The government has recently announced an overhaul of the UK’s apprenticeship system.
A new growth and skills levy will replace the existing apprenticeship levy, and this will also include a new foundation apprenticeship. The government says that these new apprenticeships will give young people a route into careers in critical sectors, enabling them to earn a wage whilst developing vital skills.
The new levy will also allow funding for shorter apprenticeships giving learners more flexibility- currently an apprenticeship must run for at least 12 months.
The training available for funding under the new levy will develop over time and The Department for Education will expand further on the offer for funding and how it will be accessed in due course.
Employers are being asked to rebalance their apprenticeship funding with priority in investing in younger workers. Businesses will also be asked to fund more of their level 7 apprenticeships themselves. The level 7 apprenticeships focus more on older leaners and those already qualified in certain areas.
In July the government launched Skills England in July to identify skills needs. This new body for the skills system had its first report on the 24th of September, which highlighted the need for change. It found that employer investment in training has been steadily declining in the last decade and that almost 1 in 10, or 2.5 million roles, are in critical demand in the UK. More than 90% of these are in roles that require training or education. Going forward, Skills England will play a crucial role in determining which types of training will be eligible for the expanded growth and skills levy and will shortly set out how they will work with stakeholders to inform their advice to the Department for Education.
Written by Lucy Williams FCILEx
Head of Employment Law and HR at Key Group Services Limited