Nichola Hay MBE, Director of Apprenticeship Strategy and Policy at BPP, explains the latest reforms to the skills system and what they mean for employers.
The government’s new approach to the UK skills system is taking shape through multiple initiatives – from the formation of Skills England and changes to apprenticeship qualifications, to the ‘UK’s Modern Industrial Strategy’ whitepaper, the AI Opportunities Action Plan, and the ever-evolving Growth and Skills Levy.
It’s vital for employers to understand how to navigate these external changes to the skills strategy, and the impact they will have on their own organisations when they come into effect.
Moving forward, this means businesses can become more resilient when meeting business challenges and contribute towards meeting the government’s long-term plans for economic growth and prosperity across the UK.
The changing face of apprenticeships
By offering hands-on experience and practical skills development which directly align with employer needs, apprenticeship programmes can fast-track the development of both new employees, and existing employees that require upskilling.
This creates a pipeline of talent which meets a company’s current and future talent needs, making apprenticeships a key tool for futureproofing businesses.
Earlier this month, the Department for Education announced it would include shorter duration apprenticeships, reduced from 12 to eight months, allowing training to be delivered more quickly. There would also be flexibility over maths and English requirements for apprentices.
These changes are a direct response from government to employer calls for greater flexibility, speeding up apprenticeship turnaround times.
This, in turn, will enable more learners working in the key growth sectors set out in the UK Modern Industrial Strategy whitepaper, such as healthcare, social care, and financial services, to qualify year-on-year.
Foundation apprenticeships:
Last year, the government announced foundation apprenticeships, further demonstrating a commitment towards giving younger people the opportunity to get into employment.
Using funding allocated from the new Growth and Skills Levy, foundation apprenticeships will allow students to gain real-world work experience and get their foot in the door with an employer.
These will enable employers to recruit more school and college leavers onto apprenticeships and build a robust talent pipeline from the ground up.
They will also mean that a greater focus will be placed on improving social mobility for disadvantaged students, providing them with more access to valuable training opportunities.
Ultimately, foundation apprenticeships provide a win-win scenario, offering young people valuable career pathways while helping businesses secure skilled, motivated employees for the future.
A shift towards skills-based organisations
The government’s latest changes have created a significant impact on employers and their own internal skills strategies.
As the government places more emphasis on skills, we’re already starting to see a shift amongst employers seeking to transition towards becoming skills-based organisations (SBOs).
Businesses are becoming more skills-aware, moving away from traditional job-based planning to a more fluid, capability-focused approach.
Within an SBO, all business operations are aligned under skills needs. This includes everything from workforce planning and recruitment to professional development, performance management, and talent and succession planning processes.
By shifting their focus to a skills-centric business model, employers can ensure that they are doing everything they can to leverage diverse skillsets and encourage continuous learning.
By having a clear understanding of required skills, organisations can better target their development investments while providing employees with clear paths for growth.
The result is improved operational performance, reduced skill gaps, and a workforce that continuously evolves with business needs through optimised skill solutions, precisely aligned with organisational requirements.
Crucially, this means that businesses are fully equipped to fulfil the demands of the government’s plans for long-term growth.
Final thoughts
The skills landscape is ever evolving, and the government’s new emphasis on shorter, more flexible apprenticeships shows that employers are being listened to.
Providing flexibility means that more people can have access to apprenticeships, which in turn meets employers’ needs, enhances productivity and grows the economy.
We at BPP welcome these changes, as they mean businesses are becoming more skills-aware and truly beginning to harness the potential of a robust training programme centred around apprenticeships.
By placing a greater focus on skills needs, businesses can futureproof themselves against business challenges while contributing to broader economic growth across the UK. This ensures organisations remain flexible, competitive, and fully prepared for the future of work.