Recommendation 4

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.