UK skills strategy "inadequate" to meet needs of low carbon transition

The Aldersgate Group, which lobbies for high environmental standards to secure future economic growth and competitiveness, will launch a report at the House of Commons this afternoon that states that the Government’s skills strategy is inadequate to meet the UK's mandatory targets on carbon emissions and that it must act urgently to put in place the right skills on the scale required.

The report, ‘Mind The Gap – Skills For The Transition To A Low Carbon Economy’, will recommend that all major environmental policies – such as increased subsidies for offshore wind or the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme – should be accompanied with a corresponding skills strategy to drive investment in new capacity and supporting infrastructure in order to succeed.

“The skills gap in the UK economy is well documented, with one in three firms already hampered by a shortage of skilled staff, from those needed to install new technology to scientists and engineers," said John Edmonds, former president of the TUC and Aldersgate Group Project chair for the report. "Investment in low-carbon skills is vital if the UK is to build a more resilient and sustainable economy.”

Last week, Business Secretary Peter Mandelson, launched the Government's plan to overhaul the UK skills system. As part of the strategy, it singled out the low carbon sector to share in a £100 million training boost to help drive the economic growth of the UK. The Aldersgate Group report, however, suggests that strategy currently falls short of what is required for the scale of the problem. It points out that demand for engineers is growing as investment in major infrastructure projects in onshore and offshore wind, carbon capture and storage (CCS), nuclear power, flood defences, high speed rail and water come on stream.

It notes that two of the Government’s most recent high profile energy announcements, over nuclear power and carbon capture and storage (CCS), have been made at the same time that roughly 30 per cent of British energy’s workforce is due for retirement within 10 years.

It says jobs will be filled in the short-term by importing skills, but that competition for skills in certain projects – such as CCS – will come will come from countries such as China and the US.

“Many of the required skills identified in the report are not unique to a low carbon economy – it is a shortage of precisely these skills that has held back the UK economy for decades. In this respect, re-skilling for a low carbon economy involves a policy of no regrets. The UK needs to fix these skill shortage problems in order to prosper in the modern world.” Edmonds added.

Amongst the recommendations made by the report are for more investment in training, with skills enhanced wherever possible rather than new skills created; a better training infrastructure able to identify and respond to the skill needs of the low carbon transition; business engagement in environmental skills by providing initial funding programmes that can help alter long-term business practices and support in-house training programmes; and reform of the Government communication strategy, with better definition of a green job.

Most of the recommendations in the report are aimed at Government because business needs certainty from Government if its to invest, but it says responsibility for progress must be shared between Government, businesses, trade unions, professional bodies and the workforce.

“If the UK is going to compete with the likes of Germany in global low carbon markets, a key component must be to build skills across the economy and proactively transfer skills from high carbon sectors where jobs will be lost," said Peter Young, chairman of the Aldersgate Group. "At stake are the jobs, competitiveness and prosperity of the future.”