This week, the Government has announced further reforms to skills and apprenticeships. This follows changes announced during National Apprenticeship Week, including the shortening of the minimum duration of an apprenticeship from 12 months to 8 months, and a relaxing of Maths and English requirements.
The main areas which are likely to impact retailers are outlined below. The Department for Education says these changes will amount to the creation of 30,000 new apprenticeship places within this Parliament.
- Level 7 Apprenticeships: From January 2026, levy funding will be 'refocused' from L7 (masters-level) apprenticeships to increase the number of opportunities available at lower levels and for younger people.
- Immigration Skills Charge: new apprenticeship places will be partly funded by a 32% increase to the Immigration Skills Charge. This increase accounts for inflation since the introduction of the Charge in 2017, meaning it will now cost large employers £1320 and £480 for small employers, per year and per migrant that is sponsored. The intent is to encourage employers to prioritise upskilling the domestic workforce and encourage those currently economically inactive back into employment. This increase was announced as part of the Government's Immigration White Paper - find more information about that here.
The Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill is now an Act, paving the way for the transfer of IfATE's powers to the DfE and ultimately Skills England. We expect further updates over the coming months and will update members accordingly.
We met the Minister for Skills last month to discuss retailers' priorities in relation to the new Growth and Skills Levy. You can find the note from the meeting here, and our response to the Minister following her request for further information on retailers' priorities for short courses, here.
