Skills England will bring together central and local government, businesses, training providers and unions to provide strategic oversight of the post-16 skills system in line with the Government’s Industrial Strategy
Skills England will be led by Richard Pennycook CBE, former chief executive of the Co-operative Group and lead non-executive director at the DfE, as the interim chair.
Between 2017 and 2022 skills shortages in this country doubled to more than half a million, and now account for 36% of job vacancies. Construction was identified as one of the key areas needing support in developing the skilled workforce required, along with healthcare.
Skills England will be established in phases over the next 9-12 months
The organisation will identify the training for which the growth and skills levy will be accessible – an important reform, giving businesses more flexibility to spend levy funds on training for the skills they need, which employers have long been calling for.
The Skills England Bill announced this week will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England.
This sits alongside work to simplify and devolve adult education budgets to Mayoral Combined Authorities to ensure that they can address their adult skills needs directly and support growth in their areas.
“Our skills system is in a mess”
Prime minister Keir Starmer did not mince his words in the statement accompanying Skills England’s launch, saying: “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades.
“They will help to deliver our number one mission as a government, to kickstart economic growth, by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent.
“From construction to IT, healthcare to engineering, our success as a country depends on delivering highly skilled workforces for the long-term. Skills England will put in place the framework needed to achieve that goal while reducing our reliance on workers from overseas.”
Education secretary Bridget Phillipson added: “Skills England will jumpstart young people’s careers and galvanise local economies. It will bring businesses together with trade unions, mayors, universities, colleges and training providers to give us a complete picture of skills gaps nationwide, boost growth in all corners of the country and give people the opportunity to get on in life.”
Next steps for establishing Skills England
- The first phase of Skills England’s launch involves setting up the organisation in shadow form within the DfE, and starting work on an assessment of future skills needs while building strong relationships with employers. A permanent board, chair and CEO will be appointed in due course.
- The route for employers to shape skills training is currently offered by the Institute for Apprenticeships and Technical Education (IfATE). IfATE’s functions will transfer to Skills England, as part of the new organisation’s broader remit. IfATE will continue its important work in the interim as the transition of functions to Skills England is finalised.
- Skills England will hold responsibility for maintaining a list of levy-eligible training to ensure value for money, and that the mix of government-funded training available to learners and employers aligns with the identified skills needs.
- The government will also bring forward a comprehensive strategy for post-16 education to break down barriers to opportunity, support the development of a skilled workforce, and drive economic growth through our industrial strategy.
It is unclear how SE will interact with existing training body CITB
Federation of Master Builders chief executive Brian Berry was optimistic about Skills England’s plans, but voiced queries about how the Construction Industry Training Board (CITB) would fit into the new regime:
“Over recent weeks the new government has set out ambitious plans to get Britain building again, but this can only be achieved if the skills crisis is tackled,” Berry said.
“There is a serious shortage of all trades in the construction industry, with the result that we need additional 240,000+ workers over the next four years. The prime minister’s announcement to set up Skill England recognises the seriousness of the problem, but details about how Skills England will operate remain light. It will be vital that future delivery focuses on a long-term skills plan being put in place, and that plans to allow up to 50% of the apprenticeship levy to be redirected into other forms of training don’t result in a fall in the number of construction apprenticeships available.”
“As part of the prime minister’s announcement that the Institute for Apprenticeships & Technical Education will be amalgamated into the new Skills England, maintaining current skill levels, and increasing numbers further, must remain a key focus.
Berry continued: “It raises a question about what role the Construction Industry Training Board (CITB) will play in this new system. We’re still awaiting publication of the Mark Framer performance review of CITB, which may help provide some clarity. The secretary of state for education should publish the report as soon as possible to ensure the industry has stability about its future training needs.”
Skills England also aims to reduce reliance on overseas workers
Shazia Ejaz, director of campaigns and research at the The Recruitment and Employment Confederation, said: “By working with the Migration Advisory Committee, Skills England can help reduce reliance on overseas workers.
“But public policy must find a balance between helping domestic talent to shine while accepting that takes time. So along with today’s announcement we want to hear more from the government on how they will create a fair and flexible immigration system to meet the needs of business.”
