Starmer and Education Secretary Launch Skills England to Fix Broken Skills System
The Prime Minister and Education Secretary have unveiled Skills England, a bold new body aimed at uniting the fractured skills landscape. The goal? To spark a national push that boosts the UK’s skills and powers economic growth.
New Chair Named to Steer Skills England
Richard Pennycook CBE, former boss of the Co-operative Group and experienced DfE non-exec, has been named interim Chair. His role will be key in bringing together government, businesses, training providers, and unions to tackle the country’s skill shortages.
Skills Crisis Hits UK Economy Hard
- Skills shortages have doubled since 2017 to over half a million vacancies.
- Now, they account for 36% of all job openings.
- A third of productivity gains in the past 20 years come from improved skills.
Skills England will provide strategic oversight of the post-16 skills system, aligning with the Government’s Industrial Strategy to meet future needs across all regions.
Starmer and Phillipson Speak Out on Skills Shake-Up
Keir Starmer: “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades. This will kickstart economic growth by opening new opportunities for young people and enabling British businesses to recruit more home-grown talent.”
“From construction to IT, healthcare to engineering, our success depends on delivering highly skilled workforces while reducing reliance on overseas workers.”
Education Secretary Bridget Phillipson: “Our skills system is fragmented and broken. Employers want to invest in workers but face barriers accessing the right training.”
“Skills England will jumpstart young people’s careers and galvanise local economies by linking businesses, trade unions, mayors, universities, and training providers. Together, we’ll map nationwide skills gaps, boost growth in every corner, and give people a real shot at success.”
Big Changes to Training and Funding
Skills England will take over functions from the Institute for Apprenticeships and Technical Education (IfATE), streamlining the training levy system that businesses use. This gives employers more freedom to spend funds on the skills they actually need.
The organisation will be rolled out in phases over the next 9-12 months, starting in a ‘shadow’ form inside the Department for Education. A permanent board, Chair, and CEO will be appointed soon.
Skills England will also work closely with the Migration Advisory Committee to reduce the UK’s dependence on overseas workers by growing local talent in vital sectors like construction and healthcare.
Next Steps for Skills England
- Set up Skills England in a shadow form within the DfE.
- Begin assessing future skills needs and building employer partnerships.
- Pass the Skills England Bill to transfer IfATE’s duties over.
- Launch a comprehensive post-16 education strategy to support skills and economic growth.
Skills England’s mission is clear: fix the messy skills system, empower the workforce, and fuel the UK’s growth for decades to come.
