The Prime Minister is getting ready to share exciting news at the Labour Party’s annual conference on Tuesday. This announcement will be about a big change to how apprenticeships are managed in the UK. Instead of the old apprenticeship levy, the government plans to introduce something new called a “growth and skills levy.”

Why Change the Apprenticeship Levy?

You might be wondering, why is this change happening? Well, many people in the UK have noticed a serious shortage of skilled workers, especially in jobs like construction, plumbing, and electrical work. This shortage has made it difficult for businesses to find enough trained workers to keep things running smoothly. Employers have also been unhappy with the old apprenticeship levy since it didn’t allow enough flexibility for both companies and learners.

The apprenticeship levy started back in 2017 when the Conservative government was in power. It required companies with a wage bill of over £3 million to pay a tax of 0.5% each month. The idea was to use this money to help fund apprenticeships. However, many employers found this system too rigid and felt it did not meet their training needs or the needs of young people looking to start their careers.

What’s New About the Growth and Skills Levy?

The Prime Minister’s new plan aims to give more freedom to businesses and individuals. The growth and skills levy will allow for shorter apprenticeships in specific sectors like construction, making it easier for people to get trained quickly. The goal is to make training more accessible and relevant to what companies really need.

At the conference, the Prime Minister is expected to emphasize the importance of adapting the skills system to fit real-world training needs. He wants to create a training environment that helps young people feel proud and ambitious about their future careers. He believes this will not only benefit individuals but also help communities thrive as young people build careers and contribute to society.

Introducing Foundation Apprenticeships

One of the most exciting parts of this announcement is the introduction of foundation apprenticeships. These apprenticeships will offer training to young people who might not be quite ready to start more advanced level two or three apprenticeships. It’s like a stepping stone to help them gain the skills they need before jumping into a full apprenticeship.

Foundation apprenticeships will provide essential training, so young people can build their confidence and skills, preparing them for the challenges ahead. This means that more young people will have the chance to enter the workforce, even if they need a little extra help to get started.

Consulting with Employers and Training Providers

To make sure this new levy meets the needs of everyone involved, the government plans to work closely with employers, training providers, and Skills England. This organization was created by the Prime Minister and Education Secretary Bridget Phillipson shortly after Labour took over the government. By consulting with these groups, the government hopes to gather ideas and suggestions on how to create the best possible training system.

It’s important to listen to the voices of employers because they understand what skills are needed in the workforce. This collaboration will help shape the new growth and skills levy into a system that works for both businesses and the people they hire.

What Does This Mean for Young People?

For young people, this change brings a lot of hope. The Prime Minister is expected to announce a commitment to creating what he calls a “youth guarantee.” This guarantee aims to eliminate inactivity and unemployment among young people once and for all. The idea is that every young person should have the opportunity to learn and work, which is crucial in today’s fast-changing job market.

By rebalancing funding back to young people and aligning training with real job opportunities, the government is showing that they care about the future of the younger generation. This means more chances for young people to learn skills that are in demand, leading to better job prospects.