Ensuring that England’s workforce possesses the necessary skills for a changing economy is a priority for the Labour Party, as this is linked to social mobility and economic growth. Following Keir Starmer’s recent reshuffle, there seems to be ongoing uncertainty regarding the management of the skills agenda, specifically which responsibilities will transfer to Pat McFadden’s expanded Department for Work and Pensions (DWP). Reports indicate that education secretary Bridget Phillipson is expected to retain oversight of further education, while McFadden may focus on apprenticeships and adult skills. Jacqui Smith, the skills minister, will operate across both departments.
Labour market experts note that aligning training with workforce needs is essential to address economic inactivity in a dynamic job market, which falls under the DWP’s domain. However, changes in departmental responsibilities often lead to confusion rather than clarity. Over the past twenty years, the oversight of skills development has shifted multiple times between various departments, contributing to a decline in attention and funding for adult education. Official data indicates that government spending on adult education halved from 2011-2012 to 2019-2020.
Despite political emphasis on vocational training, apprenticeship completions have decreased significantly since the introduction of the Apprenticeship Levy in 2017-2018. In 2023-2024, only 178,220 people earned an apprenticeship, representing a drop of over a third from the initial year of the levy. Current initiatives to adjust the apprenticeship scheme, such as reducing minimum duration requirements, have led to a slight increase in enrolments, but broader changes are still anticipated by business groups.
Employers also play a critical role in skills development. Recent findings show that spending on employee training has decreased by 28% since 2005. Efforts to improve the apprenticeship system are ongoing, with proposals to increase levy contributions to enhance resources.
McFadden aims to collaborate with businesses and unions to ensure youth receive skills that align with job creation in emerging sectors. Various local initiatives, like the proposed Wakefield Futures Centre, aim to provide flexible training options catering to community needs. Addressing skill gaps is essential for lowering economic inactivity rates and may form part of Labour’s strategy to support hard-to-reach individuals. Ultimately, clarifying departmental roles and initiatives will be crucial for improving workforce skills and economic outcomes in the UK.
Source: https://www.theguardian.com/business/2025/sep/14/apprenticeships-have-collapsed-in-england-labour-needs-to-fine-tune-the-solution-fast