LSIPs Explained
Local Skills Improvement Plans (LSIPs) are a crucial component of efforts to enhance skills development at the local level in the UK. These plans are designed to provide a clear roadmap for improving skills within a given area, with the active involvement of employers, education providers, and local stakeholders. The overarching goal is to bridge the gap between the skills available in the local labor market and the skills needed by employers, ultimately driving economic growth.
Key Highlights of LSIPs:
Employer-Centric Approach: LSIPs prioritize the involvement of employers as central players in the local skills development ecosystem. By placing employers at the heart of these plans, they aim to ensure that training and education programs are closely aligned with the needs of businesses.
Collaboration and Dynamism: LSIPs foster dynamic working relationships between employers, education providers, and local stakeholders. This collaborative approach is essential for developing effective and responsive skills improvement strategies.
Learner Empowerment: The ultimate aim of LSIPs is to equip learners with the skills required to secure good job opportunities and enhance their prospects. These plans seek to empower individuals to access relevant training and education.
Designation of Employer Representative Bodies (ERBs):
In 2022, designated Employer Representative Bodies (ERBs) were entrusted with leading the development and review of LSIPs across all 38 regions of the country. These ERBs worked closely with employers, educational institutions, and stakeholders to create evidence-based and actionable LSIPs. Each plan outlines the necessary changes to make technical education and training more responsive to local labor market demands.
The ERBs play a critical role in ensuring LSIPs remain employer-led and locally owned. They oversee plan implementation and carry out regular reviews to maintain relevance.
LSIP Trailblazers:
In the previous financial year (2021-2022), the Department for Education (DfE) initiated eight LSIP trailblazer pilots to test the effectiveness of collaboration between employers, education providers, and local stakeholders in developing LSIPs. The outcomes of these pilots, along with stakeholder input and evidence, informed the creation of LSIP statutory guidance and the national rollout approach.
Getting Involved:
To encourage active participation and engagement, designated ERBs are responsible for coordinating LSIP development and review in their respective areas. Employers and stakeholders are encouraged to reach out to their designated ERB if they wish to get involved.
Milestones for LSIP Rollout:
By the summer of 2023, all 38 areas in the UK will have LSIPs approved and published by the Secretary of State for Education. These plans will cover a three-year period. In June 2024 and 2025, ERBs will provide annual progress reports as part of the regular LSIP review process.
Local Skills Improvement Fund (LSIF):
The LSIF supports further education (FE) providers across geographic areas in collectively addressing the priorities outlined in LSIPs. It aligns with the goals set in the skills for jobs white paper, providing investment to enhance the technical skills system in line with local labor market and economic needs.
The LSIF spans two financial years, providing both revenue and capital investment. It supports various aspects, including facility development, new course and curriculum creation, and leadership and governance excellence within colleges.
Milestones for LSIF Rollout:
In June 2023, collaborations of FE providers in each LSIP area applied for mobilization funding to develop detailed proposals and costings. By October 2023, lead providers will receive notifications about the outcome of their stage 2 LSIF funding application, and grant funding agreements will be issued.
Strategic Development Fund (SDF):
The LSIF builds on the Strategic Development Fund (SDF), which was initially piloted in 2021-2022 and expanded across England in 2022-2023. The SDF aims to reshape teaching and training provision and update facilities in preparation for the implementation of LSIPs.
Funding Awarded through SDF:
In 2021, the SDF was trialed in 18 areas across England. In the spring of 2022, it was extended to collaborations of FE providers throughout England. In total, £92 million in funding was awarded in the 2022-2023 financial year to support these initiatives.