What Comes Next for Skills? Five Lessons from AELP National Conference 2026

This was my fifth AELP National Conference and it’s safe to say I’ve never experienced one quite like it. It was certainly the hottest, but it also brought together an extraordinary range of voices and perspectives at a pivotal moment for skills.

We arrived in London to news that the Prime Minister had announced his resignation timetable. But while the political drama dominated the headlines outside, delegates inside the conference hall were focused on a different question: what comes next for skills, apprenticeships and workforce development?

Across two days of speeches, panel discussions and debates, five clear themes emerged.

1. Tackling youth unemployment is now the driving force behind government skills policy

If there was one theme that ran through almost every session, it was the growing concern about young people who are not in education, employment or training.

From Skills Minister Baroness Jacqui Smith and DWP’s Kate Ridley-Pepper to employers and providers, speakers repeatedly returned to the same issue: more than one million young people remain outside work and learning, while apprenticeship starts among young people have fallen significantly.

This is driving an important shift in government policy. In her letter to Skills England on the eve of Conference, the Minister was clear that government wants to take a more active role in prioritising how apprenticeship funding is used. An ambition to create 50,000 additional young apprenticeship starts by 2029 also now sits at the heart of Growth and Skills Levy reform. New employer incentives, Foundation Apprenticeships and funding reviews are increasingly being judged on whether they create more opportunities for young people.

AELP’s response to the government’s pivot to young people has been to argue for five solutions to the NEETs crisis which were debated at conference on the Monday:

• Remove the English and maths barrier for under-19 apprentices by aligning requirements with those already in place for adults, making it easier for more young people to complete apprenticeships at no additional cost.
• Fully fund apprenticeships for all under-25s by removing employer co-investment, strengthening incentives for employers to recruit young people while addressing barriers for smaller levy-paying businesses.
• Support providers to engage more SMEs by funding the additional costs of employer engagement, helping training providers bring more small businesses into apprenticeships and create more opportunities for young people.
• Improve progression from Foundation Apprenticeships by allowing learners to move into sustained employment or further training as soon as they are ready, without penalising providers through performance measures or funding.
• Cut employer bureaucracy by allowing training providers to manage apprenticeship administration on employers’ behalf, making the system simpler and more attractive, particularly for SMEs.

Delegates also challenged the narrative around young people themselves. Employer representatives argued that too much emphasis is placed on whether young people are “work ready” and not enough on supporting employers to recruit and develop them successfully.

The message was clear. Apprenticeships are increasingly being viewed not just as a workforce development programme but as one of government’s primary tools for tackling youth unemployment, economic inactivity and improving social mobility.

2. Political uncertainty reinforces the sector’s call for stability

The Prime Minister’s resignation inevitably dominated conversations throughout the conference. With Andy Burnham expected to become the next Prime Minister, delegates were left wondering what the change in leadership might mean for skills policy, devolution and the government’s wider economic agenda.

Providers are already navigating Growth and Skills Levy reforms, assessment changes, qualification reform, Skills England, devolution, funding reviews, Ofsted’s new framework and Apprenticeship Units. While there was little opposition to reform itself, there was a clear message that the cumulative pace of change is becoming increasingly difficult to manage.

That concern was reinforced by John Ingram of Bud, our conference sponsor, who outlined findings from our joint State of the Sector report which was published at National Conference this year. More than seven in ten providers (72%) identified policy uncertainty as one of the biggest pressures facing their organisations, while over half (51%) identified artificial intelligence and automation as a major investment priority. Providers are therefore being asked to adapt to significant policy reform while simultaneously preparing for rapid technological change.

The conference also highlighted how much the political landscape has changed. Alongside ministers and officials, delegates heard from Green MP Hannah Spencer, reflecting how skills policy is increasingly shaped through industrial strategy, climate policy, devolution and regional growth rather than through a traditional two-party lens.

For AELP, this means engaging with a broader range of political voices than ever before. This autumn we will attend all the major political party conferences to ensure our members’ voice is heard wherever future skills policy is being developed.

Ultimately, delegates recognised that successful reform depends on certainty. Providers have repeatedly demonstrated they can adapt, but they also need the stability to plan, invest and deliver.

3. Employer demand remains the biggest challenge

A recurring theme throughout the conference was that the biggest barrier to apprenticeship growth is not learner demand but employer demand.

Kate Ridley-Pepper argued there is strong interest among young people in apprenticeships, but employers need greater encouragement to recruit them. Provider leaders echoed this view, stressing that apprenticeship recruitment is far more complex than policymakers sometimes appreciate.

Persuading employers to recruit apprentices requires relationship building, trust and sustained engagement rather than simply explaining financial incentives. Business representatives also highlighted rising employment costs, economic uncertainty and continuing skills shortages as factors affecting recruitment decisions.

There was broad agreement that government needs to do more to promote apprenticeships directly to employers. If ministers are serious about increasing apprenticeship starts, particularly among younger people, winning the argument with employers may prove just as important as reforming the programme itself.

4. Skills policy is becoming economic policy

One of the most striking developments at this year’s conference was how often skills was discussed alongside industrial strategy, investment and economic growth. Speakers repeatedly linked skills policy to advanced manufacturing, defence, green industries, infrastructure and inward investment.

Baroness Jacqui Smith highlighted Skills England’s role in supporting major projects such as Universal Studios UK and East West Rail, while Kate Ridley-Pepper confirmed future funding decisions will increasingly reflect Skills England’s priority sectors. Hannah Spencer argued vocational education will be central to meeting the UK’s climate ambitions.

That’s why skills policy can no longer be considered in isolation. Decisions about training, funding and qualifications are becoming increasingly tied to economic growth, productivity and industrial strategy.

5. AELP is positioning itself as a broader voice for work-based learning

A final theme came from AELP itself.

Opening the second day of conference, Chair Nicki Hay outlined AELP’s new three-year strategy. While acknowledging the pressures facing providers, she argued AELP’s role is not simply to respond to change but to help shape it.

Nicki made a deliberate point that AELP’s mission now extends beyond apprenticeships. While apprenticeships remain central, the association increasingly represents the wider work-based learning sector, including adult skills, 16-19 provision, workforce development and technical education.

She also highlighted AELP’s ambition to strengthen its policy, public affairs and member engagement work so members can anticipate change rather than simply react to it.

That future focus extended beyond policy reform. Bud’s presentation explored how artificial intelligence could support apprenticeship delivery, arguing the challenge is no longer whether AI will become part of the sector but how it can be adopted responsibly to strengthen, rather than replace, human relationships with learners.

That wider perspective reflected the mood of the conference. Whether discussing youth opportunities, industrial strategy, employer engagement or new technology, the conversation was rarely about defending the status quo. Instead, the focus was on how providers can help solve some of the country’s biggest economic and social challenges.

That may ultimately prove to be the biggest takeaway from AELP National Conference 2026. In a period of political uncertainty and rapid policy change, AELP and its members are positioning themselves not simply as stakeholders to be consulted, but as partners in delivering growth, opportunity and prosperity.

By Matt Strong, Head of External Communications at AELP