Government launches new skills body

The government has announced the launch of a new skills body which it says will "bring together the fractured skills landscape and create a shared national ambition to boost the nation’s skills".

The announcement was made by Prime Minister Starmer at the 2024 Farnborough International Air Show.

Richard Pennycook CBE, former chief executive of the Co-operative Group and lead non-executive director at the DfE, has been appointed interim Chair of the new body, which will be named Skills England.

Between 2017 and 2022, skills shortages in this country doubled to more than half a million, and now account for 36 per cent of job vacancies.

Skills England will bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade across all regions, providing strategic oversight of the post-16 skills system aligned to the Government’s Industrial Strategy.  

Industry has been quick to acknowledge the government's focus on skills.

Jamie Cater,  Head of Employment and Skills policy Make UK said: “Manufacturers will be encouraged to see that the Government is placing skills training at the heart of its work on economic growth and industrial strategy by establishing Skills England and pledging a comprehensive strategy for post-16 education.

“The Prime Minister is right that the focus of this work should be on enabling employers to access the skills they need – both for now and in the future. Make UK has long called for closer integration of the skills system and immigration system, so the commitment to Skills England working together with the Migration Advisory Committee is a promising step forward. Manufacturers recruit from overseas when they cannot find the right talent locally. 

"Today’s announcement is an important recognition that businesses need support to train and develop a skilled workforce while retaining the flexibility to hire overseas workers where there is an urgent need. We look forward to working with the Government and Skills England to ensure that manufacturers can address longstanding skills gaps and secure their future workforce.”

Supporting local areas to develop the skilled workforces they need – in particular across construction and healthcare - is fundamental to the Government’s mission to raise growth sustainably. By working with the Migration Advisory Committee, Skills England will also help reduce reliance on overseas workers.  

Prime Minister Keir Starmer said: "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.

"From construction to IT, healthcare to engineering, our success as a country depends on delivering highly skilled workforces for the long-term. Skills England will put in place the framework needed to achieve that goal while reducing our reliance on workers from overseas.

Education Secretary, Bridget Phillipson, added: "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."

The organisation will identify the training for which the growth and skills levy will be accessible – an important reform, giving businesses more flexibility to spend levy funds on training for the skills they need, which employers have long been calling for.   

Skills England will be established in phases over the next 9-12.

The Skills England Bill announced this week will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England.   

Skills England will hold responsibility for maintaining a list of levy-eligible training to ensure value for money, and that the mix of government-funded training available to learners and employers aligns with the identified skills needs.