Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson have announced plans to replace the current apprenticeship levy with a new growth and skills levy in England. The government's plans include the creation of foundation apprenticeships, which will be designed to provide young people with a route into critical sectors. The new system will also allow for shorter apprenticeships. Under the current system apprenticeships must run for at least 12 months, but the government has said that funding for shorter apprenticeships will be permitted, in order to achieve greater flexibility to learners and employers.
The announcement suggests that apprenticeships equivalent to a masters degree will no longer be funded, and the focus will be on apprentices at the start of their careers.
The Department for Education is expected to set out further detail on the scope of the new levy in due course.
The Government has also published the first report from Skills England. Skills England is the Government's new body for the skills system. The report provides an assessment of the nation's working skills, and identifies gaps which employers are struggling to fill. The training eligible for funding under the new levy will be developed over time and will be informed by Skills England's assessment of skills needs.
We will continue to report on developments.