Issued by: Department for Education & Prime Minister's Office, 10 Downing Street

Reforms to apprenticeship system in England announced, alongside publication of first Skills England report highlighting nationwide skills gaps

The government is boosting opportunities for young people through ambitious apprenticeship reforms in England.

The Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson today announced a new growth and skills levy which will replace the existing apprenticeship levy and include new foundation apprenticeships.

These new apprenticeships will give young people a route in to 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 and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.

The training eligible for funding under the new levy will develop over time, informed by Skills England’s assessment of priority skills needs.

The Department for Education will set out further details on the scope of the offer and how it will be accessed in due course.

To fund this, employers are being asked to rebalance their funding for apprenticeships, asking them to invest in younger workers. This will also involve businesses funding more of their level 7 apprenticeships – equivalent to a master’s degree and often accessed by older or already well qualified employees – outside of the levy.

The first report from Skills England, the government’s new body for the skills system, has also been published today. It provides an initial assessment of the nation’s working skills, as well as future skills needs and gaps which employers are struggling with across the country.

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. This highlights the need for government reforms to the skills and apprenticeships system.

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 government launched Skills England in July to help identify skills needs. 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 set out shortly how they will work with stakeholders to inform their advice to DfE.

The need for jobs and skills varies across industries, with the health and social care sector experiencing the highest demand, followed by education, manufacturing, and science and technology.

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