n NEWS THE GOVERNMENT HAS announced a new growth and skills levy which will replace the existing apprenticeship levy and include new foundation apprenticeships. The new apprenticeships, announced by the Prime Minister Sir Keir Starmer and the Education Secretary Bridget Phillipson, will give young people a route in to careers in critical sectors, allowing them to earn a wage while developing vital skills. The new levy will also allow funding for shorter apprenticeships, giving learners and employers more flexibility over their training than under the existing system, where apprenticeships must run for at least 12 months. The training eligible for funding under the new levy will develop over time, guided by Skills England’s assessment of the priority needs for skills. To fund the new scheme, employers are being asked to rebalance their apprenticeship funding, and to invest in younger workers. This will also have to fund 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. There have been reports of top executives using the scheme to fund masters-level courses for themselves. Skills England, the government’s new body for the skills system, has also published its first report, providing an initial assessment of the nation’s skills, as well as future skills needs and gaps which employers are facing. The report says that employer investment in training has been falling steadily over the past decade, with training expenditure now at its lowest level since records began in 2011. Investment per employee has fallen by 19% in real terms. The report also shows that, across the UK, almost one in ten – or more than 2.5 million – roles are in critical demand, with more than 90% of these requiring training or education. The government launched Skills England in July to help identify skills needs. It will determine which types of training will be eligible for the expanded growth and skills levy, and will set out shortly how they will work with stakeholders to inform their advice to DfE. Stephen Phipson, CEO of Make UK, has welcomed the apprenticeship announcement, saying that it “demonstrates real intent from the Government to fix England’s broken apprenticeship system. For too long, manufacturers have been held back from investing in critical trade and technical skills by a chronic lack of funding and industry will applaud the Government’s determination to start putting this right. It is clear the Prime Minister has listened to businesses across the country and taken decisive action on apprenticeships. “Manufacturers are clear that a successful, long-term industrial strategy depends on employers being able to invest in the skills they need to create jobs and deliver growth,” he adds. “This new approach to Foundation apprenticeships, focused on making highquality training for crucial job roles available and, accessible to the businesses developing the next generation of talent, is central to making this a reality. Industry stands ready to work with Government to take this positive announcement forward.” New apprentice scheme aims to boost chances for young people The Manufacturing Technology Centre is a leading provider of apprenticeships
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