The Select Committee members have called for a complete rethink of the government approach to skills training. In a recently released report, Reskilling for Recovery, the committee describes the government's stategy to encourage retraining as "a dogs breakfast" despite millions of pounds being invested in this area.

Willis said that the government should move away from the "simplistic mantra" that pushing more people into taking degrees and other similar types of qualifications will improve skills and productivity.

He said: "The focus must move away from a mechanistic approach to supplying skills and expecting businesses to respond. The workforce’s ability to be flexible, and have the necessary support in order to adapt to unpredictable economic circumstances is crucial if the economy is to recover and grow."

The report also stresses the importance of simplyfying the system to retrain workers who had lost their jobs, therefore creating a supply of potential employees, who had the right skills actually required by companies.

It is the first major skills review since Lord Leitch published Upskilling the Nation in 2006 which said that UK workers needed to "upskill" their qualifications. But the new report states that workers should instead learn completely new skills and move into different sectors of employment in order to survive.

Willis added: "Since Lord Leitch published his review of skills the economic climate has worsened and it is imperative that the government responds appropriately by making radical changes to its skills policy. We support the skills review and want to see it succeed but radical changes are needed if employers and individuals are to get the best out of the system."

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