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The UK government should establish a ¡°national skills wallet¡± to log qualifications and support more school leavers into higher education and professional training, a new report has recommended.

The Digital Badging Commission ¨C a collaboration between the Royal Society for Arts, Manufactures and Commerce (RSA) and technology company Ufi VocTech Trust ¨C found that millions of people are unable to access educational opportunities ¡°as their skills remain invisible and under-used¡±.

In its final report, the commission argues that the UK¡¯s current skills recognition system is ¡°fragmented, outdated and holding back productivity at a time when it is needed the most¡±.

It laments the lack of national infrastructure to make skills ¡°visible, inclusive, trusted and portable¡±, which it says is preventing people progressing on to higher and further education and into the workplace.

¡°Too many people in the UK are locked out of opportunities because their skills aren¡¯t visible,¡± said Rebecca Garrod-Waters, chief executive of Ufi VocTech Trust and co-chair of the Digital Badging Commission.

¡°Digital badges can change that ¨C they give individuals proof of what they can do, employers the clarity to hire with confidence, and government the tools to target skills investment where it¡¯s needed most.

¡°For educators, they also offer a way to capture and showcase learning that happens outside the classroom ¨C from enrichment activities in colleges to placements through apprenticeships and higher education.¡±

The report calls on the government to establish a national skills wallet, a ¡°lifelong, portable record¡± linked to the gov.uk login where people can store and share badges and qualifications.

Compatible with this, digital transcripts of formal education records should be issued alongside paper-based records, it says.

It comes as higher education providers prepare for the introduction of the lifelong learning entitlement (LLE), which will replace the current student finance system and focus on offering students more flexible ways of learning, including through modular provision.

Under the new plans, learners will be eligible to apply for funding to study individual 30 credit modules in certain subjects, instead of having to undertake a full degree programme to access student loans.

However, it is unclear how well microcredentials of this kind will be received by employers without a formal system of recognition.

The commission also said a national skills wallet could help colleges and universities demonstrate learners¡¯ transferable skills, such as teamwork, resilience and digital literacy, ¡°which are often under-recognised by traditional qualifications¡±.

It estimates that this would save sectors such as the NHS more than ?100m annually by reducing duplicated training and onboarding.

Patrina Law, lifelong learning lead at the RSA, said, ¡°Digital credentialling is an established and trusted means to recognise skills and could be transformational in the UK ¨C for learners, for educators, for employers and for the economy. Our message to government is clear: the time to act is now¡±.

helen.packer@timeshighereducation.com