The Post-16 Education and Skills White Paper: The Business Investment We’ve Been Waiting For

The Big Shift in Skills Investment

"It is the responsibility of employers to invest in their own workforces." ¹

At the recent Labour Party Conference, skills dominated the agenda. Now the Post-16 Education and Skills White Paper delivers the most comprehensive reform in a generation.

According to the paper, skills shortages account for over 25% of all vacancies and the UK will need 900,000 more skilled workers in priority sectors by 2030.

So, after years of declining employer investment in training, the transformation of the Apprenticeship Levy into the Growth and Skills Levy represents more than a rebrand. It's a fundamental shift in how businesses can build the workforce they actually need.

From April 2026, organisations can:

·       Use levy funds for short, flexible courses in critical areas like AI, digital, and engineering

·       Fill skills gaps quickly without committing to multi-year programmes

·       Access Foundation Apprenticeships with up to £3,000 support per learner

·       Shape training priorities in ten national growth sectors

Foundation Apprenticeships: Building Future Talent Pipelines

With nearly one million 16–24-year-olds currently NEET (Not in Education, Employment, or Training), Foundation Apprenticeships provide businesses a way to:

• Bring in raw talent and develop skills from the ground up.

• Financial support to offset onboarding and supervision costs.

• Demonstrate social value while building future talent pipelines.

  
  

The government’s aim is to:

"Enable up to 30,000 young people to start a foundation apprenticeship over this Parliament." 

What Business Leaders Should Do Now

1. Audit your skills gaps and discover where levy-funded training could make an impact.

2. Review your levy spend to identify new opportunities from the flexibilities being introduced.

3. Explore Foundation Apprenticeships as part of your 2026 recruitment strategy.

4. Engage your training providers to discuss course options.

5. Connect with your local skills authority to influence future priorities.

   
   

"Reskilling and upskilling will become ever more important as the labour market continues to shift and adapt to artificial intelligence." 

The Opportunity

The government is committing £1.2 billion per year to skills by 2028–2029, supporting 1.3 million learners annually. Combined with levy flexibilities, this represents the most significant business-led skills investment opportunity in decades.

How will your organisation leverage these new skills flexibilities to build a stronger workforce?

Sources

¹ Page 12, Section 1

Full White Paper PDF

As a People and Skills Development Consultant, I support organisations to develop their people by designing and implementing practical solutions that enable growth, build skills and make a difference to business performance. Get in touch to find out how I can help.