Coinciding with National Apprenticeship Week, the Chartered Institute of Personnel and Development (CIPD) has warned that the UK government’s growth strategy risks failure unless it prioritises skills development.

As part of its Spending Review submission, the CIPD argues that current policies are insufficient to tackle the decline in apprenticeship opportunities and the rising youth unemployment – and is calling for greater investment in apprenticeships and workforce training to address skills shortages and support economic growth.

The CIPD is urging the government to engage employers in the early design of the new Growth and Skills Levy and to introduce an Apprenticeship Guarantee for young people aged 16-24.

Employers and Skills Policy

The government has focused on investment in major infrastructure projects and high-tech industries, but the CIPD warns that workforce skills are not receiving the necessary attention – and that it is vital that the government consults with employers on the Growth and Skills Levy.

Lizzie Crowley, senior skills policy adviser at the CIPD, said, “In the Chancellor’s recent speech, there were multiple references to boosting growth through investing in major infrastructure projects and key high-tech and green industries, but very little focus on the workforce skills and capabilities needed to deliver on these ambitions.

“We need to see a significant increase in apprenticeships for young people to address technical skills shortages across the economy, not just in the relatively few sectors the government is prioritising to accelerate growth through. It’s also important that we see rapid progress on the development of the Growth and Skills Levy with early input from employers to ensure that it can play an effective role in supporting the training and upskilling of the wider workforce.”

Apprenticeship Guarantee for Young People

To address declining apprenticeship numbers and support youth employment, the CIPD is calling for an Apprenticeship Guarantee, ensuring all 16-24-year-olds can access a level 2 or level 3 apprenticeship. The organisation argues that the current Youth Guarantee for 18-21-year-olds, which offers employment, training, or apprenticeship support, does not go far enough.

To strengthen links between education and employment, the CIPD is proposing that £75 million in funding be allocated to support schools in delivering a two-week work experience placement for secondary school students. The CIPD is also advocating for a £3,000 hiring incentive per apprentice for small and medium-sized enterprises (SMEs), to encourage more firms to take on apprentices.

With AI adoption expected to accelerate, the CIPD stresses the importance of linking innovation policy with skills and business support. Successful AI implementation will require organisations to equip workers with the necessary technical and vocational skills. The institute argues that apprenticeships and other technical qualifications should play a key role in this transition.