The Government says Skills England will diagnose and address the UK’s most prominent skills gaps. But how will it affect employers?
Half of business owners believe gaps in key tech and data areas will negatively affect business performance over the next decade, across metrics like profit and customer satisfaction.
But policymakers have plans for change. Labour’s new body Skills England(opens new window) is currently being established to drive economic growth, widen career opportunities, and meet future workforce skills needs.
Skills England is still in set-up mode and any changes it recommends will take a while to come into play. Until then, employers should continue to deliver their skills and training strategies as usual.
But as Skills England takes shape, here’s what employers need to know now.
What is Skills England?
Skills England is a new Government body that aims to unify the skills landscape, assess the UK’s skills gaps and transform the system. It will bring together stakeholders across government and beyond, including businesses, training providers, unions, Combined Authorities and regional organisations to collaborate and inform the design of apprenticeships and other training.
Skills England will replace the current Institute for Apprenticeships and Technical Education (IfATE), a non-departmental public body overseeing the UK’s skills system. However, Skills England will have an expanded remit including helping inform policy development.
The Department for Education expects Skills England to be fully established and running by April 2025. The finer details are still being worked out while recruitment is finalised for roles across its C-suite and board.
Skills England and Apprenticeship Levy reforms
One key responsibility Skills England will hold is to create and maintain a list of training courses eligible for funding through the new Growth and Skills Levy, which is set to replace the Apprenticeship Levy. You can learn more about the proposed Levy reforms in our guide for employers.
What will Skills England do?
Skills England has already started assessing the state of skills in the UK, which will inform future policy on apprenticeships and technical qualifications for businesses. Its first report(opens new window) sets out the challenges limiting growth across three pillars:
- Local-level disparities and immobility
- Mismatched skills
- Future megatrends
One of the main ‘mismatches’ the report flags is between employer needs and digital skills. It calls out that less than half (41%)(opens new window) of the UK’s adult workforce are able to perform all 20 tasks deemed essential digital skills for work. These include everyday workplace skills such as communicating using digital platforms and accessing tax information digitally.
While skills shortages aren’t limited to digital roles, they represent a large gap. According to the Government’s latest Employer Skills Survey, vacancies are more likely to be due to skills shortages for digital roles (81%)(opens new window) than across all occupations (63%).
Skills England will use these findings to inform changes to the existing skills system. It plans to bring together different partners to match skills supply to demand and build a more coherent approach to training.
A simpler, more effective system is welcomed – providing businesses with access to essential resources for skill development and filling sector-specific skills gaps.
Skills England updates from the 2024 Autumn Budget
In the 2024 Autumn budget, Labour reiterated its commitment to improving the workforce’s skills. Budget documents (opens new window)state that skills challenges in the UK are “holding back growth across the country”, which they plan to address through the creation of Skills England and transforming the Apprenticeship Levy into a more flexible Growth and Skills Levy.
The budget set out £40 million investment in the Growth and Skills Levy to deliver new foundation apprenticeships and shorter apprenticeships in key sectors. It also highlighted the important role of Skills England in working in partnership with employers and other stakeholders to ensure the new Levy meets their needs. These reforms are designed to help the UK develop a highly trained workforce to deliver sustained economic growth.
The Multiverse take
It’s exciting to see the UK Government focus on addressing digital skills gaps in the workforce. While we are unlikely to see changes for a while, and the exact remit and governing structure is still to be ironed out, we’re looking forward to seeing how Skills England will drive positive change.
Once fully established, it will play an integral role in bringing together employers, training providers and the many moving parts of the UK’s skills economy. Collaboration that will help build the workforce the UK needs.
To learn more about Skills England, the Levy, or other ways you can upskill your workforce, get in touch with Multiverse today.
