Scale of The Problem
As part of the Skills for Life strategy, a nationwide survey of basic skills (Skills for Life Needs and Impact Survey) was published in 2003. The survey showed that of the adult population aged 16–65 in England:
- 5.2 million (16%) have literacy skills below Level 1 (equivalent to a GCSE at D – G)
- 15 million (46%) have numeracy skills below Level 1 (equivalent to a GCSE at D – G)
- Only 18% achieved Level 2 in both literacy and numeracy (equivalent to a GCSE at A* - C).
Estimates place the cost to the country of poor basic skills at £10 billion a year. This takes account of the effect of lower incomes, reduced productivity, poorer health and the cost of benefits and welfare services. The cost of poor numeracy and literacy skills for a company employing 1,000 people has been estimated at £626,000 per year. For organisations employing 51-100 employees the cost is estimated to be nearer £108,000.
Higher earnings are correlated to good basic skills (Skills for Life Needs and Impact Survey) On average:
- Those with Level 2 numeracy skills earned an additional £4,000 per year
- Those with Level 2 literacy skills an extra £2,000.
Further analysis of non-graduates published in 2006, showed that three years after finishing a numeracy course, people were earning on average 13% more than those who had not been on such a course. Attending a literacy course generally has less impact on earnings.
Read more about this topic: Skills For Life
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