Richard Pennycook has been appointed to overhaul the UK’s fragmented skills system.
- Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson launched Skills England to unify the country’s skills framework.
- The apprenticeship levy has been renamed the ‘growth and skills levy,’ providing businesses more spending flexibility.
- Adult education budgets will be simplified and devolved to regional authorities.
- Skills England will also subsume the Institute for Apprenticeships and Technical Education.
Richard Pennycook, the former chief executive of the Co-operative Group, has been appointed as the first independent chair of Skills England. He faces a significant challenge: addressing the ‘fragmented and broken’ skills system in the UK. Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson unveiled Skills England during the Farnborough Air Show on July 22, 2024. Their aim is clear – to unify the diverse skills landscape and establish a shared national objective focused on elevating the nation’s skills.
One core component of this initiative is a major reform of the apprenticeship levy, now rebranded as the ‘growth and skills levy’. This change gives businesses increased flexibility in how they can utilise levy funds, a shift that has been long awaited by employers. Additionally, adult education budgets will now be streamlined and handed down to Mayoral Combined Authorities. This shift is aimed at allowing these bodies to better address their local adult skills needs and stimulate area-specific growth.
Pennycook, also the lead non-executive director at the Department for Education (DfE), is charged with identifying which types of training will qualify for the newly renamed levy. This is a significant change that could allow businesses to tailor their training programs more closely to their unique needs. Known for ‘saving the Co-op’ during his tenure there, Pennycook brings a wealth of experience from various sectors, including retail and food services. His previous roles also include board positions at Morrison, RAC, and THG, among others.
Prime Minister Starmer emphasised the urgency of transforming the UK’s skills system to meet future demands. ‘Our success as a country depends on delivering highly skilled workforces for the long-term,’ he said. Education Secretary Phillipson reiterated these sentiments, noting that the current fragmented system is ineffective for both employers and workers. Skills England is expected to energise young people’s careers and strengthen local economies by connecting businesses with trade unions, mayors, universities, colleges, and training providers.
Skills England’s responsibilities will include hiring a CEO and conducting a comprehensive assessment of future skills needs. The aim is to build robust partnerships with employers. Moreover, the existing Institute for Apprenticeships and Technical Education will integrate into Skills England. A strategic approach to post-16 education will be rolled out to eliminate barriers to opportunities, thus supporting workforce development and driving economic growth.
Kate Shoesmith, Deputy Chief Executive of the Recruitment and Employment Confederation (REC), welcomed the initiative, stressing its importance for prosperity and growth. Lizzie Crowley, Skills Adviser for CIPD, cautioned that the task ahead is challenging but vital for bringing stability and certainty to the skills agenda.
Skills England under Richard Pennycook’s leadership aims to revolutionise the UK’s skills system, aligning it with future needs and promoting economic growth.
