From education to employment

A turning point for skills? key opportunities ahead

Fiona Aldridge

At the start of 2025 the UK is at a critical juncture, with recent government actions signalling a renewed focus on tackling the pressing skills challenges facing our economy. With the introduction of the Industrial Strategy Green Paper, the Curriculum and Assessment Review and the English Devolution White Paper as well as policy announcements including the welcome decision on funding for applied general qualifications, there is growing recognition that skills development lies at the heart of the UK’s long-term economic prosperity. 2025 needs to be the year when delivery on these important areas becomes a reality.

At Skills Federation, representing 18 employer-led sector skills bodies, we believe 2025 could be a turning point, but it will require collaboration across the sector and recognition of the vital role that employers can play in helping turn policy shifts into tangible outcomes. 

There is real potential for positive change, particularly in three key areas that address the core challenges facing UK industries today. 

Planning for growth

The Industrial Strategy Green Paper, with the identification of eight growth-driving sectors and a focus on removing barriers to employer investment, provides a sound basis to set priorities. Working alongside the forthcoming Post 16 Skills Strategy, this offers the potential to bring much-needed structure to skills policy decision-making for the medium and longer term. 

Whilst the Industrial Strategy will rightly focus on stimulating investment and activity in sectors with the highest growth potential, we also recognise the importance of meeting skills needs across the wider economy, including construction, and health and social care. Taken together these two sectors account for nearly 20% of jobs across the economy and are integral to achieving the Government’s missions.  

The eight sector plans

The eight sector plans will be vital to provide a structured approach to addressing the specific needs and challenges of employers across different industries. But this won’t happen without collaboration. A true partnership is needed between government, education and employers for the sector plans to be truly effective. While individual employers can provide valuable insight, no single business can oversee the skills needs of an entire industry. This is where sector skills bodies can play a collective and strategic role, providing valuable insights and expertise from employers across the sectors they represent and we would encourage government to utilise this important resource. 

Growth and Skills levy

Labour’s intention to change the apprenticeship levy will provide some welcome flexibility. It makes sense to focus on priority sectors (at least for the first introduction of flexibilities) but it needs to look sector by sector, a one-size-fits all approach will not work. The skills demands of industries like science and tech or healthcare are vastly different from those of hospitality or construction. It is important that decisions are evidence-based but also made in a timely way to avoid employers disengaging from apprenticeships. 

Importantly, changes to the levy also provide an opportunity to change the narrative around employer investment in the skills of their staff. Instead of simply pointing out the decline in investment in workforce development, we need to focus on dismantling barriers that prevent employers upskilling their workforce. By encouraging a positive change in culture we can help employers to see upskilling not as an expense, but as an opportunity to build a more resilient and engaged workforce. 

Creation of a new jobs and careers service

The ‘Get Britain Working’ White Paper proposes merging the National Careers Service with Jobcentre Plus to create a new jobs and careers service. This is a welcome proposal, but it is only part of the solution. 

For this new service to succeed, it’s essential that it recognises the key role of career guidance in helping individuals not just find jobs, but to build careers in which they can progress and thrive. 

In 2025 we’d like to see active involvement of employers and sector skills bodies in shaping the introduction of this new service. Employers will need to have confidence in and use the service to support the development of a skilled workforce. The task of changing hearts and minds of employers, and also individuals, to encourage use and take up of the service, shouldn’t be under-estimated. 

This important focus on skills development in the year ahead is not just about addressing immediate skills shortages; it’s also central to the Government’s broader growth agenda. Against the backdrop of global challenges – from the climate emergency, the rapid pace of technological change and an aging population – this growth mission is more urgent than ever.

2025 offers a pivotal opportunity to reshape the UK’s skills system

2025 offers a pivotal opportunity to reshape the UK’s skills system. By working in partnership with employers and sector skills bodies, we can create a workforce that not only meets the demands of emerging industries, but also drives long-term economic growth and prosperity. Now is the time to build a workforce that is adaptable, resilient and prepared for the challenges ahead. Together, we can create a skills system that drives growth, embraces innovation and enables individuals to access rewarding careers.

By Dr Fiona Aldridge, CEO of the Skills Federation (also known as the Federation for Industry Sector Skills and Standards (FISSS)


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