Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Employers are spending less than they used to on workforce training, which risks leaving the...
Recommendation
Employers are spending less than they used to on workforce training, which risks leaving the economy without the skills it needs. DfE’s employer skills surveys indicate that employers’ spending on workforce training per employee fell in real terms from £1,710 in 2011 to £1,530 in 2019. The 2021 employer skills survey found that 52% of the total workforce had received some training during the year, which was the lowest proportion since the first survey in 2011. BEIS is particularly concerned about small and medium-sized enterprises (SMEs), which often lack the resources to invest in workforce training. Several of the organisations that submitted written evidence raised concerns about the inflexibility of the apprenticeship levy and suggested that employers should be able to use their levy contributions to fund a wider range of skills activities. Recommendation: DfE, working with other government departments, should review how it incentivises employers to invest in skills development, including through the apprenticeship levy, and, in light of its findings, take action to improve the effectiveness of the incentives. DfE should write to us within six months with an update on what it has done.
Government Response Summary
The government will review how it incentivises employers to invest in skills development, including through the apprenticeship levy, and take action to improve the effectiveness of the incentives, with a focus on SMEs and making apprenticeships more flexible.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 17 4.2 Employer investment in training has been declining for over a decade. The government is clear that employers play a key part in the skills system, and it is important for the country’s productivity and skills gaps that this decline is reversed. The department is already working to consider the evidence base around declining employer investment in training and potential options to support increased investment. 4.3 In particular, the government recognises the levels of participation of small and medium enterprises (SMEs) in the skills system needs to increase in order to realise the potential of government skills reforms. 4.4 The department is committed to ensuring that Apprenticeships and Skills Bootcamps play a key part of the skills landscape, providing employers with the skilled workforce they need for the future. 4.5 The department is making apprenticeships more flexible with new flexi-job apprenticeships, front-loaded training and accelerated apprenticeships so they are accessible to employers in all sectors and more individuals can access them. The department will work to continue developing the programme and its effectiveness for employers.