The Prime Minister and Education Secretary have announced the launch of Skills England to meet the skills needs of the next decade, in particular across construction and healthcare.

This body will bring together central and local government, businesses, training providers and unions working across all regions and provide strategic oversight of the post-16 skills system aligned to the government’s Industrial Strategy.

Skills shortages have doubled to more than half a million between 2017 and 2022 and now account for 36% of job vacancies and it is believed by working with the Migration Advisory Committee, Skills England will also help reduce reliance on overseas workers.

Skills England, which will be established over the next 9 to 12 months, will identify the training for which the growth and skills levy will be accessible – giving businesses more flexibility to spend levy funds on training for the skills they need, which employers have long been calling for. The Skills England Bill announced this week will transfer functions from the Institute for Apprenticeships and Technical Education (IfATE) to Skills England and be rolled out as follows:

• The first phase of Skills England’s launch involves setting up the organisation in shadow form within the DfE, and starting work on an assessment of future skills needs while building strong relationships with employers. A permanent board, Chair and CEO will be appointed in due course.
• The route for employers to shape skills training is currently offered by the IfATE. IfATE’s functions will transfer to Skills England, as part of the new organisation’s broader remit. IfATE will continue its important work in the interim as the transition of functions to Skills England is finalised.
• Skills England will hold responsibility for maintaining a list of levy-eligible training to ensure value for money, and that the mix of government-funded training available to learners and employers aligns with the identified skills needs.
• The government will also bring forward a comprehensive strategy for post-16 education to break down barriers to opportunity, support the development of a skilled workforce, and drive economic growth through our industrial strategy.

Prime Minister Keir Starmer said: "Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades. They will help to deliver our number one mission as a government, to kickstart economic growth, by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent.

"From construction to IT, healthcare to engineering, our success as a country depends on delivering highly skilled workforces for the long-term. Skills England will put in place the framework needed to achieve that goal while reducing our reliance on workers from overseas."