Important upcoming changes to apprenticeship funding

The UK government has announced plans for massive reforms to the current apprenticeship system in England in a plan to support the nation’s skills gap. What are the proposed changes and what do they mean for your business?

The government plans to boost opportunities for young people through their planned apprenticeship reform. A new growth and skills levy is set to replace the current apprenticeship levy and introduce new foundation apprenticeships.

The new apprenticeships aim to provide young people a route in to careers in critical sectors allowing them to earn a wage while developing skills, knowledge and crucial industry experience.

Similarly to the current system, the funding for this will come from employers with the government asking them to invest in younger workers. The funding will also involve businesses funding level 7 apprenticeships that are equivalent to a master’s degree outside of the levy.

These changes are to help improve the findings of the first report from skills England, the government’s new body for the skills system. The report has found that employer investment in training has been declining for the past decade. It also shows that in the UK over 2.5 million roles are in critical demand with more than 90% of these roles require training or education.

This highlights the need for a government reform in the skills and apprenticeship system. Skills England was launched by the UK Government in July 2024 with an aim to help identify skills gaps and needs. This new government body will play a vital role in deciding which types of training are eligible for the expanded growth and skills levy.

If you are an employer and would like to discuss how hosting an apprentice or apprenticeships can benefit your business, please book a discovery call with a member of the team or email info@inspire-ata.co.uk