Summary of the Skills England Report (2024)

Skills England is tackling the UK's critical skills shortages, which hinder economic growth. The report highlights the fragmented skills landscape and the need for training aligned with employers' needs.

Key issues include skills mismatches, underinvestment in training, and regional disparities. High-demand sectors like digital technologies, green jobs, and construction are prioritised. Skills England's focus is on creating standardised assessments, working with regional bodies, and enhancing pathways to skilled careers for a more productive workforce.

Transforming the UK’s Skills Landscape with Skills England

In September 2024, the UK government launched Skills England, a body designed to revolutionise workforce development. The inaugural report identifies critical skill shortages responsible for slowing economic growth, with over a third of vacancies linked to a lack of skilled labour. Despite the UK's strong education institutions, a mismatch between developed and in-demand skills hampers productivity.

For decades, productivity has stagnated, exacerbated by a fragmented skills system, post-pandemic economic disruptions, and the rise of AI. In response, Skills England proposes a comprehensive strategy to address these gaps.

The Importance of Skills for Economic Growth

Skills England stresses the importance of investing in skills to drive economic recovery and innovation. High-skilled regions such as London and Leamington Spa have seen faster growth, while areas like Cornwall and Greater Lincolnshire where only 38% & 33% of workers are highly qualified, struggle with persistent underperformance.

Addressing Regional Disparities

The strategy emphasises regional alignment, highlighting the role of Local Skills Improvement Plans (LSIPs). Different regions demand varied skills based on industry needs, such as finance in London, nuclear energy in the North West, and agriculture in rural areas. Matching skills training to regional economic sectors will help bridge these disparities and encourage labour market mobility.

Pathways for Emerging Sectors

The report also identifies key growth sectors, including digital technology, green jobs, artificial intelligence (AI), and healthcare. Skills England will collaborate with businesses and educational institutions to ensure training adapts to these evolving industries. The need for green skills in construction and energy, particularly in meeting the UK's net-zero goals, is one priority area requiring updated qualifications.

The Role of Employers

Underinvestment in employee training is a key challenge. Since 2011, spending on training has declined by 19%. To reverse this trend, Skills England proposes a Growth and Skills Levy—a more flexible version of the Apprenticeships Levy, designed to make high-quality training widely accessible.

Next Steps

This autumn, Skills England will expand its early engagement efforts by hosting roundtables and webinars to further refine its assessment of national skills needs. The organisation will also deepen its analysis, collaborating with the Unit for Future Skills to map education pathways to priority occupations. Additionally, it will work with the Office for National Statistics on the development of online job adverts. Skills England will consult employers on the training options under the Growth and Skills Levy and partner with the Migration Advisory Committee to strengthen the domestic skills pipeline.

CPCAB's Commitment to Aligning with Sector Needs

CPCAB is committed to ensuring its qualifications align with the evolving demands of employers and the sector. By continuously monitoring developments led by Skills England, and participating in relevant consultations, CPCAB will continue to map its qualifications to the national skills agenda, ensuring that candidates acquire the knowledge and competencies required by employers while upholding high professional standards.