Government’s ambition for growth not yet matched by action on skills, warns the CIPD this National Apprenticeship Week

This National Apprenticeship Week, the CIPD is calling on the government to take urgent action to develop the skills and capabilities needed to deliver economic growth, by involving employers in the early design of the new Growth and Skills Levy and introducing an Apprenticeship Guarantee for all young people aged 16-24.

In its submission for the Spending Review, the CIPD says it’s crucial that investment is directed towards apprenticeships and skills development. This will be key to tackling current skills deficits, especially technical skills, and ensuring the workforce is equipped to deliver the government’s industrial strategy and wider growth ambitions.

The professional body for HR and people development highlights that consultation with employers on the design of the Growth and Skills Levy should be fast tracked as a priority. This will be key to helping tackle skill shortages in the economy and enabling employers to upskill their workforces.

Lizzie Crowley, senior skills policy adviser at the CIPD said:

“In the Chancellor’s recent speech there were multiple references to boosting growth through investing in major infrastructure projects and key high-tech and green industries, but very little focus on the workforce skills and capabilities needed to deliver on these ambitions.

 “We need to see a significant increase in apprenticeships for young people to address technical skills shortages across the economy, not just in the relatively few sectors the government is prioritising to accelerate growth through.

 “It’s also important that we see rapid progress on the development of the Growth and Skills Levy with early input from employers to ensure that it can play an effective role in supporting the training and upskilling of the wider workforce.”

 Determining how much levy funding should be available for individual employers and how much should be allocated to tackle sector-based or regional skills deficits will be complex. This will require early input from a range of stakeholders to get the balance right.

The CIPD is also calling on the government to introduce an Apprenticeship Guarantee that will give all 16-24-year-olds access to either a level 2 or level 3 apprenticeship. Current plans for a Youth Guarantee promising support to find employment, training or apprenticeships for 18-21-year-olds will not be sufficient to address the collapse in apprenticeship provision for young people or tackle rising youth unemployment.

The CIPD is calling for:

•  A £3,000 hiring incentive per apprentice for SMEs to help reverse the decline in apprenticeship starts among small firms and unlock apprenticeship opportunities for young people
• Development of a ‘pathway’ to apprenticeships through a refreshed pre-apprenticeship programme
• Allocation of £75m in funding to help schools work with employers to deliver the proposed two-week work experience placement for secondary school pupils
• Improving the quality of business support for HR and people development for SMEs, so organisations are equipped with the capabilities needed to develop the skills of workers.

With AI adoption set to accelerate, the CIPD also says there needs to be a closer link between policy on innovation, skills and business support, as effective AI implementation will depend on workers and organisations being equipped with the right skills and capabilities. The provision of vocational training and technical qualifications, including apprenticeships, must be a part of this.