Energy and Utility Skills: Skills, Training and Professional Development Must Fuel the Future

The link between employers and training providers is vital to ensuring access to high-quality skills and professional development. With nearly one million young people currently classified as NEET, and machinery of government changes focused on supporting all young people into ‘good jobs,’ the recent Energy and Utility Skills (EU Skills) conference highlighted the urgent need for new and diverse talent across the sector. 

The energy and utilities sectors face one of the most significant workforce transitions in decades. The EU Skills 2025–2030 Strategy forecasts that over 300,000 new recruits will be needed to deliver critical infrastructure and energy projects. For example, 104 billion in the water sector and over £92 billion in energy infrastructure, but this depends entirely on the ability to build and maintain a skilled, adaptable, and resilient workforce. The economic return is equally significant, with more than £80 billion in additional GVA projected annually if these plans succeed, whilst also securing energy resilience and creation of new jobs. 

The Scale of the Challenge and the Government Response 

The scale of the challenge was recognised by the Skills Minister, Rt Hon Baroness Smith, in her keynote address. She confirmed what many across the sector already know: skills are not just for young people. Delivering the workforce the UK needs will require a joined-up, cross-government approach rooted in coherent industrial and skills strategies. 

The Minister highlighted the importance of sustainable talent pipelines that attract first-time entrants, while also enabling adults to re-skill and transfer expertise from other sectors. Her message of “breaking down barriers and powering growth” signals a potential shift in the forthcoming post-16 white paper, a move that could redefine how the UK delivers and funds skills across the economy. 

Policy Direction: Promise and Uncertainty 

Despite the positive intent, much remains uncertain. The government has pledged a training place for every 16–17-year-old, whether through classroom learning or apprenticeships. Plans to introduce a more flexible Skills and Growth Offer from April 2026 could open up opportunities for targeted short courses. Courses funded by lifelong learning entitlement (LLE) can be delivered from January 2026 yet, many key details on delivery mechanisms remain unclear making it difficult for providers and employers to make concrete plans. 

Employers consistently highlight that short, modular qualifications are essential for supporting ongoing development and rapid upskilling. However, reduced adult skills funding changes to apprenticeship policy and the shift to LLE funded qualifications make it difficult for providers to plan effectively. EU Skills and its members will soon be submitting sector-specific proposals to shape how these flexibilities can best serve industry needs and is a key focus of the EU Skills CEO council. 

A key message that resonated throughout the Minister’s address was one of empowering individuals helping people build their earning potential and economic independence, while enabling business growth and national productivity. AELP supports this ambition, but the proper funding mechanisms must be in place to make it achievable. 

Engaging Untapped Potential: NEETs and Offender Learners 

Two areas of untapped potential stand out as crucial to solving the sector’s workforce challenge and were discussed by Paul Cox, EU Skills Group, CEO of the Energy and Utilities Group, throughout the conference: NEETs and offender reengagement.  

The NEET population, nearly a million young people disconnected from education, employment, or training represents both a social and economic challenge. Energy and utilities employers, in partnership with training providers and local agencies, are uniquely positioned to turn this challenge into opportunity. Targeted pre-apprenticeship and re-engagement programmes, linked to real job outcomes, could provide routes into sustainable work for thousands of young people, if policy direction and funding allows employers and providers to build and deliver training that meets specific skills gaps. 

Similarly, the offender learning and rehabilitation system holds huge potential for building the workforce of the future. As the Ministry of Justice expands its focus on employment outcomes, the energy and utilities sectors could play a pivotal role by opening up structured pathways for prison leavers to gain technical skills and transition directly into jobs. This approach not only meets recruitment needs but also supports wider social goals. 

These groups represent the kind of latent talent that the EU Skills 2025–2030 strategy seeks to harness, individuals who, with the right support, could help power the UK’s critical energy and utilities infrastructure in the coming decades. 

Employer Momentum and Sector Innovation 

The conference made clear that EU Skills, its members, and the wider sector are determined to meet the challenge head-on. Employers are proactively tackling outdated stereotypes and promoting the wide range of roles within the industry from engineering and project management to digital and environmental innovation. 

Artificial intelligence and automation are already reshaping operations, but rather than replacing jobs, they are augmenting them enabling faster analysis, predictive maintenance, and safer working environments. This shift increases the need for agile, high-quality training, particularly in areas such as digital skills, sustainability, and systems integration. 

The EU Skills 2025–2030 Strategy 

The launch of the EU Skills 2025–2030 strategy, introduced by Paul Cox, provided a compelling vision for the future. The strategy’s four pillars research, attract, develop, retain put the individual at the centre of workforce planning and reflect a clear understanding of the sector’s challenges and opportunities. 

By connecting education and employment and widening access to those furthest from the labour market, the strategy offers a blueprint for sustainable workforce and skills collaboration. Engaging latent talent, attracting expertise from other sectors, and promoting the social and economic value of vocational learning are at the heart of what our members do. EU Skills’ strategy demonstrates that data-driven, collaborative planning can deliver real impact and AELP is proud to endorse it. 

Driving Change 

Independent training providers and colleges are central to turning this strategy into reality. They already work in close partnership with employers at local, regional, and national levels—precisely the kind of collaboration championed by government and was referenced in the Skills Ministers keynote address.  

AELP will continue to advocate for a system that enables providers to respond flexibly to employer needs and to innovate in training design. The convergence of employer and government investment is essential if we are to meet both current and future workforce demands.  

Continued collaboration between employers, government, and the training sector is essential if we are to develop a workforce that meets both current and future demand. Research from the Learning and Work Institute shows that 80% of the 2035 workforce has already left compulsory education, reinforcing the urgent need for investment in adult and lifelong learning. Increasing participation in adult skills and retraining would not only boost productivity but also support social mobility and inclusive growth. 

Challenges Ahead 

As the sector awaits the post-16 skills white paper, several key questions remain: 

• Funding Flexibility: Will the Skills and Growth Offer truly deliver adaptable funding models that employers and providers can use effectively? 
• System Clarity: Can Skills England simplify the post-16 landscape and provide clear, navigable pathways for learners? 
• Responsiveness: Will DfE, DWP, and Skills England move fast enough to respond to rapid technological and labour market shifts? 
• Inclusive Growth: How can NEET engagement and offender learning be embedded within mainstream workforce planning? 
• Funding Reform: Will there be a full review of post-16 and adult funding to unlock innovation and support place-based training? 

Looking Forward 

The UK’s transition to net zero, resilient infrastructure, and energy security will only succeed if skills policy, employer leadership, and inclusive recruitment move in step. The energy and utilities sectors are ready to lead by example by engaging new audiences, investing in lifelong learning, and ensuring no potential talent is left untapped. AELP and its members stand ready to work with government, employers and EU skills to ensure these challenges are met. 

By Paul Stannard, Senior Policy Manager at AELP