Employers Need Clarity and Confidence in Post-16 Skills Reform

The CBI has welcomed the government’s publication of the Post-16 Education and Skills White Paper and its ambition to consolidate reforms that will support a skilled workforce and expand opportunity across the country.

However, early feedback I have heard from CBI members and stakeholders has been mixed, reflecting both optimism about the direction of travel and concern about how these reforms will actually be delivered.

A Need for a Clear Delivery Strategy

Many employers and education leaders have told me that the White Paper reads more like a “to-do list” than a coherent strategy. The next stage of policy development must go beyond ambition and set out a clear pathway for implementation.

That’s why the CBI is renewing its call for a Skills Roadmap, a phased plan that allows employers and providers to prepare properly, align investment, and deliver effectively. We need to see the whole picture, not just the moving parts.

Urgency on Skills Funding and Levy Reform

One of the biggest concerns is the uncertainty surrounding funding mechanisms. Short courses, unhelpfully branded ‘Apprenticeship Units’ are due to launch in April and August 2026. Yet without further detail, employers cannot judge whether to prioritise apprenticeships, short courses, or both.

Right now, there’s a real risk that employers are being sold another pup: a system that still falls short of the flexibility businesses have been calling for from the levy for years.

Without greater clarity on the Growth and Skills Levy and the Lifelong Learning Entitlement, many remain sceptical about how “flexible” the new system will really be.

There is now an urgent need to unlock the Growth and Skills Levy. In September, it raised £349 million, the highest ever for that month and £22 million more than a year earlier. As Mark Corney from Campaign for Learning has pointed out, it “continues to be the business tax that keeps on giving.” Employers hope the Autumn Budget will finally take the first step by ensuring that the full levy take retained by the Treasury, forecast by the OBR to reach £4.2 billion in 2025/26, is fully committed to skills investment.

Meaningful Employer Partnerships

The White Paper’s emphasis on employer partnerships is welcome. Collaboration between business and providers is vital if these reforms are to succeed. But those partnerships must be meaningful, giving employers a genuine voice and stake in shaping the system, not just a token consultative role.

It’s time to move away from treating employer engagement as a tick-box exercise.

Simplification and Qualification Reform

Simplification is another key theme, particularly with the proposed introduction of V-levels. While business welcomes efforts to streamline qualifications, launching a new qualification while T-levels are still embedding risks confusion for both employers and learners.

And it’s worth asking: which employers were calling for a new qualification in the first place?

Higher and Further Education Funding

The commitment to increase funding for colleges and other 16–19 providers in response to demographic growth is welcome.

At the same time, we can’t ignore the financial pressures facing universities. It’s disappointing to hear, as I have, some claim that universities are “awash with money” when the evidence points in the opposite direction.

The proposal to raise tuition fees in line with inflation is a step forward, but questions remain over whether it will be enough to ensure long-term sustainability. The decision to uprate maintenance loans annually with inflation is encouraging, but the proposed international student levy is a serious concern.

This levy effectively acts as a tax on universities, one that can’t realistically be passed on to students. The risk is clear: fewer resources to cross-subsidise domestic places, and ultimately fewer opportunities for UK learners. We need a bigger, more sustainable solution.

Looking Ahead

The Post-16 Education and Skills White Paper represents a step forward, but success will depend entirely on delivery. The CBI and others stand ready to engage closely with government to ensure that the voice of business shapes these reforms in a way that truly meets the needs of employers, learners, and the wider economy.

But to move forward with confidence, employers need clarity, and soon.

By Robert West, Head of Skills at the Confederation of British Industry (CBI)