North East to pilot devolved skills funding scheme

The North East LEP has been chosen by the Government to pilot a new skills development funding initiative.

It will mean greater regional autonomy to decide on skills funding in the area and could begin as early as September.

The NELEP and the North East Leadership Board of seven councils will work with the Skills Funding Agency, and employers, to develop a model

Success will depend on a strong partnership between colleges and independent training providers.

Andrew Hodgson, NELEP board member who leads on skills development alongside fellow board member Anne Isherwood of Sunderland College said: “It’s great news that the ideas we put forward to government for the skills funding model are now being driven forward, and that the North East LEP is one of only three in the country to pilot this innovative skills funding model.

“The LEP has put the focus firmly on skills from the outset, and this model will be hugely important in helping to develop skills at every level, essential to the development of individual people, as well as economic performance.

“Effective skills and training programmes tailored to fit our area’s key sectors, for all ages of workers, answer the immediate needs of employers as well as the future demands of our local economy.”

Lord Andrew Adonis, who led the North East Independent Economic Review, said: “Our review of the North East economy highlighted the importance of matching current and future skills provision to demand in the labour market. As an area with a diverse and growing private sector economy that faces skills shortages in a number of sectors this new-found opportunity is a major step forward.

“I’m delighted that the leadership of the North East in this debate is being recognised with this additional form of devolution, which is a major fillip for the combined authority and LEP. I look forward to seeing this brave new approach realise its target of more and better jobs in the future.”

Mr Hodgson added: “It’s clear that we need to think and act locally to create and strengthen a workforce with skills clearly linked to the North East economy and its key sectors. With the LEP, North East Leadership Board, businesses, colleges, and training companies working closely together we will help to drive growth through the capabilities of highly skilled people, trained and working in the North East.”