Skills England Launched to Drive Growth and Transform Opportunities. In a significant move to boost the nation’s economy and address the pressing skills shortages, the UK government has announced the launch of Skills England. This new body aims to unify the fragmented skills landscape and create a cohesive national strategy to enhance skills development across all regions. The announcement was made by Prime Minister Keir Starmer and Education Secretary Bridget Phillipson, marking a decisive step towards meeting the nation’s future skills needs.
A New Leadership for a Unified Strategy
Richard Pennycook CBE, former chief executive of the Co-operative Group and lead non-executive director at the Department for Education (DfE), has taken the helm as the interim Chair of Skills England. His appointment signals the government’s commitment to strategic oversight and effective leadership in bridging the existing skills gap.
Addressing Growing Skills Shortages
Recent data reveals that skills shortages have doubled from 2017 to 2022, affecting over half a million vacancies and accounting for 36% of all job openings. To tackle these challenges, Skills England will collaborate with central and local governments, businesses, training providers, and unions. This collaboration will focus on developing a robust post-16 skills system aligned with the Government’s Industrial Strategy.
Supporting Local Economies and Reducing Reliance on Overseas Workers
By fostering skilled workforces, particularly in critical sectors like construction and healthcare, Skills England supports the government’s mission to promote sustainable growth. The organization will also work closely with the Migration Advisory Committee to reduce reliance on overseas workers, ensuring that the UK cultivates its home-grown talent.
Prime Minister Keir Starmer emphasized the importance of transforming the skills system, stating, “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades. They will help to deliver our number one mission as a government, to kickstart economic growth, by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent.”
Driving Economic Growth Through Skills Development
Echoing these sentiments, Education Secretary Bridget Phillipson stated, “Our first mission in government is to grow the economy, and for that, we need to harness the talents of all our people to unlock growth and break down the barriers to opportunity. Skills England will jumpstart young people’s careers and galvanize local economies.”
Skills England will also identify training eligible for the growth and skills levy, which gives businesses the flexibility to allocate levy funds toward essential training. This reform directly responds to long-standing calls from employers seeking to invest in workforce training.
Phased Implementation and Future Plans
Skills England will roll out in phases over the next 9-12 months, creating a responsive and collaborative skills system. In the initial phase, the organisation will set up in shadow form within the DfE, assess future skills needs, and build strong relationships with employers.
Additionally, the Skills England Bill, announced this week, will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England, streamlining efforts to align skills training with market demands. IfATE will continue its crucial work during the transition period.
Empowering Local Authorities and Supporting Growth
The government plans to simplify and devolve adult education budgets to Mayoral Combined Authorities, empowering them to address local adult skills needs directly and support regional growth.
The establishment of Skills England marks a pivotal moment in the UK’s strategy to develop a skilled workforce capable of meeting future demands. By fostering collaboration among key stakeholders and providing strategic oversight, Skills England is set to drive economic growth and transform opportunities for individuals and businesses across the nation.
