Moved by
Lord Addington
91: Before Clause 14, insert the following new Clause—
“Personal Education and Skills Account
(1) A Personal Education and Skills Account (“PESA”) is an account—
(a) held by an eligible adult (an “account holder”); and
(b) which satisfies the requirements of this section.
(2) An eligible adult is a person who—
(a) is aged 18 or over; and
(b) is ordinarily resident in England.
(3) A PESA may be held only with a person (an “account provider”) who has been approved by the Secretary of State in accordance with regulations.
(4) The Secretary of State may by regulations establish a body to administer the operation of the PESA scheme.
(5) In the case of each person who is eligible under subsection (2), the body established under subsection (4) must open a PESA for that person.
(6) If a person does not wish to hold a PESA, they must inform the body under subsection (4) in writing in accordance with regulations.
(7) The Secretary of State must pay into each PESA a deposit of £4,000 during the year in which each account holder attains the age of 25 and a deposit of £3,000 during the year in which each account holder attains—
(a) the age of 40; and
(b) the age of 55.
(8) Further contributions may be made to a PESA by—
(a) an account holder;
(b) employers; or
(c) any other person as may be prescribed by regulations by the Secretary of State.
(9) At any time after an account holder has attained the age of 25, they may transfer funding from their PESA to an approved institution for their chosen education or training course.
(10) For the purposes of subsection (9) an “approved institution” is—
(a) a “relevant provider” under section 18;
(b) such other education or training providers as may be approved by the Office for Students.
(11) Prior to an account holder making an initial funding transfer, the National Careers Service must offer a careers guidance consultation to that account holder.”
Member’s explanatory statement
This amendment provides for individual “skills wallets” which may be used by a person to pay for education and training courses throughout their lifetime. The Government will make a payment of £4,000 when an individual turns 25 and then two further payments of £3,000 when an individual turns 40 and 55.