Skills policy updates - August 2025

Welcome to the Enginuity Policy Team’s policy update for August 2025. Our monthly update is designed to keep you informed about key developments in skills policy. This edition shares insights into recent government announcements and their implications for our sector, helping you stay ahead of changes shaping the skills landscape.

UK and England policy

Youth guarantee pilot programmes extended into 2027 

Funding for eight “youth guarantee” pilot programmes for tackling the rising youth NEETS crisis has been extended into 2027. The programmes are testing a range of initiatives aimed at reducing youth inactivity and unemployment in eight devolved English regions. The extension means that programmes launched in Spring 2025 will now continue to be funded until March 2027. Recent Office for National Statistics figures revealed that 948,000 young people aged 16 to 24 years old were estimated to be not in employment, education or training. 

New Conservative Shadow Minister for Education 

Saqib Bhatti has been appointed the Conservative Shadow Minister for Education, replacing Neil O’Brien who has been promoted to the shadow cabinet as shadow minister for policy renewal and development. Bhatti has pledged to “hold Labour to account for their damaging policies and empty promises”

Technical Excellence College status awarded to ten colleges 

Ten further education colleges have become the first to be awarded ‘technical excellence college’ status and will receive a share of £100 million in government funding to tackle construction skills shortages. Ministers say the construction technical excellence colleges (CTECs) will train 40,000 people by 2029 in high-demand trades such as bricklaying, carpentry, roofing and electrical work. 

Warm Homes Skills Programme paused by government 

The UK Government paused an £8 million warm homes skills programme after courses were promoted by some training providers before winners were confirmed. In an email sent to bidders, the Midlands Net Zero Hub, which is running the programme on behalf of the Department for Energy Security and Net Zero, said the tender suspension was caused by “a few” applicants promoting WHSP-funded courses to potential learners before funding decisions had been made. 

New requirements for offshore wind developers investment in skills training 

The UK Government will set new minimum requirements determining the amount that offshore wind developers must invest in skills training for local communities. The Department for Energy Security and Net Zero has pledged this through a new Fair Work Charter covering the UK’s fast-growing offshore wind industry. Developed in partnership with trade unions, businesses and education providers, the new Fair Work Charter promises the introduction of new minimum investment levels in skills and communities for offshore wind developers. 

Devolved Administrations

New data shows £171 million taken from apprenticeships funding by Scottish Government  

Research commissioned by businessman and Conservative donor Robert Kilgour found during that Ministers at Holyrood spent £704m on graduate, foundation and modern apprenticeships across three quangos: Skills Development Scotland, Scottish Funding Council and Student Awards Agency Scotland (SAAS). Yet data from HM Revenue and Customs shows at least £875m was raised by Scottish employers from the UK-wide Apprenticeship Levy between 2020 and 2024. Opposition parties claim this means £170m has effectively been taken from this fund and diverted elsewhere. 

Scottish Oil and Gas Transition Fund given £900k  

The Oil and Gas Transition Training Fund is being given £900k of UK Government funding to boost the pipeline of skilled workers needed for the energy transition. The programme is open to current and former oil and gas workers who live in or are employed in Aberdeen or Aberdeenshire and are interested in moving into roles within clean energy. 

Welsh Senedd Committee urges for raised awareness of apprenticeships 

The Senedd’s Economy Committee has concluded that schools, colleges, employers and the Welsh Government must work together to introduce apprenticeships as a strong start to a career, after it found there was a “shocking” lack of awareness surrounding such qualifications. The Committee called for better engagement and promotion, a vocational education and training strategy, and pay increases for apprenticeships. 

Northern Ireland Minister launches Apprenticeship Action Plan 

Economy Minister Dr Caoimhe Archibald has launched an ambitious Apprenticeship Action Plan, setting out a focused vision to enhance skills development and employment opportunities across Northern Ireland. The plan, developed by the Department for the Economy, outlines a series of practical measures to improve, grow, and make the apprenticeship system more inclusive, ensuring it meets the needs of both employers and individuals of all ages.