3 June 2025

Transfer of functions from IfATE to Skills England

The functions of The Institute of Apprenticeships and Technical Education (IfATE) have now transferred to Skills England, and the new agency will build on the work IfATE has done to work with employers to shape skills training in England.  

Skills England, has been tasked with tackling the widespread skills shortages across England and a falling number of people participating in apprenticeships. 

Apprenticeships and Skills Training

The government has announced significant reforms to the skills system, aiming to create 120,000 new training opportunities during this Parliament. A new growth and skills levy, backed by a budget of over £3 billion, will provide flexibility for employers and learners, expanding apprenticeship offers to better support young people's career beginnings. New foundation apprenticeships will be introduced in August 2025, focusing on areas like Construction, Engineering, Health, and Digital, with employer incentives for support.  

Funding will shift away from level 7 (masters-level) apprenticeships to focus on lower level training, though level 7 funding will still be available for those aged 16-21 and current apprentices until completion. The decision was based on Skills England's engagement with stakeholders, indicating level 7 apprenticeships are high quality but that alternative routes exist. Exceptions will continue for some young learners entering professions like law and accountancy, ensuring opportunities remain available for them. 

HMRC costly channels usage amongst small businesses 

Research exploring small businesses use of HMRC costly and non-costly communication channels when interacting with HMRC. 

HMRC commissioned BMG research to conduct quantitative research with small businesses investigating their communication and interaction methods with HMRC, covering those considered costly to administer (for example a telephone conversation) and non-costly (for example a customer using GOV.UK web pages).  

A total of 2,001 surveys were completed with small businesses between July and August 2024.

 

HM Revenue and Customs is responsible for collecting the money that pays the UK's public services and helps families and individuals with targeted financial support. This includes responsibility for helping small businesses meet their tax responsibilities and receive any benefits, tax credits, refunds or other support they are entitled to claim. Small businesses receive this support through a variety of communication channels.