Government unveils Skills White Paper to boost training and growth

The UK Government has published its long-awaited Skills White Paper, outlining plans to expand higher-level training and deliver a more flexible, employer-focused skills system. The reforms aim for two-thirds of young people to participate in higher-level education or training by the age of 25, whether through universities, colleges or apprenticeships.

Backed by over £1 billion in investment, the plan targets key sectors facing labour shortages, including digital technologies, clean energy, advanced manufacturing and construction.

The White Paper sets out three main pillars:

• Employer-led skills system: Sector-specific training packages, short courses and foundation apprenticeships will be funded through the Growth and Skills Levy, helping people gain in-demand skills and progress in work. Employers will be encouraged to invest through levy flexibility, co-financing, and clearer entry routes for young people, including those not in education, employment or training (NEET).
• Integrated higher education: The Lifelong Learning Entitlement will enable modular, flexible study aligned with national economic priorities, while universities will continue to focus on research excellence and opportunities linked to the Industrial Strategy.
• Reformed further education: The Government will introduce new V Levels as a vocational alternative to A levels and T Levels, alongside two simplified Level 2 pathways for 16–19-year-olds — one for further study and one occupational route leading to skilled work. Colleges will receive investment to expand capacity, strengthen governance and deliver professional development for FE teachers and leaders.

The Department for Education (DfE) has also opened a public consultation on the proposed Level 3 and below pathways, including the new V Level qualifications. The consultation closes at 11:59 pm on 12 January 2026.

The White Paper signals a major step in aligning education and training with the UK’s economic needs — a shift likely to have significant implications for the construction and infrastructure sectors, which continue to face acute skills shortages.

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The Government’s Skills White Paper sets out reforms to align education, apprenticeships and employer-led training with UK economic priorities.