Weekly Newsletter 31.10.2024

PLUS: College investments bring sustainable skills to future leaders.

Author

Sophie Bruxner-Randall
October 31, 2024 • Estimated Reading Time: 6 minutes

Key Insights 🎯

Zac Aldridge on LinkedIn: Budget Day Breakdown 💼

Today’s budget brings £40m for Foundation Apprenticeships, a minimum wage rise to £7.55 for apprentices, and £300m for further education. While promising, the funding specifics remain vague, especially as NI increases will strain smaller training providers.

🔗 Dive into the budget’s impact on apprenticeships and FE, and what it means for training providers.

Accelerate People on LinkedIn: Case study - Sam Brent

Sam’s journey at Arup & Partners, in collaboration with Kaplan, was shaped by effective guidance and focused preparation. ​Sam’s strong time management and prioritisation helped him succeed. The clarity and support from his assessor played a key role in easing his nerves and guiding him through the process. ​


🔗 See how we help apprentices manage their time effectively and achieve excellence in their EPA.

On the Radar 🔎

POLICY UPDATE

Following Labour’s Budget announcement, industry leaders are voicing concerns about the 16% increase in youth wage rates, warning it may deter small and micro businesses from hiring apprentices.

Caroline Larissey, CEO of the National Hair & Beauty Federation, highlighted that without interim support, many small employers won’t be able to afford apprenticeship programs. This underscores the importance of the new Growth & Skills levy in ensuring essential funding and incentives for training young apprentices, particularly for small businesses.

EDUCATION SECTOR

The City of Liverpool College is addressing the net zero skills gap by equipping students with essential green skills. Joel Breen, a standout student, is excelling in sustainable building through an apprenticeship with Kimpton, combining practical work with academic study.

The College's commitment to sustainability includes a £100,000 investment in new training facilities, launching a Heat Pump Centre of Excellence. This initiative, alongside industry expert lectures, ensures students are prepared for the evolving job market.

Joel's success highlights the College's role in fostering future leaders in the green economy. Their focus on Green Skills training is crucial for meeting net zero targets, as noted by industry professionals like Matt Breakwell and Colin Salmon, who commend the College's innovative approach.

EDUCATION POLICY

The current Skills System is under scrutiny for being complex, short-term, and lacking strategic direction, as highlighted by Baroness Taylor in a letter to Skills Minister Jacqui Smith. Concerns are raised about the Apprenticeship Levy's transition to the Growth and Skills Levy, potentially disadvantaging young people and causing confusion among employers and providers. The need for a clear progression route for young people, particularly at Levels 4 and 5, is emphasised.

The Industrial Strategy's soft launch calls for a complementary Skills Strategy, with the upcoming budget expected to provide clarity. National Apprenticeship Week is set for 10th-16th February 2025, and new initiatives like the Livestream Season "Unlocking Opportunities" aim to foster innovation in the FE sector.

BUSINESS DEVELOPMENT

A new report by Oxford Innovation Advice highlights the need for increased Government funding to help SMEs bridge the digital skills gap. Nearly 85% of SMEs seek to upskill staff but face cost and knowledge barriers. Over two-thirds plan to invest in digital technologies, presenting an opportunity for the Labour administration to provide specialised support.

Oxford Innovation Advice proposes a five-point policy action plan, focusing on basic training and problem-solving support. Nearly half of surveyed manufacturers predict growth, but more could benefit from digital skills improvement. The report will be presented to Whitehall to ensure SMEs receive necessary digitalisation support.

Oakworth Timber Engineering exemplifies the need for further financial support. Despite benefiting from the Made Smarter Digital Adoption programme, cost remains a barrier. Upskilling the workforce is crucial for maximising digital investments.

SKILLS DEVELOPMENT

The House of Lords select committee advocates for a skills tax credit to boost employer investment in training, potentially unlocking over £1 billion. This initiative aims to reverse the decline in UK employer-led workforce training, which has fallen below half the EU average. The proposal has garnered support from various sector bodies and former skills minister Robert Halfon.

The committee's inquiry highlights the complexity and short-term focus of the current skills system, urging simplification and strategic direction. It suggests that Labour's post-16 education strategy should streamline funding and priorities. Additionally, the committee emphasises the need for government-led communication to encourage employer investment in staff training, addressing concerns about employee retention.

EDUCATION POLICY

The FE Skills Collective, a collaboration between FE News, the Education & Training Foundation, and Edge, aimed to address challenges in Further Education (FE) by bridging policy and pedagogy. Key themes included the need for structural reforms, stable policymaking, and collaboration at all levels to improve the skills system.

Skills England emerged as a potential coordinator for national and local efforts, with a focus on systems-thinking and quality. Empowering educators was also highlighted, with calls for an evidence base to professionalise the FE teaching workforce. The event was transformative, leaving participants with new insights and connections, ready to drive change in the sector.

HRD: Digital Apprenticeships is a Contentive publication in the Education division