The recently announced Growth and Skills Levy will allow employers to access a range of approved training options, as well as apprenticeships. But what does this mean for employers?

Here, Gloucestershire College (GC) takes a closer look at key government strategy priorities and how apprenticeships fit into the new plan.

Labour's Industrial Strategy priorities:

• Investing in sectors where the UK holds an advantage, such as research, financial services, advanced manufacturing and the creative industries

• Promoting inclusivity and social mobility by removing barriers to training, apprenticeships and jobs for people from underprivileged backgrounds

• Addressing sectoral skills shortages

• Ensuring local talent is developed and retained, regardless of background

What about apprenticeships?

The shift from the Apprenticeship Levy to the Growth and Skills Levy keeps apprenticeships as a key driver of growth and wealth creation.

Apprenticeships are designed with employers to address skills gaps. Gloucestershire College works with 1,300 employers across a range of sectors and has seen the growing popularity of apprenticeships. More school leavers and their parents are recognising apprenticeships as a viable alternative to traditional education.

The popularity of higher and degree apprenticeships is also growing, with a 9.1% rise in higher and 5.8% increase in degree apprenticeships. The college partners with UWE Bristol to offer these apprenticeships, giving clear progression routes to help learners realise their full potential.

Challenges and opportunities

Despite the success of apprenticeships, the college said more pre-apprenticeship support is needed, especially for school leavers who haven't got the higher grades in their GCSEs. GC expects the new skills strategy to address this.

Apprenticeships also need less bureaucratic complexity to encourage more SMEs to offer apprenticeships.

What about the Apprenticeship Levy?

The purpose of the new Growth and Skills Levy is to help businesses adapt more quickly to changing skill demands, particularly in fast-evolving areas like digital skills and green technologies. By reserving 50% of the levy for apprenticeships, the government is making sure existing apprenticeship opportunities are maintained, while giving employers the ability to invest in other necessary skills for their workforce.

Timelines and details on the Growth and Skills Levy are not yet available, but the general advice is that levy-paying employers shouldn't pause their apprenticeship programmes.

Apprenticeships remain central to the new skills agenda, and delaying offers little benefit.

Levy-paying employers can now transfer up to 50% of their funds to other businesses, twice as much as the previous 25%.

For non-levy paying employers, the government will cover the full cost of apprenticeship training for apprentices aged 16 to 21, who started their training after August 1, 2024.

Looking ahead

Apprenticeships have a huge impact on businesses and careers. A successful apprenticeship programme relies on a strong partnership between the employer, apprentice and training provider.

When the "right apprentice, right employer, right apprenticeship" approach is followed, success rates are significantly higher.

GC apprentices excel, with achievement rates above the national average. Nine out of 10 of the college's apprentices are kept on by their employers at the end of their training - a win-win for all parties.

Factors for success include a clear understanding of what an apprenticeship entails, providing the right support to apprentices and ensuring apprenticeships align with long-term business goals.

Employers should consider:

• Is an apprenticeship the right fit for their organisation?

• Does the apprenticeship align with their long-term skills objectives?

• Is their organisation engaging local talent through apprenticeships?

• Would their current staff benefit from upskilling through apprenticeships?

• Are apprentices succeeding and staying with them post-training?

• Is their partnership with the training provider working effectively?

Apprenticeships may not be the only option for skills development, but they have real value when done right. As non-apprenticeship training options expand under the Growth and Skills Levy, apprenticeships will continue to be a powerful tool for businesses.

For GC, the apprentice success is at the heart of what it does. The college will continue advocating apprenticeships as enablers of a skilled and motivated workforce, driving local prosperity and competitiveness.