Business South and its People South Action Group have welcomed the Government’s commitment to building a more responsive, employer-led skills system through the publication of the Post-16 Education and Skills White Paper.
The White Paper confirms that Apprenticeship Units will be introduced from 2026, a move designed to create greater flexibility in the way apprenticeships are structured and delivered.
Leigh-Sara Timberlake, CEO of Business South, said:
“The move toward modular, credit-based apprenticeships aligns closely with our vision for a system that allows employers to invest in skills in a way that meets both local and sector-specific needs. In particular, the concept of units recognises the importance of bite-size learning and the opportunity for individuals to build their skills progressively throughout their careers.”
While welcoming the announcement, Business South has called for further clarity on several key areas:
- How Apprenticeship Units will link to Levy spending – can employers allocate Levy funds to modular or short-form training?
- Operational design of “units” – how credits will be tracked, capped, or transferable (mirroring Business South’s proposed system).
- Use of Levy for recruitment, relocation, or bursary support – not currently covered.
- Funding for placements / backfill – White Paper supports placement expansion but no clear funding route.
- SME access and benefit-sharing – how will smaller businesses use Levy units or transfer credits?
- Transparency and accountability – DfE underspend and Treasury returns not addressed.
- Timeline & transitional steps – what employers can do before 2026 and how pilots will run.
Cllr Zoe Huggins, former chair of the People South Group and a Hampshire County Council cabinet member added:
“We look forward to understanding more about the implementation and transitional arrangements ahead of 2026. Many of our members across logistics, manufacturing, health and social care, and green technologies are already experiencing acute skills shortages, so it’s important that flexibility in training investment becomes a reality as soon as possible.”
Business South stands ready to work with the Department for Education, Skills England, and regional partners to help shape and pilot these new approaches. The organisation will continue to ensure that the employer voice from the Central South region is represented in the ongoing development of apprenticeship reform.
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