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By Nuclear Transport Solutions

Who accounts for social mobility?

Association of Chartered Certified Accountants

7 min read Partner content

A report by the Association of Chartered Certified Accountants has found the Government’s social mobility strategy lacking.

A reportby the Association of Chartered Certified Accountants has found the Government’s social mobility strategy lacking; the report argues that politicians face a simple choice – act on the recommendations of the Commission or face a lost generation.

“This extensive report of our UK members and student’s has highlighted what an important issue this is to our students and members and we implore the government to do more” says Sarah Hathaway Head of ACCA, UK

ACCA’s investigation into the profession’s performance on social mobility will be used to highlight the case for the Government, businesses and the profession and to help them do more to facilitate greater levels of mobility throughout the wider British community.

The subsequent report, published today, will feed into the Government’s Social Mobility and Child Poverty Commission, chaired by former cabinet minister Alan Milburn, the UK’s “official monitor of progress in making the country a fairer place”.

The report opens with a strong message, stating that despite political rhetoric, social mobility is limited.

“The professions, from accountancy to journalism and everything in between, are mostly dominated by a social elite who have had access to the best education, the best networks, the best support,” the report states.

ACCA’s report has collected a wealth of information and makes five recommendations to government. Its timing is fortuitous. Milburn’s second report from the commission will be presented to parliament on Monday, his last before the 2015 general election.

The ACCA’s interviewed its members for the survey, 55.5% of which were female and 45.5% male.

When asked to describe the highest position of either of their parents at the time of their youth, just under half (45.5%) said they were from the higher professional and management (AB) classes.

77% described themselves as now in those same AB classes.

The report delved into their member’s educational background. Of the surveyed ACCA members, 18% reported having received one or both income support and free school meals during school, 7% attended an independent fee-paying school, and 88% of those who went to school in the UK were state school-educated. Less than half (48%) of the respondents had an undergraduate degree.

Just 9.5% of members received information about accountancy from their school and 7.1% from their university, indicating that much more can be done to improve awareness of the profession and its entry routes through the careers advice and guidance system. This may be further reflected in the fact that 47.7% of members were aged over 25 before they decided to become an accountant.

ACCA are unhappy that the Government “does not lead by example when it comes to data collection and monitoring”.

“The withdrawal of investment in careers advice does little to help prepare young people more effectively for the world of work; and expenses-only internships within parliament continue to be advertised,” the report states.

“We are also particularly disappointed with the government’s response to the recommendations made by the Social Mobility and Child Poverty Commission, none of which have been implemented thus far.”

Sarah Hathaway says the ACCA report is part of a dialogue with the commission.

“We are very supportive of their previous recommendations but they have not been taken up. It is a good channel for us and other professions to say these are things that need doing.

“If you look at the history of ACCA and the values we stand for, open access has been part of that since we were set up 110 years ago.

“It is something we have always been doing. Whenever I hear Alan Milburn speak, accountancy is always one of the professions he references that is not socially mobile and in many ways that is true.

“The Big Four come under criticism a lot, but actually underneath that, from our perspective, we have got a very diverse membership and we have given opportunities to people from all backgrounds. There are some good news stories there.”

One of ACCA’s recommendations is the appointment of a senior minister to be in overall charge of the social mobility agenda.

“What happens is government departments do not speak to each other and that impact analysis doesn’t happen,” says Hathaway.

“There is a general acceptance there is an issue, and the dialogue is there and people are referencing social mobility, but it has to be based in really strong cross departmental policy. That actually the impact is assessed, not ‘we think this might work but we don’t know’.

“If we are serious about this as a country, no one area can tackle this on its own. I was recently at a Joseph Roundtree Foundation event on housing and poverty – of course it starts there. Our bit comes after that, but collectively we are responsible. We need to understand how everything from tax to housing comes together to support social mobility.”

ACCA’s report is full of both factual data and “fantastic” anecdotal commentary that came with some of the questions, says Hathaway.

“Some of those quotes are in the report. 64% of them said social mobility is really important to them and that is where some of that push needs to come. Those that have had the opportunity and can see they have benefited want the same for others and want employers to support that movement into the profession.

“The perception is that the professions are closed to young people and also people from certain backgrounds. That is not true but we do need a change in approach from employers and in terms of careers advice.”

Hathaway is particularly disappointed that parliament is not leading by example on unpaid internships.

“Change has to be led from the top as in any organisation or sector. I am not saying there aren’t still unpaid internships in the accountancy profession, there are, but in the main we have moved, certainly towards having their expenses paid.

“How can we make this representative across the country and focus on rural areas for example. It’s no good if you can’t have access to internships if you live in Cornwall or East Anglia or in the North East. People can’t afford to travel or take the time to do an internship, and it is becoming more important to have that experience, but it has to be open and it has to be paid.

That being said, Hathaway does see support for social mobility in the local and business communities.

“There are lots of businesses signing up to the social mobility business contract and there is a move to increase this and have some champions in business for the contract.

“But a lot is happening at local level that many people are not aware of. Local school or FE colleges engaging with local businesses is not seen as part of the big picture.”

Hathaway feels many of the issues come down to the need for proper data analysis and management.

“We need a national system for engagement. A school could have ten businesses pop in on a Monday morning but a year later might have nothing – that could be managed better.

“One of the things we are doing with the Access Accountancy initiative is mapping the resources that the signatories have, asking all the firms and accountancy bodies to say ‘we have x number of people we can put into schools’ and then mapping the schools most in need. We will put the two together and have a sector-wide offering.

“How does everybody else do? It could be managed in a much more central way.”

Hathaway says the business case for social mobility “has been quite strongly made, and most employers do pick up on that”.

“There are some issues with systems and processes and how you manage those. Recruiting for potential and not just achievement is an important part of that.”

She recognises that this kind of culture shift will take time, but says the importance of recruiting “a diversity of ideas, experiences and perspectives” is of imperative importance when building a well-rounded team.

“You should always have a representative workforce to better engage with clients.”

Hathaway says ACCAis committed to improving social mobility in the profession.

“This report is a snapshot of what we are doing - where we need to go as ACCA and as a profession - it is not just about bringing people into the profession, but ensuring there are no glass ceilings for those coming in, and when they go for promotion there needs to be support.

“We need to find a way to track that - this report is a start to push us and the profession. It will take a generation to change.”