Labour has planned a new body to oversee training in England, which the Prime Minster says will open up new opportunities for young people. In a speech, Sir Keir Starmer argued that a new approach is needed to reduce the need for immigration in certain key sectors.
During the election, the party pledged to give businesses more flexibility to spend subsidies that are currently earmarked for apprenticeships. Labour hopes to set up an all-new agency, Skills England, that will decide what types of training would be eligible for funding.
But the Conservative party has warned that the plans to redirect cash could see the number of apprenticeships available slashed. Labour argued that the existing apprenticeship levy which the Tories introduced in 2016, had created a fragmented system with low take-up rates from employers.
The tax, paid by larger companies is currently used to fund apprenticeships which are paid jobs that allow recruits to gain experience within the workplace alongside training or study. It raises around £3.5 billion annually.
However, Labour hopes to allow eligible firms to use up to half of the cash to fund other forms of training. They argue that it will help boost skills among a broader range of people and thus help the country’s economy to respond to changing technologies.
Replacing an existing body, the Institute for Apprenticeships and Technical Education (IfATE), Skills England will be responsible for deciding which courses can receive funding.
Labour has pitched the change as part of an offer to young people but it has not laid out plans to restrict the age of employees that will be eligible for the newly funded training programme. At the moment, around half of all apprenticeships are taken by workers under 25 years old, though the age profile has climbed over time.
