Predicting Transformational change from IfATE to Skills England, the effects and impact on apprenticeships and employees
The landscape of skills development and apprenticeships in the UK is undergoing significant change. The transition from the Apprenticeship Levy to the Skills and Growth funding Levy has sparked conversations across industries about the potential impact on training, workforce development, and employer investments in skills. To gain insights into these shifts, industry professionals gathered to share their perspectives on what lies ahead, the challenges to be addressed, and the opportunities for organizations to integrate these changes effectively.
A Sector in Transition
One of the key takeaways from the discussion is that while changes are underway, many aspects remain uncertain. The introduction of Skills England, set to replace the Institute for Apprenticeships and Technical Education (IfATE) in April, represents a structural shift, but details about policies and implementation strategies are still unfolding. Employers and training providers alike are keen to understand how funding structures will evolve and what support will be available for different levels of apprenticeships.
The Role of Foundation Apprenticeships
A significant development is the introduction of Foundation Apprenticeships, aimed at providing an introductory pathway into industries. These apprenticeships, expected to last between six to nine months, would offer foundational skills for young people entering the workforce. However, industry professionals remain concerned about whether these will be structured effectively to meet the diverse needs of different sectors.
For example, while construction might benefit from a general industry introduction, sectors like creative industries—where job roles vary widely—might struggle to fit within a single foundation framework. The flexibility and adaptability of these programs will be key to their success.
Boot Camps and Shorter Duration Apprenticeships
Another focal point of discussion was the role of skills boot camps and shorter apprenticeships. Boot camps have proven effective in sectors like digital marketing, live production, and gaming by providing intensive, employment-focused training. These programs, currently funded by the Department for Education (DfE), might be integrated into the new levy framework, potentially expanding their reach.
Employers and training providers also expressed interest in shorter apprenticeships, arguing that some skills can be effectively taught within a reduced timeframe rather than the traditional 12-month minimum. However, the challenge remains in ensuring that shorter apprenticeships still meet quality standards and provide meaningful learning experiences.
The Uncertainty Around Level 7 Apprenticeships
One of the pressing concerns raised was the fate of Level 7 apprenticeships. There are strong indications that funding for these higher-level apprenticeships, particularly in leadership and management, may be reduced or eliminated from the levy. While the government aims to redirect funds towards lower-level apprenticeships, critics argue that sectors like healthcare and creative industries still need access to advanced training opportunities.
For industries like the NHS, removing Level 7 funding does not automatically translate into an increased capacity for Level 2 or 3 apprenticeships. Budget constraints, wage restrictions, and job freezes limit employers’ ability to take on more apprentices, regardless of funding allocations.
Employer Perspectives: Balancing Costs and Training Needs
Employers shared mixed reactions regarding apprenticeship funding and training investments. Some have reduced the number of apprentices they take on due to cost concerns, while others are exploring alternative training routes that are not tied to apprenticeship frameworks.
A key discussion point was whether levy-paying employers should have more flexibility in using funds for non-apprenticeship training. The concept of a Skills Growth Levy suggests that employers could allocate funding to internal training initiatives, short courses, or sector-specific skills programs. However, the details remain unclear, and industry voices are pushing for clarity on funding eligibility and quality assurance mechanisms.
Freelancers and the Need for Flexible Training Models
A recurring issue is the exclusion of freelancers from apprenticeship funding. In industries such as events, security, and creative production, a large proportion of the workforce operates on a freelance basis, making traditional apprenticeships unfeasible. Skills boot camps have offered a viable solution, but there is a growing call for greater recognition of freelance learning pathways within government-supported training models.
One potential solution discussed was the Flexible Job Apprenticeship Agency (FJAA) model, which allows apprentices to work across multiple employers while maintaining a single apprenticeship contract. While this model was introduced to support project-based industries like film and TV, its effectiveness in broader freelance-driven sectors remains to be seen.
Conclusion: The Need for Industry Advocacy and Clarity
The transition from the Apprenticeship Levy to the Skills Growth Levy presents both challenges and opportunities. Key areas that require urgent clarification include:
The structure and funding mechanisms of Foundation Apprenticeships
The integration of boot camps into the new levy framework
The future of Level 7 apprenticeships
How employers can flexibly use levy funds for training
Support for freelancers and non-traditional employment models
Employers, training providers, and industry bodies must continue to advocate for policies that ensure funding is allocated effectively to develop a skilled workforce. By maintaining open dialogues with policymakers and contributing to consultations, industries can help shape a levy system that works for businesses, employees, and apprentices alike.
The coming months will be critical in determining the direction of skills funding in the UK. While uncertainties persist, the ongoing discussions highlight the importance of evolving training models to meet the demands of a changing workforce.
As further announcements unfold, staying engaged and informed will be key to navigating this period of transition successfully.
Keep in touch regarind future webinars where key areas will be discussed.
