The UK government has announced a transformative initiative known as Skills England, spearheaded by Prime Minister Keir Starmer and Education Secretary Bridget Phillipson. This initiative aims to consolidate the fragmented skills landscape and create a shared national ambition to boost the nation’s skills, essential for driving economic growth and reducing reliance on overseas workers.
The vision for Skills England
Skills England is set to revolutionise the post-16 skills system, providing strategic oversight and ensuring alignment with the government’s Industrial Strategy. This initiative will bring together central and local government, businesses, training providers, and unions to address the skills needs of the next decade across all regions.
The appointment of Richard Pennycook CBE, former chief executive of the Co-operative Group and lead non-executive director at the Department for Education (DfE), as the interim Chair marks the beginning of this significant transformation.
Addressing skills shortages
Skills are crucial to economic growth, with a third of productivity improvements over the last two decades attributed to enhanced skills levels. However, between 2017 and 2022, skills shortages in the UK doubled, accounting for 36% of job vacancies. Skills England aims to address these shortages by supporting local areas in developing the skilled workforces they need, particularly in sectors like construction and healthcare.
By working with the Migration Advisory Committee, Skills England will also help reduce the country’s reliance on overseas workers, ensuring more home-grown talent fills job vacancies.
Strategic objectives
Transforming the skills system: Prime Minister Keir Starmer emphasised the need to overhaul the current skills system to meet future demands. Skills England will create new opportunities for young people and enable British businesses to recruit more home-grown talent across various sectors, including construction, IT, healthcare, and engineering.
Boosting local economies: Education Secretary Bridget Phillipson highlighted the initiative’s role in growing the economy by harnessing the talents of all people. Skills England will bring together businesses, trade unions, mayors, universities, colleges, and training providers to identify skills gaps nationwide and stimulate growth across the country.
Flexibility for employers: Skills England will identify training eligible for the growth and skills levy, providing businesses with more flexibility to spend levy funds on training that meets their needs. This reform responds to long-standing employer calls for greater autonomy in training investments.
Implementation phases
Skills England will be established in phases over the next 9 to 12 months to create a responsive and collaborative skills system. The first phase involves setting up the organisation in shadow form within the DfE and beginning an assessment of future skills needs while building strong relationships with employers.
Transfer of functions: The Skills England Bill will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England, broadening its remit. IfATE will continue its work during the transition.
Maintaining training standards: Skills England will be responsible for maintaining a list of levy-eligible training, ensuring value for money and alignment with identified skills needs.
Comprehensive strategy: The government will 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 the industrial strategy.
Skills England represents a bold step forward in transforming the UK’s approach to skills, qualifications, and apprenticeships. By modernising education, enhancing vocational training, and promoting lifelong learning, this initiative aims to equip individuals with the skills they need to succeed in a fast-changing world. The collaboration between educators, employers, and policymakers will be crucial in realising the full potential of Skills England, driving prosperity and opportunity for all.
