At a glance:

• Foundation apprenticeships launched with reduced English and maths entry requirements
• Minimum off-the-job training hours to be set for all apprenticeship standards in place of the previous 20 per cent off-the-job requirement
• Growth and Skills Levy to replace the Apprenticeship Levy, with broader use of funds
• Skills England established to oversee incoming national skills strategy
• Confirmation that level 7 apprenticeships to be axed
• Post 16 skills strategy white paper and consultation expected in coming months

The further education (FE) and skills sector is once again at the heart of significant policy changes, with a series of recent announcements that will shape the landscape for providers, employers and learners. Just this week, the Department for Education (DfE) published the first list of foundation apprenticeships, offering a new pathway into vocational training. Last week, new guidance set minimum off-the-job training hours for apprenticeships, while the IfATE Bill gained royal assent on Thursday (15 May), setting the stage for a major shift in how apprenticeships are governed. Meanwhile, Skills England is expected to become fully operational in the coming weeks, positioning itself as a central body for skills strategy. These changes reflect a government that is actively engaging with the skills agenda. Understanding these developments is crucial but so is recognising the opportunities and challenges they bring.

Foundation Apprenticeships: A New Pathway for Learners

One of the most notable developments is the introduction of foundation apprenticeships, a new pathway designed to provide a flexible and accessible route into various careers. With the Government announcing the first list of foundation apprenticeships available, their introduction represents an important step towards making vocational training more accessible at lower levels. The reduction in English and maths requirements for these programmes is particularly significant, as it may open opportunities for learners that struggle with traditional academic pathways.

But it raises a question – is this a downgrade in quality? Will foundation apprenticeships become a high-quality alternative or a lower-status option? Without basic reading, writing, and arithmetic, it’s hard to see how an apprentice will operate in the workplace. Much depends on how they are delivered and whether they offer clear progression routes to higher-level apprenticeships and a career. For the government, the challenge will be ensuring that this new pathway maintains value without becoming a second-class option. Providers and employers alike will be watching closely to see how this model is adopted and how it complements existing training options.

A Record-Breaking Apprenticeship Budget

The Department for Education’s apprenticeship budget has surpassed £3 billion, funded largely by £2.9 billion from the Apprenticeship Levy. While the Levy continues to be opaque in some of the ways it operates the Department for Education’s apprenticeships budget (c.£2.525 billion), a total of £16 million ended up going unspent. The figures, released by skills minister Baroness Smith in response to a parliamentary question, show 70 per cent of the budget, £1.76 billion was spent by Levy-paying employers, 28 per cent of the budget, £695 million, was spent by small and medium-sized employers (who don’t pay the Levy). And 2 per cent, £53 million, was spent on “non-delivery costs”, including running digital services and marketing and communications campaigns.  While details remain unconfirmed, the Government remains committed to shifting to a more flexible “Growth and Skills Levy” allowing employers to spend funds on a wider range of training. What will be important, especially for the apprenticeships market, is what proportion of the existing apprenticeship funding will be transferred for non-apprenticeship training – and what kind of training will be approved by Skills England for it to be spent on?

Minimum Off-the-Job Training Hours Clarified

Historically, all apprenticeships needed to have a minimum of 20 per cent ‘off-the-job training’.  Instead, the DfE now plans to  set a minimum off-the-job training hours for each apprenticeship standard. This measure is intended to move away from a blanket 20 per cent towards a more bespoke requirement that sets out the balance an apprentice will receive between practical experience and theoretical learning. For some, it could mean rethinking delivery models to ensure compliance.

Skills England: A New Strategic Body for Skills Policy

Beyond these immediate changes, the government is also moving to centralise and coordinate skills policy through the creation of Skills England, a new body tasked with overseeing the nation’s skills strategy in place of its predecessor, the Institute for Apprenticeships & Technical Education (IfATE).

The Board was formally announced earlier this week and includes a mix of senior voices from FE colleges, industry, local authorities and skills-based organisations. Chaired by Phil Smith CBE, with Sir David Bell as Vice Chair, Skills England will aim to align training provision with national industrial strategies and address skills shortages. But it’s unclear how it will be different from IfATE, which was tasked with a similar mission by the last government. Concerns have also been expressed that Skills England won’t have the independence or legal duty to consult with employers as IfATE did. Whether it becomes a driving force for innovation or simply another layer of bureaucracy will depend on its ability to engage meaningfully with providers and employers.

Confirmation that level 7 apprenticeships to be axed, but with an exemption for people aged 16 to 21

Speculation about Ministers working on controversial plans to remove level 7 apprenticeships from the scope of apprenticeship levy funding have been building for many months. This speculation has now been largely confirmed, but with a concession for those aged 16 to 21. It’s expected the Education Secretary will make a statement very soon to provide clarity for employers.

Figures from 2023-24 show £238 million of the £2.5 billion apprenticeships budget was spent on level 7 programmes, so this represents a major change to the system. Government stats show level 7 apprenticeship starts are made up largely of apprenticeships in accountancy, advanced clinical practitioner, solicitor, AI data scientist, chartered town planner, district nurse and specialist community nurse.

Post 16 skills strategy white paper and consultation expected in coming months

When Skills England was established, one of the things it was asked to take on was drafting a post 16 skills strategy. From conversations with senior civil servants, we now understand this strategy exists in draft form with publication and a consultation expected just before parliamentary summer recess (22 July) or afterwards from September, depending on the government communications grid. The content remains tightly guarded, but expect clarity on many of the outstanding questions in the updates above.

Navigating Change with Clarity

In a sector where policy changes can have a profound impact on both providers and employers, staying informed and responsive is crucial. The recent announcements from the DfE represent a mix of new opportunities, new risks, and new responsibilities. Providers will need to ensure that their training delivery meets the latest standards, while employers will need to consider how best to support their apprentices and make the most of available funding.

As specialists in Education PR and public affairs, we are here to help you navigate this evolving landscape. Whether you need strategic advice, support with communications or guidance on engaging with stakeholders, our team can provide the expertise you need to stay ahead of the curve.