Skills Councils to replace NTOs

The UK government is putting employers in control of a series of specialist Skills Councils, following a radical shake-up to address skills shortages across industries including IT.

The move is part of an ambitious plan, announced by Education and Skills Secretary Estelle Morris at last week's inaugural National Employer Skills Summit in London, to create a world-class workforce in the UK.

Morris explained that the sector-specific Skills Councils would be created by business, for business. "Employers are well-placed to identify where there are gaps in the skills of their workforce, and equally well-placed to create strategies to close these gaps," she said.

"We want employers to be centre stage in decisions about skills and business development," she added. "Sector Skills Councils will be the main way employers can influence the skills agenda."

The Councils will allow employers to work with stakeholders including trade unions and Regional Development Agencies to devise action plans for tackling skills gaps and improving standards of vocational training and workforce development.

As part of the shake-up, the 73 National Training Organisations (NTOs) will be disbanded. Only the most successful will go on to become Skills Councils. The eSkills NTO is likely to become one of five trailblazer Councils, due to be up and running by January next year.

"It's business as usual as far as we're concerned," said eSkills NTO chief executive Karen Price. "This will be an opportunity for the government to stop wasting money on initiatives and scale up the stuff that's working. It also offers employers much greater dialogue and greater influence."

The government has also pledged greater financial support, with up to £1m allocated to each Skills Council in the first year. John Healey, the newly appointed minister with responsibility for adult skills, is leading the reforms.

"Healey has a lot of vision and he's very determined and focused. He won't let any weaknesses continue," said Price.