Source · Select Committees · Public Accounts Committee

Recommendation 21

21 Acknowledged

The NAO found that government had not made clear to what extent it was seeking...

Conclusion
The NAO found that government had not made clear to what extent it was seeking to influence employers to invest more in developing the skills of their own workforces.28 We asked whether there was scope for government to do more to reach out to employers who were unwilling to invest or uninvolved in the skills system. BEIS told us that it was most concerned about small and medium-sized enterprises (SMEs), which frequently told government that they lacked the resources to invest in workforce training, especially in recent years when they had been struggling with other external challenges. It explained that, while it was difficult for it to help SMEs with the resources to invest in training, it was hopeful that simplifying the skills system and making it more flexible would make it easier for SMEs to navigate.29
Government Response Summary
The government acknowledges the concerns around SMEs and their 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
4.1 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.