UK Government highlights skills gaps and overhauls apprenticeships

The first report from the new body, Skills England, highlights the importance of 'critical minerals related skills' and 'clean energy jobs'.

The report provides an initial assessment of the nation’s working skills, as well as future skills needs and gaps that employers are struggling with across the country.

The report puts great emphasis on the mission to make 'Britain a clean energy superpower'. With this in mind, the UK Department for Energy Security and Net Zero (DESNZ) has set up the Office for Clean Energy Jobs to hone in on the new jobs and skills required to meet net-zero targets. 

The report also notes that 'A secure supply of construction and critical minerals will be required to support many of these clean energy technologies. As a result, the UK needs access to skilled physical scientists, engineers, and other critical minerals related skills'.

The publication was released alongside an announcement of a new growth and skills levy to replace the existing apprenticeship levy and include new foundation apprenticeships. 

These new apprenticeships will give young people a route in to careers in critical sectors, enabling them to earn a wage while developing vital skills.

The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.

The Department for Education will set out further details on the scope of the offer and how it will be accessed in due course.

To fund this, employers are being asked to rebalance their funding for apprenticeships, asking them to invest in younger workers. This will also involve businesses funding more of their level 7 apprenticeships – equivalent to a master’s degree and often accessed by older or already well qualified employees – outside of the levy.

The Skills England report has found that employer investment in training has been in steady decline over the past decade, with training expenditure at its lowest level since records began in 2011, with investment per employee down by 19% in real terms. This highlights the need for government reforms to the skills and apprenticeships system.

It also shows that, across the UK, almost 1 in 10, or over 2.5 million roles are in critical demand, with more than 90% being in roles that require training or education. 

The new government launched Skills England in July to help identify skills needs. Skills England will play a crucial role in determining which types of training will be eligible for the expanded growth and skills levy. 

The need for jobs and skills varies across industries, with health and social care sector experiencing the highest demand, followed by education, manufacturing, and science and technology.