The publication of the government’s latest immigration white paper, Restoring Control Over the Immigration System, signals a significant shift in the UK’s approach to skills, migration, and workforce planning. While ministers argue that these reforms will encourage greater investment in domestic training and apprenticeships, many questions remain about how these ambitions will translate into tangible, sustainable change.
Among the headline measures, the Immigration Skills Charge (ISC) will rise by 32%, with proceeds earmarked to fund skills training in priority sectors. At the same time, the social care visa route is being closed, the skills threshold for migration is being raised from Level 3 to Level 6, and English language requirements are being tightened. Crucially, employers will soon need to evidence workforce development plans before sponsoring overseas staff for roles at higher skills levels.
In principle, these moves should drive greater employer focus on training and apprenticeships. However, this assumption raises important questions about whether the necessary infrastructure, incentives, and funding are in place to support this transition.
Will apprenticeships fill the gap?
The government’s hope is that restricting access to overseas workers will encourage employers to invest more in apprenticeships and homegrown talent. But without new incentives or policy levers, is this realistic?
Recent changes in apprenticeship policy – such as extending levy transfers up to 50% and covering 100% of apprenticeship costs for under-21s in SMEs – were introduced over a year ago in April 2024. There were no new announcements accompanying the white paper to directly support or incentivise employers to take on apprentices in the sectors most likely to be affected, such as social care and hospitality.
We work closely with providers and employers, and we know that the pressures facing apprenticeship funding are already acute. The Department for Education’s apprenticeship budget was 98% spent last year, and additional demand from levy payers seeking to fill recruitment gaps could easily overwhelm the system. This would have serious implications for other proposed initiatives, such as the foundation apprenticeships planned under the Growth and Skills Levy.
A particular area of concern is social care. With the dedicated visa route closing and a longstanding reliance on overseas workers, the sector faces immediate recruitment challenges. While apprenticeships could play a role in addressing these, the current £4,000 funding band for care worker apprenticeships makes delivering high-quality provision financially unviable for many training providers. Unless this funding rate is urgently reviewed, it’s difficult to see how the sector will respond to increased apprenticeship demand without compromising quality.
Labour Market Evidence Group
Another striking feature of the white paper is the creation of a new Labour Market Evidence Group. Tasked with making recommendations on where workforce strategies are needed, this group will include representatives from the Industrial Strategy Council, DWP, skills bodies and the Migration Advisory Committee.
At first glance, this remit seems to mirror that of Skills England, established in 2024 to coordinate national skills strategy, identify sectoral skills gaps, and advise on investment priorities. Indeed, Skills England officials recently told the Commons Education Committee that identifying sectoral needs was their most advanced area of work to date.
For employers, training providers, and learners alike, this confusion is unhelpful. We urgently need clarity on how these two bodies will work together — or whether one will supersede the other — to avoid fragmented or contradictory skills policies.
Are more apprenticeship incentives needed?
Given these circumstances, should the government consider new incentives to support apprenticeship uptake? This may be essential in the sectors most impacted by the immigration reforms. Recent research by the Learning and Work Institute found that while employer demand for apprenticeships remains strong, barriers such as insufficient funding bands, complex bureaucracy, and a lack of flexible, short-duration programmes continue to inhibit growth. The Institute recommended targeted incentives for priority sectors and regional ‘apprenticeship accelerators’ to address acute labour market shortages.
Similarly, the Institute for Employment Studies (IES) has argued that without substantive financial or operational support, simply making it harder to recruit overseas workers will not automatically result in increased domestic training investment.
There is a strong case for reviewing apprenticeship funding bands, particularly in care and hospitality, alongside more flexible delivery models that can meet the evolving needs of employers and learners. In addition, it may be effective to show a clear link between ISC revenue and tangible skills investment to rebuild employer trust.
Closing the domestic skills gap
The latest immigration white paper sets out an ambitious, albeit controversial, vision for reducing the UK’s reliance on overseas labour and boosting domestic skills development. While apprenticeships undoubtedly have a vital role to play in this transition, achieving meaningful change will require more than policy statements and new oversight groups.
Clear, coordinated governance — between the Labour Market Evidence Group, Skills England, and the DfE — alongside refreshed incentives and sustainable funding arrangements, will be essential if we are to avoid unintended consequences and deliver a skills system fit for the future.
At Aptem, we remain committed to supporting providers, employers, and policymakers to navigate these changes. The coming months will reveal whether the government’s vision translates into meaningful action and whether apprenticeships will receive the backing they need to fill the gap. In the meantime, Aptem will continue to support our customers and over 130,000 learners in the UK who use our systems every day.
