The Chartered Institute of Personnel and Development has issued a warning to coincide with National Apprenticeship Week. It warns that the UK’s growth strategy will fail if it does not prioritize skills development.
The CIPD argues in its submission to the Spending Review that current policies do not adequately address the declining number of apprenticeship opportunities or the increasing youth unemployment. It calls for increased investment in workforce training and apprenticeships to help meet skills shortages, and to support economic growth.
The CIPD urges the government to involve employers in early design of the Growth and Skills Levy and introduce an Apprenticeship Garantie for young people aged between 16-24.
Employers and Skills Policy
The government has been focusing on major infrastructure projects and industries that are high-tech, but CIPD warns the government that they have not given enough attention to workforce skills. It is important that the government consults employers about the Growth and Skills Levy.
Lizzie Crowley is a senior skills policy advisor at the CIPD. She said: “In the Chancellor’s recent speech there were many references to boosting the economy through investments in key infrastructure projects, high-tech, and green industries. But very little attention was paid to the workforce skills and abilities needed to achieve these ambitions.
We need to see an increase in apprenticeships to help young people address the technical skills shortages in the entire economy and not just the few sectors that the government prioritizes to boost growth. We also need to see rapid progress in the development of Growth and Skills Levy, with early input from the employers. This will ensure that the levy can play a role that is effective in supporting training and upskilling the wider workforce.
The Guaranteed Apprenticeship for Young People
The CIPD calls for an Apprenticeship guarantee to address the declining number of apprenticeships and support youth employment. This would ensure that all 16-24 year olds could access a level 2, or even a level 3, apprenticeship. The organisation claims that the Youth Guarantee, which provides employment, training or apprenticeship support for 18-21 year-olds does not go as far as it should.
The CIPD proposes that 75 million PS be allocated as funding to help schools deliver a two-week placement of work experience for secondary school students. The CIPD also advocates for a PS3,000 incentive for each apprentice hired by small and medium-sized businesses (SMEs) to encourage them to hire apprentices.
The CIPD emphasizes the importance of linking innovation policies with skills and business assistance, as AI adoption is expected to accelerate. For organisations to be able to implement AI successfully, they will need workers who have the required technical and vocational abilities. The Institute argues that technical qualifications and apprenticeships should be a major part of this transition.
