What are the new apprenticeship reforms?

At the Labour Party conference, Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson introduced the new Growth and Skills Levy set to replace the current Apprenticeship Levy.

The new levy will support the creation of foundation apprenticeships, offering young people a pathway into key sectors where they can earn while developing crucial skills. Additionally, it will allow funding for shorter apprenticeships, providing more flexibility both for learners and employers. Currently, apprenticeships must last a minimum of 12 months but the reforms aim to offer more adaptable training options.

How will the Growth and Skills Levy be funded?

The government established “Skills England” in July to identify and address the nation’s skills needs. In its first report, released on September 24th, Skills England highlighted several critical issues. Employer investment in training has been steadily declining for a decade, reaching its lowest point since 2011, with a 19% drop in investment per employee in real terms.

The report also revealed that nearly 1 in 10 (2.5 million) jobs in the UK are in high demand, with over 90% of these roles requiring specialised training or education. The health and social care sector has the highest demand, followed by education, manufacturing, and science and technology.

Moving forward, Skills England will work closely with stakeholders to advise the Department for Education on the types of training eligible for the new levy, helping ensure that the right skills are being developed for the future workforce.

What benefits can apprenticeships have?

Apprenticeships can open doors to new opportunities, allowing people to develop the necessary skills and knowledge to succeed in their chosen field. With the flexibility introduced by recent reforms, apprenticeships now cater to a broader range of industries and career levels, making them accessible and valuable to anyone looking to advance in today’s competitive job market. But most importantly apprenticeships are designed for everyone– whether you’re a school leaver, a career changer, wanting to upskill in your current field or someone returning to the workforce after a break. Apprenticeships offer valuable training and career advancement opportunities, ensuring that no matter what stage you are in your professional journey you can get the help and mentorship you deserve.