Government launches Skills England to tackle ‘fragmented and broken’ skills system

The UK government has launched body, Skills England, to ‘kickstart economic growth, by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent,’ according to Prime Minister, Keir Starmer.

Department for Education non-executive director & former Co-operative Group chief, Richard Pennycook, has been appointed as interim chair of Skills England, while the government works to appoint a permanent board, chair and CEO.

In The King’s Speech 2024 on 17 July, a Skills England Bill was announced to transfer functions to the new body, from the Institute for Apprenticeships and Technical Education (IfATE) – which will continue to operate while Skills England is established over the coming nine to 12 months.

The Department for Education will initially host Skills England in ‘shadow form’, while legislation is passed to officially establish its role and remit. The government has promised that Skills England will identify training for which the growth and skills levy (replacing the apprenticeships levy) will be accessible, and that it will bring forward a comprehensive strategy for post-16 education.

The UK government reports that a third of productivity improvement over the last two decades can be explained by improvements to skills levels, but between 2017 and 2022, skills shortages in England doubled to more than half a million, now accounting for 36% of job vacancies.

Education Secretary, Bridget Phillipson, comments: ”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.”

Caroline Larissey, chief executive of the National Hair & Beauty Federation (NHBF), adds: “The creation of Skills England represents a significant step towards addressing the skills gap in our sector.

“The hair and beauty sector has long struggled with fragmented training systems and skills shortages.

“We hope that this new body will work closely with sector representatives to ensure that vocational education and apprenticeships are aligned with the real needs of our sector.”