- Author, Paul Seddon
- Role, Political journalist
Sir Keir Starmer has said his plans to overhaul training in England would reduce the need for companies to hire from abroad.
In a speech, the Prime Minister said the lack of skills had made the UK dependent on “increasingly high” levels of immigration.
Labour is likely to face public and political pressure to reduce legal immigration, which is at record levels, following Brexit.
It has no overall migration target, but wants to reduce the demand for foreign hiring by linking training more closely to migration policies.
Ministers want a new government body, Skills England, to work with other advisers to address “skills gaps” in key sectors.
But it could take up to a year to set up the agency, and Sir Keir acknowledged his approach would not provide a “silver bullet”.
As part of Labour’s plans, Skills England will work more closely with official migration advisers to develop training plans for sectors that currently rely on immigrants to fill jobs.
Speaking at the Farnborough International Airshow in Hampshire, the Prime Minister blamed an “over-reliance” on immigration for a lack of training opportunities for young people.
He added that he did not want to criticise companies that hire from abroad, but that the lack of a “coherent” skills system was depriving Britons of “the dignity of work”.
“We will not just pull the easy lever of importing skills. We are turning the page,” he added.
He declined, however, to give a timetable for how quickly the policy would be implemented to reduce immigration, adding that he did not want to set an “arbitrary date.”
Salary requests
He also admitted that higher wages would also be needed to reduce foreign hiring, adding: “One element of that will of course be wages.”
He cited Labour’s plans for collective bargaining on pay in the social care sector, one of the most reliant on foreign workers, as an example of what his new government planned to do to get the “balance” right on pay.
The party is, however, facing a difficult context in terms of public spending.
Independent pay review bodies have recommended 5.5% increases for teachers and some NHS staff, more than the Treasury had planned, with recommendations for other sectors also expected in the coming weeks.
Before the election, Labor had pledged to make it harder for companies that refuse to comply with training plans to hire foreign workers, although detailed plans have not been published.
Financing apprenticeships
Under Labour’s plans, Skills England would also take on new responsibilities for deciding the future direction of vocational training.
The body will decide which training courses will be eligible for funding currently earmarked for the creation of apprenticeships, paid jobs that allow recruits to gain work experience alongside training or studies.
Labour wants to allow eligible companies to use up to 50% of the money to fund other types of training, in a bid to make businesses more responsive to skills demand.
Labour argues that the existing apprenticeship levy, introduced by the Conservatives in 2016, has resulted in a fragmented system and low employer take-up.
But the Conservatives have warned that plans to redirect funding could reduce the number of apprenticeships on offer and reduce options for young people.
