Recent reports highlight key recommendations and raise questions on striking the right balance between apprenticeships and skills in the Growth and Skills Levy.

In June 2024, the Labour Party launched their manifesto for the impending general election. As part of this, they pledged to reform the Apprenticeship Levy to a flexible ‘Growth and Skills Levy’.

They have since committed to this reform, which will allow employers to use a portion of levy funding for non-apprenticeships skills training.

The aim of this ‘Growth and Skills Levy’ is to increase opportunities for young people in the UK by creating an apprenticeship and skills system that works more effectively for employers.

However, there is concern that introducing flexibility for skills training will impact the availability and participation for apprenticeships. The key will be getting the balance right in the design and implementation of the new system.

Youth Employment UK