What is Skills England, and what does it mean for you?

The dust of June’s election has settled, and our new government is firmly in office. But for skills and employment, plenty of organisations are still figuring out exactly what new policies will mean for them.  

So far, the government are firmly sticking by their manifesto and putting forward their Skills England Bill, which in their words will “bring together the fractured skills landscape and create a shared national ambition to boost the nation’s skills.”  

Here’s the latest: 

Skills England 

Labour has confirmed the launch of a new skills body, Skills England which will take shape over the next 9-12 months. Skills England will absorb many of the functions currently carried out by the Institute for Apprenticeships and Technical Education (IfATE). 

Skills England will bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade across all regions. It will also provide strategic oversight of the post-16 skills system aligned to the government’s Industrial Strategy.   

The interim Chairman will be Richard Pennycook; the former Cooperative group CEO who currently serves as the Department for Education’s lead non-executive director, and knows this territory well. 

Levy reform 

Changes to the Apprenticeship Levy are on the way, with an emphasis on increased flexibility for employers to spend levy funds on the training they need, in other forms as well as apprenticeship programmes. It will also be renamed to match, becoming the ‘Growth and Skills Levy’. 

A list of levy-eligible training will be held by Skills England, whose mission will be to ensure access to training aligned to critically needed skills, as well as ensure value for money.   

Many expected a levy-update announcement to the previously mentioned 50/50 spend relating to non-apprenticeship courses, this was not mentioned in Monday’s announcement, 22nd July. Some of the press are still reporting that this commitment is in place however, so clarity is ‘pending’ on that count. 

Technical excellence colleges 

With the aim to break down barriers to opportunity, grow a skilled workforce, and drive economic growth, the government plan to introduce a comprehensive strategy for post-16 education. 

This will come alongside the introduction of ‘technical excellence colleges’ – in which existing education institutions which meet specialist local skills needs in their regions will bid for a new status under Labour as TECs. 

What does it all mean? 

As QA’s Chairman Sir Charlie Mayfield (former Chairman of the UK Commission for Employment and Skills) discussed with Ed Vaizey at Times Radio:  

The current skills system is complex, fragmented and has been hampered by political change. However, in many places the apprenticeship levy is working with life-changing and business-transforming impact. 

The system needs honing, not burning down and rebuilding from scratch. 

Skills are a critical enabler of growth, and sufficient talent to fill key roles in a changing digital world will be crucial to move the UK forward. 

The principal challenge of that digital change is keeping pace: Different skills needs come and go faster than previous government-funded skills systems could deliver – especially in a world increasingly reshaped by AI tools, skills and emerging roles.  

So, how do we accelerate impact, without undue risk to taxpayer money?  

‘Simplicity and agility’ says Charlie: A clear path for businesses to gain the skills they need, and a system with the flexibility to adapt. 

Our take 

We are encouraged and motivated to see the skills agenda front and centre of the new government’s growth plans.  

We believe that Skills England, and its systematic approach to transforming opportunities and growth, is a strong sign of commitment and will facilitate the joining of key partners to meet the skills needs of the next decade across regions.  

We know that a quicker, more agile route to validated programmes that can flex to meet emerging demands would be well-met by training providers and employers. We also understand this needs to operate smoothly in real life; overcomplication through paperwork and regulation will kill buy-in. 

We are aligned with the government in the belief that optimal outcomes can only be delivered through Skills England actively listening to employers and training providers. This will allow us to innovate fresh approaches and address challenges in the current apprenticeship and skills system whilst retaining many of the aspects which are working so well.  

What can you do? 

The road to more skills, more opportunities, and a stronger economy is paved with the decisions that businesses will make in coming months.  

Increasing your investment in skilling will help to bolster the UK economy. Consider this: The UK’s levels of investment per employee are around half that of some European countries (as of 2021). It’s time to step it up. 

Wise organisations will not focus their increased investment solely on existing technical specialists. 

We advocate for a change of mindset toward reskilling across your workforce from all areas. With a cross-functional approach, and injections of talent from lower-priority areas into emerging areas, businesses can: 

• Undercut the competitive technical talent market 

• Save on hiring costs by ‘growing your own’ 

• Create further opportunities, stronger career paths, greater employee satisfaction and loyalty within your business 

• Gain the advantage of forward-edge technical talent to innovate and move ahead of your competition 

• Contribute to a strengthened UK economy and a skilled future-ready workforce both at regional levels and on the national (even international) stage 

Want to see it in practice? Check out this webinar to learn how Costa Coffee are reskilling from their customer service teams and beyond to create the next generation of data innovators. 

Ready to play your part in transforming opportunities and driving growth?  

To give your organisation a competitive edge today, and build a stronger UK tomorrow – get in touch to discuss your technical skilling journey. 

If you want to find out more about Skills England, please visit Skills England - The UK Government's New Scheme Explained