What skill level do I need to ride a bike? Or for my daughter to be safe on the road?

If wishes were horses, Oliver. Seems like half the drivers I encounter don't have a clue what an ASL box is, most don't know what primary position is or why a cyclist would need to ride in the middle of the road where there's a pinch point or obstruction, plenty haven't got a clue about local speed limits.. you are talking about 40M people, the majority of whom are basically ignorant (not willfully so, just as a matter of fact).

Even if the driving test were massively improved tomorrow (which it won't be - much of society is car-dependent & therefore it is a requirement that the bar to be set low enough for the village idiot and his half-blind, half-senile uncle to get over it), it'd still take 50 years to re-educate the population -- maybe as little as 25 if backed by the massive enforcement and media blitzes that were rolled out to tackle seatbelt non-use and drink driving, but those are simple binary actions - do or do not - behaving considerately around vulnerable road users is more nuanced and complex.

Much better, in my view, to educate through engineering - every last minor road in our towns and cities converted a half-mile-long dead end. Cars have directly caused, what, a quarter-million deaths in this country since 1945 - before you factor in inactivity and air pollution. Take away the through routes in our neighbourhoods for five or ten years - all of them - maybe they can have some back when they've learned to behave.

Not sure where you;'re based but after last years tragedy where 6 people lost their lives cycling, the police were cynically out in force (having said for the previous 6 months there was no money for policing). The roads were a lot calmer.