Skills England & The New Industrial Strategy
The Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Act 2025 received Royal Assent on the 15th May 2025
The Act
The Act transfers the duties and responsibilities of the Institute for Apprenticeships and Technical Education (IfATE) to a new body called Skills England. Moreover, the name of the apprenticeship levy was changed to the growth and skills levy.
Objectives
The objectives behind Skills England is to:-
- Develop a unified understanding of national and local skills needs through collaboration with industry, unions, and governmental bodies.
- Assess current and future skills requirements to inform the Department for Education’s policy priorities
- Determine what training the growth and skills levy can be used for, to ensure that it aligns with the skills needs within the economy, and to ensure that it provides value for money
- Ensure that national and regional skills systems are addressing skills requirements, and that they are doing so in a co-ordinated manner.
New Industrial Strategy
As we highlighted in a recent article, the Government has also unveiled a new industrial strategy with a central focus on enhancing skills through an annual investment of £1.2 billion. This is aimed at bolstering technical training and apprenticeships, with the objective of providing a platform for the nation’s future workforce.
The industrial strategy includes substantial funding for the establishment of technical excellence colleges and short courses in artificial intelligence. This initiative is designed to meet the growing demand for advanced technical skills. Additionally, there will be targeted investments in training providers to ensure high-quality education and training across various sectors.
The industrial strategy also outlines detailed plans for several sectors, including advanced manufacturing, clean energy industries, creative industries, digital and technology, and professional and business services. Highlights include:
- Advanced Manufacturing: An investment of £100 million over three years to enhance engineering skills.
- Clean Energy Industries: Introduction of an energy skills passport to facilitate transitions for oil and gas workers into offshore wind roles.
- Creative Industries: A £380 million boost for film, TV, video games, advertising, marketing, and performing arts.
- Digital and Technology: A £35 million investment in semiconductor skills through 300 electronic engineering bursaries.
- Professional and Business Services: Continued funding for Level 7 apprenticeships under the growth and skills levy.
Record Number of Workers Take on Second Jobs Amid Cost of Living Crisis
The number of UK workers taking on second jobs has reached an unprecedented level, reflecting the financial pressures many are facing. A new report compiled by the Work Foundation at Lancaster University, using data from the Office for National Statistics (ONS), reveals that 1.35 million people now have second jobs, representing a 10% increase from last year and the highest figure since records began in 1992.
This trend is driven by rising living costs and job insecurity, with many workers finding their income from their main job insufficient. One in six employees struggle to pay their bills each month, and 43% have little or nothing left for savings or holidays after covering essential expenses.
Despite the UK experiencing its longest period of sustained wage growth in over two decades, these increases are not enough for many workers to keep up with inflation. Only 48% of surveyed workers believe their wages are keeping pace with the cost of living, and just 43% expect an above-inflation pay rise in the coming year.
Financial insecurity is particularly pronounced among older workers and those earning less than £25,000 annually. Only 42% of low-income workers feel their pay matches the cost of living, compared to 73% of those earning over £60,000. Additionally, nearly half of younger workers (48%) fear being laid off within the next year.
Commenting upon the findings, the Director of the Work Foundation, Ben Harrison, stated: "Raising living standards is not just about figures on a spreadsheet, it’s about workers feeling more financially secure. Four years on from the start of the worst cost of living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets. Second jobs are sometimes glamorised as ‘side hustles’ or optional extras but economic necessity is often a key motivation."
