Infrastructure Plan Response: Private enterprises should not shoulder the costs solely for social benefits, according to REC's stance
In a bid to address the labour and skills shortages hindering the progress of major infrastructure projects, the UK government is considering targeted reforms in both apprenticeships and the Employment Rights Bill. These reforms are aimed at making the system more flexible, industry-responsive, and cost-effective for businesses.
### Apprenticeships Reform
Recognising the need for more flexibility in apprenticeships, new rules effective from August 2025 will reduce the minimum duration of some English apprenticeships from 12 to 8 months. This change aims to make apprenticeships more attractive to employers by shortening the commitment period while maintaining quality.
Additionally, the government is introducing greater flexibility in how the apprenticeship levy can be used, allowing it to better meet employer demand, particularly for reskilling and upskilling existing workers. Updates in apprenticeship funding rules will also ensure clarity on what training can be funded and how off-the-job training should be evidenced, ensuring funds are used efficiently and apprenticeships remain relevant to industry needs.
Strengthening partnerships between employers and training providers is another key focus, as these collaborations can tailor apprenticeships to the specific skills needed for infrastructure projects, enhancing the relevance and impact of training while controlling costs.
### Employment Rights Bill Reform
The Employment Rights Bill is set to undergo changes that will streamline employment protections to support flexibility, such as banning non-disclosure agreements on discrimination and harassment, enhancing transparency. Meanwhile, employers should prepare for new rights like day-one unfair dismissal protections by updating recruitment and employment policies, which can boost workforce stability and attractiveness.
The Bill's amendments should also aim to protect workers fairly while avoiding overly burdensome procedures or liabilities that deter businesses from hiring apprentices or additional staff, thus helping alleviate labour shortages without imposing excessive costs.
### Integrated Approach for Infrastructure Development
To ensure the success of the infrastructure plan, it's crucial to align apprenticeship content with industry needs, incentivise uptake through funding and simplification, and promote lifelong learning and reskilling. By incorporating infrastructure-specific skills and certifications into apprenticeships, the workforce can be made ready for current and future demands.
Simplifying the funding process and providing incentives (e.g., wage subsidies or tax credits for apprenticeship hires in infrastructure) can encourage more businesses to participate. Encouraging continuous skill development can keep pace with technological advances in infrastructure projects, supported by flexible apprenticeship frameworks.
As businesses grapple with rising taxes, energy bills, and inflation, the government is expected to act on business advice to help employers find and train the necessary workforce. Long-term, stable planning and genuine workforce collaboration are essential for infrastructure projects to realise their potential benefits, such as reducing travel time, improving transport, building new homes, and leaving a lasting legacy for local communities.
The Office for National Statistics (ONS) statistics show significant productivity variations across the UK. An integrated approach to skills and infrastructure development might help address these productivity variations, ensuring a brighter future for businesses and communities alike.
Finance can be made more accessible for businesses to fund apprenticeships by updating funding rules, ensuring clarity on what training can be funded and enhancing efficiency. (Apprenticeships Reform)
Businesses can benefit from the Employment Rights Bill reforms, as banning non-disclosure agreements on discrimination and harassment can promote a more transparent and attractive work environment. (Employment Rights Bill Reform)
