The government will enlist the help of business to help it develop skills opportunities to meet the government’s mission to kickstart economic growth under the Plan for Change, the Education Secretary has said today (16 December 2024).

In a conference call with leaders from over 80 businesses including Mace, Siemens and Disney, Education Secretary Bridget Phillipson and Business and Trade Secretary Jonathan Reynolds outlined the importance of engaging with employers to drive growth and put the economy on firm foundations.

Both ministers set out their priorities to reform the fragmented post-16 skills system and to establish Skills England to support key sectors driving growth in local areas.

It follows the Department for Education’s announcement that the government has unlocked £140 million of funding from industry, including £100m from the National House Building Council (NHBC), to set up 32 Homebuilding Skills Hubs. This will make more than 5,000 apprenticeship places available per year in key construction roles.

The conference was attended by three major construction firms: Balfour Beatty, Berkley Group and Mace. Their engagement coupled with these pioneering Homebuilding Skills Hubs will help the government to meet its ambitious target to build 1.5 million new homes in this parliament.

Employers will be at the heart of the government’s skills reforms such as our new levy-funded growth and skills offer. This will introduce greater flexibility to employers and learners in England, creating routes into good, skilled jobs in growing industries, aligned with the government’s Industrial Strategy.

It will also support the pipeline of new talent that employers will need, by rebalancing opportunities towards young people.

The Education Secretary also set out how businesses can help the government to achieve its mission to break down the barriers to opportunity, through offering high-quality apprenticeships or industry placements to ensure everyone has the chance to succeed no matter who they are, where they’re from, or how much their parents earn.

Education Secretary, Bridget Phillipson, said:

If we are to deliver on our Plan for Change and achieve our number one mission to grow the economy, we must develop the skills this country needs. 

To do that, we need to take skills seriously again as a country, rebuilding our fragmented and broken system into one that’s rigorous, responsive and puts employers at its centre.

That’s why we are establishing Skills England to help identify the skills we need to drive economic growth. We will create a clear and coordinated strategy for post-16 education and skills, making sure it works with employers to meet the needs of the future.

Today’s call gave me the chance to reiterate this government’s commitment to giving businesses the stability and confidence to enable them to invest in developing skills.

Business Secretary Jonathan Reynolds said:

British workers are some of the most skilled and talented in the world but far too many people are not getting the opportunities they deserve, while businesses are failing to get the staff they need because the system isn’t working.

Through listening to the needs of business and aligning Skills England with our Industrial Strategy, we’re helping employers overcome barriers to invest in skills that will help deliver this government’s Plan for Change and improve living standards.

Bridget Phillipson urged employers to drive up their investment in training, working with government to counter the downward trend since 2011.

The call comes after the Department for Education recently announced that qualifications that will be key to the government’s growth mission in key subjects like manufacturing and engineering that were previously scheduled for defunding will remain until replacements become more established, putting learners first and supporting the transition to T Levels as the large technical qualification of choice.

The government will also introduce more flexibility for industry placements, ensuring even more students can take advantage of the opportunities available from high-quality T Level qualifications.