Industry and Regulators Committee
The UK is a service-led economy, with strengths in sectors such as financial and business services, the creative and cultural industries, and life sciences, which together employ 20% of the workforce. To build on these strengths, the overall economy, and these strategic sectors in particular need a workforce with higher levels of formal education and skills. The strategic sectors offer substantial wage premiums to graduates and relatively high returns to non-graduates (compared to other sectors). Supporting the growing strategic sectors, and the economic changes brought about by the shift towards net zero and AI, require a steady supply of skilled workers. Both education and upskilling will play a pivotal role in equipping the country's workforce with the skills needed for the future. However, the skills landscape in the UK is complex and presents significant challenges. This paper examines the skills required for the future, identifies the challenges to achieving a highly skilled workforce, and provides policy recommendations to address these issues. Underfunding in education limits the growth of vocational courses and worsens inequalities within the education system. There are also serious funding problems within higher education. There is a gap at the sub-degree qualification level, and funding for further education is needed so that Level 4 and 5 qualifications are adequately supported. By extending the Robbins principle to further education, we can create a demand-led funding system.
16 October 2024
Industry and Regulators Committee
This Government consultation is published under the centre's Education programme.