Update on Train to Gain Mary Francis Director of Operations London South LSC

Background Train to Gain will create a network of impartial specialist brokers to stimulate demand for skills from Employers. National Framework for Brokerage with regional variations, building on the lessons learnt from ETP and ESO. Demand led not PSA target driven. A key aim is to improve the quality, flexibility and responsiveness of the supply side.

Key Features Specialist Skills Brokers will be selected via OJEU process. (ongoing ). Integration with GIDB service run by Business Links, to provide a seamless service between skills and business support, for SMEs. London budget is circa £27 million in year 1. (12.2% of national pot) Brokerage budget is circa £4.5 million p.a. ; leaving £22.5 million for Assess - Train –Assess type provision. Focus on businesses that are “new and hard to reach” but some existing employers can benefit. Holistic brokerage with subsidy for Skills for Life, & first Level 2.

London Priority Sectors The following 7 sectors have been agreed with Partners as the priority sectors for London:- Built environment /construction Business & Financial Services Health & Care Hospitality & Tourism Manufacturing & Engineering Retail Transport & logistics.

Recent Developments Wage compensation pot of £38 million nationally. Ratio of “new” to existing employers will be 60:40 in London. Brokers will deliver Pan London by vocational sector. There will be a maximum of 7 brokerage contracts in London. 80% of the training fund will be allocated to Providers ; 20% held regionally for rapid response.

Next Steps & Timetable Brokerage providers will be announced on 17 th February. A regional prospectus will be issued in February for all Providers who wish to deliver under Train to Gain. Tendering against the prospectus will take place in March. The roll out will commence in April 2006 in East London and in the rest of London from August. London South has a small capacity building budget to help prepare Providers. SLLP will co-ordinate and manage.

Key Issues Train to Gain is a major step change that marks the start of the contestability agenda. It is a threat and an opportunity for all Providers that requires a strategic response and careful planning. Employers will be “purchasers” and given a choice of Provider. All mainstream providers will be asked to increase the quality and quantity of core workplace based employer provision. (Regardless of whether on not they get a Train to Gain allocation). Access to Train to Gain funding will be in addition to mainstream and is available only once the core target has been exhausted.