The Budget sets out the government’s vision for developing the
new skills needed for the UK’s long-term prosperity, in order to
build an economy fit for the future.
Apprenticeships – The government will introduce a package of
reforms to strengthen the role of employers in the apprenticeship
programme, so they can develop the skills they need to succeed.
As part of this:
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the government will make up to £450 million available to
enable levy paying employers to transfer up to 25% of their
funds to pay for apprenticeship training in their supply
chains
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the government will provide up to £240 million, to halve the
co-investment rate for apprenticeship training to 5% (23)
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the government will also provide up to £5 million to the
Institute for Apprenticeships and National Apprenticeship
Service in 2019-20, to identify gaps in the training provider
market and increase the number of employer-designed
apprenticeship standards available to employers. All new
apprentices will start on these new, higher-quality courses
from September 2020
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the Exchequer Secretary to the Treasury and the Minister for
Apprenticeships and Skills will work with a range of
employers and providers to consider how they are responding
to the apprenticeship levy across different sectors and
regions in England, as well as the future strengthened role
of apprenticeships in the post-2020 skills landscape
National Retraining Scheme – The government will work with
employers to give workers the opportunity to upskill or retrain.
The Budget allocates £100 million for the first phase of the
National Retraining Scheme (NRS). This will include a new
careers guidance service with expert advice to help people
identify work opportunities in their area, and
state‑of‑the‑art courses combining online learning with
traditional classroom teaching to develop key transferable
skills. The National Retraining Partnership between the
government, the Confederation of British Industry and the Trades
Union Congress will focus on job-specific retraining in phase
two. (80)
Skills pilots – The government will fund £20 million of skills
pilots. This will include:
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a new £3 million pilot to help employers in Greater
Manchester and surrounding areas to address local digital
skills gaps through short training courses (26)
-
a £10 million pilot in Greater Manchester, working with the
Federation of Small Businesses, to test what forms of
government support are most effective in increasing training
levels for the self-employed (24)
-
£7 million match funding alongside employers to provide
on-the-job training to young people not currently in
employment, education or training in Greater Manchester, and
to move them into sustainable career paths with employers
(25)
T levels – The government will provide £38 million of capital
funding to support implementation of the first three T levels in
2020 across 52 providers.
Post-18 education and funding – The government’s review into the
post-18 education and funding system in England will ensure that
all students are given a genuine choice between high-quality
technical, vocational and academic routes in a system accessible
to all; students and taxpayers are getting value for money; and
employers can access the skilled workforce they need. As part of
the review, the government will receive advice from an
independent panel, chaired by Philip Augar. The panel will report
to ministers at an interim stage before the government concludes
the overall review.
Human capital – The government is working with
the ONS to better
understand how its investment in people helps improve their
earning and skills potential. The ONS will consult on
how to further measure human capital, and will convene an
international meeting of experts in London later this year.
