Here’s what Skills England means for the skills sector

Launched by Prime Minister Keir Starmer in July 2024, Skills England is a government body that aims to ensure all workplace training is aligned with the UK economy’s needs. The goal: To future-proof the workforce and meet the needs of the next decades across every region. 

Working with central and local governments, businesses, unions and trading providers, Skills England aims to identify skills gaps and match training programmes to industry needs. The body will also provide strategic oversight of the post-16 skills system and provide levy funds for firms to invest in training for their workforce. It will absorb many of the functions currently carried out by the Institute for Apprenticeships and Technical Education (IfATE). This is a strategic move that promises to boost the effectiveness and responsiveness of the UK’s skill system. 

For business owners, Skills England can help firms navigate levy changes and new legislation, allowing them to use funds to the greatest benefit of their company. It also means that they can save on hiring costs, create more opportunities for their employees and gain access to technical talent that can help them stand out from the competition. 

Skills England will take shape over the latter half of 2024 and into 2025, and hopes to help businesses develop a home-grown talent pool across sectors such as IT, engineering, construction and healthcare. 

What are the benefits of Skills England?

Skills England represents a huge shift towards a more unified approach to skills training. It brings along a lot of benefits, including:

Responsiveness to skills needs 

Skills England, as an independent body consisting of numerous key stakeholders, will be placed strategically to assess and respond to the UK’s skills needs, making for better long-term planning. This targeted approach means that skills development will align with long-term economic objectives.

More effective use of funds

The flexible parameters of the Apprenticeship Levy will enable more efficient use of funds, supporting lifelong learning and more structured opportunities for training. 

Investment encouragement 

Skills England will create a consistent policy environment for the skills sector. This stability should help companies plan their workforce better and increase their trust in the skills system, leading to more investment in training and development. Additionally, the new organisation will align with a national industrial strategy, promoting coordinated skills planning across the country.

Skills designed for local needs 

The Skills England framework has a major focus on devolution, which is a great step towards tailoring skills development to local needs. This includes targeting ‘cold spots’ in the delivery of training and breaking down barriers to opportunities. The hope for Skills England is that it will allow businesses to collaborate more closely with local colleges and training providers. This will ensure that training initiatives are aligned directly with specific regional needs and economic priorities.

What can my business do alongside Skills England?

The decisions that businesses like yours make over the next few months will pave the way to more skills and opportunities for employees. According to the IFS Green Budget, the UK’s level of investment per employee is about half that of other countries across Europe. By increasing your investment in upskilling, you can help to boost the UK economy. 

There are more benefits to upskilling your staff, including:

• Saving on hiring costs by improving the skills of your own team 
• Giving your skills more opportunities to grow with your company and strengthen their career paths 
• Moving ahead of your competition by creating a team trained in new technologies such as AI and machine learning 

Key takeaways 

What to do:

• Prepare for levy applications at the latter part of 2024, beginning of 2025
• Get ready to take advantage by hiring the influx of high-quality apprentices that will likely be available from 2025

But this will be a long wait…

So: 

• Don’t wait around for Skills England to take action 
• Remember, UK businesses spend just half the average of EU businesses on Upskilling, and Skills England is focusing on new talent
• Invest in training today and upskill your existing team with our Learning Experience Platform, or check out our courses. 

Are you ready to start driving growth and expanding your team’s opportunities? Future-proof your business with our Learning Experience Platform. Find out more