I wrote report for the Intergenerational Commission @resfoundation on options for boosting human capital in Britain. A full run through in the thread below. 1/19 
First, things to celebrate: educational attainment in Britain has risen lots over recent decades. The proportion of young adults w/A level equivalent qualifications jumped from 37% of those born in the late 60s to 68% of those born in the early 90s. 2/19
However, reasons for concern: 1) the pace of attainment has slowed over recent cohorts (those born in the early 80s don’t look very different from those born in the early 90s); and 2) 1/3 of young people are still failing to achieve Level 3 (A level equiv) by their late 20s. 3/19
In the past, lower-qualified young people could rely on work & training to boost their skills. Yet, their chances to do so now seem to be receding. First, lower-qual young people have higher rates of unemployment than previous generations at the same age. 4/19
Second, they increasingly work in lower-skilled roles. 5/19
Third, a lower proportion receive work-related training. 6/19
And fourth, of those that are lucky enough to receive training, said training tends to occur over a shorter period of time than in the past. This is particularly the case for young adults in lower-skilled roles. 7/19
Crucially, these reductions in training/training time can’t be explained by the fact that a large % young people work in different (i.e. less skilled) roles than in the past. Our ‘shift share’ analysis shows the training rate reduction is actually down to firms’ behaviour. 8/19
So what to do? We propose a ‘twin-track’ approach for boosting human capital. 1st, instil quality, clarity (and funding!) into the technical (non A level/uni) options for young people. 2nd) Develop mechanisms for adults to progress in their career or to train for a new role. 9/19
On the first point @educationgovuk T levels plan can help build clarity & quality into tech ed. But the work placement aspect of T levels means that making employers aware – and bringing them on board – will be crucial to their success. There is work to do. 10/19
Getting employers to provide the work placements could be even more difficult: a larger proportion of firms told us that their workplaces are ‘not suitable’ for young people than told us that they are already set up to or could easily provide placements. 11/19
On top of the employer challenge, there is funding. Further education has seen consistent falls in per-pupil funding since 2011/12. Its funding relative to other education stages has also been on the decline. This shortfalls need to be redressed. 12/19
Outside of T levels, apprenticeships can offer a high-quality (and to some degree employer-funded) route for young people but, as it stands, too many are at low levels, in low-paying sectors and taken up by adults. 13/19
This has changed since the levy, with a fall in the share of lower quality apprenticeships started by those aged 25+. Whether this is a permanent remains to be seen: DfE should monitor the number and quality of starts, and also drop the 3 million ‘target’. 14/19
What about young adults who have already passed through the education system and are stuck in low-skill, low-pay roles? We propose two broad options. 1st gov’t should develop sector deals with care, retail & hospitality to invest in their workforce’s skills. 15/19
2nd, for some skills development will depend on them moving into a new role or industry. The Gov’t should consider developing a ‘Better Jobs Deal,’ which will fund young adults who wish to train up – or move – for a new role. (More on this here bit.ly/2I3PBz7) 16/19
None of this will be cheap.We propose funding these skills investments through halving the planned corporation tax cut. At 19%, the UK’s corp tax is already one of the lowest in the OECD. A better skilled workforce may yield better returns than a further cut. 17/19
Halving the remaining corporation tax cut to 1p and taking it to 18 per cent rather than 17 per cent would raise £2.9 bn by 2022-23. £1 bn could be directed towards the ‘Better Jobs Deal’ and £1.5bn to technical education. 18/19
This £1.5bn includes bringing FE funding in England back to 2011/12 levels: (£846m in 2022-23 prices), a substantial T level employer engagement campaign and resources for Ofsted to inspect the surging number of training providers. Full report here bit.ly/2r4W70c
