New Government Skills Plan: What Does it Mean for Apprenticeships? 

Labour's Industrial Strategy Priorities: 

• Investing in sectors where the UK holds an advantage, such as research, financial services, advanced manufacturing, and the creative industries. 

• Promoting inclusivity and social mobility by removing barriers to training, apprenticeships, and jobs for people from underprivileged backgrounds. 

• Addressing sectoral skills shortages. 

• Ensuring local talent is developed and retained, regardless of background. 

What About Apprenticeships? 

The shift from the Apprenticeship Levy to the Growth and Skills Levy keeps apprenticeships as a key driver of growth and wealth creation. 

At GC, we've witnessed the growing popularity of apprenticeships. More school leavers and their parents are recognising apprenticeships as a viable alternative to traditional education. Employers are also more engaged, and we work with over 1,300 employers across sectors like Construction, ICT/Cyber Security, Professional Services, Hospitality, Engineering, and Dental Nursing.  

Apprenticeships are designed with employers to address skills gaps, offering a robust and adaptable curriculum. The popularity of higher and degree apprenticeships is also growing, with a 9.1% rise in higher and 5.8% in degree apprenticeships. At GC, we partner with UWE Bristol, offering clear progression routes to help learners realise their full potential.  

Challenges and Opportunities 

Despite the success of apprenticeships, more pre-apprenticeship support is needed, especially for school leavers who may not have excelled in their GCSEs. We expect the new skills strategy to address this. 

Apprenticeships also need less bureaucratic complexity to encourage more SMEs to re-engage. At GC, our dedicated team guides businesses through every step of the apprenticeship process, easing administrative burdens. 

What About the Apprenticeship Levy? 

The purpose of the new Growth and Skills levy is to help businesses adapt more swiftly to changing skill demands, particularly in fast-evolving areas such as digital skills and green technologies. By reserving 50% of the levy exclusively for apprenticeships, the government ensures that existing apprenticeship opportunities are maintained while giving employers the ability to invest in other necessary skills for their workforce. 

While we await timelines and details on the Growth and Skills Levy, the general advice is that levy-paying employers shouldn't pause their apprenticeship programmes. Apprenticeships remain central to the new skills agenda, and delaying offers little benefit.  

Levy-paying employers can now transfer up to 50% of their funds to other businesses, double the previous 25%.  

For non-levy paying employers, the government will cover the full cost of apprenticeship training for apprentices aged 16-21, who started their training after 1 August 2024. 

Looking Ahead 

Apprenticeships have a profound impact on businesses and careers. Under the new government, we would like to see this form of training thrive with further improvements. 

A successful apprenticeship programme relies on a strong partnership between the employer, apprentice, and training provider. When this "right apprentice, right employer, right apprenticeship" approach is followed, success rates are significantly higher. At GC, we see our apprentices excel, with achievement rates above the national average. Nine out of ten apprentices are retained by their employers at the end of their training—a true win-win for everyone. 

Key factors for success include having a clear understanding of what an apprenticeship entails, providing the right support to apprentices, and ensuring alignment with long-term business goals. Employers should consider: 

- Is an apprenticeship the right fit for their company? 

- Is the apprenticeship aligned with their long-term skills objectives? 

- Are they engaging local talent through apprenticeships? 

- Would their current staff benefit from upskilling through apprenticeships? 

- Are their apprentices succeeding and staying with them post-training? 

- Is their partnership with the training provider working effectively? 

Conclusion 

Apprenticeships may not be the only option for skills development, but their value is undeniable when done right. As non-apprenticeship training options expand under the Growth and Skills Levy, apprenticeships will remain a powerful tool for businesses. 

At GC, the apprentice success is at the heart of what we do, and our commitment to apprenticeships is unwavering. We will continue advocating apprenticeships as enablers of a skilled and motivated workforce, driving local prosperity and competitiveness. 

Talk to us if you’d like to find out more.

Employer.training@gloscol.ac.uk / 0345 1552020 

Used reference: https://www.fenews.co.uk/exclusive/what-does-the-new-governments-skills-agenda-mean-for-employers/