From Levy to Leadership: Why Skills Policy Must Catch Up with Opportunity

The UK’s apprenticeship system is at a turning point. The transition from the Apprenticeship Levy to the Growth and Skills Levy reflects an overdue recognition that while the original policy was well intentioned, it is no longer fully fit for the economic and social challenges we now face. 

When the Levy was introduced in 2017, it was designed to tackle skills shortages, give employers greater responsibility for training, and open up new routes into work for young people. Crucially, it was never meant to be static. As former Education Secretary Rt Hon Justine Greening, who introduced the levy, has been clear, it was always intended to be reviewed and refined as the labour market evolved. 

“The levy was designed to change behaviour and put skills investment at the heart of business decision making,” Justine Greening reflects. “But it was also meant to be reviewed. If a policy is not evolving with the economy, it risks holding back the very opportunity it was created to unlock.” 

That moment of review has now arrived. The rebranding to the Growth and Skills Levy, alongside the shift of apprenticeships into the Department for Work and Pensions and the introduction of new foundation apprenticeships in sectors like retail and hospitality, signals a system in transition. The ambition is right. The challenge is whether policy and reforms can now move quickly enough, and consistently enough across the UK, to deliver opportunity at scale. 

A system pulling in different directions 

One of the most pressing issues facing employers today is divergence. Skills policy is devolved and while that allows for local tailoring, it also creates real complexity for businesses operating across borders. 

In England, levy paying employers can directly draw down funds to invest in apprenticeships and wider training. In Scotland, employers pay the levy but have far less direct control over how those funds translate into workforce development. Funding flows through different mechanisms, with fewer opportunities for employers to shape provision around their workforce needs. 

This matters because opportunity is shaped by systems, not intentions. When funding models differ so sharply, access to training and progression can depend on geography rather than potential. For young people, this risks reinforcing uneven opportunity. For employers, it can undermine long term workforce planning. 

The role of anchor employers 

Across the UK, large employers play a critical role in translating policy into real opportunity. When they invest in skills, progression and early careers, the impact ripples far beyond their own workforce. 

Arnold Clark is a clear example. As one of Europe’s largest independent automotive retailers, operating across England and Scotland, the business has built a long-term model rooted in apprenticeships, training and visible progression. Through its GTG Training Centres and nationwide apprenticeship programmes, it demonstrates how employer-led investment can support social mobility, regional growth and workforce resilience. 

Lynne McBurney, Group People Director at Arnold Clark, sees this as both a responsibility and a strategic necessity. 

“For us, apprenticeships are not a side programme. They are fundamental to how we build skills, retain talent and create opportunity across the business,” she says. “But for employers like us to go further, policy needs to support consistency, flexibility and long-term investment across all parts of the UK.” 

This is where the Growth and Skills Levy must succeed. Anchor employers are ready to act as engines of opportunity, but only if the system enables them to invest where the need is greatest, whether that is supporting young people into work, reskilling existing employees, or responding to regional labour shortages. 

From policy reform to practical impact 

The expansion of foundation apprenticeships, particularly into sectors like retail and hospitality, is a welcome step. These sectors employ millions of people and often provide the first rung on the ladder for young workers. Bringing them more fully into the apprenticeship system could significantly widen access to work and progression. 

Equally, greater flexibility in how levy funds can be used reflects the reality of modern careers, where modular training, shorter courses and continuous upskilling are essential. But flexibility must not come at the expense of fairness or coherence. 

From a Purpose Coalition perspective, the test of the Growth and Skills Levy will be simple. Does it make opportunity more visible, more accessible and more consistent across the country? Does it empower employers who are willing to invest in people? And does it genuinely support those who have historically been furthest from secure work? 

As Justine Greening puts it, “Skills policy should be one of the most powerful tools we have to break down barriers to opportunity. But it only works if it keeps pace with the world of work and supports employers who are willing to lead.” 

A moment to lead with purpose 

This is a moment for policymakers and employers to work together differently. The shift to a Growth and Skills Levy and fast-track apprenticeship reforms is more than a technical tweak, it is a chance to rethink how we connect skills, economic growth and opportunity. The new reforms will cut red tape so that apprenticeship standards and short courses can be updated or introduced in as little as three months, backed by a £725 million investment and around 50,000 additional apprenticeship places to help young people move quickly into high-quality jobs where they are needed most.

If we get this right, the levy and fast-track system can become a driver of long-term economic resilience, social mobility and regional renewal.

Employers like Arnold Clark show what is possible when opportunity is designed into business strategy. The challenge now is for policy to match that ambition and ensure that where someone lives never determines how far they can go.