Prime Minister Keir Starmer and Education Secretary Bridget Phillipson have launched Skills England, a new body designed to tackle the nation’s persistent skills shortages and align training with the needs of the economy. This initiative is part of the government’s broader ambition to boost skills across all regions and drive economic growth.

The Challenge of Skills Shortages

Between 2017 and 2022, skills shortages in England doubled to more than half a million, now accounting for 36% of job vacancies. The construction industry alone requires an additional 250,000 workers by 2028 to meet demand, as highlighted by the Construction Industry Training Board’s recent report.

Goals and Structure of Skills England

Skills England aims to bring together central and local government, businesses, training providers, and unions to provide strategic oversight of the post-16 skills system. By working with the Migration Advisory Committee, the body also seeks to reduce reliance on overseas workers and foster home-grown talent.

According to the Prime Minister, “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades. Skills England will help deliver our number one mission as a government, to kickstart economic growth by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent.”

A Collaborative and Data-Driven Approach

Education Secretary Bridget Phillipson emphasized the need to harness the talents of all people to unlock growth and break down barriers to opportunity. Skills England will coordinate with local and national bodies to ensure training provision meets the needs of the economy. This will include working with the Industrial Strategy Council and Migration Advisory Committee to identify skills and labour needs.

Phillipson stated, “The skills system we inherited is fragmented and broken. Employers want to invest in their workers but for too long have been held back from accessing the training they need. Skills England will jumpstart young people’s careers and galvanise local economies. It will bring businesses together with trade unions, mayors, universities, colleges and training providers to give us a complete picture of skills gaps nationwide, boost growth in all corners of the country and give people the opportunity to get on in life.”

Skills England will also provide the framework for using the Growth and Skills Levy, which allows companies to use up to half of their apprenticeship levy on non-apprenticeship training. This approach aims to offer employers more flexibility in how levy funds are spent, ensuring they can invest in high-quality training that meets their specific needs.

A Multi-Phased Transition

Richard Pennycook, former CEO of the Co-operative Group, has been appointed interim chair of Skills England. Over the next 9-12 months, the organisation will be established in phases, eventually taking on the functions of the Institute for Apprenticeships and Technical Education (IfATE).

Addressing the Skills Gap Holistically

While Skills England is a significant step forward, it must also address the gaping skills gap in educators. Attracting and retaining staff within the skills and employability ecosystem will be crucial for the success of this initiative. The cost implications and impact on salaries need careful consideration to ensure the long-term sustainability of this ambitious reform.

Final Thoughts

Strong positive messages are emerging from this initiative, suggesting that the reform is more than just soundbites and name changes from apprenticeship levy to growth skills levy. This is a comprehensive approach aiming to deliver tangible results for the nation’s workforce and economy. It is a significant and welcome task to work across government departments and ministries, but there must be a recognition of the costs involved and the impact on salaries necessary to attract and retain staff in the skills and employability ecosystem. Additionally, while fixing the skills gap for the country is crucial, we must also address the gaping skills gap in educators.