​Starmer Unveils Skills England to Transform UK Workforce Training

Prime Minister Keir Starmer has announced the launch of Skills England, a new initiative aimed at revolutionising the training of UK workers and reducing the nation's dependence on foreign labour. At the Farnborough International Airshow, Starmer emphasised the urgent need to address the country's "fragmented and broken" skills system, which has long hampered economic growth and productivity.

Simon Dawson / No 10 Downing Street

Skills England is set to replace the existing Institute for Apprenticeships and Technical Education (IfATE) and will oversee the allocation of government funding for adult training courses. The new body will collaborate closely with central government, local councils, businesses, trade unions, and training providers to tackle the skills gap affecting various sectors, including major infrastructure projects like Hinkley Point C, National Grid, and Thames Water.

In his speech, Starmer highlighted the importance of developing a skilled domestic workforce to drive innovation and productivity. "We are going to make sure there are highly motivated, ambitious, talented young people who want to work in your business," he stated. "We are going to fire up the training of all UK workers, and in doing this, we will drive growth because if there's one thing we know that will drive innovation and accelerate productivity, it's having skilled workers."

Starmer acknowledged that it would be easier for the government to rely on immigration to fill skills gaps. However, he insisted that his administration is committed to finding a long-term solution. "We won't be content just to pull the easy lever of importing skills. We are turning the page on that," he declared.

Richard Pennycook, former Chief Executive of the Co-operative Group, has been appointed as the interim chair of Skills England. Education Secretary Bridget Phillipson expressed confidence in Pennycook's leadership, stating that the new body would "jump-start young people's careers and galvanise local economies."

Starmer criticised the current state of the UK's skills system, attributing its "mess" to 14 years of Conservative-led government. He emphasised that there is no quick fix to the problem but reiterated labour's commitment to transforming the approach to meet skills needs over the coming decades. "It is Labour's number one mission as a government to kick-start economic growth by opening up new opportunities for young people and enabling British businesses to recruit more homegrown talent," he said.

Skills England will also work alongside the Migration Advisory Committee (MAC) to identify and address current skills shortages. The MAC has faced criticism from the hospitality industry for removing chefs from the shortage occupation list in 2020. In its most recent review in October 2023, the MAC rejected calls to re-add chefs and hospitality managers to the list. Still, it is recommended that experienced sommeliers from overseas be eligible for skilled worker visas.

The implementation of Skills England will occur in phases over the next nine to twelve months, aiming to create a more responsive and collaborative system. Businesses will be given greater flexibility in utilising funds like the apprenticeship levy on training. The government is also working to simplify and devolve adult education budgets to Mayoral Combined Authorities, enabling regions like Greater Manchester to address local skills needs directly and support growth.

Industry leaders have welcomed the launch of Skills England. UKHospitality Chief Executive Kate Nicholls expressed optimism about the new body's potential to drive growth in the hospitality sector, which employs 3.5 million people in the UK. Nicholls welcomed the commitment to broaden the types of training eligible for apprenticeship levy funding and called for a focus on improving apprenticeship delivery and pre-apprenticeship training.