Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Acknowledged
DfE carries out an employer skills survey every two years.
Conclusion
DfE carries out an employer skills survey every two years. These surveys indicate that the average amount per employee that employers spent on training fell, in real terms, from £1,710 in 2011 to £1,530 in 2019. The 2021 survey suggested that the COVID-19 pandemic had amplified the decline in workforce training, especially among smaller and medium- sized businesses. It found that, overall, 52% of the total workforce had received training during the year, which was the lowest proportion since the first employer skills survey in
Government Response Summary
The government acknowledges the decline in employer investment in training and states it is already considering the evidence base and potential options to support increased investment, particularly for SMEs.
Government Response
Acknowledged
HM Government
Acknowledged
4: PAC conclusion: Employers are spending less than they used to on workforce training which risks leaving the economy without the skills it needs. 4: PAC recommendation: DfE, working with other government departments as necessary, should review how it incentivises employers to invest in skills development, including through the apprenticeship levy, and, in the 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. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 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.