I absolutely agree with my hon. Friend. I was heartened to see that in her letter to the School Teachers Review Body my right hon. Friend the Secretary of State for Education referenced the need to ensure that the implications for further education teachers are taken into account. I hope that, over time, we may be able to hear a little more about the plans in that area.
My most recent point raises a number of questions because Skills England does not hold the resources, although maybe it should—or at least some. I will leave that with Ministers.
Fourth, we need a Skills England that is relentlessly co-ordinating and engaging. As a country, we are still working out how to move away from the hugely over-centralised government machine, not least in places like my own west midlands where we are still in the infancy of having a set of institutions, people, power and money that help us determine our own future. I hope that Skills England will be a trailblazer not only for skills, but for a model of real partnership between regional and national where combined authorities can actually input into national policy.
I have three specific asks for the west midlands. Would the Minister consider moving responsibility for commissioning local skills improvement plans to combined authorities? Combined authorities such as ours could have more of a role in shaping the growth and skills levy. Finally, combined authorities are not just one of a range of stakeholders for Skills England; they should be represented at board level and in working groups as part of its structure. If this work is led only from Whitehall, missed opportunities will mean that local places are left behind. Those places may well be best placed to support the join-up required for coherent labour market policy, strategy and delivery when different Departments are intervening in the same place.
I will say one further thing—my fifth point—about how Skills England must work: it has to see its role as levering more money into training, pushing employers to do more and making it easy for them to do so. Employer investment in training has fallen over the past decade. Investment per employee is down 19% since 2011. I hope that a clear skills strategy will start to change that, sitting alongside, for the first time in a number of years, a stable Government giving business the confidence to invest. Skills England has to see its role as not just anticipating but driving demand among learners. It should raise hopes and aspirations and make it possible for young people to get the skills they need, as well as for people in their 30s, 40s and 50s to retrain and get on in life.
I will mention the role of unions again, because one of the least comprehensible acts of the previous Government was the sheer vandalism of ending the union learning fund in 2020. In 2020, 200,000 workers were supported into learning or training through the union learning fund. It was open not just to union members or in union workplaces, but to everyone, and it worked. Union learning reached people that other initiatives just did not. Most importantly, it reached basic skills learners. In union learning, over two thirds of learners with no previous qualifications got their first qualification. The fund added over £1.4 billion to the economy through the boost to jobs, wages and productivity. It cost £12 million, and that £12 million levered in £54 million from employers, unions and training providers in its last year. I very much hope that our new Government—so clear about the role of unions in social partnership—will make use of the reach of unions to workers and into workplaces that may otherwise not be reached by learning.
I will finish by setting all this in the context of my constituency of Tipton, Wednesbury and Coseley in the west midlands. We are industrial towns shaped by factories, foundries, mines and canals. In my area, 42% of young people leave school without English and maths at grade 4 GCSE, and 2.5 times the national average have no qualifications. Round our way, 40% of job postings are looking for people with level 4 skills and above, but just 16% of the applicants have a level 4 qualification. That is why our wages lag behind the national average, employment rates are low and poverty rates are high.
I have—indulge me—three skills priorities for Tipton, Wednesbury and Coseley. The first is manufacturing skills, and I wear the “Made in Britain” badge. In Sandwell, 1,000 firms and 21,000 jobs are in manufacturing, and we could make so much more than we already do with a determined effort to get local people into the right manufacturing skills courses to position us for advanced manufacturing supply chains across our region.
The second skills priority is construction. Our aspiration as a Government—something that is so close to my heart—is to build 1.5 million homes in the next five years. For that, the construction industry training board tell me that the current workforce needs to grow by 30%, with 150,000 more people working in construction. Everywhere in the country will need construction workers, but if we seek to bring up areas that have been left behind, we could turn that massive skills need into an opportunity, train those workers and bring those jobs to places such as ours.
Thirdly, we hear much about higher-level skills, but I am also always here to champion basic skills. Having solid literacy and numeracy skills gives workers a massive wage return and makes a big contribution to our economy. We could add over £2 trillion by the end of the century if we ensure that all young people get good basic skills by the end of the decade. I will always stand for high skills, good jobs and decent wages in Tipton, Wednesbury and Coseley. I hope hon. Members have heard from me today what approach Skills England should take to deliver for the country and for areas such as mine—it must deliver for areas such as mine.