. And our movement is more relevant today than ever.

That is why this Government created the Union Learning Fund in 1998 and, in 2003, introduced a statutory right to time off with pay for Union Learning Reps to train for and do their duties.

Since the Union Learning Fund was introduced, we have provided over £90 million to help trade unions promote learning and skills in the workplace. Funding has risen from £2 million in 1998 to £21 million this year.

There were very few Union Learning Reps when we took over in 1997. Today as you heard there are over 20,000 trained Union Learning Reps in workplaces right across the country who have helped now over 600,000 workers into training - 200,000 in last year alone.

Equally important is that many of the people who have benefited from you helping them into training are seen as coming from the hardest-to-reach groups including 30,000 workers with poor basic literacy and numeracy skills.

I have said many times before and today I will say again that Union Learning Reps are a 'best friend' in the workplace - people in a position to persuade others to improve their skills and build their confidence in a way that no-one else can do. They can be, and often are, more effective than anyone else in overcoming all the natural fears that people have in starting again.

Train to Gain

In addition to that your role is equally important in persuading employers to take the education and skills of their staff seriously. Your work is vital in encouraging employers to engage with initiatives such as the Skills Pledge & Train to Gain.

Train to Gain is the service to start a conversation with employers of all sizes and in all sectors about skills, and help them to improve the skills of their employees. It brings together a significant package of support, and funding, to help employers use skills as a driver of business performance.

It's a service where satisfaction is high. 78% of employers who had taken up training through the service would recommend it to other employers, and 82% gave it a rating of 8 or more out of 10.

And Train to Gain has also proved hugely beneficial for employees: 43% of people who completed training through Train to Gain reported that they had received a pay rise. 30% reported being promoted and 69% hoped to continue studying.

We also know that when staff feel supported they are loyal to their employer - 70% of people who completed a qualification through Train to Gain planned to stay with their current employer.

I heard Neil Scales from Merseyside Trains say recently that when he encounters employers who are sceptical about training their staff they often say 'But if I train them they might leave' to which he replies 'And if you don't they might stay'.

Despite the compelling business case for skills, and the significant offer of Government support and funding available through Train to Gain, it is still the case that too many employers still do not realise that improving the skills of their staff is one of the most powerful things they can do to drive their businesses forward.

You know that over the past ten years, the Labour Government has built a strong and stable economy, from which we have all benefited. As everyone knows, today we face a series of challenges from international events beyond our direct control. The credit crunch, rising food prices, rising oil prices.

These have an impact on the economy as a whole and on the lives of millions of people.

It is important to remember that it is our investment - by government and employers - over ten years in education and training that have helped build the underlying strength of the economy that will see us through. Our young people are doing better at school. More young people are taking up apprenticeships; more young people are going to university. Millions of people have gained new skills at which have enabled them to do their jobs better and to enjoy better careers.

Investment in skills is key to making sure we come through with a stronger economy; and to making sure that individuals can make the most of their abilities.

The best employers recognise this. The most recent survey showed that employers are spending more than ever before - over £38bn - in training.

But we have still not persuaded every employer of the importance of skills. The message has not reached every workplace or every person who could benefit.

A third of employers still don't train their staff. In other organisations, training does not involve everyone.

Employers who do not train run real risks with their businesses. Public services who do not train will struggle to provide the quality of service that the taxpayer expects.

And you know this challenge to bring the drive for skills to every workplace continues for us despite that record amount of money the government has made available for employer-led training.

Last year, the take up of train to gain was less than the money we set aside. We have ended up transferring around £115m into other areas of education and training.

But some employers are failing not only to spend their own money on staff training - but also failing to spend ours as well. This represents a missed opportunity for businesses. And a missed opportunity for those who work for them. And that is not fair.

It says that we need to find new ways to bring the drive for skills into every workplace, and to every worker.

Time to Train

That's why Gordon Brown recently announced that we want to consult on a new right at work: the right to ask for time to train.

The challenge is to get this message across to employers who have not yet made use of Train to Gain funding or advice.

Giving employees the right to a serious dialogue with their employer about their need for training and personal development will be a powerful lever for bringing about the skills revolution we need.

I am pleased that we have received strong union support for this proposal. Unions and Union Learning Reps in particular, are going to have a really important role to play in realising the potential of time to train.

Time to train is a mechanism to start a discussion between an individual and their employer about their development needs.

The people we want to help are those who think 'I could do better than this' either in the job they have at the moment or by progressing into a better one. It will help to ensure that no-one's development needs are overlooked. It will encourage employers to think about the skills development of their staff and help adults to have the confidence to develop their skills and rise as far as their talent will take them. And of course ULRs will be able to go along to these discussions where the employee wants them to. ULRs might like to think about encouraging employers to work time to train into their annual performance arrangements.

Employees' requests could be for formal training that lead to a qualification, or for informal unaccredited training that will help them to nonetheless develop a specific skill relevant to their job. In both cases, the only requirement would be that training should help improve business performance and productivity. We estimate that up to 22m people will be covered by the introduction of the new right to request time to train, and that about 300,000 more people will undertake training each year as a result of its introduction.

We need to be clear that this is not a burden on business. The CBI and Institute of Directors know that. The Federation of Small Businesses know that. At the same time as we make this change, we are making it simpler than ever before for employers to get advice and financial support.

Through Train to Gain, employers with fewer than 50 employees can access wage compensation for the time their employees spend training. It is important that we support managers in small and medium sized businesses as well. So we are investing £30m in that.

If our Time to Train proposals are supported, we will ask the UK Commission for Employment and Skills to defer the consideration of whether employees should have a legal right to workplace training where they lack at least a level 2 qualification. Instead of conducting the review in 2010 we would expect to complete it by 2014/15.

But one of the key things about Time to Train is that it is not only for those who need basic skills but for all. This is because we understand that there is no one who can't benefit from improved skills. To put them in context, our Time to train proposals go alongside other things that we are doing.

Just last week, we announced that we are extending from this Autumn the support for all 19-25 year olds - supporting them either full-time at a college or other training provider or, for the first time, if they are combining training with work.

Everyone understands that in higher education, 18 year old students can take a qualification with public funding. Advice and guidance are readily available. We can't yet say this for those young people who don't go to university and so I am determined to ensure that those who do not go to university get the same opportunities to go down a skills route from 18 to 25.

We also set out last week how we are going to integrate our welfare and skills systems, so that people who are out of work can gain skills to get a job and progress in the workplace.

From the Autumn we will provide people with better advice, support and information on the training they're entitled to through a new adult advancement and careers service, which will provide people with broader advice about how to get on in work in a way that fits in with their lives. Beginning over the next two years, we are also beginning to develop skills accounts for young people and later for all adults and these will enable millions of people to start a conversation with potential or current employers over the funding that is available to them to train. Increasing the opportunity of better paid, more sustainable jobs.

And we want to drive demand for skills through government procurement. For example, in my own department, we are investing £2.3bn in improving facilities for Further Education colleges. All contractors bidding for this work must demonstrate that they have formal training programmes in place for the people who will work on the buildings. We will look at extending this approach to other areas of Government spending too.

We know from looking at the economy that there will be a demand for skilled technicians to build and maintain the new wave of nuclear power stations and green power generators, construction workers and engineers to deliver major infrastructure projects like Crossrail, the Olympics as well as to build new homes, new colleges and new schools throughout the country.

All of these jobs will require new people with skills and so there are opportunities for new jobs that we need to take advantage of.

So looking forward, I will be working with employers and trade unions to ensure that we can supply the trained staff to meet the demand in these expanding industries.

Immediately, I want to remind you that the Time to Train consultation will run until 9th September - you can collect a copy of the document at the end.

I hope you will discuss it and share your thoughts with us as the consultation progresses.

But I would like to end by thanking you all for your work and your continuing commitment to improving the skills of our country - and in doing so changing the lives of thousands of people - which is a great thing to be able to say about anybody. Thank you.