Recommendation 18

HM Government Accepted

A) The Faraday Institution estimates that meeting domestic demand for batteries for EVs would boost UK employment by approximately 270,000 (full- time equivalent) jobs by 2040. Of these, 100,000 would come from battery manufacturing plants and the supply chain, 145,000 from EV production, and 25,000 from HGV/bus production. B) As highlighted in the UK Battery Strategy, recent announcements by AESC as well as Tata-Agratas will increase production by at least 52GWh of capacity by 2026. This requires a manufacturing workforce of over 7,000 people to be up- skilled, re-skilled or new-skilled in the next 2 years. C) In recent years, the Automotive Council Skills group, the Faraday Institution, HVM Catapult, and others have worked to develop an in-depth understanding of the job roles and associated skills levels needed. D) Comprehensive reskilling and upskilling programmes will be essential to help workers transition from the automotive sector to production of EVs, batteries and other areas of the battery supply chain. In September 2023, the Faraday Battery Challenge awarded £3.2 million to the universities of Coventry, Birmingham and Newcastle to identify and address skills gaps in the UK battery sector. As part of this, two Battery Workforce Training Initiatives were established to support Level 2-3 vocational and technical training in the North East and the Midlands. E) The Faraday Battery Challenge also funds the National Electrification Skills Framework and Forum (NESFF), which aims to coordinate a nationally consistent, responsive, and quality-assured courses specific to emerging skills needs in the sector. NESFF will champion the need for electrification workforce development programmes across all skills levels. F) At Autumn Statement 2023, the Government committed £50 million to delivering a 2-year apprenticeship pilot that explores ways to stimulate training in growth sectors and address barriers to entry in high-value standards. G) As the UK Battery Strategy sets out, the Government will continue to ensure that manufacturing skills training and education is well supported by a high quality and employer-led skills system. Government supports manufacturing through the flagship Apprenticeship Programme, delivering manufacturing apprenticeships from Aerospace Engineering to Machining. This is bolstered by Institutes of Technology who are working on manufacturing, including advanced manufacturing industry pathfinders and skills bootcamps delivering manufacturing skills in areas such as clean energy, renewable energy, industry and transport. H) The Government has an ambitious skills agenda, backed by an additional £3.8 billion of investment over this Parliamentary term. Building on the ambition of the Skills for Jobs white paper (January 2021), we are reforming the skills and technical education system to be employer focused, high quality, and future ready, ensuring that courses are responsive to the needs of employers in growth sectors such as advanced manufacturing. I) This includes supporting more people to complete an apprenticeship or a Higher Technical Qualification (HTQ), rolling out more T Levels, and establishing our network of 21 Institutes of Technology. We are also expanding our Skills Bootcamps and Free Courses for Jobs (FCFJ) programmes. • Apprenticeships: Through the apprenticeship levy, we will increase investment in apprenticeships to £2.7 billion by 2024-25. We have transformed apprenticeships, so they are higher quality and better meet the needs of employers and individuals, supported by sustainable funding. Employers design apprenticeship standards to meet their skills needs. There are over 670 high-quality, industry-designed apprenticeship standards available, including in advanced manufacturing occupations such as Aerospace Engineer, Science Industry Process and Plant Engineer, and Space Engineering Technician. A Level 3 Battery Manufacturing Technician apprenticeship is in development. • On apprenticeships, the government is committing a further £50 million for a 2-year pilot to explore ways to stimulate training in growth sectors and address barriers to entry in high-value apprenticeships. The apprenticeships pilot seeks to explore ways to address barriers to entry in sectors like advanced manufacturing, including high capital costs, and boost provision in high-value apprenticeships. • T Levels: are a central pillar of our reforms to technical education. T Levels offer a two-year technical qualification alternative to A levels. Designed with over 250 employers, T Levels are boosting access to high-quality technical education for thousands of young people and creating our skilled workforce of the future. 16 T Levels are now available in providers across the country. 11 of these T Levels are in STEM and technology subjects. • Skills Bootcamps are free, flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills, with an offer of a job interview wi