The Prime Minister is overhauling the apprenticeship system to support opportunities.

The UK government is boosting opportunities for young people with ambitious reforms to the apprenticeship system.

Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson today announced a new Growth and Skills Tax, which will replace the existing Apprenticeships Tax and include a new Foundation Apprenticeships programme.

These new apprenticeships provide young people with a path to careers in vital sectors, allowing them to develop essential skills while earning a wage.

The new tax allows funding for shorter-term apprenticeships, giving learners and employers greater flexibility than the existing system, which requires apprenticeships to run for at least 12 months.

The training that can be funded under the new levy will be developed over time, based on Skills Englands assessment of priority skills needs.

The Department of Education will announce further details on the scope of the proposal and how to submit proposals in due course.

To do this, employers are being asked to restructure their funding of apprenticeships and invest in younger workers. This also includes companies funding more Level 7 apprenticeships, equivalent to a master’s degree, and making them available to older or already qualified employees, often without tax.

The first report from Skills England, the government’s new skills agency, is also published today, providing an initial assessment of the nation’s workforce skills and the future skills needs and gaps employers are struggling with across the country.

The report found that employer investment in training has been steadily declining over the past decade, with training spending at its lowest level since records began in 2011, and investment per employee down 19% in real terms. This highlights the need for government reform of the skills and apprenticeship system.

Additionally, more than 2.5 million jobs – one in 10 across the UK – are essential jobs, and 90% of these require education or training.

The government launched Skills England in July to help identify skills needs. Skills England will play a key role in determining which types of training are suitable for the expanded growth and skills tax and will soon explain how it will work with stakeholders to inform its advice to the DfE.

Demand for jobs and skills varies across industries, but the health and social care sector is experiencing the highest demand, followed by education, manufacturing, and science and technology.

DfE Media Enquiries

Central News Desk – For reporters 020 7783 8300

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