Apprenticeship Levy Review - EU Skills

Apprenticeship Levy Review

Energy & Utility Skills welcomes the commitment in Wednesday’s Spring Statement to review the Apprenticeship Levy.

Group of apprentices

As well as providing essential services to UK homes and businesses, energy and utilities industries largely underwrite Government ambitions to reach net zero and tackle the climate emergency. There is an imperative to ensure that there is a skilled and sustainable workforce in these industries, and apprenticeships play a key role in achieving this. 

These industries are consistently unable to fully spend their Apprenticeship Levy. An Energy & Utility Skills survey of gas, power, water, and waste companies shows that over the last three years, these employers recouped an average of 54% of their levy payment.  This means over £30m remained unspent, at a time when energy and utility industries face over 277,000 vacancies by the end of the decade. The industry CEOs have consistently identified a review of the Apprenticeship Levy, and the introduction of greater flexibility for eligible costs, as one of their top skills priorities.  

Energy & Utility Skills has consistently made the case for a review of the Apprenticeship Levy and the need for additional flexibility. Our position and supporting evidence, was used extensively in the Lords’ debate on the Skills and Post-16 Technical Education Bill in June 2021. The announcement of a review commits Energy & Utility Skills to providing support and industry insight into the process. We are keen to establish how additional apprenticeship flexibility can further deliver the competencies needed by these critically important industries and support levelling up opportunities.

To talk to us about our work please email our Policy team,