In June 2024, the Labour Party launched their manifesto for the impending general election. As part of this, they pledged to reform the Apprenticeship Levy to a flexible ‘Growth and Skills Levy’.
They have since committed to this reform, which will allow employers to use a portion of levy funding for non-apprenticeships skills training.
The aim of this ‘Growth and Skills Levy’ is to increase opportunities for young people in the UK by creating an apprenticeship and skills system that works more effectively for employers.
However, there is concern that introducing flexibility for skills training will impact the availability and participation for apprenticeships. The key will be getting the balance right in the design and implementation of the new system.
In their September 2024 ‘Flex Without Compromise’ report, the Edge Foundation identified key considerations and recommendations for the ‘Growth and Skills Levy’. This included:
- The importance of transparency on the allocation of funding, including the flexibility and scope of funding for skills training
- Highlighting the necessity of encouraging employers, especially SMEs, to provide apprenticeships, and for young people to start them
- The need to support young people to complete their apprenticeships, with 67% of non-completers surveyed having dropped out within the first year of their apprenticeship
- Making mentoring a standardised entitlement in apprenticeship programmes.
In October 2024, the Edge Foundation released a report centred around this mentoring factor. While young people need mentoring support to succeed in their apprenticeship, this report highlighted the importance of ensuring a Work Based Mentor feels prepared to support the progression of their apprentice and facilitate development opportunities.
To read the Edge Foundation’s full reports, click the link below:
