Government confirms Apprenticeship Levy reform

The Labour Party has confirmed that the Apprenticeship Levy will be reformed after it announced a new Skills England Bill during The King’s Speech.

One of 35 Bills announced, it will see Skills England take over various functions around talent development from the Institute for Apprenticeships and Technical Education.

A government statement said:

“Skills England will support economic growth by greater coherence to the assessment of skills needs and training landscape; ensuring training programmes are well designed and delivered to meet these needs; and that regional and national skills systems are providing the skilled workforce needed to enable businesses to thrive and to contribute to the Industrial Strategy at the heart of our growth mission.”

Apprenticeship Levy

The announcement has been welcomed by the National Franchised Dealers Association (NFDA).

Sue Robinson, chief executive, said: “One of the key ‘asks’ outlined in NFDA’s 2024 General Election manifesto was to overhaul the flawed Apprenticeship Levy so we are pleased to see the announcement of the Skills England Bill. This Bill aims to reform the Apprenticeship Levy, fulfilling a Labour manifesto pledge.

“While it is encouraging to see the new government act swiftly on this manifesto pledge, we urge them to work closely with NFDA and the wider sector to develop a Levy that meets the needs of businesses. The intensifying skills shortage continues to detrimentally impact the automotive retail sector.

“In light of the ongoing skills shortage in the sector, increasing investment in training electric vehicle technicians is essential, particularly as more electric vehicles hit our roads.

“In NFDA’s General Election Survey carried out in the build-up to the General Election, dealerships were asked about areas of their business where they are currently experiencing skills shortages. In the survey, a staggering 82% of respondents noted ‘technicians’, while 53% identified ‘sales executives.’

“With the sector under pressure to attract and retain talent, we urge government to move quickly to ensure effective policy can be implemented to support the industry in its attempts to recruit the next generation of the workforce.”