The government today (1 October 2018) announced a package of reforms to ensure the Apprenticeship Levy provides people with the skills they need to succeed.

The changes are aimed at providing flexibility for businesses so they can take full advantage of the benefits of employing apprentices, and to help as many people as possible find the right training to equip them for the new economy.

An extra £90 million of government funding will enable employers to invest a quarter of their apprenticeship funds on people working for businesses in their supply chain – boosting the number able to benefit from high-quality apprenticeship training.

A further £5 million was announced for the Institute for Apprenticeships to introduce new standards and updating existing ones so that more courses can be offered – meaning more choice for those considering their training options. The government will discontinue the old frameworks so that all new apprenticeships will be on the same higher-quality standards by the start of the 2020/21 academic year.

The government has worked closely with business groups to ensure the Apprenticeship Levy works for employers who are at the heart of delivering this move to world-leading training.

In the coming weeks, the government will set out a process to seek views on the operation of the levy after 2020 to ensure it supports the development of the skilled workforce businesses need for the new economy.

Further Information

• the apprenticeship levy is making good progress – with 1.41 million apprenticeships started since May 2015. There were 119,500 starts reported in the first three quarters of 2017/18, more than ten-times higher than the same period the previous year
• the government is also establishing a National Retraining Scheme – during this Parliament – to support adults across the country and equip the workforce with the skills needed for the new economy. While this scheme is developed, the government is also funding additional projects including £30m to test the use of AI and innovative Edtech, and £34m for construction skills funding

The government today (1 October 2018) announced a package of measures to support business to boost skills, growth and prosperity in the new economy.

The Chancellor Philip Hammond pledged government support for apprenticeships, adult training, to boost management skills in small businesses, and to ensure the UK’s world-class regulatory system is fit for the future.

Apprenticeships

The Chancellor announced a package of reforms and £95 million increase to the Apprenticeship Levy to ensure it continues to help business train people with the skills they need for the new economy.

Management skills for small firms

The government’s recent productivity review found the UK’s thriving small business community is facing a management skills challenge. To address this, the Chancellor announced £20 million will be invested in networks to enable small businesses to learn from each other and from world-leading firms. Over 100 mentors from companies, such as GSK, Amazon, KPMG and Siemens, have already signed up to offer their management expertise.

He said a further £11 million will pay for a training programme that will build the necessary management skills lacking in many SMEs. This will help 2,000 businesses in its first year, with an ambition to train 10,000 people per year by 2025.

Adult skills/National retraining scheme

The government wants to work with employers to give every worker the opportunity to upskill or retrain for the new economy. The Chancellor pledged £100 million for the first phase of the National Retraining Scheme, announced in the last Budget, which will be rolled out next year.

He said this will include a new careers guidance service with expert advice to help people identify work opportunities in their area and what they need to do to get the skills to land the job. This will be backed up with state-of-the-art courses combining online learning with traditional classroom teaching to help people develop the key transferable skills for jobs of the future.

Independent review into utilities regulators

The UK has a world-class regulatory system which protects the interests of consumers. But it needs to be fit to respond to the challenges of the future to remain cutting-edge. Therefore the Chancellor announced he will commission the National Infrastructure Commission to carry out an independent study of the telecoms, energy and water regulators. This will ensure they have the ability to encourage investment, promote competition and innovation and meet the needs of consumers in the 21st-century.

Midlands Engine

The Chancellor also announced £2 million for the Midlands Engine Partnership to support a study into how best to redevelop the area around Toton in the East Midlands, to ensure it maximises the growth opportunities offered by HS2.