PfP Thrive respond to changes in Apprenticeship Levy
13 February 2025
To build 1.5 million new homes, we must prioritise tackling the UK’s massive trade skills shortages.
On 11 February 2025, the UK Government announced that they were cutting red tape in an effort to boost economic growth by giving employers more flexibility over maths and English requirements for apprenticeships; on the surface, a welcome and progressive step.
We sat down with PfP Thrive Director, Tom Arey, to understand what this means for our sector.
First up, what changes are coming following this announcement?
Under the current system, anyone wanting to start an apprenticeship needs to have a GCSE minimum C grade in maths and English or a level 2 qualification. This has proved to be a barrier for many organisations looking to take on apprentices. Looking beyond the constraints it puts on businesses who are trying to improve their talent pipeline, it’s holding back thousands of people who could offer significant input into the UK workforce, especially in construction.
Second to that, and possibly an even bigger announcement for our sector, is the plan to change the mandated apprenticeship duration. The minimum duration of an apprenticeship will now be reduced to eight months, down from the current minimum of 12 months. This is something that the sector has been calling for a long time, so it will be warmly welcomed by many.
What is PfP Thrive’s reaction to this?
We welcome the announcement from the Government as it will unlock more opportunities for more people to undertake apprenticeships and learn the skills that our country needs for the future. Over half a million people are set to retire from our sector by 2032, so there’s a growing need to accelerate the upskilling of people in crucial trade skills to enable the housing sector to thrive. We think businesses will see the biggest impact from the Government’s plan to relax the current apprenticeship duration to eight months, down from the current minimum of 12. Shortening the training period gives people a greater incentive to take up an apprenticeship and makes them more attractive for employers to take on. Also, by giving control to those who deliver apprenticeships, it will allow sectors to deliver quality-focused upskilling at pace, like what we do at PfP Thrive. We know what our sector needs, and we know the people we’re training.
What will happen now?
Next, we should get further details on how the Government will implement these changes. The changes to the maths and English requirements are in place with immediate effect, but we need to wait until August this year for the changes to the apprenticeship duration.
At PfP Thrive, we’re primed to support the housing sector in improving the talent pipeline and bringing forward the critical trade skills needed today, and in the future, to help tackle the UK’s housing shortages. Looking ahead, we’d like to see the apprentice levy widened to include short courses (3-6 months) where employers are looking to upskill their people and some backing of approved providers to ensure that apprentices are getting the training they need to have a prosperous and long-term career.