A new growth and skills levy is being introduced to replace the existing Apprenticeship Levy, the Government has announced.
The aim of the programme is to allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system.
Education Secretary Bridget Phillipson said the new levy will give young people a route in to careers in critical sectors, enabling them to earn a wage while developing vital skills.
The training eligible for funding under the new levy will develop over time and be based on a Skills England’s assessment of priority skills needs.
The Department for Education says it will set out further details on the scope of the offer and how it will be accessed in due course.
To fund it, 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 announcement comes as the first report from Skills England, the government’s new body for the skills system, has been published.
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.
Training expenditure is at its lowest level since records began in 2011, with investment per employee down by 19 per cent 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 per cent being in roles that require training or education.
