The government has announced that a new growth and skills levy will be introduced to replace the current apprenticeship levy. This announcement was made alongside the publication of the first report by Skills England, the new arms-length government body which was set up in July 2024 to tackle skills shortages and support sustained economic growth. The growth and skills levy will be focused on young people, and employers will be asked to fund more of their Level 7 apprenticeships outside of the levy system. New foundation apprenticeships will help address the skills gaps identified by Skills England. Businesses will also be able to use funds for shorter apprenticeships rather than only for training lasting for at least 12 months as at present. The types of training eligible for funding under the new levy will develop over time, informed by Skills England’s assessment of nationwide skills gaps and needs. Further details on the proposals will be provided in due course by the Department for Education.