The UK Government has launched Skills England to address the nation’s fragmented skills landscape and create a unified national ambition to enhance skills across all regions.

Prime Minister Keir Starmer and Education Secretary Bridget Phillipson announced the initiative, aiming to bring together central and local government, businesses, training providers, and unions.

Addressing Skills Shortages and Economic Growth

Skills England aims to meet the skills needs of the next decade, aligning with the government’s Industrial Strategy. This new body will provide strategic oversight of the post-16 skills system, focusing on critical sectors such as construction and healthcare. By working with the Migration Advisory Committee, Skills England also aims to reduce reliance on overseas workers.

Prime Minister Keir Starmer emphasised the need for a transformed approach to skills development, stating, “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades. They will help to 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.”

Leadership and Implementation

Richard Pennycook CBE, former Chief Executive of the Co-operative Group, has been appointed as the interim Chair of Skills England. The organisation will be established in phases over the next 9 to 12 months, starting with setting up within the Department for Education and conducting an assessment of future skills needs.

Education Secretary Bridget Phillipson outlined the government’s commitment to economic growth through skills development: “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.”

New Growth and Skills Levy

Skills England will identify training eligible for the Growth and Skills Levy, a reform that provides businesses with more flexibility to spend levy funds on training needed skills. This reform responds to long-standing calls from employers for greater flexibility in utilising levy funds.

The Skills England Bill, announced this week, will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England. This transition aims to simplify and devolve adult education budgets to mayoral combined authorities, enabling them to address local adult skills needs directly.

Next Steps and Strategic Goals

The first phase of Skills England’s launch involves setting up the organisation in shadow form within the Department for Education. A permanent board, Chair, and CEO will be appointed in due course. The route for employers to shape skills training, currently offered by IfATE, will be integrated into Skills England’s broader remit.

Skills England will also maintain a list of levy-eligible training to ensure value for money and align government-funded training with identified skills needs. A comprehensive strategy for post-16 education will be developed to break down barriers to opportunity, support the development of a skilled workforce, and drive economic growth through the industrial strategy.

Industry Support and Perspectives

Lizzie Crowley, skills adviser for the CIPD, highlighted the importance of Skills England in connecting and simplifying the UK’s skills landscape. She stated, “The creation of Skills England will be key to understanding the UK’s skills priorities and setting an overall strategy. Ensuring that we have the right skills, in the right place, at the right time is essential to unlocking UK-wide productivity and growth.”

Crowley also stressed the need to unlock apprenticeship opportunities for young people and reverse the decline in take-up among small businesses. She emphasised that the new Growth and Skills Levy must encourage employers to invest more in training that addresses workforce skills gaps and shortages and boosts apprenticeship opportunities for young people.