Skills policy updates - July 2025

Welcome to the Enginuity Policy Team’s policy update for July 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

Industrial Strategy and Advanced Manufacturing Plan published

The Government published the long-awaited Industrial Strategy, setting a 10-year vision for driving productivity across eight priority sectors (IS-8). The plan includes measures to cut energy costs for around 7,000 heavy industry businesses, strengthen regional clusters and support inward investment into innovation. Skills are a core feature of the Strategy, with £275 million pledged for technical training and apprenticeships – launching short courses, establishing technical excellence colleges, and new offers through the Growth & Skills Levy.

Alongside the Industrial Strategy itself, the Government published 5 individual sectoral plans – including for advanced manufacturing and for clean energy. These are bespoke plans that government are using to set out their plan for the sectors’ transformation; for advanced manufacturing the aim is to “position the UK as the world’s best location for advanced manufacturing”. This sector plan identifies 49,000 vacancies holding back the manufacturing sector and sets out an approach and interventions to reform the skills landscape.

UK Government announces £6.3 million to incentivise employers to provide construction and health T Level industry placements

DfE announced allocations for a “targeted” employer support fund (ESF) to support small and large employers offer placements for health and construction T Level students.

UK Government confirms recruitment target of 6,500 “new” teachers won’t all be new

Secretary of State Bridget Phillipson suggested the Government’s previous pledge to recruit 6,500 new teachers will look at how much the workforce has grown overall, rather than at just “new” recruits. The target has also been confirmed to only apply to secondary and college teachers. Labour’s June 2024 manifesto promised the 6,500 would be “expert teachers in key subjects”.  The word “expert” was dropped from the December 2024 Plan for Change, with the pledge instead for “6,500 extra teachers, focusing on subjects with shortages”.

DfE official suggests foundation apprenticeships could strain budget

The introduction of foundation apprenticeships could place this year’s record apprenticeships budget under strain, the Department for Education’s apprenticeships director, Kate Ridley-Pepper suggested. Ridley-Pepper said “As we look to the future, it is worth reflecting on the fiscal context. In 2023-24, 99 per cent of our £2.5 billion apprenticeship budget was spent, and that picture is likely to be very similar for 2024-25. And while thankfully not all large employers utilise all of their levy funds, which enables us to give 30 per cent of our budget and invest that in SMEs, the position is not sustainable in the long run”. Ridley-Pepper noted rising demand for higher-level apprenticeships, which attract higher levels of funding than lower-level programmes, as the reason for “tough decisions”.

Ofqual will provide awarding organisations with more control over assessment methods

Ofqual sets out the rules that awarding organisations (AOs) must follow and has the power to sanction them if these rules are broken. A consultation has been launched that sets out new proposed rules for “simplified” apprenticeship assessments, following the government’s revised assessment principles for apprenticeships announced earlier this year. Ofqual CEO Sir Ian Buckham has suggested apprentices should expect simpler and “streamlined” assessments under proposed reforms. Buckham said end point assessments have brought “lots of benefits in terms of reliability, trustworthiness, rigor and esteem, but it’s also brought some problems, and those problems include complexity, levels of duplication, repetition and in some cases, too much burden and delays on getting assessments”. Buckham then said reforms didn’t necessarily mean wholesale upheaval for apprentices, particularly on programmes where assessment is already working well. Ofqual’s consultation on reforms closes on the 27^th of August.

Government will temporarily reduce minimum off the job-training hours for some apprenticeship standards

The government will temporarily slash minimum off-the-job training hours for 39 apprenticeship standards by up to 50% following concerns raised that the timing to implement new rules was “too short”. This follows DfE’s May introduction of minimum off-the-job training hours for each apprenticeship standard for the first time. DfE will publish an updated document with the revised minimum OTJ hours next month.

Wakefield pilots jobs and careers service

Wakefield is the first area in the UK to pilot a new, locally led approach to employment support, described as a “pathfinder” to personalise the process for jobseekers. Mayor Tracy Brabin said the city is a “test-bed” for new ideas like a coaching academy for Department for Work and Pensions staff that will be rolled out across the country this year as part of its Get Britain Working plan.

Devolution Bill proposes mayors appoint skills commissioners

New legislation will give mayors powers to appoint “commissioners” to lead on delivery of their skills and employment policies. The English Devolution and Community Empowerment Bill proposes that mayors could directly hire up to seven “independent appointees” who would act as their “extension”.

New youth advisory panel to advise government on NEETs

The government has set up an advisory panel of young people to help “shape” its policies for keeping them in education, employment or training. Made up for 17 young people aged 18 to 24 “with experience” of being out of work and or training, the Youth Guarantee Advisory Panel will feed back its “insights” on employment support, barriers to work and new government policies.

Devolved Administrations

MSPs pass bill to replace SQA with a new Scottish exams body

The Education (Scotland) Bill was passed in Scottish Parliament, which will replace the Scottish Qualifications Authority with a new body, Qualifications Scotland. The new inspectorate body will also have greater independence and the power to set the frequency and focus of inspections, moving this function away from ministers, to His Majesty's Chief Inspector.

Skills pilot programme launched for Scottish oil and gas workers

Around 200 Aberdeen oil and gas workers are set to benefit from a tailored skills programme launched in July, aiming to help them to take advantage of the high-quality job opportunities in Scotland’s growing clean energy sector.  The programme is open to current and former oil and gas workers in Aberdeenshire and are interested in moving into roles within clean energy. Successful applicants will receive careers advice and funding towards training courses, which could cover welding, electrical engineering, and construction.