The much-criticised apprenticeship levy is to be replaced by a new growth and skills levy which will boost opportunities for young people, Prime Minister, Sir Keir Starmer, said as he also introduced new foundation apprenticeships.

These will give young people a route into careers in critical sectors, he explained, enabling them to earn a wage whilst developing vital skills.

Speaking with the Education Secretary, Bridget Phillipson, Sir Keir said that learners and employers will be given greater flexibility over their training, as the new levy will also allow funding for shorter apprenticeships.

Under the existing system apprenticeships must run for at least 12 months.

Employers will be asked to rebalance their funding for apprenticeships and to invest in younger workers by funding more of their level 7 apprenticeships — equivalent to a master’s degree and often accessed by older or already well-qualified employees — outside of the levy.

The Department for Education (DfE) has said that it will set out further details on the scope of the new proposals and how they will be accessed “in due course”. Training eligible for funding under the new levy will develop over time, it said, informed by Skills England’s assessment of priority skills needs.

This new arms-length body has published its first report, Skills England: Driving Growth and Widening Opportunities, which describes its own role as well as setting out details of the skills challenges limiting economic growth and barriers to opportunity.

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