The government is right to focus levy funds where they are most needed, says AoC

In response to the government's announcement on the growth and skills levy, David Hughes, Chief Executive, Association of Colleges, said: “The significant drop over the last six years in young people starting an apprenticeship and the shift away from apprenticeships in vital sectors and regions shows that reform of the apprenticeship levy is long overdue. I’m therefore pleased to see this early action from the new government to start to focus levy funds where they are most needed: at young people seeking to enter the labour market, and in priority areas, such as construction, digital and green skills. Where employers truly value those Level 7 apprenticeships then I hope that they invest their own money in them, showing that they provide a good return on investment.

“With the establishment of Skills England, I hope to see more interventions like this, using public funds to invest in key priorities, in line with the Labour commitments to economic growth and widening opportunities. We have long called for these key priorities for the levy to be set nationally and regionally. When it was introduced in 2018, one of the drivers for the levy was that employers were investing too little in skills and in their workforces. That is still true, so there is more to do to encourage, support and enable employers to invest more through colleges who stand ready to deliver on this vital drive for sustainable economic growth and breaking down barriers to opportunity.”