The Government says Skills England will diagnose and address the UK’s most prominent skills gaps. But how will it affect employers?
Half of business owners believe gaps in key tech and data areas will negatively affect business performance over the next decade, across metrics like profit and customer satisfaction.
But policymakers have plans for change. Labour’s new body Skills England(opens new window) is currently being established to drive economic growth, widen career opportunities, and meet future workforce skills needs.
Here’s what employers need to know.
What is Skills England?
Skills England was one of Labour’s key skills manifesto pledges. It is a new Government agency, sponsored by the Department for Education that aims to unify the skills landscape, assess the UK’s skills gaps and transform the system. It will bring together stakeholders across government and beyond, including businesses, training providers, unions, Combined Authorities and regional organisations to collaborate and inform the design of apprenticeships and other training.
In June 2025, Skills England replaced the Institute for Apprenticeships and Technical Education (IfATE), which was the non-departmental public body that oversaw the UK’s skills system. Skills England will take over IfATE’s responsibilities, and it also has an expanded remit including helping inform policy development.
Skills England is chaired by Former Cisco UK & Ireland CEO and Chairman Phil Smith CBE. The board and members(opens new window), are responsible for shaping its strategic direction and have been appointed from across the skills system.
Skills England and Apprenticeship Levy reforms
One key responsibility Skills England will hold is to create and maintain a list of training courses eligible for funding through the new Growth and Skills Levy, which is set to replace the Apprenticeship Levy. You can learn more about the Levy reforms in our guide for employers.
What will Skills England do?
Skills England has already started assessing the state of skills in the UK, which will inform future policy on apprenticeships and technical qualifications for businesses. Its first report(opens new window) sets out the challenges limiting growth across three pillars:
- Local-level disparities and immobility
- Mismatched skills
- Future megatrends
One of the main ‘mismatches’ the report flags is between employer needs and digital skills. It calls out that less than half (41%)(opens new window) of the UK’s adult workforce are able to perform all 20 tasks deemed essential digital skills for work. These include everyday workplace skills such as communicating using digital platforms and accessing tax information digitally.
While skills shortages aren’t limited to digital roles, they represent a large gap. According to a Government Employer Skills Survey, vacancies are more likely to be due to skills shortages for digital roles (81%)(opens new window) than across all occupations (63%).
Skills England will use these findings to inform changes to the existing skills system. It plans to bring together different partners to match skills supply to demand and build a more coherent approach to training.
A simpler, more effective system is welcomed – providing businesses with access to essential resources for skill development and filling sector-specific skills gaps.
The Multiverse take
It’s exciting to see the UK Government focus on addressing digital skills gaps in the workforce. We’re looking to working with Skills England and seeing how it will drive positive change.
There's no doubt it will play an integral role in bringing together employers, training providers and the many moving parts of the UK’s skills economy. Collaboration that will help build the workforce the UK needs.
To learn more about Skills England, the Levy, or other ways you can upskill your workforce, get in touch with Multiverse today.
Updated: June 2025
