Pharmaceutical training boost: how the growth and skills levy could shape industry development

The UK government has announced that the Apprenticeship Levy will be replaced by a new Growth and Skills Levy, a move designed to give employers greater control over workforce training.

This change aims to address long-standing concerns that the previous system was too rigid, restricting funding primarily to apprenticeships and limiting investment in other essential training programmes.

For the pharmaceutical industry, where rapid innovation requires continuous upskilling and reskilling of employees, this reform could significantly improve access to tailored training opportunities.

The Association of the British Pharmaceutical Industry (ABPI) has welcomed the proposed changes, highlighting their potential to support talent development in areas such as advanced manufacturing, digital skills, and emerging biotechnologies.

Growth and Skills Levy – enabling greater training flexibility

Since its introduction in 2017, the Apprenticeship Levy has generated over £21 billion from UK employers, increasing apprenticeship funding from £1.5 billion in 2017/18 to £2.5 billion in 2023/24. While this investment led to a seven percent rise in annual apprenticeship starts within the life sciences sector between 2018/19 and 2022/23, industry leaders have consistently argued that the narrow focus on apprenticeships left gaps in training provision.

Under the new Growth and Skills Levy, employers will be able to allocate funds toward a wider range of training initiatives, including modular courses, short-term programmes, and industry-specific certifications, ensuring companies can equip their workforce with the latest skills in a rapidly evolving landscape.

Skills England to oversee workforce development

A key feature of the new system is the creation of Skills England, a public body tasked with identifying national skills needs and ensuring levy funds are used effectively. Skills England will determine which training programmes beyond apprenticeships can be funded, ensuring alignment with industry demands.

This new oversight mechanism is expected to provide a clearer, more strategic approach to workforce development, particularly for sectors like pharmaceuticals, where specialist skills are essential for maintaining the UK’s competitive edge in research, development, and manufacturing.

Implications for the pharmaceutical industry

Pharmaceutical companies stand to benefit significantly, gaining the ability to tailor training programmes to their evolving needs. However, concerns remain about the potential exclusion of Level 7 apprenticeships (equivalent to a master’s degree) from levy funding, which could limit opportunities for high-level specialist training.

As the government finalises the implementation of the Growth and Skills Levy, collaboration with industry leaders will be vital to ensure the new system meets the evolving needs of pharmaceutical employers.

If successfully implemented, this reform could enhance the UK’s position as a global leader in pharmaceutical research, innovation, and manufacturing by ensuring a steady pipeline of skilled professionals.