Over the Summer, the Prime Minster and Education Secretary announced the launch of Skills England 'to bring together the fractured skills landscape and create a shared national ambition to boost the nation’s skills'.  The interim Chair is Richard Pennycook CBE, former chief executive of the Co-operative Group and lead non-executive director at tthe DfE. It will bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade across all regions, providing strategic oversight of the post-16 skills system aligned to the government’s Industrial Strategy. Skills England will be introduced in phases over the next 9 to 12 months. In the first phase it will be introduced in shadow form within the DfE and assessing future skills needs, as well as building strong relationships with employers. A permanent Board, Chair and CEO will be appointed. Skills England will also identify the training for which the new growth and skills levy will be accessible, giving businesses more flexibility to spend levy funds on training for the skills they need. Further detail is awaited and this will replace the apprenticeship levy. The Skills England Bill will transfer functions from the Institute for Apprenticeships and Technical Education to Skills England. A press release with further information is available here. Further information on the new Secretary of State for Education,  (the Rt Hon Bridget Phillipson MP) is available here.  Her responsibilities include further and higher education, skills and apprenticeships. Baroness Smith has been appointed as the new Minister of State (Minister for Skills). Skills England and LSIP’s, FE, HTQ’s, Technical Excellence Colleges, HE and Adult Education are some areas that fall are within her portfolio, available here.
 

Proposed LEVY changes to the new growth and skills levy

The government has announced significant changes to the Levy, allowing funds to be used for training beyond apprenticeships. This policy has generated substantial discussion and engagement from employers nationwide, with LSIPs playing a crucial role in shaping it. These changes will not only affect how you can allocate your funds but may also alter the funding landscape for SMEs. Therefore, your input is vital. We need to hear your views on current training funding and how you envision using the Levy in the future. Please share your perspectives by contacting Joanne Giles at joannegiles@essexchambers.co.uk.

First report from Skills England

We are pleased to share the first report from Skills England with you which you can view here.    

Joanne Giles, Director of the Essex LSIP said: "Skills shortages are a major concern for Essex businesses, hindering economic growth. The proposed Growth and Skills Levy, a key part of the Government’s election plans, is a step forward.

"While advocating for a more flexible Levy, it is crucial that Essex businesses have a straightforward, coherent, and responsive system that incentivises employer investment in training for both levy and non-levy employers.

"To drive sustained economic growth in Essex, companies need a levy that funds training at all ages and skill levels. Any imbalance will impact local business investment. We welcome the recent announcement on Foundation Apprenticeships, as ensuring access for all is fundamental to the success of our skills system.

"We will collaborate with Skills England to advocate for your needs and shape the system based on your feedback." 

Reacting to further detail on the announcement of reforms to the apprenticeship system in England, Alex Veitch, Director of Policy at the British Chambers of Commerce, said: “Skills shortages continue to be a major concern for businesses and a drag on economic growth.  
 
“The proposed new Growth and Skills Levy was a key part of the Government’s plans at the election. It’s welcome ministers have acted early to give more details about skills reform.  
 
“We’ve long argued that the current Apprenticeship Levy needs urgent reform to make it more flexible. Businesses need a simple, coherent and responsive system that properly incentivises employer investment in training.  
 
“To drive sustained economic growth, companies need a levy that funds training at all ages and skill levels. Any imbalance in the system will impact business investment.  
 
“Higher level apprenticeships provide a non-academic pathway to progression for many people. We’ll be working with Government to make sure businesses have clarity on how Level 7 qualifications will be funded in the future.  
 
“In the months ahead we’ll also be seeking reassurance that these planned reforms won’t place increased costs on businesses, who are still facing a challenging economic landscape.”