King’s Speech provides boost for energy sector

Energy pricing action is a plus, but more needed on skills development, says Yselka Farmer of BEAMA

It is positive to see the government’s commitment from the King’s Speech to implementing the policy measures announced in the past year that could benefit BEAMA members. These include acceleration of grid deployment, improving domestic energy efficiency, launching a Warm Homes Agency, facilitating energy flexibility and improving cybersecurity.  

We hope that despite the current political turbulence the government and its officials can retain focus on delivering policy changes that can accelerate electrification to benefit industry, improve our energy system and boost energy security.  

BEAMA’s Market Pulse shows that political and policy uncertainty hurts investment and market growth, so we hope that the government is able to reassure us as soon as possible on the details and timings for implementation of policies – many of which are already running on challenging timelines.  

On energy pricing

For too long, the UK’s electricity prices have been unfairly tethered to volatile gas prices. The Electricity Generator Levy Bill promises to begin breaking that outdated link, which is overdue – good news for consumers, businesses, and manufacturers.  

The question now is about time: how long will it take to achieve a transparent and credible pathway for changing how electricity prices are determined? 

Without that certainty and confidence to invest, businesses will be compromised in the plans they can make, weakening potential growth and creating a drag upon the UK’s energy transition.  

On skills

The Energy Independence Bill is a win for energy security. But the limited focus on skills development risks undermining long-term momentum and delivery. 

It was disappointing not to hear more on the transition to a Growth and Skills Levy in the King’s speech, which is critical for faster, more flexible upskilling.

Moving towards the shorter ‘apprenticeship units’ of 30–140 hours is far better suited to the electrification sector, which is experiencing unprecedented technological change. The old system of fixed 12-month cycles is simply not agile enough to keep pace with industry demand, and even though the courses may be shorter in duration, the standard of competence achieved will remain consistently high. 

Manufacturers would benefit from greater clarity here. They want to be able to upskill existing employees through targeted training.  

Upskilling is about balancing long and short-term investment. Greater flexibility in how levy funding is allocated will give manufacturers agility to combine shorter, skills-focused training with traditional apprenticeships. Likewise, policy and investment continuity will be critical to demonstrate that gateway skills are an attractive career pathway for the longer term, stoking supply. That can only strengthen UK innovation and competitiveness.

Yselka Farmer is chief executive of BEAMA, the UK manufacturing trade association for the electrotechnical sector