Source · Select Committees · Transport Committee
Recommendation 5
5
Accepted
Extend apprenticeship levy expiry; consult on capital expenditure, UK-wide spending, and SME supply chain mechanisms.
Recommendation
The Government should: • extend the expiry window for unspent levy funding to three years; • consult on allowing levy funding to be used on capital expenditure to support the provision of training and skills development (so long as that is not to the detriment of passing down that levy funding for the benefit of small and medium-sized enterprises in the supply chain); • set out options for mechanisms for larger companies to use or pass down levy funding for the benefit of the small and medium-sized enterprises in their supply chains; and • consult on permitting levy funding to be directly spent anywhere in the UK by manufacturers with operations in other UK nations as well as England. (Recommendation, Paragraph 35 )
Government Response Summary
The Government sets clear expectations for schools and colleges through strengthened statutory guidance, updated in spring 2025, and there is external accountability provided by Ofsted.
Government Response
Accepted
HM Government
Accepted
We recognise the importance of ensuring that young people are aware of the wide range of high-quality career opportunities available in manufacturing, including in the transport sector. We agree that strong careers guidance, underpinned by clear accountability, is essential to achieving this and remain committed to working with partners to ensure that information about these opportunities is accessible, accurate and aligned with current and future skills needs. The Department for Education (DfE) sets clear expectations for schools and colleges through strengthened statutory guidance, updated in spring 2025, and there is external accountability provided by Ofsted. The guidance placed a renewed emphasis on meaningful, employer-led experiences for every young person, ensuring that subject choices and career pathways are informed by real-world insight. To support delivery, DfE funds the Careers & Enterprise Company (CEC), which works with secondary schools, colleges and thousands of employers to improve careers provision. This includes funding training for careers leaders and a national network of careers hubs. CEC captures data on the implementation of the Gatsby Benchmarks, the Government’s careers framework, and on the career readiness and essential skills of pupils. This provides a strong foundation for accountability and continuous improvement. The evidence shows that interest in manufacturing is already significant – CEC data from over 330,000 young people indicates that at least 32% express an interest in the sector. However, we recognise that regional differences exist – 5% of young people report an interest in factory/ machinery work in the North East, compared to 2% in London. Targeted engagement is needed to ensure young people everywhere can access information about manufacturing careers. Transport and manufacturing employers can support this effort. Through the DfE funded careers system, employers can use CEC’s Employer Standards to strengthen their engagement with education and ensure that young people receive high-quality information about career opportunities in their industries. Many employers also serve as Enterprise Advisers (EAs), a network of more than 3,500 business volunteers working strategically with schools and colleges to shape their careers programmes. This approach is delivering impact. For example, Unipres have worked closely with the North East Careers Hub to take a more strategic approach to outreach, resulting in half of a recent engineering apprentice intake having previously engaged with the company through school and college activity. The Government recognises the intrinsic value of closer inter-departmental working, particularly in promoting sectors such as transport manufacturing which are experiencing significant skills and staffing shortages. The Government will continue to work closely across departments to ensure continue strong accountability for careers guidance and visibility of pathways into manufacturing, and DfT will proactively work with other departments to develop careers pathways that reflect the needs of the transport manufacturing sector.