Skills delivery independent review: call for evidence
1. INTRODUCTION
1.1. This submission constitutes the response from the Railway Industry Association (RIA) and RIA Scotland to the call for evidence on Scotland’s skills system.
2. BACKGROUND TO RIA AND RIA SCOTLAND
2.1. RIA is the trade association for UK-based suppliers to the UK and world-wide railways. It has over 300 companies in membership covering all aspects of rolling stock and infrastructure supply and covering a diverse range of products and services. As well as most of the Tier 1 contractors and large, multi-national companies, over 60% of RIA’s membership base is comprised of Small and Medium-Sized Enterprises (SMEs).
2.2. RIA Scotland supports rail suppliers across the nation, providing a voice for the sector. RIA Scotland is led by a Leadership Group, consisting of Scottish rail suppliers, and provides its members with extensive services, including:
Representation of the supply chain industry’s interests to the Scottish Government, Transport Scotland, ScotRail, rail clients and other key stakeholders;
Providing opportunities for dialogue and networking between members;
Supporting innovation through the Unlocking Innovation programme and university partnerships;
Provision of technical, commercial and political information;
Export promotion including organising UK pavilions at key rail exhibitions overseas.
2.3. The 2021 report ‘The Economic Contribution of UK Rail’ by Oxford Economics 1 found that in Scotland, rail contributes £3.2bn Gross Value Added to the economy and supports 56,100 jobs and £1bn in tax revenue.
2.4. RIA Scotland members have identified four key priorities to work on together with the Scottish Government, Transport Scotland and other key stakeholders:
Decarbonisation: The rail supply chain stands ready to deliver the 2035 rail services decarbonisation target as well as support the wider decarbonisation of Scotland by 2045.
Efficient delivery: Rail suppliers recognise the imperative, now more than ever for the rail industry to be efficient and cost effective.
Innovation: Innovation can support decarbonisation ambitions and the need to deliver quicker, better and cheaper while also contributing to economic growth and creating export opportunities.
Skills: Skills and people are necessary for the rail sector to grow and deliver successfully and young people need to see the rail sector as an attractive workplace. These priorities will be supported by a clear and stable pipeline of opportunities.
2.5. RIA Scotland recognises that equality, diversity and inclusion drive innovation, financial performance and success. Together with Women in Rail, RIA is promoting an ‘Equality, Diversity & Inclusion Charter’ for rail, which has the potential to support social mobility, grow UK STEM skills, create local opportunities, and increase the talent pool from which the future leadership of the rail sector will be drawn.
2.6. The RIA Scotland skills workstream has now been set up and RIA Scotland would be happy to collaborate with the Scottish Government and Skills Development Scotland to further examine the state of the skills delivery landscape for rail in Scotland. We would also be happy to provide further detail directly from RIA Scotland members, or answer any questions about the below submission. Please do get in touch with any queries at scotland@riagb.org.uk.
3. SUMMARY OF RECOMMENDATIONS
RIA
Scotland’s key recommendations for the Skills Delivery Independent Review are:
Recognise rail as an industry which can support the Just Transition to net zero by providing productive, highly skilled, green jobs across Scotland. The current and future rail industry skills gaps should be seen as an opportunity to achieve this.
Provide a clear pipeline of work to enable businesses to invest in skills and people. 5-year visibility should become the norm.
Launch a Scotland’s Railways Attraction Programme in collaboration with the rail industry and RIA Scotland.
Support RIA Scotland’s ambition of a 5% apprenticeship target by providing certainty over future rail investment.
Public bodies such as Skills Development Scotland should continue to collaborate with industry trade associations such as RIA Scotland to ensure a joined-up approach between government and industry initiatives.
4. CONTEXT
4.1. James Withers has been appointed as Independent Advisor to the Scottish Government on the Review of the Skills Delivery Landscape. As part of this review, he is hosting a call for evidence.
4.2. This independent review of the skills delivery landscape will focus on the functions and remit of Skills Development Scotland and its interface with the wider skills system. The review will culminate in recommendations about the roles and responsibilities of the skills functions of Scotland’s public bodies. Read more here.
Scotland’s Skills Delivery Landscape
5. If there was one thing you would like to see change in how our skills landscape is structured and delivering, what would it be?
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5.1. The single thing that RIA Scotland would like to see is practical support for our ambition that 5% of our workforce should be apprentices.
5.2. Rail must be recognised as an industry which has strong potential to support skills development. Rail contributes to net zero goals and boosts social mobility by enhancing connectivity – playing a vital role in the Just Transition. A 2021 report by Oxford Economics found that the rail sector supports 56,100 jobs in Scotland and that these jobs are both more productive and higher paid than the Scotland average.2
5.3. Related to the recognition of rail as a key sector for skills development, is the recognition of the main barrier to enabling rail industry investment in skills and people. The main barrier is currently lack of certainty of future work within the supply chain. Long-term commitments to rail investment, with clear pipeline of future work and certainty over the volume of work, gives the private sector the confidence to invest in skills. Both large companies and local SMEs need to know that there will be work to give any graduates, apprentices, or new employees both now and in the future. This is also key to giving people the confidence that they can build a long career in rail.
5.4. Recognising this requires a joined-up, long term approach across government and the private sector, with public bodies acknowledging and considering this key commercial dynamic. This requires not only collaboration between public bodies and the private sector, but also between public skills bodies and industry specific bodies such as Scotland’s Railways.
6. Thinking about the vision in the Terms of Reference for a system that is simple, peoplefocused and built on collaboration, how well are we doing against that vision just now?
6.1. Please give us your views
6.2. A more joined-up approach between public bodies, industry, and educational institutions is required. The experience of RIA Scotland members is that a lot of students and young people are not aware of the opportunities in rail. Simultaneously, there is a strong need to fill the skills gap in rail. We have expanded on this throughout the submission below.
6.3. Please provide specific examples of success in the work of public agencies or the private/third sector.
6.4. Apprenticeships such as those run by suppliers, Network Rail, and ScotRail are excellent ways to increase the number of young people joining the sector. However, there are steps that can be taken to encourage more apprentices, which will be outlined below.
6.5. Another positive example is the £2.1m Scottish Enterprise funding awarded to the Michelin Scotland Innovation Parc in Dundee for a Skills Academy and innovation labs focused on green transport technologies. 3 The Green Jobs Fund was a welcome opportunity for businesses to receive grants to support jobs that contribute to the net-zero agenda.
6.6. A range of suppliers also offer schemes and opportunities for training and upskilling. QTS Training is an NSAR Gold rated provider of railway safety critical and on-track plant training. Their unique, on-site training facilities at their training headquarters in Lanarkshire include a 700m double line railway training track, underground confined space chamber and tunnel
https://www.riagb.org.uk/RIA/Newsroom/Publications%20Folder/OE_2021.aspx
3 https://www.scottish-enterprise-mediacentre.com/news/gbp-2-1m-boost-for-drive-to-greenertransport-skills
system and bespoke rope access training area. SWGR’s Training Company Scot-Train is a NSAR Gold rated and licensed rail training company, providing a one-stop facility for all rail courses.
6.7. The collaboration between Scottish Engineering and Skills Development Scotland has been welcomed by the rail industry.
6.8. Please provide specific examples of elements that don’t work, are confusing or need to be improved.
6.9. RIA Scotland members have reported that they are not always aware of the work of the national skills agencies. Those who are aware of them, have also reported that while good work is being done at an individual agency level, it sometimes feels like the organisations have separate views of priorities. There is a need for clearer alignment not only between specific bodies such as Skills Development Scotland and the Scottish Funding Council, but also between skills-specific bodies and sector-specific bodies such as Scotland’s Railways. Members have also cited that it can be difficult to engage with public agencies, as there are no obvious calls for volunteers or other skill transfer opportunities.
6.10. RIA Scotland Members are not aware of specific established activity to understand and support the skills needs of the rail supply chain in Scotland. Such activity would be very valuable and RIA Scotland would be ready help make the case.
7. Thinking about the different national agencies and partners involved in skills delivery, are there areas where more clarity is required about roles and responsibilities or where you think the balance of responsibilities should be changed?
7.1. We are not able to comment.
8. Thinking about how our economy and society is changing and the Scottish Government’s ambitions for a skilled workforce as set out in the National Strategy for Economic Transformation, do you have any evidence on where the current skills and education landscape needs to adapt or change and how it could be improved?
8.1. The Scottish Government has committed to net zero by 2045, and the pathway to this target is set out in the Climate Change Plan 2018-2032. In that plan, the Government also commits to decarbonising Scotland’s passenger rail services by 2035. The plan to reach this target is laid out in Transport Scotland’s Rail Services Decarbonisation Action Plan. RIA Scotland is highly supportive of these targets, and welcomes the recognition of rail as the backbone of a net zero economy. However, a strong skills base will clearly be required to meet these targets and to deliver the amount of work required to decarbonise networks by 2035, as well as to expand and maintain them from 2035 and onwards.
8.2. In particular, skills in electrical engineering, including the more ‘artisan’ skills (e.g. coupling, wiring) will be integral to achieving net zero. Other skills needed in the future include:
Digital: cybersecurity, computer science, coding, AI management, systems integration
Electrical: generic electrical engineering, overhead line knowledge
Signalling: digital signalling, including knowledge of European systems/ETCS
Operational: train driving, maintenance, customer service
Management: project management, change management, supervisory
Other ‘soft skills’ will always be needed including creativity, agility, and good management
8.3. Skills shortages are exacerbated by the high mean and median ages for the rail workforce in Scotland (44 and 43, respectively). Data from NSAR shows that assuming a standard retirement age of 65, over a quarter of today’s rail workforce in Scotland will have reached retirement age by end of 2035.
8.4. Whilst these are significant challenges, addressing them will unlock significant transformational benefits and opportunities for people and communities all across Scotland. As the economy undergoes a Just Transition to net zero, rail can contribute by supporting green, highly skilled, and highly productive jobs across the whole nation. A 2021 report by Oxford Economics found that the rail sector supports 56,100 jobs in Scotland and that these jobs are both more productive and higher paid than the Scotland average.4
8.5. Indeed, rail should be promoted as a green career choice, supporting Scotland’s net zero ambitions. This would assist in attracting more young people to rail and addressing some of the challenges outlined in this submission.
9. Can you provide any evidence of skills structures in other places that are delivering outcomes in line with Scotland’s ambitions which Scottish Government should look to in achieving its ambitions?
9.1. Within the rail sector, which is our area of knowledge, there are a number of company or project-level initiatives but not yet a systematic approach.
Apprenticeships
10. Do you have any evidence relating to the outcomes of the current funding and delivery of apprenticeship programmes (Modern Apprenticeships, Foundation Apprenticeships and Graduate Apprenticeships) in terms of either outcomes for learners and/or the needs of employers?
10.1. We do not have detailed evidence.
10.2. In order to support apprenticeships, the rail industry needs surety of the pipeline of work ahead. This helps ensure that employers can commit to full time jobs and facilitate more than just, for example, two shifts over the weekend.
10.3. The current landscape of training programmes, financial assistance, and qualifications can be confusing and difficult to navigate – both for learners and for employers. If an employer cannot quickly understand the process and benefits of running training schemes or recruitment exercises, then they are unlikely to do so. Similarly, if a potential employee cannot quickly identify options that work for them, then they will look elsewhere.
10.4. RIA members say that visibility of upcoming work for minimum of five years is required to allow organisations to increase the current investment in graduates and apprentices. It is critical that once the investment has taken place there is commitment and sufficient work to ensure employment and competencies are maintained going forward.
10.5. RIA Scotland recommends that an industry wide target is set to employ 500 apprentices or have apprentices make up five percent of the workforce. However, RIA Scotland members will
need decision makers to provide a clear pipeline of work and launch a programme to promote the diversity of jobs within the rail industry.
11. Do you have any views or evidence on how changes to the operation of apprenticeship programmes could support the ambition for apprenticeship programmes to be an embedded part of the wider education system?
11.1. Apprenticeships are, perhaps to a lesser extent than other education options, often seen as only for ‘young people’. A marketing campaign promoting the opportunities of an apprenticeship to older people might help encourage new people into training.
11.2. Engagement with schools and education providers is key to shaping the career path of young people. Rail suppliers are already participating in career fairs and recruitment events, as well as speaking at local schools.
11.3. “Shared” schemes that combine formal education from educational institutions with work experience at private sector companies can make it easier for SMEs in particular to support apprentices. Examples such as Network Rail’s Star Track scheme is a good example of where several different companies contribute to hosting an apprentice. Gaining experience across the sector also helps build multi-skilled individuals which are becoming increasingly in demand. These schemes also help employers with the admin associated with taking on apprentices, help with HR, assist with relationships with local colleges, and can be flexible to meet a variety of needs. Implementing this for rail companies, especially in local groups, will help SMEs develop their apprenticeship and training offer, and help to level up local areas.
12. Apprenticeships are often described as being ‘demand-led’. Do you have any evidence about how process for developing and approving apprenticeship frameworks responds to skills priorities? Please include suggestions of how the development process could be enhanced.
12.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
13. Do you have evidence on the benefits or risks of employer leadership in apprenticeship development or the impact it has on outcomes for apprentices and/or employers?
13.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
National Occupational Standards
14. Do you have any evidence on how the current arrangements for National Occupational Standards are delivering against the intended ambitions of the National Occupational Standards Strategy?
14.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
15. Do you have any evidence to support how changes to the delivery landscape for developing and championing National Occupational Standards could support the ambition for National Occupational Standards to be the foundation of vocational training and learning in Scotland?
15.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
Upskilling and Reskilling
16. Do you have any evidence to demonstrate how the existing delivery arrangements for upskilling and reskilling, including the specific funding programmes, are impacting on outcomes for learners and/or industry and sectors?
16.1. We are not able to comment extensively at this stage, but see some comments below.
17. Do you have any evidence about what measures, if any, should be in place to understand the quality of national skills programme delivery funded by public investment through independent training providers?
17.1. We are not able to comment extensively at this stage, but see some comments below.
18. Thinking about the government’s ambition to optimise the existing system for upskilling and reskilling throughout life, do you have any evidence to support how changes to the delivery landscape could help to achieve this ambition?
18.1. For the rail supply sector, attracting, training and upskilling the workforce remains a challenge without continuity of work and available time on site to use the workforce in an efficient manner. Therefore, certainty over the workbank ahead (on at least a 5-year basis) is essential in order to unlock sufficient investment in reskilling and upskilling from private sector rail companies.
18.2. Enabling workers to acquire different skills will increase job opportunities and ability to work on different projects. For example, a Crane Controller is likely to secure only one or two shifts per week in rail – and this will likely be during the weekend. By training people in multiple areas, it would allow them to access trackside work, project work, and more work throughout the week. Again, this requires clear pipeline of work that will give suppliers the confidence to recruit and upskill.
Sector and Regional Skills Planning
19. Thinking about the overall ambition to ensure that the skills and education system is aligned to local, regional and national skills priorities, what aspects of the current delivery landscape are working well to support this ambition?
19.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
20. The Auditor General recommended that the Scottish Government take urgent action to deliver improved governance on skills alignment. Do you have any evidence to support whether the current arrangements are likely to deliver progress?
20.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
21. Do you have any evidence to indicate how changes to the delivery landscape could better deliver the vision for a system which is agile and responsive to future needs and where labour market insights can inform strategic provision planning?
21.1. As set out above, for rail, a key consideration across the skills delivery landscape should be the profile of future rail and infrastructure investments. Certainty over future investment creates an agile and responsive workforce as the private sector will have the confidence to invest to broaden and strengthen the skills base.
21.2. Rolling programmes taking place over many years, such as the Scottish rolling programme of rail electrification, helps with retention of skilled works after initial projects are finished. A rolling programme is a pipeline of work which allows resources to be continuously employed over a long period of time. An efficient delivery team sits at the core of the programme and the team is fed with regular work and stays active – continuously learning, improving productivity, and delivering efficiencies.
21.3. The above points are crucial for the private sector to be able to support the Scottish Government’s ambitions and should be a key consideration of the Government and of public skills bodies.
21.4. The Scottish Government’s National Strategy for Economic Transformation sets out a partnership approach between industry, government, and the education system to delivering skills. While the Strategy recognises opportunities in decarbonising transport and commits to deliver the second Strategic Transport Projects Review, the Scottish Government could go further in recognising the opportunity rail presents in terms of creating green jobs for the future.
22. Do you have any evidence to demonstrate the success of Skills Investment Plans or Regional Skills Investment Plans on sector and regional skills outcomes?
22.1. RIA Scotland welcomes the development of Regional Skills Investment Plans, as they will help address skills shortages and training on a more granular, local level. Local companies will need to be at the heart of the development of the plans to ensure that the needs of local areas and companies are being understood and addressed to create a sustainable local pipeline of skilled workers.
23. Thinking about the current delivery landscape, how well is it structured to deliver the Scottish Government's ambitions for a just transition to net zero?
23.1. As set out above, rail has the potential to be a key part of the Just Transition to net zero. Not only does rail support connectivity and enable social mobility and access to career opportunities, the construction and maintenance of rail also creates thousands of green jobs. However, in order to support the delivery of work and invest in skills the rail industry needs a clear commitment to which rail schemes will go ahead.
23.2. More specifically, to meet the 2035 target in the Rail Services Decarbonisation Action Plan will need electrical engineers, including OLE-certified staff.
Careers and Young People
24. Do you have any evidence to inform how the new Careers by Design Collaborative could be embedded within the wider education and skills system and delivery landscape to enable the
recommendations of the Careers Review to be taken forward to ensure people can access the advice, information and guidance that they need?
25. We are not able to comment.
26. Alongside Careers information, advice and guidance, do you have any evidence to demonstrate what additional support young people, including those from marginalised groups, might need to develop their skills and experience to prepare them for the world of work?
26.1. Reducing barriers to diversity, inclusion and social mobility will be key to building the workforce and skills of the future. Rail, alongside construction and engineering in general, struggles with certain perceptions of the industry, as well as with attracting, retaining, and training new people. Social mobility and the imperative to ensure a Just Transition is much wider than the rail sector and therefore requires a wider solution. However, as rail offers a huge opportunity to support the Just Transition to net zero, the potential for rail to be a vehicle for social mobility cannot be downplayed.
26.2. Apprenticeships especially can be a great way for people from lower socio-economic backgrounds to access training, education, and a clear career path. However, many employers struggle to understand the landscape of apprenticeships, including funding, the apprenticeship levy, and the need to create training programmes where there are currently none available. Factors like cost, perceived reliability of apprentices, and concerns about time commitment are also barriers to companies offering apprenticeships, as well as companies often just not having the time to find information. There is also emerging evidence that Coronavirus has had a particularly negative impact on the education and skills development of students from lower socio-economic groups. This suggests particular focus will be needed to address this in order to ensure that individuals have the opportunity to reach their full potential.
26.3. The perception of the transport and, especially railway, workforces is that they are not very diverse, and often people from diverse backgrounds cannot find themselves represented throughout the industry. This is may create a barrier, leading people to instead look for work in industries they feel more immediately welcome in. Rail also struggles with the perception of the industry, with people often associating rail with long delays, expensive tickets, and depreciating rolling stock. Rail is often not seen as an attractive industry to work in – hence the need to promote the sector and the careers opportunities it offers as noted above. For some roles, such as engineering and systems developers, other industries offering higher wages or more social hours can seem much more attractive.
26.4. A lack of awareness amongst young people about careers in railways and wider transport can be a significant barrier. Often young people will apply for the jobs that are most obvious and best marketed, leading them to apply for jobs in tech, large consultancies, and social media. If companies can more easily get access to schools and colleges, it will be easier to promote the range of careers available. If companies can especially access schools in deprived areas, this will help to reach more people from lower socio-economic backgrounds and assist in improving social mobility.
26.5. It is important to remember that the first few weeks to six months on any scheme will be very intense for the trainees, graduates and apprentices. It is important to maintain strong communication within the company to make sure the experience what they expected and make sure it's right for them. Whilst it is necessary for transport to attract and retain new
people, we much also make sure there is no stigma attached to walking away because it is not right for them.
26.6. Supporting initiatives such as the RIA and Women in Rail EDI Charter, which encourages companies to implement more inclusive practices into their workplaces and culture, such as staff training and encouraging the ‘quiet voices’ within a company. Initiatives like this also help companies to come together to share knowledge and best practice on areas like inclusive recruitment, staff networks, and cultural sensitivity.
26.7. Recruitment is only the first milestone – one we have attracted new people into the sector, we must then foster an inclusive culture to ensure that new entrants stay. To ramp up the workforce, new people entering the industry need to see longevity in their chosen career. A committed work bank allows companies to sell the opportunities that are available.
26.8. The above has made clear that there is a strong imperative for a joint effort to attract young people to rail. This will be key to enabling a Just Transition to net zero, as rail supports green, highly productive, highly skilled jobs. If the Scottish Government continues to commit to rail, as it has done through its rolling programme of rail electrification, this will support green and steady careers for thousands of young people all across Scotland.
26.9. RIA Scotland recommends that Transport Scotland and Skills Development Scotland launch a Scotland’s Railways Attraction Programme. The rail industry stands ready to support this with both funding and time commitments, but a visible commitment from the Scottish Government is required to make sure that all initiatives are lined up. Suppliers are already leading their own skills and outreach initiatives that can be built upon and brought together.
Employer engagement and support
27. Do you have any evidence about how the current arrangements for employer engagement in skills and education are supporting delivery of Scottish Government’s ambitions and outcomes?
27.1. As explained above, skills activity needs to be accessible and to result in a return on investment for both individuals and employers – therefore collaboration, simplification, and the right incentives are key. The training landscape is complex, and apprenticeship funding and salary levels do not always align with employer skills priorities. For rail, there is a need to work with the rail supply chain to understand skills needs, share and learn from best practice and maximise the impact of skills development activity.
28. Thinking about the different aspects of the system in which employers have an interest, and the existing mechanisms for feeding into policy and delivery, do you have any evidence to support how changes in the delivery landscape could improve the partnership working between Scottish Government, its public bodies and employers?
28.1. We are not able to comment at this stage, but would be happy to work with Skills Development Scotland to understand this aspect of the rail sector more.
Railway Industry Association Scotland
December 2022
If you would like further information, please contact RIA Scotland Lead and RIA Technical Director David Clarke at david.clarke@riagb.org.uk and +44 (0)20 7201 0777