Government announces reforms to apprenticeship system

Alongside publication of the first Skills England report highlighting nationwide skills gaps, the Government has announced a new growth and skills levy among reforms to the apprenticeship system.

The growth and skills levy will replace the existing apprenticeship levy.

The new levy, announced by the Prime Minister and Education Secretary, will also include new foundation apprenticeships that provide a training route into careers in critical sectors. Shorter apprenticeships of less than 12 months will also be supported by the growth and skills levy to give employers and learners greater flexibility in their training. Businesses will also be encouraged to invest more in younger and less experienced members of their workforce, with more level 7 apprenticeships that are typically accessed by older, already-qualified workers falling outside of the levy.

Training eligible under the changes will also evolve over time in response to skills needs identified by Skills England, which published its first report into skills gaps alongside the announced apprenticeship reforms on 24th September.

The report has found that employer investment in training has been in steady decline over the past decade, with training expenditure at its lowest level since records began in 2011, with investment per employee down by 19% in real terms.

It also shows that, across the UK, almost 1 in 10, or over 2.5 million roles are in critical demand, with more than 90% being in roles that require training or education. The health and social care sector is experiencing the highest demand, followed by education, manufacturing, and science and technology.