The government has announced an overhaul of the UK’s apprenticeship system.

A new growth and skills levy will replace the existing apprenticeship levy and include new foundation apprenticeships.

The government says these new apprenticeships will give young people a route in to careers in critical sectors, enabling them to earn a wage whilst developing vital skills.

The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.

The training eligible for funding under the new levy will develop over time, informed by Skills England’s assessment of priority skills needs, the government adds.

The Department for Education will set out further details on the scope of the offer and how it will be accessed in due course.

Alex Veitch, Director of Policy at the British Chambers of Commerce (BCC), said: ‘Skills shortages continue to be a major concern for businesses and a drag on economic growth.

‘The proposed new Growth and Skills Levy was a key part of the government’s plans at the election. It is welcome ministers have acted early to give more details about skills reform.

‘We’ve long argued that the current Apprenticeship Levy needs urgent reform to make it more flexible. Businesses need a simple, coherent and responsive system that properly incentivises employer investment in training.’