The government has announced major changes to the apprenticeship system in England, aimed at creating more opportunities for young people to gain valuable skills and kickstart their careers.
In a joint announcement, Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson introduced the Growth and Skills Levy, which will replace the current apprenticeship levy. This new system will introduce foundation apprenticeships, providing young people with a pathway into critical sectors while earning a wage and acquiring essential skills.
One of the key features of the new levy is increased flexibility, allowing for shorter apprenticeships. This is a departure from the existing system, which mandates a minimum 12-month duration. The changes will give both learners and employers more control over their training programs, making apprenticeships more adaptable to industry needs.
As the skills landscape evolves, the type of training eligible for funding under the new levy will be shaped by Skills England, the government’s body responsible for assessing priority skills areas. More details on the implementation and scope of the Growth and Skills Levy will be released by the Department for Education in due course.
A notable shift under the new plan is the rebalancing of employer funding for apprenticeships. Employers will be encouraged to invest more in training younger workers, while funding for higher-level apprenticeships—such as Level 7 (equivalent to a master’s degree), typically taken by older or already highly qualified individuals—will now be increasingly funded by businesses outside the levy.
Alongside these reforms, Skills England has published its first report, offering insights into the nation’s current and future skills gaps. The findings reveal a significant decline in employer investment in training over the past decade, with training expenditure at its lowest since 2011, down 19% per employee in real terms. This underscores the urgent need for the government’s reforms.
The report also highlights that nearly 1 in 10 jobs across the UK, or more than 2.5 million roles, are in critical demand, with the vast majority requiring formal training or education. Sectors facing the highest demand for skilled workers include health and social care, education, manufacturing, and science and technology.
Launched in July, Skills England will play a central role in determining which types of training will be supported under the Growth and Skills Levy. The organization is expected to collaborate with stakeholders to shape its recommendations to the Department for Education.
As these reforms take shape, the government is committed to addressing the nation’s skills shortages and equipping the next generation with the tools they need for successful careers.
