The government have announced changes to the funding of apprenticeships in England, signalling the end of the apprenticeship levy and the arrival of a new growth and skills levy. While the full details are still under wraps, here’s what we know so far:

1. New levy, new focus: the growth and skills levy will replace the apprenticeship levy, shifting the focus toward early-career training and younger workers. Apprenticeships shorter than 12 months will now be eligible for funding.

1. Foundation apprenticeships: introducing a brand-new pathway, aimed at those just starting their careers. These flexible apprenticeships are designed to get people into the workforce faster.

1. Funding: the announcement suggests that advanced apprenticeships equivalent to a master's degree will no longer be covered. The focus is on entry-level training and developing the next generation of talent to invest in “young workers”.

This change will be guided by Skills England, a new government body tackling skills shortages. Its recent report highlighted gaps in high-demand sectors and promised stakeholder consultations this autumn to fine-tune the levy’s focus.  Skills England will also consult employers and other stakeholders about what training the growth and skills levy should fund.

In addition, Skills England, will collaborate with the Migration Advisory Committee to strengthen the connection between migration, skills and labour market policy, aiming to ensure that international recruitment is no longer the "default choice" for filling skills shortages.

We will keep you updated of any new developments, and in the meantime, if you have any queries, please don’t hesitate to contact the CG employment team.

Image source: NVB Stocker via Adobe Stock