WIREDGOV

Recently published report from the Institute of Fiscal Studies echoes techUK's concerns on the Apprenticeship Levy.

The accelerating pace of technological change makes meaningful lifelong learning initiatives more important than ever.

As technology drives innovation and productivity it will change the way we work – new skills will be required as new businesses and working practices emerge. For everyone to enjoy the benefits these innovations will bring, Government and industry must collaborate closely to support people to up-skill and re-skill throughout their working lives.

The Government recognises this policy imperative and has shown impressive foresight in making this a focus of the new Industrial Strategy. While people are working longer, training is diminishing in many sectors, a trend that must be reversed if the UK is to build a modern, global economy driven by “the pioneers and innovators who will shape the world ahead”.

The UK tech sector has an excellent track record of providing workers in the UK with further digital and STEM skills to enable them to evolve with the whirlwind pace of change in the tech sector. For instance, just this month Microsoft launched a multi-year strategy to provide training in both everyday digital literacy as well with vital cloud technology skills. This follows Google’s recent announcement promising all UK citizens access to five hours of free digital skills training. Amazon Web Services has also set its sights on higher level digital skills with its Re:Start programme which aims to add at least 1,000 entrants into the digital workforce over the next three years.

So far, so good…However, as a key lever for tackling the productivity gap and boosting employer training, the Government has introduced an ambitious apprenticeship programme, funded by the Apprenticeship Levy. And here concerns begin to emerge. As a new report by the Institute of Fiscal Studies argues, there are doubts that Government’s apprenticeship approach is fit for lifelong learning and the relevant up-skilling for jobs of the future. As the report states “we need to move away from arbitrary targets and across-the-board 100% funding to a more gradual expansion, a stronger focus on quality, and a policy designed to maximise impact rather than numbers.” Furthermore, the report warns that the Levy risks of lowering wages, and techUK believes it risks defunding important upskilling initiatives and is more focused on raising revenues than providing forward thinking training programmes.

The IFS report echoes techUK’s views on the current approach to apprenticeships and the Apprenticeship Levy. techUK has consistently said that the Levy risks drawing industry funding away from initiatives that provide digital skills training. techUK has previously called for the apprenticeship programme to be reconsidered to ensure it is fit for the future of work. The design and the delivery of the levy must work for and not against the needs of the most dynamic and innovative sectors for the UK economy, and there are too many aspects of the apprenticeship programme that fail this basic test.

The world of work is changing rapidly, and the apprenticeship programme must help both those entering the workforce for the first time and those who need new skills. In an era of rapid technological change, it is imperative that a culture of life-long learning is adapted to ensure that companies are investing in genuinely valuable skills for the future. The Government recognises this shift in modern employment, as evidenced by the Taylor Review and the Government Office for Science’s review into lifelong learning. techUK therefore urges the Government to shift the focus of the apprenticeship programme towards more flexible employer-led training initiatives. Employers should be incentivised to use the Levy to reskill employees in roles that could become vulnerable to automation, or to help other key groups back into the workforce such as military veterans or female returners.

Investing in domestic digital skills is more important than ever, but the Government must back up its foresight into the changing world of work with meaningful policy initiatives that can give people the skills they need to succeed in high value jobs. The current approach to apprentices, however, risks undermining existing training initiatives and deterring future ones. techUK urges the Government to engage with the tech sector to understand what skills will be needed in the future and shape skills policy accordingly.