Skills England faces a big task, but universities can help

The recent establishment of Skills England is to be celebrated, but this new body has a big task ahead of it. From closing persistent skills gaps to driving regional growth and ensuring the national workforce is ready for the future, the asks are significant. Luckily, they have many allies standing ready to help them meet these challenges head-on, namely our world class university sector.

Over the next decade, demand for higher-level skills is set to grow significantly, with the Unit for Future Skills forecasting that 11 million new graduates will be needed by 2035. Sectors like digital technology, the green economy, and health and social care, which already face pressing shortages, will only become more critical. Yet these skills challenges are not uniform: they vary across sectors, regions, and levels, requiring a tailored, place-based response that addresses local needs and national ambitions. 

That’s where universities come in. For generations, universities have played a vital role in driving not just economic growth, but also social mobility and innovation, contributions that will be critical to Skills England’s objective and this government’s missions.

As the government’s Industrial Strategy highlights, higher-level skills are essential for powering Priority Sectors. According to University UK’s analysis, seven of the eight Priority Sectors relied upon a higher proportion of graduates than the UK workforce as a whole.  But universities don’t just produce graduates; they’re hubs of research and innovation, engines of regional growth, and essential civic partners. Their offer is diverse: professional and technical degrees, vital skills development through the arts and humanities, and flexible lifelong learning through professional training. From degree apprenticeships to short courses, universities are adapting their provision to ensure people can access the right skills at every stage of life, whether that’s providing creatives with the technical skills they need, or providing the ‘soft’ skills which will become ever more important as automation advances.

Critically, universities are woven into the fabric of local economies. Often among the largest local employers themselves, they work hand in hand with businesses and local services to identify skills gaps and deliver tailored solutions. Through their existing relationships, universities can help Skills England design place-based strategies that tap into local strengths and create pathways to opportunity for people across the country.

Skills England having an overview of skills needs across the economy provides a moment to reimagine not only which skills we develop, but how we do so. It is critical that Skills England ensures that funding mechanisms, like the new Growth and Skills Levy and forthcoming Lifelong Learning Entitlement, support both existing best practice, and stimulate effective innovation to ensure the broad and complex skill needs are met with flexible, responsive and rigorous education. 

Skills England should take a strategic approach to help the coordination of skills development, fostering local skills networks, and ensuring regions can shape their own local skills strategies to harness talent within regions and benefit learners. In doing so, strong links between devolved nations, the Industrial Strategy Council, upcoming Post-16 Education and Skills White Paper and Skills England, and effective join-up with local structures and other education providers will be essential.  The organisation's role in overseeing the Growth and Skills Levy offers a chance to refine how employer needs are met while maintaining the role universities play in skills more broadly. Additionally, Skills England must carefully consider migration's contribution to workforce development, ensuring the UK remains an attractive destination for global talent. As the Prime Minister said when the Immigration White Paper launched, we cannot simply pull up a drawbridge. We must continue to compete for the best talent in the world, many of whom come to the UK because of our world-leading universities.

The evidence is clear: the high proportion of people achieving a degree is one of the UK’s greatest assets. A long-term strategy is necessary to align skills provision across regions, with universities playing a central role.  But to meet the challenges ahead, Skills England and universities must work together as equal partners. That means seeing the skills debate as multifaceted, not a binary choice between academic and technical pathways, but a dynamic and rich ecosystem in which universities play a crucial role entwined with learners, employers and other providers.

Universities are ready to play their part. With the right partnership and policy support, we can help build a skills system that works for every sector, every level, and every region, one that grows the economy, widens opportunity, and ensures the UK remains globally competitive for decades to come.