Source · Select Committees · Transport Committee
Recommendation 4
4
Accepted
Increase flexibility for apprenticeship levy funds to benefit SMEs and UK-wide transport manufacturers.
Recommendation
Substantial amounts of levy funding has expired unspent. Rather than further constraining the opportunities for spending such funding, the Government should increase flexibility. We welcome the Government’s Budget 2025 commitment to fully fund apprenticeships for eligible people under 25 at small and medium-sized enterprises (SMEs). However, more should be done to better ensure that levy funds reach SMEs and supply chain manufacturers in the transport manufacturing sector. The current restriction that levy funding can only be directly spent by manufacturers who operate across the UK on their operations in England is throttling opportunities for transport manufacturers which operate UK-wide to directly invest that funding in skills across their wider workforce. (Conclusion, Paragraph 34)
Government Response Summary
The government will work with industry to ensure that Occupational Standards are updated as needed to reflect changing industry needs, and Skills England’s new accelerated approach will mean updates to apprenticeships or development of new short courses can be completed in as little as three months.
Government Response
Accepted
HM Government
Accepted
We agree that it is essential for Occupational Standards to remain current, credible and of real value to employers, particularly in sectors such as transport manufacturing where technological change and skills needs evolve rapidly. Skills England takes a data and evidence-led approach to identifying where standards require review. By drawing on national and regional labour market intelligence, employer insight and sector specific evidence, it will prioritise updates where there is a clear case for change. We consider this targeted and responsive model to be more effective than requiring revisions at fixed intervals, as it enables action to be taken when it is genuinely needed. The transfer of functions to the Secretary of State will enable more flexible and agile working with employers. It will reduce the time burden for employers, speeding things up while keeping quality and employer expertise at the heart of our decision-making process. The Government recognises that resolving transport manufacturing skills shortages is critical and is committed to working with industry to ensure that Occupational Standards are updated as needed to reflect changing industry needs. We are committed to ensuring that transport manufacturers and other industry partners are actively engaged in reviewing and refining Occupational Standards, so that they continue to reflect changing industry needs encompassing technological developments, current skills shortages and the specific requirements of different transport sectors. Skills England’s new accelerated approach will mean updates to apprenticeships or development of new short courses can be completed in as little as three months, ensuring the workforce is ready to deliver the major projects that will drive growth.