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2050 and beyond, potentially in roles What can we do to support the
that don’t even exist today. workforce of the future?
Every day, the gas, power, water and The report calls for six key actions
waste industries deliver environmental to adjust vocational training for
infrastructure and essential services employers and young people, support
to nearly 67 million UK consumers. new ideas and enter the post-Brexit
The entire sector employs over half a world with optimism:
million people and generates five per
cent of GDP, contributing £51 million 1. Filling the funding gap
annually to the apprenticeship levy pot. Employers in the energy and utilities
The sector is key to the success of high sector are currently losing up to
profile UK government policies. £2.5 million a month of levy funds.
Ensuring our apprentices today are The apprenticeship budget is under
highly trained and empowered to tackle pressure and there is a risk that, via
the biggest challenge of our generation the levy system, insufficient funds
is essential. The apprenticeship will be available to support the
levy is more than two years into its projected growth in apprenticeships.
implementation phase and the recent There is a serious funding decision
reforms have brought undeniable to be taken. The predicted funding
benefits to our newest employees and shortfall for apprenticeships must
their employers. be transparent. Any funding gap
In our recent Energy & Utility Skills should be filled by a combination
report Test and Adjust, by Professor of increased public funding and
David Way CBE, we learned that lowering the payroll threshold to
employers would like to see further below £3 million for employers who
changes to make the apprentice system contribute to the apprenticeship levy.
truly employer-led as the government Public funding offers a proven healthy
policy committed it would be. In our return for the UK economy.
review, we spoke to over 20 leading
companies across the sector to gain 2. Linking apprenticeships to the
their views of the reforms. industrial strategy
Success should be about more than
Ensuring our apprentices the number of apprenticeship starts,
it should be more closely linked to the
today are highly trained industrial strategy. The sector calls for
and empowered to tackle a change in approach to ensure critical
the biggest challenge of our skills delivery is incentivised, quality is
generation is essential increased and that it is not undermined
by funding cuts.

Despite being a crucial sector 3. Sector training pot
in the UK, our review found the Unspent apprenticeship levy funds
apprenticeship levy has not yet had are returned to the Treasury after 24
the transformational impact on skills months. The sector asks that levy funds
training that ministers were looking to be retained within the sector to create
achieve. The industry led the way with a flexible sector training pot to be
the successful implementation of 11 used for tackling skill challenges and
Nick Ellins, Chief Executive new apprentice Trailblazer standards enhancing productivity.
of Energy & Utility Skills and has embraced the reforms and
Group, explains why gas and steered the standards process, leading 4. Employer leadership
utility companies are calling to significant improvements and The employer-led approach must
delivering higher quality apprentices.
be extended to all parts of the
for further employer-led Building on this successful base, apprenticeship system, especially to the
apprenticeship levy reforms the report calls for further efforts to 20 per cent off-the-job element.
put employers in the driving seat to
navigate the additional changes or 5. UK-wide approach
he gas and utilities sectors are ‘adjustments’ needed to the framework Over half of energy and utilities
critical to government plans to of the apprenticeship levy. employers operate across the UK’s
boost productivity over the next The industry has a strong history four nations, delivering services
decade and transition to a net of high quality technical training and to around 67 million customers
T zero economy by 2050. It’s the apprenticeship programmes. With across the UK. Every company in
people in our industry that will enable further employer-led reforms, there England must pay the apprenticeship
this change and provide the technical is every prospect that we will see the levy based on their UK PAYE bill.
ideas and innovation to address the improvements in quality needed for the However, it is only directly available
challenges we face, and its today’s UK to compete in the global economy to fund apprentices in England.
apprentices who will be working into and deliver against climate goals. In the other three nations it is

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