Skills England has launched an “initial engagement exercise” with employers in priority sectors on what non-apprenticeship training should be funded through the new growth and skills levy.
The quango’s informal consultation will involve construction, health and social care stakeholders, and the eight “growth-driving sectors” identified in the government’s industrial strategy green paper.
In an update today, the Department for Education said its new agency – currently set up in “shadow” form – will run the exercise “in November and December”.
Assessments of each sector’s skills needs should be published “early 2025”.
Sectors identified as having “high growth potential” in the green paper are:
- advanced manufacturing
- clean energy industries
- creative industries
- defence
- digital and technologies
- financial services
- life sciences
- professional and business services
They were chosen based on the UK’s current and emerging “strengths”.
Construction and health and social care are also priorities as they are “essential” to the government’s five missions.
It remains to be seen precisely which organisations Skills England will engage with or how they will be selected.
However, “stakeholders” have been invited to email evidence to the DfE.
Skills and the levy
Labour announced its intention to widen the apprenticeship levy into a new growth and skills levy in 2022. It will allow a broader range of training to be funded through the levy, although a timeline for implementation is yet to be released.
Skills England will play a “crucial role” in deciding what training is eligible through assessments of skills needs and “extensive engagement” with the skills system.
The arms-length body is not expected to be fully operational until next year after the Institute for Apprenticeships and Technical Education (IfATE) is abolished and a permanent chief executive, chair and board members are appointed.
The industrial strategy suggests that the Office for Investment and Skills England will also offer investors a “skills triage service.”
According to Skills England’s first report, published in September, the agency planned to conduct a series of roundtables and webinars in the autumn to “further test and refine the initial assessment of skills needs.”
It is also expected to work closely with the Migration Advisory Committee to grow the domestic skills pipeline.
Fiona Aldridge, chief executive officer of the Federation for Industry Sector Skills & Standards (FISSS), said: “We welcome Skills England’s intention to consult with employers and other key organisations to provide a view on what training should be available through the growth and skills levy – and would encourage the government to be proactive in reaching out to all those who can usefully inform this work.
“It is helpful to see that the consultation includes construction and health and social care, alongside the Industrial Strategy’s eight growth-driving sectors, given that they account for nearly 20 per cent of jobs across the economy and are integral to achieving the government’s missions.”
The DfE has been contacted for comment.
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