As Skills England begins to take shape, BCS and a select panel of partners offer their collective insight about which aspects of apprenticeships should be improved, what should be retained and what needs fixing.
A recent hybrid webinar at the BCS London offices focused on the establishment of Skills England. Industry experts and training providers discussed its potential impact on digital apprenticeships. Key points included building on existing systems, addressing uncertainties with a clear timeline, continuing funding for Level 7 apprenticeships, ensuring industry voices are central and maintaining quality control in funded training programmes.
BCS has published two summary videos: provider and employer recommendations — and an overview from Annette Allmark, Director of Learning and Development, BCS.
We have also published a new report, Protect. Improve. Grow. The Future of Digital Apprenticeships. It highlights the growing success and importance of digital apprenticeships in addressing the UK’s digital skills gap, fostering diversity and driving economic growth. The report emphasises the need to protect and enhance the system by reducing bureaucracy, engaging SMEs, and ensuring effective funding mechanisms like the apprenticeship levy.
As you read on, we’ll explore apprenticeships, how they work, where BCS fits into the market and some of the changes that may soon happen.
Where does BCS fit into the apprenticeship story?
Digital apprenticeships in England have seen remarkable growth with an increase of 47% in people starting a digital apprenticeship between 2020/21 and 2023/24.
As a leading assessment organisation, BCS has assessed over 29,000 digital apprentices over the last seven years, contributing significantly to apprenticeships’ quality and relevance. BCS aims to ensure that digital apprenticeships meet evolving industry needs and enhance the country’s digital economy by fostering stakeholder collaboration, encouraging SME participation and promoting inclusivity.
How do apprenticeships help ‘make IT good for society?’
Apprenticeships have great transformative power, and they are not just for young people — people of any age can apply for such schemes.
Apprenticeships offer individuals an accessible route to acquiring digital skills that are in high demand by employers across numerous sectors, empowering people from diverse backgrounds to embark on meaningful careers in technology. This inclusivity addresses social mobility and helps tackle persistent disparities, such as the gender gap in IT, fostering a more equitable workforce.
For organisations, apprenticeships are filling critical skill shortages, ensuring businesses can thrive in an increasingly digital world while cultivating professionals trained in cutting-edge fields like AI, cybersecurity, and data analytics. This tailored training enhances organisational efficiency and resilience.
On a national scale, apprenticeships are a vital driver of economic growth, with improved digital capabilities projected to contribute £33 billion to the UK economy.
Through these programmes, BCS fulfils its goal of leveraging IT to benefit society, fostering a future where technology supports prosperity, inclusivity and ethical advancement.
Tell me more about how apprenticeships can help build a more inclusive tech industry.
Apprenticeships significantly promote inclusivity by providing accessible pathways to careers in technology, breaking down barriers often associated with traditional education routes. Unlike university programs, apprenticeships offer practical, hands-on experience and earn-as-you-learn opportunities, making them affordable and attractive to individuals from diverse socioeconomic backgrounds. This inclusivity enables people who might not have pursued higher education, such as those from underprivileged communities, to gain valuable skills and access high demand careers.
Moreover, apprenticeships are crucial in addressing gender imbalances and other disparities in the tech industry. For instance, they offer an alternative route for women to enter IT professions, helping to close the gender gap, which remains significant. The Future of Digital Apprenticeships report highlights how 94% of girls drop computing by age 14, compared to 79% of boys, emphasising the importance of initiatives like digital apprenticeships to re-engage underrepresented groups in tech-related fields.
By fostering diversity in talent pipelines, apprenticeships benefit individuals, companies and the broader economy. Diverse teams have been shown to enhance innovation and problem-solving, essential attributes in the digital and tech sectors. Aligning with BCS’s mission of making IT good for society, apprenticeships help create a workforce reflective of the communities it serves, driving equitable progress in the digital age.
What are apprenticeship levels?
In England, apprenticeships are structured into four primary levels, each corresponding to different stages of education and career progression. Intermediate apprenticeships (Level 2) are equivalent to GCSEs and provide foundational skills. Advanced apprenticeships (Level 3) are comparable to A-levels and offer more in-depth training. Higher apprenticeships (Levels 4 and 5) are equivalent to a foundation degree or higher education diploma, focusing on specialised skills. Finally, degree apprenticeships (Levels 6 and 7) allow individuals to earn a bachelor's or master's degree while working. This tiered system ensures that apprenticeships are accessible and beneficial to various individuals, supporting entry level and advanced career development.
So, what’s changing?
The Labour Party's 2024 manifesto outlines several key changes to apprenticeships in the UK. One major proposal is replacing the current Apprenticeship Levy with a new Growth and Skills Levy, which would allow employers to use funds for apprenticeship and non-apprenticeship training. Labour also plans to introduce foundation apprenticeships to provide young people with pathways into critical sectors.
What is the Apprenticeship Levy?
The apprenticeship levy is a key mechanism for funding apprenticeship programs in the UK. Introduced as a payroll tax on large employers, the levy is designed to encourage investment in training and skills development by requiring companies to allocate a portion of their wage bill to apprenticeship funding. Employers can then reclaim this contribution to fund their apprenticeship schemes.
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The levy has been instrumental in the growth and improvement of digital apprenticeships. It has encouraged employers to integrate apprenticeships into their long-term talent management strategies, helping them address skill gaps and prepare for future workforce needs. Recent enhancements, such as increasing the levy transfer option to 50%, have expanded opportunities for small and medium-sized enterprises (SMEs) to benefit from apprenticeship funding. This inclusivity is critical for broader participation in apprenticeship programs, fostering a more diverse and skilled workforce.
There is, however, room for improvement. Some stakeholders believe that the levy could benefit from greater flexibility, such as allowing funds to be used for broader training initiatives like modular courses. While such changes might address additional skills needs, the BCS report cautions that any adjustments should preserve the levy’s original purpose: to fund quality-assured apprenticeship programs that benefit both learners and employers. The levy remains a cornerstone for driving economic growth, fostering innovation, and building a digitally proficient workforce, all essential to the UK’s ability to stay competitive in a rapidly evolving global market.
Tell us more about the Growth and Skills Levy.
This new Growth and Skills levy allows employers to use up to some of their contributions for non-apprenticeship training, providing greater flexibility to address various training needs.
How much of the contribution can be used in this way remains uncertain. Prior to the election, there was talk about flexing the growth and skills levy up to 50%. This figure isn’t, however, set in stone, and the full extent of this flexibility won’t be known until early 2025. The government consulted with apprenticeship stakeholders in the later months of 2024.
Additionally, Labour is planning to introduce foundation apprenticeships to give young people a pathway into critical sectors. These changes are part of a broader strategy to reduce youth unemployment and address skills shortages nationwide.
What is Skills England?
Skills England is a new body created by the UK government. It is intended to address the nation's skills shortages and boost economic growth. Launched in 2024, it brings together key partners, including local and central government, businesses, training providers and unions to create a unified approach to skills development.
Currently, the Department for Education (DfE) is responsible for the overall policy, funding, and quality assurance of apprenticeships, ensuring they meet the needs of both employers and apprentices. The day to day management of apprenticeships has been undertaken by the Institute for Apprenticeships and Technical Education (IfATE), which includes working with employer Trailblazers to set apprenticeship standards and assessment plans, informing the funding bands and working with various stakeholders to support the development and delivery of apprenticeship programmes.
The responsibilities of IfATE are transitioning to Skills England which takes on a new and significant role to form a more cohesive and responsive skills system, addressing national and local needs.
Will IfATE be abolished?
Yes, IfATE will be abolished, and its functions will be transferred to Skills England with a target date of April 2025, but it could be nearer to the summer. This transition is part of the broader strategy to streamline and enhance the UK's skills system. Skills England will take on IfATE's responsibilities and a wider remit to address skills gaps and training needs nationwide.
Tell me about the changes to Level 7 apprenticeships.
Level 7 apprenticeships are the highest level in the UK, equivalent to a master's degree. They offer advanced training and qualifications in various professional fields, such as accounting, law, and healthcare. These apprenticeships combine on-the-job experience with academic learning, allowing individuals to gain a master's degree while working.
The Labour government has proposed significant changes to funding Level 7 apprenticeships. Under the new Growth and Skills Levy, employers must fund more Level 7 apprenticeships outside the levy. This shift prioritises funding for younger workers and foundational apprenticeships, addressing critical skills shortages and supporting early career development.
This move might make sense for some industries where more foundational skills are in high demand. But, in the tech industry, where profound, specialised and often high-level skills — in spheres like AI — are in high demand, reducing funding for Level 7 apprenticeships might be a retrograde step.
This all sounds like a lot of change?
Yes, the apprenticeship landscape is changing. Creating Skills England is an exciting opportunity for employers, the government, training providers and all other stakeholders. As Skills England takes shape, it is a good time for organisations involved in apprenticeships to collaborate, discuss the future, and, where necessary, offer their recommendations.
There is much uncertainty about what Skills England will do. Speakers at the recent BCS Apprenticeship event felt that providing a timeline and roadmap would help ease uncertainty and worry among apprenticeship providers and employers.
It’s also essential that the new body avoid starting from scratch. Much about the current apprenticeship policy and process works well. Though there is room for improvement, speakers at the recent event felt it is preferable to preserve what works today and improve upon it rather than begin afresh.
Importantly, we must recognise the important role apprenticeships have played in reducing the digital skills gap and how successful they have been in building a new and diverse talent pipeline. Moving forward, it is critical to build on this success to ensure an adequate pool of suitably competent digital professionals, who are increasingly needed by employers and the economy as a whole.
