New organisation to transform England’s skills system and drive growth

Posted: 31/07/2024

The government has announced the launch of a new body called Skills England to bring together key departments and partners - including central and local government, businesses, training providers, and unions - in order to meet the skills needs of the next decade across all regions and fulfil a shared national ambition to boost the nation’s skills.

Skills England will be established in phases over the next 9 to 12 months, generating a responsive and collaborative skills system. The organisation will also work with the Migration Advisory Committee (MAC), to help reduce the reliance on overseas workers.  

Skills shortages

The government reports that between 2017 and 2022, skills shortages in the UK doubled to more than half a million, and now represent 36% of job vacancies, a figure which will be higher in certain sectors.

Skills England will identify the training for which the growth and skills levy will be available, offering businesses more flexibility to spend levy funds on training for the skills they need.

The Skills England Bill

The Skills England Bill will reassign functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England.      

Next steps in the development of Skills England:

• The initial part of Skills England’s launch involves establishing the organisation in shadow form within the Department for Education, and beginning work on an analysis of future skills needs while fostering strong relationships with employers. A board, chair, and CEO will be chosen in due course.   
• The IfATE currently provides a path for employers to influence skills training. These functions will transfer to Skills England but the IfATE will continue its work as the transition of functions is completed.  
• Skills England will maintain a list of levy-eligible training to ensure value for money, and that the mix of government-funded training available to both learners and employers aligns with requirements.  
• The government will also implement a wide-ranging strategy for post-16 education to reduce barriers to opportunity, encourage the development of a skilled workforce and drive economic growth.

Commenting on the launch of Skills England, Pat Saini, partner and head of immigration at Penningtons Manches Cooper, said: “The previous government’s aim was to restrict the supply of non-UK labour to the UK; having a net migration target was part of this restriction. The current government’s intention, however, is to restrict the demand of non-UK labour. As part of its initiative to restrict this demand, the government has announced the launch of Skills England.

“Whether as a result of a lack of relevant skills or due to British nationals not wanting to do certain jobs, various governments have grappled with the issue of skills shortages. Bringing a range of stakeholders together to help solve the problem would appear to be an obvious solution but it will not be an overnight one. Training can only be provided if we have the right trainers.

“In sectors where those with the right skills and experience are overseas nationals, the UK needs to continue to not only facilitate their arrival in this country, but also make it attractive for them to come here.”

Return to news headlines